TURMERIC
SLUMPS BELOW RS 3700 K ON SHORT SELLING
DATE: 30/05/2012
Indian
Yellow spice futures slumped sharply on short selling triggered by higher
production and stocks. As per market sources, the total production of turmeric
in the current year is likely at 90 lakh bags against 70 lakh bags that were
reported last year in the same period.Moreover, sturdy carryover stocks in
major mandis of around 20-22 lakh bags are also witnessing some selling
pressure at higher levels.
As per the latest
release from the Tamil Nadu Agricultural University, it is expected that last
year stock and this year production accounts to nearly 1 crore bags (75kg/bag).
India's domestic consumption and export demand requires 65-75 lakh bags. As the
supply is above domestic and export demand, the price started declining.
A leading trader from
Erode said, higher arrivals are keeping the prices bearish and price are likely
to find some support at lower levels if arrivals into the market falls
drastically.
The NCDEX turmeric for
the June contract moved in the range of Rs 3766-3602 and quotes at Rs 3678,
down by Rs 70 or 1.87% over the last close.
POWERED BY: COMMODITY
INSIGHTS
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