Turmeric prices remain steady to bearish, according to the May spices report from Olam Spices & Vegetable Ingredients.
As of May 19 the company found that prices had eased by 2-3% in the last 15 days, mainly due to sluggish domestic demand, limited trading days, general elections in Tamil Nadu and selective buying.
The report explained that markets remained closed due to festival holidays in Tamil Nadu.
“Pre-monsoon showers in some growing areas across Tamil Nadu and Karnataka and overall better monsoon predictions pulled back bullish momentum temporarily,” Olam Spices observed.
The company explained that the weather has remained hot so far in Nizambad and Sangli.
Pre-sowing/sowing activities have already started across south Karnataka in a limited phase.
The exchange platform continued to trade steady to low versus the spot market.
In May, turmeric arrivals in Tamil Nadu amounted to 1,550 tonnes by the date of the report, while those in Andhra Pradesh were at 3,300 tonnes. Arrivals in Maharashtra had reached 3,000 tonnes.
Olam Spices predicts that the market is likely to be steady to low for the near term. However, an overall decline in production for the last three years and depleted carry-over stock is likely to support price levels, it suggests.
The company feels that a downward price correction is unlikely below INR80 (USD1.18) per kilo during this year.
“Export as well as domestic demand especially from Gulf countries is expected to improve ahead of Ramzan month. Price levels are likely to be range bound with a positive bias in medium term,” the report added.
Olam listed the following as price driving factors ahead:-
- Pre-monsoon showers
- Southwest monsoon forecast
- Six to seven months stock availability
• Electronic counter speculative activities