Turmeric tumbles on selling pressure

Turmeric futures traded continued the bearish trend on selling pressure on Monday. Futures started the day on negative note taking cues from subdued demand at spot market activity.
Prices witnessed small recovery on short covering but failed to sustain the gains. Reports of huge arrivals at spot market on Friday continued to weigh on prices and futures ended the day in red.
Outlook

Turmeric May futures are expected to continue the bearish trend on cues from down spot market activity on Tuesday.
Sluggish demand at spot market is likely to support the prices. However, prices are vulnerable to a recovery which might create selling opportunity in market.
Daily arrivals at spot market of Erode were 14,000 bags while Nizamabad spot market will remain closed this week due to labor problem (Each bag=70Kg.).
Reduced bulk buying from stokiest in lieu of further fall in prices is pressurizing the prices. On other side, spot farmer are not ready to sell below `10,000 per quintal and hence reducing supply to the market.
According to traders, this year total turmeric production is estimated around 65 lakh bags against 46-48 lakh bags last year. As per trade sources, huge difference in prices as compared to November-December farmers are not ready to sell but higher production estimates are keeping buying activity very sluggish.
According to derivative analysis, over a period of time prices and volumes are falling while open interest is rising. It is a good indication that a sharp rally against downtrend will develop creating a sell point for downtrend.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Turmeric-tumbles-on-selling-pressure-23516.html)