Technically Turmeric market is under short covering as market has witnessed drop in open interest by 9.54% to settled at while prices up 182 rupees.
Now NCDEX Turmeric is getting support at 7282 and below same could see a test of 7160 levels, and resistance is now likely to be seen at 7492, a move above could see prices testing 7580.
Turmeric yesterday settled up by 2.52% at 7402 on short covering following export demand from Europe, Gulf countries and Bangladesh. However upside seen limited amid prospects of better crop this kharif season along with tepid demand.
The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains.
India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough, and ensure that the most important crops for the kharif season have normal sowing.
This is good news for agricultural production and food prices. Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices.
According to the statistics of the Department of Commerce, Government of India, the highest number of 1.84 lakh tonnes of turmeric was exported during the last financial year 2020-21.
In the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year, but could be higher in the coming months. In Nizamabad, a major spot market in AP, the price ended at 7195 Rupees dropped 13.95 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 7160-7580.
–Turmeric gained on short covering following export demand from Europe, Gulf countries and Bangladesh.
–However upside seen limited amid prospects of better crop this kharif season along with tepid demand.
–The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season.
–In Nizamabad, a major spot market in AP, the price ended at 7195 Rupees dropped 13.95 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
