Turmeric futures were very volatile on Monday morning, initially gaining over 1.1 per cent and then paring the gains as profit-booking set in.

As soon as the market opened, the August futures shot up to hit a peak at Rs 6,210 before shedding those gains.At 11.20 am, turmeric August futures were down by Rs 60 at Rs 5,930 for a quintal. The September contract was quoted at Rs 6,342, down by Rs 10, while Ocotber futures were up Rs 32 at Rs 6,586 for a quintal.

At one point of time, the August contract slid by as much as 1.94 per cent before making its way up again.

Turmeric has been gaining in the last few weeks on reports of lower production during the next season. Traders fear that the acreage under the crop might come down this year in view of growers getting poor realisations last year.The deficient monsoon is also aiding the bullish trend.

However, bouts of profit-booking and the FMC statement on cracking down on speculation have been capping turmeric’s gains.

(This article was published on August 6, 2012)
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