Technically Turmeric market is under fresh selling as market has witnessed gain in open interest by 0.24% to settled at 10450 while prices down 44 rupees.
Now NCDEX Turmeric is getting support at 5844 and below same could see a test of 5792 levels, and resistance is now likely to be seen at 5946, a move above could see prices testing 5996.
Turmeric yesterday settled down by 0.38% at 5762 on profit booking after prices seen supported on reports of a decrease in sown area for the marketing year 2021 across Nizamabad and Marathwada regions.
The overall decrease in sowing area can be between 15-20% as timely monsoons and lower price realizations for Turmeric over the past few years have made the farmer shift to Cotton, Soybean.
While most of the trade is for immediate use due to uncertainty in the market, Stockiest have started active gradually due to factors like decreasing sowing area and increasing demand in the wake of COVID.
As per market feedback, majority of the stock is with farmers across major cultivation centers. Farmers have been holding back some good quality turmeric with them and the traders are expecting that the farmers will bring the same after September when second turmeric season begins.
Improved demand from overseas buyers is seen given the relaxation in lockdown restrictions has led to some pickup in demand from Bangladesh.
Demand from West Asian countries has also risen amid easing of lockdown restrictions. India exported 1.37 lakh tonnes Turmeric in 2019- 20 (April- March) a decrease of around 1.16% from the same period of last year.
–Turmeric trading range for the day is 5692-5836.
–Turmeric prices dropped on profit booking after prices seen supported on reports of a decrease in sown area
–The overall decrease in sowing area can be between 15-20% as timely monsoons and lower price realizations for Turmeric over the past few years
–While most of the trade is for immediate use due to uncertainty in the market
–In Nizamabad, a major spot market in AP, the price ended at 5542.5 Rupees remains unchanged at0 Rupees