MUMBAI, Sept 11 (Reuters) - India's turmeric futures climbed on Friday on bargain buying driven by depleting stockpiles and hopes of improved demand during festivals,analysts said.
The country's peak festival season runs from August to October, when demand for spices usually goes up. Traders said stocks were inadequate as output fell sharply last year due to lower acreage.
The September contract NTMU9 had fallen more than 3 percent in last two sessions.
Weak export demand and hopes rains in growing areas will improve yields, restricting the upside, they said.
Futures are set for a sharper correction as rains have erased output concerns, said Ajeet Kumar, research analyst, SMC Comtrade Ltd.
India's turmeric output in 2009/10 is likely to spike as area under the spice expanded and August rains ensured yields would be near normal despite spotty rains in June-July, traders
and exporters said.
In Nizamabad, a major spot market in Andhra Pradesh, the price fell by 14 rupees to 7,940 rupees per 100 kg.
Spot prices have more-than-doubled in 2009 on depleting stockpiles.
The September contract may find support at 7,300 rupees,Kumar said.
Following are the closing prices of turmeric futures in rupees per 100 kg on the National Commodity and Derivatives Exchange Ltd.
Source : REUTERS