Thursday, April 7, 2011

Turmeric jumps on extended buying

Spot prices or turmeric at major mandis witnessed mixed trend on account of slightly lower arrivals amidst better offtakes. Nizamabad mandi however ended 1.22% lower. Futures ended 0.7% higher due to improved buying at support levels by the market participants. Stockiest at the domestic mandi are not willing to offload their stocks at lower levels. Prices at the futures are quoting at lower levels then the spot prices. No deposits till yet are made in NCDEX warehouses.
Production, Arrivals Exports
According to Spices Board of India exports of Turmeric from India during April 2010- February 2011stood at 42,5o0 tonnes as compared to 46x57s tonnes in 20o9-10, a decline o19%. Turmeric production in the year 2010-1n1 is estimated at 69 lakh bags (1 bag 7o kgs) compared to 48 Iakh bags during the previous year.
Outlook
Turmeric prices in the intraday will trade firm due to improved buying by the market participants as the domestic markets are closed. 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.