Technically Turmeric market is under short covering as market has witnessed drop in open interest by -9.65% to settled at while prices up 54 rupees.
Now NCDEX Turmeric is getting support at 7536 and below same could see a test of 7438 levels, and resistance is now likely to be seen at 7736, a move above could see prices testing 7838.
Turmeric yesterday settled up by 0.71% at 7634 as incessant rains in the southern parts of the country are expected to damage the crop.
However upside seen limited as 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.
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.
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 Nizamabad, a major spot market in AP, the price ended at 7561.85 Rupees gained 82.7 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 7342-8218.
–Turmeric prices gained as incessant rains in the southern parts of the country are expected to damage the crop.
–Spices Board pegs Apr-Sep turmeric exports at 77,245 tn, down 26%
–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 7616.65 Rupees gained 54.8 Rupees.
Courtesy: Kedia Commodities
Source: Comodity Online
