Turmeric trades down on fresh buying

Turmeric futures traded down after witnessing a rally on Thursday. Futures started the day on higher note on extended fresh buying. However, increased arrivals at spot market pressurized the prices and futures traded down on profit booking giving a negative closing.
Outlook
The turmeric futures are projected to extend the losses initially on Friday. However, good domestic demand at spot market might support the prices later in the day. Active bulk buying at spot markets despite of higher arriv-als is likely to push the prices.
Arrivals at spot markets of Nizamabad and Erode were around 8000 and 14000 bags respectively.
Heavy rains in Nizamabad region are further supporting the upside in prices. Traders are receiving good orders from north Indian buyers which is likely to support the upside in prices.
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, after witnessing uptrend for 3 session prices and open interest fell yester-day while volumes rose. Market is vulnerable to a sharp correction but likely that that correction will be bought creating a buy point for uptrend.

(Source: http://www.commodityonline.com/futures-trading/technical/Turmeric-trades-down-on-fresh-buying-22180.html)