Turmeric To Witness Volatile Trend As Demand Remains Weak : 04-11-11

Short covering pulled up Turmeric prices even as lower demand and moderate arrivals kept pressurizing the market sentiments. Short term trend likely to remain volatile as traders expect demand to rise in coming weeks.

Rains in some areas in AP have been affecting the arrivals and problems of delivery has created a bearish impact on the market sentiments.

Prospects of demand rising in coming weeks could limit the downtrend however. Traders expect the trend to remain volatile in the short term as improved production prospects and higher stocks could keep the prices under check to some extent.

Good Monsoon reports in AP has reportedly keeping the sowing activities proper. The area sown would however depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc.

The total production this year is expected to touch 75-85 lakh bags (1 bag-75kg) - higher than the 65-70 lakh bags in 2010-11. Higher acre-age from the high rates is stated the reason for the rise in expected production as per traders.

Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January.

Exports that had remained low are however expected to rise in coming weeks from Europe, US, West Asia and Japan.

Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April-August 2011 have risen by 52% to 36,500 MT in 2011 from 24,000 MT in 2010 same period.