Turmeric weakens on increased arrivals

Spot prices at Nizamabad and Erode traded 0.94% and 1.81% lower on account of better arrivals on Tuesday.


Demand from the local stockists and overseas buyers have declined due to sharp fall. Buyers are anticipating further fall in the prices.


Arrivals and Production


Arrivals in Erode declined to 20,000 bags yesterday from 24,000 bags on Monday whereas arrivals in Nizamabad mandi were around 16,000 bags on Tuesday.


Turmeric production in the year 2010-11 is estimated at 69 lakh bags (1 bag= 70 kgs) compared to 48 lakh bags during the previous year.


Outlook

Turmeric prices in the intraday will trade bearish on account of improved arrivals and reduced offtakes. Price trend in the short term are likely to depend on the arrivals and demand from the overseas and domestic buyers.


In the medium to long term turmeric prices may trade bearish due to increase in the arrivals owing to better production.

(Source: http://www.commodityonline.com/futures-trading/technical/Turmeric-weakens-on-increased-arrivals-22591.html)