Thursday, June 30, 2011
Turmeric likely to move further higher
MUMBAI (Commodity Online): Low level buying activities were noted in the Spot and the Futures market as Turmeric rates recovered moderately. But reports of rains in growing areas in Andhra Pradesh kept sentiments down.
Low demand and reports of higher production and stocks in mandis are likely to pressurize the prices to some extent. There are expectations however of demand rising in coming weeks that could support the falling prices.
Sowing has started in the growing areas in Andhra Pradesh and the progress is reportedly satisfactory. Good Monsoon progress is also reportedly keeping the sowing activities proper.
The area sown would however depend on the market rates and if the falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc.
The present 2010-11 crop is expected higher at 65-70 lakh bags vs 48 lakh bags the earlier year.
Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January.
Exports that had remained low are however expected to rise in coming weeks from Europe, US, West Asia and Japan. That could support the falling prices to some extent.
Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April-March 2010-11 have fallen by 3% to 49,250 MT in 2010-11 from 50,750 MT in 2009-10 same period.
Courtesy: Religare Commodities
This post was written by: HaMienHoang (admin)
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