NCDEX Turmeric under fresh buying; Support seen at 5802

Technically Turmeric market is under fresh buying as market has witnessed gain in open interest by 8.43% to settled at 6815 while prices up 14 rupees.

Now NCDEX Turmeric is getting support at 5802 and below same could see a test of 5762 levels, and resistance is now likely to be seen at 5890, a move above could see prices testing 5938.

Turmeric yesterday settled up by 0.24% at 5840 as buyers reported active from lower levels as lower sowing area in Tamil Nadu due to deficient rainfall and in AP as shifted to Cotton and in some parts to Chilli due to current higher prices.

At spot market, new Turmeric supply continued with higher moisture level around 4 – 5%. Turmeric production for 2020-21 is estimated at 452,698 MT (basis dry crop) compared to previous year’s 532,353 MT.

AP Govt. declared Turmeric support prices. Earlier it was Rs.6,350/-per quintal but now it is Rs.6,850/-per quintal, for new crop from 1st February to 31st May.

In Nizamabad, Turmeric growing regions, 70 – 75% harvesting completed and 60% traded already before lockdown as new crop arrivals started coming from January last week.

In Erode, 50 – 55% turmeric harvesting completed, harvesting process reported slow due to shortage of labour. Coimbatore – 60% completed, harvesting is going on. Salem – 65% completed, harvesting is going on.

In Maharashtra – Sangli growing regions – 15- 20% completed, harvesting is going on, in Basmat growing regions – 50-55% completed, harvesting is going on, not traded yet, in Nanded- 55-60% completed, harvesting is going on, not traded yet.

Trading Ideas:
–Turmeric trading range for the day is 5762-5938.
–Turmeric gained on some buying after prices dropped as supply improved as a result of increased mandi arrivals.
–There are 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 5636.95 Rupees remains unchanged at0 Rupees.