Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 4.86% to settled at while prices down 30 rupees.
Now NCDEX Turmeric is getting support at 7430 and below same could see a test of 7314 levels, and resistance is now likely to be seen at 7662, a move above could see prices testing 7778.
Turmeric yesterday settled down by 0.4% at 7548 as turmeric standing crop quality reported well as of now, weather is favourable in growing regions.
Currently, export demand reported lower due to increased shipping cost and some travel restriction in South Asian countries added the bearish sentiment.
Turmeric all India production for 2022 is estimated at 4.89 lakh MT. Last year’s production was 4.46 lakh MT, up by 9.64% from last year. Pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric.
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. 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 7394.05 Rupees gained 69.05 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 7314-7778.
–Turmeric dropped as turmeric standing crop quality reported well as of now, weather is favourable in growing regions.
–Currently, export demand reported lower due to increased shipping cost.
–Turmeric all India production for 2022 is estimated at 4.89 lakh MT up by 9.64% from last year.
–In Nizamabad, a major spot market in AP, the price ended at 7394.05 Rupees gained 69.05 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
