Technically Turmeric market is under fresh selling as market has witnessed gain in open interest by 2.28% to settled at 7620 while prices down 66 rupees.
Now NCDEX Turmeric is getting support at 5710 and below same could see a test of 5640 levels, and resistance is now likely to be seen at 5874, a move above could see prices testing 5968.
Turmeric yesterday settled down by 1.13% at 5782 as supply improved in the spot markets as a result of increased mandi arrivals.Pressure also seen amid reports of higher carry forwards stocks from last year due to higher production.
Production for the marketing year 2020-21 is expected to be around 5.20 lakh tonnes on the preliminary basis as against last year’s production of 5.35 lakh tonnes. Turmeric prices trading lower owing to decline in demand from exporters and bulk buyers such as spice manufacturers amid the ongoing lockdown.
However, there is good demand from domestic market anticipating high demand in the coming months due to Turmeric’s increasing awareness as immunity booster.
On export front, Turmeric exports are likely to remain lower compared to previous year as demand from export destinations such as the US and West Asia is likely to fall due to outbreak of Corona virus.
On export front, India exported 1.10 lakh tonnes in 2019-20 (April- January) a decrease of around 4% from the same period of last year.
India exported around 0.09 lakh tonnes of Turmeric in January 2020 which is 15% higher than 0.08 lakh tonnes shipped in January 2019. However, in January 2020, Turmeric exports reported at 0.09 lakh tonnes, 39% lower than 0.15 lakh tonnes recorded in the previous month.
Trading Ideas:
–Turmeric trading range for the day is 5640-5968.
–Turmeric prices dropped as supply improved in the spot markets as a result of increased mandi arrivals.
–Pressure also seen amid reports of higher carry forwards stocks from last year due to higher production.
–Production for the marketing year 2020-21 is expected to be around 5.20 lakh tonnes on the preliminary basis.
–In Nizamabad, a major spot market in AP, the price ended at 5608.8 Rupees remains unchanged at0 Rupees.