Turmeric yesterday settled up by 4.51% at 16370 amid 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:TNNP) 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-Jun 2023, rose by 16.87 per cent at 57,775.30 tonnes as compared to 49,435.38 tonnes exported during Apr-Jun 2022. In Nizamabad, a major spot market, the price ended at 14134.5 Rupees dropped by -0.09 per cent.
Technically market is under short covering as the market has witnessed a drop in open interest by -0.41% to settle at 15620 while prices are up 706 rupees, now Turmeric is getting support at 15658 and below the same could see a test of 14944 levels, and resistance is now likely to be seen at 16828, a move above could see prices testing 17284.