NCDEX Turmeric likely to move in a range of 6050 6190

Technically NCDEX Turmeric is getting support at 6090 and below same could see a test of 6050 level, And resistance is now likely to be seen at 6160, a move above could see prices testing 6190.

Turmeric on NCDEX settled down by 0.03% at 6128 amid new season arrivals and good production prospects. Demand for turmeric is subdued in spot markets as stockists are not willing to buy produce that is of poor quality.

Moreover, turmeric arrivals are expected to pick-up from next month which has also restricted gains. However, downside seen limited on the back of concerns that drought conditions and cold weather will affect the crop production.

Farmers have demanded the Tamil Nadu Government procure turmeric from farmers at Rs. 12,000 a quintal immediately. Swathantira Raju, President, of a small and marginal farmer and rsquo;s association, in a statement demanded the State government procure all the turmeric with the farmers at Rs. 12,000 a quintal.

He said Erode, Salem, Krishnagiri and Dharmapuri districts are noted for turmeric cultivation and production. But this year for want of rain and depletion of groundwater levels, standing turmeric has started withering. Further the cultivation cost has risen to Rs. 1.50 lakh an acre while the harvesting cost has increased manifold.

There are concerns that drought conditions and cold weather will adversely affect the production. Production is forecasted at 11.5 lakh tonnes in the 1st advance estimates by the government little higher then to last year production.

Fresh arrivals are expected to increase at the spot market and will remain peak due to the harvesting activities. Crop prospects have improved in Maharashtra and overall output is expected to be higher. In Nizamabad, a major spot market in AP, the price ended at 6160 Rupees gained 5 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 6050-6190.
--Turmeric settled down amid new season arrivals and good production prospects.
--Farmers have demanded the Tamil Nadu Government procure turmeric from farmers at Rs. 12,000 a quintal immediately.

--There are concerns that drought conditions and cold weather will adversely affect the production.
--In Nizamabad, a major spot market in AP, the price ended at 6160 Rupees gained 5 Rupees.

Courtesy: Kedia Commodities