Technically Turmeric market is under fresh selling as market has witnessed gain in open interest by 0.72% to settled at 10425 while prices down 44 rupees.
Now NCDEX Turmeric is getting support at 7104 and below same could see a test of 7046 levels, and resistance is now likely to be seen at 7216, a move above could see prices testing 7270.
Turmeric yesterday settled down by 0.61% at 7164 amid prospects of better crop this kharif season along with tepid demand. However downside seen limited following export demand from Europe, Gulf countries and Bangladesh.
The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season.
Besides, heavy carryover stocks and slack in bulk demand are keeping prices under pressure. In the first 4 months of FY 2021-22, turmeric exports declined by 26% to 53,000 tonnes as compared to the same period last year, but almost at the same level as the 5-year average.
Support is expected on the news that due to June and July floods almost 10% crop washed away so we can see 10-15 % less sowing also farmers had shown interested in other crops as prices where more.
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.
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 7100 Rupees gained 21.45 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 7046-7270.
–Turmeric dropped amid prospects of better crop this kharif season along with tepid demand.
–However downside seen limited following export demand from Europe, Gulf countries and Bangladesh.
–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 7100 Rupees gained 21.45 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
