Turmeric falls on extended selling

Turmeric futures extended the losses on active selling on previous gains on Monday. Futures started the day on lower note on extended profit booking. Increased arrivals at spot market amid reduced demand from exporter’s side pressurized the prices and futures ended the day in red.
Outlook

The turmeric futures are projected to extend the losses initially on Tuesday. Higher arrivals amid sluggish export demand might pull down the prices during the day. However, fresh buying at lower levels is likely to sup-port the prices towards closing hours.
Arrivals at spot markets of Nizamabad and Erode were around 10000 and 12000 bags respectively.
As per trade sources, exporters are not interested in bulk buying due to decline in export orders from Gulf countries on rising Middle East concern.
As per data released by Spices board, turmeric exports during April- January 2010-11 stood around 38,000 tons down by 13% compared to same period last year.
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, prices and open interest are falling while volumes have shown a positive move.
This indicates that market is running out of traders willing to open or hold an open short/sell. Traders are liquidating both loosing long positions & closing winning short positions. It is a signal of aggressive short selling.

(Source: http://www.commodityonline.com/futures-trading/technical/Turmeric-falls-on-extended-selling-22242.html)