Mumbai, 04 Oct 2024 (Commoditiescontrol):Turmeric prices in major spot markets fell further amid sluggish demand, while NCDEX futures extended their losing streak. Spot prices dropped by ₹200-500 per quintal, reflecting the weakness in futures markets, which continues to weigh heavily on spot prices.
Local sources report that crop damage has been minimal, and the drier weather over the past 20 days has significantly improved crop conditions. This recovery in crop health is adding pressure to prices, with the market now factoring in the improved yield outlook.
Market arrivals increased slightly today, reaching 8,890 bags compared to 7,550 bags in the previous session. However, this remains considerably lower than the 20,000-plus bags seen a fortnight ago, when aggressive selling occurred in key markets like Nanded and Hingoli after a brief price recovery.
In the futures market, NCDEX prices fell for the fifth consecutive session, ending sharply lower due to persistent selling pressure. Having slipped from the ₹14,500 level, prices are now expected to test the ₹12,500 mark in the coming sessions. October futures dropped by 2.2%, with December futures down 3.7%, and April 2025 contracts registering a 4% decline.
Fresh selling in NCDEX futures could lead to panic selling in the spot markets, further pressuring prices. However, with supply remaining tight and the next crop still five months away, a significant price collapse is unlikely. Traders are closely watching the ₹12,500 support level, which could provide a floor for any potential recovery.
NCDEX Spot Prices (₹/Quintal)
Nizamabad - Polished: 14,240
Nizamabad - Unpolished: 13,516
Sangli - Rajapore: 15,755
NCDEX Futures Prices (₹/Quintal)
October 2024: 13,292 (-294, -2.2%)
December 2024: 13,788 (-384, -3.7%)
April 2025: 13,690 (-570, -4.0%)
Market participants are advised to stay cautious amid ongoing volatility, with the ₹12,500 level likely to serve as a key benchmark for the coming days.
As the October contract approaches expiry, a rollover of positions to the December contract was observed in NCDEX futures, although at a reduced rate. The October turmeric contract closed at ₹13,360 per quintal, down ₹294 from the previous close of ₹13,654 per quintal. During the session, the contract traded within a range of ₹13,292 to ₹13,890. Open interest declined by 1,125 MT to 11,410 MT, while trading volume rose by 1,665 MT to 4,085 MT.
Turmeric contract for DEC delivery settled at Rs 13778/quintal showing an fall of Rs -384 over previous close of Rs 14162/quintal,The contract moved in the range of Rs 13750-14222 for the day. Open interest increased by 570 MT to 5685 MT, while trading volume increased by 1110 to 2815 MT.
Currently The spread between OCT and DEC contract is 418 Rs/quintal.
Turmeric stock in NCDEX accredited warehouse as on 5881, was 04-Oct-2024 MT
(By Commoditiescontrol Bureau: +91 9820130172)
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