Sunday, March 13, 2011

Turmeric rises on firm demand

Turmeric futures continued the bullish trend for 3rd consecutive session on extended buying on Wednesday. On opening itself prices traded higher on active buying.
However, prices took decent correction during the day on profit booking but overall positive trend at spot pushed the prices and futures ended on higher note.
Outlook
The turmeric April futures are projected to extend the positive trend initially on Thursday. However, prices are likely to witness good corrections on profit booking on higher level during the day. Nonetheless, overall good domestic demand at spot market might support the prices at lower levels.
Average daily arrivals at spot market of Nizamabad and Erode were around 5,000 and 18,000 bags respectively. As per trade sources, demand from upcountry buyers is supporting the prices at spot front .
As per data released by Spices board, turmeric exports during April- January 2010-11 stood around 38,000 tons down by 13% compared to same period last year.
As per trade sources, turmeric production in 2011 is estimated around 64 lakh bags against 45-48 lakh bags last year (Each bag=70Kg.).
According to derivative analysis, prices and open interest are rising while volumes are falling. Market is attracting late buyers & early shorts; market is vulnerable to a sharp correction but likely that that correction will be bought creating a buy point for uptrend.