Turmeric futures corrects on profit booking





Turmeric futures fell during the week ended August 2017 and lost most of their prior two-week gains. Prices traded at a high of ₹7,920/quintal, earlier. However, as traders booked profits, prices came under pressure. The September month turmeric futures contract closed the week at ₹7,370/quintal, down by 4.68 per cent over the previous week, while October futures closed with loss of 3.89 per cent. Improved supplies at the spot market amid limited buying activities put pressure on prices in the futures market.

At Erode, price of finger turmeric fell by ₹100 over the previous week to ₹8,400/quintal.

There has been a slow progress in sowing in key growing states except Telangana. In Telangana, sowing is complete in 0.44 lakh hectares, which is higher by 0.01 lakh hectares over last year and 94 per cent of the normal area. However, in Andhra Pradesh, only 58 per cent of the normal sowing has been completed.

In Maharashtra and Karnataka too, the sowing progress is poor because of deficit rainfall.

IMD in its latest report has forecast monsoon rains to be 100 per cent of long period average in the second half of the season.

Outlook

For the week ahead, turmeric futures are expected to resume their trade on a positive note.

The writer is Head, Commodity Research, Karvy Comtrade

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