NCDEX Turmeric under short covering Resistance seen at 5904

Technically Turmeric market is under short covering as market has witnessed drop in open interest by 0.58% to settled at 10300 while prices up 24 rupees.

Now NCDEX Turmeric is getting support at 5746 and below same could see a test of 5656 levels, and resistance is now likely to be seen at 5904, a move above could see prices testing 5972.

Turmeric on NCDEX settled up by 0.41% at 5836 on short covering after prices dropped on better crop prospects amid weak export demand from Iran. and nbsp; In Andhra Pradesh, Duggirala market turmeric supply reported on an average 5,000-6,000 quintals per day.

As per the latest statistics, the total area sown under turmeric in Telangana was at 48,315 hectare in the current 2019-20 season, slightly up from 47,790 hectare over the year-ago period, as per the latest sowing data released by the state agriculture department.

On the demand side, there are negative cues from the spot market, owing to sluggish demand from the stockiest. Only 55-60 per cent of turmeric that arrived was sold at the markets in Erode.

Though farmers brought 3,000 bags of the spice, the stocks were of medium and poor quality. So, the traders purchased them for local orders. Indian turmeric exports have been hit by the US sanctions against Iran, the largest buyer of the spice from India.

Exports to Iran have come to a standstill since May with the expiry of the US sanctions waiver to India for six months.

This has happened after a record turmeric export of over 1,20,000 tonnes in 2018-19, as per the trade figures. and nbsp; and nbsp; In Nizamabad, a major spot market in AP, the price ended at 6001.55 Rupees dropped 3.45 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 5656-5972.
--Turmeric prices gained on short covering after prices dropped on better crop prospects amid weak export demand from Iran.
--In Andhra Pradesh, Duggirala market turmeric supply reported on an average 5,000-6,000 quintals per day.

--As per the latest statistics, the total area sown under turmeric in Telangana was at 48,315 hectare in the current 2019-20 season
--In Nizamabad, a major spot market in AP, the price ended at 6001.55 Rupees dropped 3.45 Rupees.

Courtesy: Kedia Commodities