- Nizamabad spot market records sharper decline than Sangli
- October futures fall on profit booking as open interest builds
India’s turmeric market remained under pressure during the week ended 25 June as weak buying interest and profit booking on the futures market outweighed the impact of lower arrivals. Market participants adopted a cautious approach amid sluggish domestic and export demand, resulting in softer spot and futures prices. Arrivals across key mandis declined by 15.4% w-o-w to 10,653 t from 12,592 t, reflecting slower farmer selling, but the tighter supply failed to provide price support.
Spot and futures markets weaken
The Nizamabad spot price declined by INR 292/t (1.8%) to INR 15,928/t from INR 16,220/t, while the Sangli spot price remained relatively stable, easing by INR 54/t (0.3%) to INR 17,608/t from INR 17,662/t.
On NCDEX, the August futures contract fell by INR 278/t (1.7%) to INR 16,590/t, compared with INR 16,868/t a week earlier. The October contract declined by INR 294/t (1.7%) to INR 17,134/t from INR 17,428/t, indicating continued profit booking. Open interest in the August contract increased marginally to 24,955 lots from 24,550 lots, while October open interest rose to 1,615 lots from 620 lots, reflecting fresh participation in deferred contracts. The June contract expired during the week.
Warehouse stocks rise
NCDEX warehouse stocks remained unchanged at 319 t in Erode, while inventories in Nizamabad edged down to 3,617 t from 3,671 t. In contrast, stocks increased to 5,200 t in Sangli from 5,001 t and to 3,563 t in Basmat from 3,205 t, indicating continued inflows into exchange-accredited warehouses.
The market is expected to remain range-bound in the near term, with export demand, domestic procurement, monsoon progress, and new-crop sowing likely to determine the next price direction.
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