Turmeric Spot Prices Under Pressure, NCDEX Futures See Recovery

Mumbai, May 15 (Commodities Control): Turmeric markets witness a mixed movements as spot prices experience stability to weakness, contrasting with the recovery observed in NCDEX futures. The market grapples with subdued demand and anticipation of further price fluctuations.

In major spot markets, turmeric prices remain mostly stable or exhibit weakness, primarily attributed to subdued demand at elevated price levels. Notably, Basmatnagar witnesses a sharp drop in prices, with a decrease of Rs 100 per quintal and Rs 555 per quintal. The reopening of the Basmatnagar market after a hiatus leads to this significant price correction, highlighting the impact of market dynamics on price movements.

Low demand from end users and exporters contributes to the downward pressure on prices, as reported by local sources. The inactive stance of stockists and sellers' reluctance to engage in selling activities further exacerbate the situation, driven by the anticipation of potential price increases in the future.

Despite the uptick in arrivals, totaling 13,700 bags compared to 11,000 bags in the previous session, the overall production remains significantly reduced. Market sources indicate a 30-40% decrease in arrivals compared to previous seasons, reflecting the broader trend of diminished production.

On the futures front, NCDEX turmeric prices exhibit a slight recovery after a four-session decline, buoyed by bargain buying at lower price levels. June and August contracts witness increases of 1.2% and 0.9% respectively, signaling a potential turnaround in NCDEX futures in the coming days. The aggressive correction from high levels sets the stage for a recovery trajectory in the NCDEX market.

In the NCDEX spot market, prices show resilience, with Nizamabad and Sangli maintaining stability despite the broader market fluctuations.

Turmeric contract for JUN delivery settled at Rs 18132/quintal showing an rise of Rs 218 over previous close of Rs 17914/quintal,The contract moved in the range of Rs 17692-18450 for the day. Open interest decreased by -760 MT to 17155 MT, while trading volume decreased by -1150 to 3910 MT.

Turmeric contract for AUG delivery settled at Rs 18656/quintal showing an rise of Rs 160 over previous close of Rs 18496/quintal,The contract moved in the range of Rs 18172-18924 for the day. Open interest increased by 895 MT to 3545 MT, while trading volume decreased by -305 to 1485 MT.

Currently The spread between JUN and AUG contract is -524 Rs/quintal.

(By Commoditiescontrol Bureau: +91 9820130172)