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NCDEX Turmeric under long liquidation Support seen at 5308

Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 5.12% to settled at 5190 while prices down 78 rupees.

Now NCDEX Turmeric is getting support at 5308 and below same could see a test of 5266 levels, and resistance is now likely to be seen at 5420, a move above could see prices testing 5490.


Turmeric yesterday settled down by 1.44% at 5352 on profit booking after pries gained as buyers reported active from lower levels as lower sowing area in Tamil Nadu due to deficient rainfall and in AP as shifted to Cotton and in some parts to Chilli due to current higher prices. At spot market, new Turmeric supply continued with higher moisture level around 4 - 5%.

Turmeric production for 2020-21 is estimated at 452,698 MT (basis dry crop) compared to previous year and rsquo;s 532,353 MT. AP Govt. declared Turmeric support prices. Earlier it was Rs.6,350/-per quintal but now it is Rs.6,850/-per quintal, for new crop from 1st February to 31st May.

Andhra Pradesh Govt. started Turmeric procurement in Kadapa and Duggirala spot market from. last two days around 1,000 bags procured. In Nizamabad, Turmeric growing regions, 70 and ndash; 75% harvesting completed and 60% traded already before lockdown as new crop arrivals started coming from January last week.

In Erode, 50 - 55% turmeric harvesting completed, harvesting process reported slow due to shortage of labour. Coimbatore and ndash; 60% completed, harvesting is going on. Salem and ndash; 65% completed, harvesting is going on.

In Maharashtra and ndash; Sangli growing regions and ndash; 15- 20% completed, harvesting is going on, in Basmat growing regions and ndash; 50-55% completed, harvesting is going on, not traded yet, in Nanded- 55-60% completed, harvesting is going on, not traded yet.

Trading Ideas:
--Turmeric trading range for the day is 5266-5490.
--Turmeric dropped on profit booking after pries gained as buyers reported active from lower levels as lower sowing area in Tamil Nadu.
--At spot market, new Turmeric supply continued with higher moisture level around 4 - 5%.
--Turmeric production for 2020-21 is estimated at 452,698 MT (basis dry crop) compared to previous year and rsquo;s 532,353 MT.
--In Nizamabad, a major spot market in AP, the price ended at 5241.65 Rupees remains unchanged at0 Rupees.

Courtesy: Kedia Commodities

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