MUMBAI (Commoditiescontrol) - During 08-12 July 2019, turmeric arrivals in Erode, Nizamabad and Sangli markets stood at 10,127 bags, 8200 bags and 8475 bags respectively. The modal price of Finger turmeric in Nizamabad stood at INR 61-62 per kg levels.
Turmeric NCDEX August contract (Closing price 6564 per 100 kg as on July 08)
Turmeric August contract has been falling since May 21 when it touch a high of Rs. 7826. Market appears to be weak as the monsoon although delayed has picked up and sowing haspicked up.Long term supports are in the region of Rs. 5990 levels (basis the continuation contract). Should the monsoon progress well and sowing intensity continues, then we should see August contract drifting down towards these levels. Should the support be breached, then market would go into panic and more selling could be seen.
Broad trading strategy
Selling at higher level could be a strategy for short term traders. The bounce back could takethe market higher in stages to Rs. 6780 and then to Rs. 7050. So, based on the risk appetite, selling can be initiated at various levels, expecting the market to correct gradually to Rs.6300 and then to Rs. 6100 levels. Please note, the market in the short term might over react to minor weather (monsoon)related news. That could be a risk.
For processors, staggered buying may be advised in such market situation.
Sowing status (Area in hectares)
Area under turmeric as on 3rd July 2019 stood at 9560 hectares in AP and Terlangana as compared to the normal area level of 16,024 hectares, covered 59.6% of the normal. However, in the same period last year actual area remained at 5.8% above normal levels. However, from 1999 hectares witnessed as on 26th June 2019, jumped sharply to 8925 hectares as on 03rd July given good rainfall.
|
State
|
2019
|
2018
|
|
As on 03rd July 2019
|
As on 26th June 2019
|
As on 03rd July 2019
|
As on 26th June 2019
|
|
Actual
|
Normal
|
Actual
|
Normal
|
Actual
|
Normal
|
Actual
|
Normal
|
|
Telangana
|
8925
|
13,771
|
1999
|
8094
|
13,134
|
13,771
|
10,078
|
8094
|
|
Andhra Pradesh
|
635
|
2253
|
338
|
889
|
3835
|
2253
|
2555
|
889
|
|
Total
|
9560
|
16,024
|
2337
|
8983
|
16,969
|
16,024
|
12,633
|
8983
|
Source: AP/TelanganaAgri-Dept
Sowing in Maharashtra has started from fourth week of June 2019 due to delay in monsoon.However, seed damages of around 8-10% is witnessed as per the information from farmers.On account of GI tag benefit, overseas demand for Erode turmeric is getting increased.Hence the farmers in Tamil Nadu are interested to go for turmeric sowing this season. Amidlower rainfall, farmers in TN are commencing turmeric sowing with the available irrigationsources from canals and open wells.
Rainfall status
Rainfall during fourth week of June and first week of July 2019 in major turmeric growingregions reported well. Rainfall during 20 – 26 June 2019 remained 5-6% deficit as comparedto same period last year. However, it remained above normal level rainfall levels.
|
Location
|
2019
|
2018
|
|
27 June – 03 July
|
20 – 26 June
|
27 June – 03 July
|
20 – 26 June
|
|
Actual (in mm)
|
Normal (in mm)
|
Actual (in mm)
|
Normal (in mm)
|
Actual (in mm)
|
Normal (in mm)
|
Actual (in mm)
|
Normal (in mm)
|
|
Nizamabad
|
77.1
|
54.3
|
60
|
39.4
|
27.6
|
58.7
|
63.2
|
49.4
|
|
Sangli
|
35
|
30.3
|
41.2
|
27.1
|
4.8
|
32
|
29.2
|
26.8
|
|
Hingoli
|
37.2
|
57.3
|
17
|
49
|
3.8
|
54.2
|
93.2
|
60.5
|
|
Erode
|
0
|
7
|
2.2
|
9.7
|
30.1
|
3.5
|
0.3
|
4.3
|
|
Cuddapah
|
7.6
|
11.7
|
8.8
|
14.2
|
6.7
|
12
|
5.1
|
15.5
|
|
Warangal
|
49.1
|
49.2
|
55.6
|
36.8
|
43
|
53.1
|
30.6
|
47.8
|
Source: IMD
Turmeric stock position as on date in India is approximately 36-38 lakh bags as compared to the normal level of 28 lakh bags resulting poor buying activities in physical markets.
(By Commoditiescontrol Bureau)
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