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Veeresh Hiremath
Turmeric futures prices rose sharply last week on strong demand (despite normal supplies). Traders and bulk buyers have indulged in active buying in anticipation of increase in prices in the coming weeks. At the ground level, sowing activities have begun at a slower pace due to mixed monsoon rainfall in the turmeric growing regions. There are concerns that farmers might shift to other crops due to lack of realisation from turmeric last season.
Turmeric futures marked a multi-week high of ₹6,256 per quintal to close at ₹6,130 per quintal, up 6.2 per cent for the week. August futures closed gaining 7.4 per cent from its previous close. On the other hand, prices have gained at different spot markets due to good buying. For instance, at Erode market, prices gained in the range of ₹100-200 to ₹7,000 per quintal and ₹6,500 per quintal for turmeric finger and bulb, respectively.
OutlookFor the week ahead, prices may trade lower initially due to liquidation of previously built long positions. But it would be limited on overall bullish sentiments in the market. Continued active buying at spot markets may support gains. Also, expectations of decrease in sowing area may continue to keep the positive sentiment intact. Overall, prices are expected to remain positive.
The writer is Head, Commodity Research, Karvy Comtrade
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