Now NCDEX Turmeric is getting support at 7240 and below same could see a test of 7152 levels, and resistance is now likely to be seen at 7408, a move above could see prices testing 7488.
Turmeric yesterday settled down by 0.3% at 7326 on continuous profit booking as the arrival of turmeric in the Nizamabad yard has doubled.
Prices rallied in recent session 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 7175 Rupees gained 3.55 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 7152-7488.
–Turmeric prices dropped on continuous profit booking as the arrival of turmeric in the Nizamabad yard has doubled.
–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 7175 Rupees gained 3.55 Rupees.