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Turmeric Update

posted May 22, 2011, 3:11 AM by NAVYUG Info

Slight weak trend continued for Turmeric over last couple of weeks as absence of exports pressurized the market sentiments. Reports of higher arrivals, higher stocks and low export demand continued to keep sentiments weak. There are expectations however that the exports are likely to rise in coming weeks that could support the falling rates. 

Export demand from Gulf countries supported the prices to some extent. Trend likely to remain volatile as traders expect rates have fallen to significantly low levels and expect demand to pick up in coming weeks. Low stock levels are supporting the prices to some extent. 

But arrival of new crop in coming weeks could have some bearish impact on the market sentiments. Good rains in the growing areas of AP and Karnataka raised possibilities of a better crop this year. With sowing area in these 2 states expected to rise, it can pressurize the prices to some extent. Traders expect production to range between 65-70 lakh bags vs ~48 lakh bags last year (1 bag = 70-75 kg).