Turmeric Futures Down More Than 6% In Last Five Sessions

NCDEX Turmeric plunged further on weak fundamentals. Spot prices of Turmeric ended lower on the first day of the week owing to better arrivals and weak offtakes from the local stockists. Good rains in the growing areas of AP and Karnataka raised possibilities of a better crop this year.

Traders expect production to range between 65- 70 lakh bags over the last years 48 lakh bags (1 bag = 70 75 kg). There are expectations of farmers switching to this crop this year, as the returns last year had been good. This is expected to improve the crop production aspects.

During April-December 2010, Turmeric exports dipped by 13% to 35,500 tonnes while value surged 77% to 50,947.05 Lakhs.

Reports of low carry forward stocks are likely to support the prices in the medium term.

Indian Yellow spice for the April contract extended the losses for the fifth consecutive trading session. The NCDEX April contract slumped to the session low of Rs. 9230 and the contract is currently trading lower at Rs. 9262, down Rs. 136 or 1.44% over the last close. The open interest added 2.47% to 6845 tonnes. The April contract slumped more than 6% in the last fifth trading sessions.

(Source: http://www.indiainfoline.com/Markets/News/Turmeric-Futures-Down-More-Than-6-percent-In-Last-Five-Sessions/3541046971)