Turmeric dropped on profit booking amid improved crop condition.

yesterday settled down by -1.42% at 16844 on profit booking amid improved crop condition. Losses in turmeric are likely to be capped by the limited availability of quality produce in the market. Ongoing sowing and crop progress is a major price driver for turmeric and the forecast of drier weather in southern and central regions has added worries to turmeric crops. Sowing activities are almost completed in Maharashtra and likely to pick up in Andhra Pradesh and Tamil Nadu (NS:) but erratic monsoon rainfall has impacted the sowing progress. 

The looming threat of El Nino casts a shadow over the upcoming turmeric crop. Meteorological predictions suggest the activation of El Nino in July, potentially resulting in reduced rainfall and drought conditions. Such conditions could particularly impact yields, like turmeric, that heavily rely on monsoon irrigation. Farmers’ shift in focus has led to expectations of a 20-25 per cent decrease in turmeric sowing this year, notably in states like Maharashtra, Tamil Nadu, Andhra Pradesh, and Telangana. Turmeric exports during Apr-May 2023, rose by 27.55 per cent at 39,418.73 tonnes as compared to 30,903.38 tonnes exported during Apr-May 2022. In Nizamabad, a major spot market in AP, the price ended at 14543.05 Rupees and gained 130.8 Rupees.

Technically market is under fresh selling as the market has witnessed a gain in open interest by 5.77% to settle at 15300 while prices are down -242 rupees, now Turmeric is getting support at 16674 and below same could see a test of 16502 levels, and resistance is now likely to be seen at 17134, a move above could see prices testing 17422.