Weekly: Turmeric likely to trade side ways

Weekly: Turmeric likely to trade side ways

MUMBAI (Commoditiescontrol) –In NCDEX July contract, turmeric price on 06th June 2019 stood at INR 6838 per quintal levels, which declined to INR 6680 per quintal levels. The decline can be attributed to positive monsoon forecast by IMD for June and July 2019. In Spot market, the price stood at INR 6717 per quintal levels which declined to INR 6533 per quintal on 14th June 2019.

In Nizamabad, the arrivals during 10 – 14th June 2019 stood at 19,000 bags, declined slights as compared to the previous week. Rainfall in major turmeric growing regions of Telangana remained about 75-80% of the normal levels which is likely to provide required soil moisture for upcoming sowing. As on date, turmeric stock position in nizamabad is approximately 5.8-6 lakh bags.

In Erode market, during the week, the arrivals stood at 25,117 bags. The price started declining gradually due to prevailing quality issues. However, the price finger turmeric is traded between INR 68-70 per kg levels on the higher side. During 06 – 12 June 2019, erode region received 17.5 mm rainfall as compared to normal level of 11.5 mm rainfall. If July and August 2019 witnesses sufficient rainfall, area under turmeric in Tamil Nadu may increase as compared to previous season. As Erode turmeric has GI tag, farmers feel comfortable to go for turmeric this season.

In Sangli, during the week, the arrivals stood at 30,881 bags. The price witnessed decline by 3-5% due to limited upcountry demand. As on date stock position is approximately 3.7 lakh bags.

Rainfall distribution 06 – 12 June 2019

Only below 6500 Turmeric may signal some sort of weakness---all depends on progress of monsoon rains in TN, Andhra, as TN is reeling under severe water crisis

We expect Turmeric prices to hover in the region of 6400 and 6850 going forward.

(Commoditiescontrol Bureau)