Turmeric futures prices may continue to remain weak in the next few days on increased inflows and reduced offtake supported by reports of some rains in Andhra Pradesh, major turmeric producer in the country. Progress of monsoon in the Erode region was sufficient and output is expected to be higher this season.
NCDEX August contracts prices were down 7% to trade at Rs 4,569 per quintal on Thursday while October contracts prices were down 8% to trade at Rs 4,876 per quintal on reports of rain in Nizamabad. Spot prices in Nizambad, however, remained steady at higher level of Rs 4,595 a quintal on Thursday as sellers were few.
“There is hardly any difference between spot- and nearby-month contracts prices as there are reports of rain in the Nizamabad region and that may soften prices further. Futures prices are down by 6-7% in just five working days,? a local trader said.
Cloudy weather conditions and rains in Andhra Pradesh from the beginning of this week influenced participants to book profits on their long positions. Acreage may also marginally increase to 1.8 lakh hectare in the season from 1.65 lakh hectare last season.
?Turmeric prices may continue to fall further on continuation of profit-taking in the market followed by decline in spot prices on progress of sowing activity,? an analyst with Karvy Comtrade said. Overseas demand remained sluggish and domestic buying is expected to revive in the next few days, market sources said.