Turmeric tumbles on active selling

Turmeric futures traded highly volatile on Wednesday. Active selling at futures pulled down the prices and futures most active April contract touched lowest level of 9230 since 2011 started.
However, far month contracts traded positive on expectations that arrivals pressure will be more current contract. However, during closing hours current contract also witnessed small recovery on short covering and ended in marginally positive note.
Outlook
The turmeric futures are expected to trade slightly lower on extended selling pressure on Thursday. However, we can see some recovery today on short covering at lower levels.
At spot front increasing arrivals are pressurizing the prices. Traders are not interested in bulk buying as they are expecting further fall in prices on higher ar-rivals.
Arrivals at spot market of Erode were around 6,000 while spot market of Nizamabad is closed for 2 days, market will resumed its activity tomorrow
As per trade sources, prices at spot market have come down by Rs. 5000 per quintal in a month’s time due to fresh crop arrivals
As per trade sources, turmeric production in 2011 is estimated around 64 lakh bags against 45-48 lakh bags last year (Each bag=70Kg.)
As per derivative analysis, over a period of time prices are falling while volumes and open interest are ris-ing. If prices are in a downtrend and open interest is on the rise, chartists know that new money is coming into the market, showing aggressive new short selling. This scenario will prove out a continuation of a downtrend and a bearish condition.

(Source: http://www.commodityonline.com/futures-trading/technical/Turmeric-tumbles-on-active-selling-21825.html)