Agro Commodity Update (05th-Dec-2017)
Fundamental Aspect:
Soybean futures marked its highest weekly gain yesterday since August on reports of good physical demand after hike in edible oil imports. Furthermore, reports that government is likely to double the incentive on export of oil meals to 10% to support domestic oilseed prices. As per the trader source, the arrivals in 1-25 Nov increased to 12.5 lt as compared to last year arrivals of 7.1 lt for the same period. Total exports of soy oil meal in the first seven months of the fiscal started April is almost 5 times higher to 5.37 lakh tons compared to 1.07 lakh tons last year. The USDA reported 869,086 MT in 17-18 export sales for last week. Brazil's soybean production number was noted unchanged at 111 MMT for 17-18 China brought in 5.856 MMT in soybeans during October, with 1.325 MMT from the US and 3.376 MMT from Brazil.
Chana futures settled lower yesterday on profit booking but medium term outlook still seems to be positive as the market participants tracking firm trend in physical market in near term. Recently, government removed export curbs on all varieties of pulses to ensure farmers get remunerative prices as domestic rates have crashed below MSP in view of record production. Earlier, Chana was pressured by good start to rabi sowing and higher stock levels in the country. Moreover, government which is sitting on a buffer stock of 18 lakh tonnes is set to dispose of 5 lt pulses by March next year will ease prices in domestic market. As per the latest government sowing data, chana is planted 69.7 lakh ha as on 17 Nov, up by 38% compared to 43.9 lakh ha last year. According to the target estimate released by the government, India’s chana production target estimate for 2017-18 is 97.5 mt.
Technical Aspect (Dec)
Turmeric
Support seen at 7350 and Resistance is 7580.
Correction likely to due till 7350 where once we can expect “U” turn in it towards 7580.Break and sustain above 7580 will take it towards 7650—7740 and then 7850++ mark in near term.
Fresh selling only can be seen only close below 7350 mark on closing basis.
Trade with levels only.
Jeera
Support seen at 21800 and Resistance is at 22350.
Break and sustain above 22350 will take it towards 22600—22850 and then 23100++mark in near term.
Fresh selling can be seen on close below 21800 mark on closing basis.
Trade safely with levels only.
Castor Seed
Support at 4510 and Resistance at 4600.
Looks weak on chart and likely to continue till 4510. Break and sustain below 4510 will take it to towards 4460—4425 and then 4350 mark else could touch its resistance level of 4600 mark.
Fresh buying can be initiated above 4600 mark on closing basis.
Trade with levels only.
Guarseed
Support is at 3800 and Resistance is 3950.
Looks positive on chart and likely to touch 3950. Break and sustain above 3950 will take it towards 4010—4050 and then 4120++ mark in near term.
Support will remain at 3800 mark on closing basis.
Trade with levels only.
Chana
Support is 4450 and Resistance is 4610
High chance of “U” Turn from lower level.
Buy and accumulate more on decline.It’s likely to touch 4610. Break and sustain above 4610 will take it towards 4680—4750++ mark in near term.
Major downside will be seen only on close below 4450 mark.
Trade with levels only
RM Seed
Support seen at 4030 and resistance is at 4150.
Buy and accumulate on decline till 4030 and it’s likely to touch 4150 in near term. Break and sustain above 4150 will take it towards 4230—4270 and then 4350++ mark in near term.
Fresh selling can be initiated below 4030 mark on closing basis.
Trade with levels only.
Soybean
Holding long from 2920—3094
Now what to expect??
Support seen at 3030 and Resistance is 3125.
Rally likely to continue till 3125. Break and close above 3125 will take it towards 3170—3200 and then 3260++ mark in near term.
Buy and accumulate more on decline.
Trade with levels only.
Soy Refined
Support is 725 and Resistance is 738.
Either side break and close will set the further trend in it.
Fresh selling only can be seen below 725 mark on closing basis.
Trade with levels only.
CPO
Support seen at 575 while Resistance is 590.
Buy and accumulate more on decline till 575 and likely to touch 590 mark. Break and close above 590 will take it towards 596—603 and then 611+ mark in near term.We expect bottom out in near term.
Fresh selling only can be seen below 575 mark on closing basis.
Trade with levels only.
More will update soon!!!
