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Technically market is under short covering as market has witnessed drop in open interest by -2.93% to settled at 10285 while prices up 6 rupees.
Now NCDEX Turmeric is getting support at 6362 and below same could see a test of 6310 level, And resistance is now likely to be seen at 6464, a move above could see prices testing 6514.
Turmeric on NCDEX settled up by 0.09% at 6412 on short covering after prices dropped on higher supply amid weak demand in the physical market. This year turmeric output is expected to rise following higher acreage which is also weighing on prices.
According to the Department of Horticulture and Plantation Crops of Tamil Nadu, acreage of turmeric in Erode may jump nearly 80% on year to 5,300 hectares in 2018-19 (Jul-Jun) because of very good rainfall this year and availability of other water sources.
In Telangana, turmeric acreage rose to 47,790 hectare compared to 44,956 hectares a year ago, state government data showed. In Andhra Pradesh, farmers planted turmeric over area 18,000 hectares, up from 14,000 hectares a year ago.
Turmeric exports in 2018-19 (Apr-Sep) is up by 10.6% at 65,547 ton compared to 59,285-ton last year for the same time. As per reports, standing crop likely to damage around 10 – 20% currently, if higher temperature will continue next 15 – 20 day’s damage percentage may go up to 30-40%.
Moreover, turmeric sowing in all major producing states is higher than last year as weather remained favourable. During the October, arrivals of turmeric have been higher at 12,478 t (Vs 10,978 t) compared last year, as per data. In Nizamabad, a major spot market in AP, the price ended at 7064.3 Rupees dropped 35.7 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 6310-6514.
–Turmeric prices gained on short covering after prices dropped on higher supply amid weak demand in the physical market.
–This year turmeric output is expected to rise following higher acreage which is also weighing on prices.
–NCDEX accredited warehouses turmeric stocks dropped by 95 tonnes to 3329 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7064.3 Rupees dropped 35.7 Rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
