Turmeric prices surged to 11 month high: Angel Commodities Broking

Views of Mr. Ritesh Kumar Sahu (Fundamental Analyst - Agri Commodities, Angel Commodities Broking):

"Turmeric futures surged to 11 month high today on fear of deficient rains in the turmeric growing regions in the country. Moreover, expectation of improving demand from the industrial and up country buyers coupled with diminishing supplies in the physical market and expectation of lower acreage support surge in turmeric prices.

The benchmark turmeric contract for August delivery on the National Commodities and Derivative Exchange (NCDEX) is up 8.6% to trade at Rs. 7,500 per quintal during the current week in three trading sessions. This will be sixth consecutive weekly increase if it closed higher. The contract has surged over 34 per cent in six weeks.

According to India Meteorological Department (IMD), rain over turmeric growing regions in Telangana, Tamilnadu, Karnataka and Maharashtra during the first 40 days of the four-month southwest monsoon has been below normal, which may have adverse impact on the standing turmeric crops.

The trend looks higher on the hope that there will be erratic monsoon over turmeric growing regions which may affect yield and production. Moreover, anticipation of lower acreage in Tamilnadu, Karnataka and Maharashtra due to lower realization of prices during last season may also support prices."

Source : Equity Bulls

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