Weekly Review: Recovery Likely In Turmeric On Low Level Buying

MUMBAI (Commoditiescontrol) - Turmeric prices may move positively in the coming days owing to low level buying. However, prices are currently under pressure due to lacklustre export demand.

The prices have continued their weakness since hitting their 15-week highest level (June Futures, Rs 7,770). But the stockists may be active at the lower level. The prices for the long-term are likely to be supported by better domestic purchases and exports.

According to data released by Agmarknet, the arrival of turmeric in the first fortnight of May (till May 15) was 30,400 tonnes, compared to 44,571 tonnes during the same period last year.

This year, good and dried turmeric is being seen in the markets and in the coming days, in view of the uptrend, traders and stockists can be seen active for stocking.

Meanwhile traders are waiting for the monsoon. As per the India Meteorological Department (IMD), the southwest monsoon is expected to hit Kerala on May 29, three days ahead of its normal onset date.

Sowing of the spice generally starts after monsoon rains.

India is the largest producer and exporter of spices in the world. India exported about 7.97 lakh tonnes of spices and spice products worth Rs 13,167.89 crore during April-December 2017, an increase of 20 percent in volume and four percent in Rupee terms. During the corresponding period in 2016, 6.63 lakh tonnes valued at Rs 12,607.46 crore was exported, a Spices board press release said. In Dollar terms,spices exports were pegged at USD 2041.23 million as compared to USD 1880.02 million, notching an increase of nine percent in value.

The production of turmeric in entire India this year is estimated to be about 58 to 62 lakh bags (70 kg bags per bag). And demand from both domestic and export can be 70 to 75 lakh bags, resulting in the possibility of low carry forward stock in the coming year, which is likely to push price of turmeric up to 3 digits but in July and August rainfall figures may play a major role for the prices.

According to the technical chart, weekly trend in turmeric June futures is firm. For the long position, position should be maintained with stop loss of 7,008. After achieving the 7,288 level, the level of 7,400 and 7,686 may be seen, but if profit booking comes, then there is a possibility of getting support at the psychological level of 7,126.






(By Commoditiescontrol Bureau; +91-22-40015567)