Wednesday, March 23, 2011

Turmeric trades up on short covering

Spot prices of Turmeric in Nizamabad were quoted at lower levels on account of improved fresh arrivals. Futures however settled 1.25% higher due to shortcoverings by the market participants.
Demand from the local stockists and overseas buyer have declined due to sharp fall. Buyers are anticipating further fall in the prices.
Arrivals and Production
Arrivals in Nizamabad mandi were around 16,000 bags on Tuesday as compared to 7,000 bags on Friday.
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.