Technically Turmeric market is under fresh selling as market has witnessed gain in open interest by 0.4% to settled at 12435 while prices down 210 rupees.
Now NCDEX Turmeric is getting support at 7026 and below same could see a test of 6950 levels, and resistance is now likely to be seen at 7226, a move above could see prices testing 7350.
Turmeric yesterday settled down by 2.87% at 7100 amid prospects of better crop this kharif season along with tepid demand.
Pressure seen as the areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. However downside seen limited on short covering following export demand from Europe, Gulf countries and Bangladesh.
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 7208.95 Rupees dropped 6.2 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 6950-7350.
–Turmeric dropped amid prospects of better crop this kharif season along with tepid demand.
–Pressure seen as the areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season.
–However downside seen limited on short covering following export demand from Europe, Gulf countries and Bangladesh.
–In Nizamabad, a major spot market in AP, the price ended at 7208.95 Rupees dropped 6.2 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
