Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 0.15% to settled at 9850 while prices down 62 rupees.
Now NCDEX Turmeric is getting support at 7404 and below same could see a test of 7336 levels, and resistance is now likely to be seen at 7566, a move above could see prices testing 7660.
Turmeric yesterday settled down by 0.82% at 7470 amid poor demand for old stocks as traders wait for the new season of turmeric. However downside seen limited amid less area in Telangana and unseasonal rains, also expectations of better export demand supporting the prices.
Turmeric exports in the first 5 months (April-August) of FY 2021-22 declined by 25% to 64,600 tonnes as compared to the same period last year, but almost at the same level as the 5-year average.
There were also reports of 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.
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. In Nizamabad, a major spot market in AP, the price ended at 7154.45 Rupees dropped 35.3 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 7336-7660.
–Turmeric dropped amid poor demand for old stocks as traders wait for the new season of turmeric.
–However downside seen limited amid less area in Telangana and unseasonal rains, expectations of better export demand.
–Turmeric exports in the first 5 months (April-August) of FY 2021-22 declined by 25% to 64,600 tonnes as compared to the same period last year.
–In Nizamabad, a major spot market in AP, the price ended at 7154.45 Rupees dropped 35.3 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
