Turmeric prices on the NCDEX moved lower by 20 per cent in
the last three months amid expectations of a better crop for the second
straight year. The softness in price comes as the fresh lot starts arriving in
mandies amid improved prospects of output in Andhra Pradesh, Telangana and
Maharashtra.
In Tamil Nadu, the production is lower this
year, hit by rain deficit in the state. But the shortage has been compensated
by other states. Stockists did not turn aggressive buyers at that point on
expectations of a further decline in prices as export demand slows.
Lower carryover is seen to support the market in the medium
and long run as the current stock of 6 lakh bags is shorter than 10 lakh bags a
year ago.
Looking
at current fundamentals and the crop report, turmeric will be under pressure in
the short term. But it will draw support at lower levels on export demand
revival in the next few months. Turmeric on the NCDEX will find comfort in the
price range of Rs 6,000-5,800 per quintal.
No comments:
Post a Comment