Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 7.96% to settled at 5260 while prices down 20 rupees.
Now NCDEX Turmeric is getting support at 8742 and below same could see a test of 8664 levels, and resistance is now likely to be seen at 8934, a move above could see prices testing 9048.
Turmeric yesterday settled down by 0.23% at 8822 as pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric.
However, downside seen limited due to heavy rainfall, the minimum crop damage has gone to 40% to 50% in producing parts of Maharashtra, Telangana and Andhra. Support also as the demand from exporters is good.
Spices Board has set a target of 33 per cent increase in turmeric exports to 183000 tonnes on a year-on-year basis in the financial year 2020-21.At the same time, the government estimates that turmeric production may be 1.11 million tonnes in 2020-21, which was 1.15 million tonnes a year ago.
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. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India.
In terms of value, exports rose 3% to 154.6 bln rupees. Exports of jeera during Apr-Sep declined 14% on year to 139,295 tn, from 162,033 tn a year ago. 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. In Nizamabad, a major spot market in AP, the price ended at 7833.35 Rupees gained 35.85 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 8664-9048.
–Turmeric dropped as pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric.
–However, downside seen limited due to heavy rainfall, the minimum crop damage has gone to 40% to 50% in producing parts.
–At the same time, the government estimates that turmeric production may be 1.11 million tonnes in 2020-21, which was 1.15 million tonnes a year ago.
–In Nizamabad, a major spot market in AP, the price ended at 7833.35 Rupees gained 35.85 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
