Technically Turmeric market is under short covering as market has witnessed drop in open interest by 4.21% to settled at 6250 while prices up 46 rupees.
Now NCDEX Turmeric is getting support at 7384 and below same could see a test of 7332 levels, and resistance is now likely to be seen at 7492, a move above could see prices testing 7548.
Turmeric yesterday settled up by 0.62% at 7434 following export demand from Europe, Gulf countries and Bangladesh. However upside seen limited amid prospects of better crop this kharif season along with tepid demand.
The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season.
Besides, heavy carryover stocks and slack in bulk demand are keeping prices under pressure. In the first 4 months of FY 2021-22, turmeric exports declined by 26% to 53,000 tonnes as compared to the same period last year, but almost at the same level as the 5-year average.
Support is expected on the news that due to June and July floods almost 10% crop washed away so we can see 10-15 % less sowing also farmers had shown interested in other crops as prices where more.
Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices.
In the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year, but could be higher in the coming months. In Nizamabad, a major spot market in AP, the price ended at 7165.8 Rupees gained 36.65 Rupees.
Trading Ideas:
–Turmeric trading range for the day is 7332-7548.
–Turmeric gains following export demand from Europe, Gulf countries and Bangladesh.
–However upside seen limited amid prospects of better crop this kharif season along with tepid demand.
–The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season.
–In Nizamabad, a major spot market in AP, the price ended at 7165.8 Rupees gained 36.65 Rupees.