Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 4.22% to settled at 7950 while prices down 40 rupees.

Now NCDEX Turmeric is getting support at 7412 and below same could see a test of 7282 levels, and resistance is now likely to be seen at 7696, a move above could see prices testing 7850.

Turmeric yesterday settled down by 0.53% at 7540 on profit booking after prices rallied due to the possibility of 25 percent crop loss in Telangana and Andhra Pradesh. Even in Sangli district of Maharashtra, the crop has been affected.

There are expectation of decrease in Turmeric sown area in the kharif sowing season 2020 across Nizamabad and Marathwada regions.

Covid-19 raised expectations regarding the consumption of turmeric as a body immune enhancer, but it did not last long. Poor quality of arrivals is another reason for the drop in demand.

Therefore, many traders in Erode started buying turmeric from the markets of Andhra Pradesh and Maharashtra as the prices were low there. Despite 2% freight, they are saving 5% on costs.

Apprehensions are there that water logging and higher moisture due to recent rains in October in major Turmeric growing regions of Telangana, Maharashtra, Karnataka is likely to have adverse impact on overall productivity of Turmeric.

Stockiest are getting active and started purchasing actively due to factors like decreasing sowing area and increasing demand.

On the export front, India exported around 0.86 lakh tonnes of Turmeric in April-August, 2020 which is 51% higher than April-August, 2019 at 0.57 lakh tonnes. In Nizamabad, a major spot market in AP, the price ended at 7100 Rupees gained 3.55 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 7282-7850.
–Turmeric dropped on profit booking after prices rallied  due to the possibility of 25 percent crop loss in Telangana and Andhra Pradesh.
–Even in Sangli district of Maharashtra, the crop has been affected.
–Covid-19 raised expectations regarding the consumption of turmeric as a body immune enhancer, but it did not last long
–In Nizamabad, a major spot market in AP, the price ended at 7100 Rupees gained 3.55 Rupees.