India turmeric extends rally on thin stocks, demand

MUMBAI, Nov 27 (Reuters) - India's turmeric futures hit
upper circuit for a second straight day on Friday, bolstered by
robust demand in spot market and supply crunch due to thin
carry-forward stocks, analysts said.

Carry-forward stocks were low as output had fallen sharply
last year due to low acreage and bad weather. Traders and
analysts said supply crunch is supporting upside and it will
remain till fresh arrivals hit the market.

Turmeric arrivals usually start in mid-January in small
quantities and gain momentum from March. The peak season runs
till June.

In Nizamabad, a major spot market in Andhra Pradesh, the
price climbed by 430 rupees to 11,159 rupees per 100 kg.

"Supply squeeze is keeping traders' interest intact in the
spice. It nullified the impact of sell-off in other
commodities," said an analyst at Delhi-based commodity
brokerage.

Following are the closing prices of turmeric futures on the
National Commodity Derivatives Exchange in rupees per 100 kg on
the . <0#NTM:>

Contract Reuters code Closing price Change in %

=========================================================

Dec NTMZ9 10,281 4.01

Apr NTMJ0 7,381 3.52

(Reporting by Rajendra Jadhav; Editing by Prem Udayabhanu)

((rajendra.jadhav@thomsonreuters.com; tel: 91 22 6636 9153
; Reuters Messaging: rajendra.jadhav.reuters.com@reuters.net))

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