Technically Turmeric market is under short covering as market has witnessed drop in open interest by 0.09% to settled at 10870 while prices up 226 rupees.

Now NCDEX Turmeric is getting support at 7924 and below same could see a test of 7708 levels, and resistance is now likely to be seen at 8274, a move above could see prices testing 8408.

Turmeric yesterday settled up by 2.86% at 8138 as again demand is seen as an immune booster amid a resurgence in infections that has spurred curbs in some states.

Support also seen on concerns over production prospects in the new season, relatively lower carryover stocks, active buying by bulk buyers and better exports prospects.

The arrival so far this year has been 10.15 lakh bags (one bag of 50 kg) as compared to 11.50 lakh bags in the same period last year and 14 lakh bags in 2019.In Nanded in Maharashtra, arrivals are at least 40 per cent lower.

In addition to this, stocks in the pipeline have also come down this year following the increase in turmeric exports. Export orders have come from Bangladesh and Gulf countries and shipment will start from April.

According to data by the Ministry of Agriculture, turmeric production was estimated at 9.46 lakh tonnes during the 2019-20 season (July-June), compared with 9.61 lakh tonnes the previous year, despite the area under the crop rising by 4,000 hectares to 2.57 lakh hectares.

According to data by the Spices Board, turmeric exports during the April-September period of the current fiscal were 99,000 tonnes compared with 69,500 tonnes during the same period a year ago with the value of the shipments rising 35 per cent. In Nizamabad, a major spot market in AP, the price ended at 7705.55 Rupees gained 108.5 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 7708-8408.
–Turmeric gained as again demand is seen as an immune booster amid a resurgence in infections that has spurred curbs in some states.
–Support also seen on concerns over production prospects in the new season, relatively lower carryover stocks, and better exports prospects.
–The arrival so far this year has been 10.15 lakh bags as compared to 11.50 lakh bags in the same period last year
–In Nizamabad, a major spot market in AP, the price ended at 7705.55 Rupees gained 108.5 Rupees.