Turmeric futures prices may rule firm over the next three months on lower-than-the-expected crop for the new season as the sowing operation just completed last week, supported by rising domestic as well as export demand.
Turmeric active October contracts were up Rs 150 to trade at Rs 3,817 per quintal on Friday (till 5.00 pm) over the past one week.
However, futures prices fell by Rs 100 during the last two days on reports of higher stocks at Erode mandi.
?Futures prices have been declining over the last two days on reports of good rains and increased stocks in Erode market but overall the market sentiment is bullish till Diwali as demand for export mainly Middle East may start by next week,? a local trader said.
Export demand is expected from the Dubai and Saudi Arabia, Sri Lanka, Bangladesh, and the USA. Fresh enquiries by exporters and local festival demand may start from next month.
?A medium term bearish trend may come into existence if market fails to breach important
resistance around Rs 4,500 levels which may bring the prices as low as Rs 3,600 and then Rs 3,220,? an analyst with Karvy Comtrade
said.
Prices are expected to move upside movement in the near term as acreage brought under turmeric cultivation remained more or less the same as last year of around 1.65 lakh hectares in season 2008-09.
Output is anticipated to be around 7-7.5 lakh tonnes, according to trade sources. Traders expect lower carry over stocks for the next season over the previous season.
According to trade sources, carry-forward stock from last year?s crop is estimated at about 1.2 lakh tonne, which is lower than last year?s 1.6 lakh tonne.