Agri Commodity Update (15th-Dec-2017)
Fundamental Aspect:
Cotton traded higher from last couple of days tracking lower arrivals and expectation of fall in domestic output due to pink bollworm attacks in some states. Moreover, higher bonus given to Gujarat farmers also boosted the sentiment of prices. As per Cotton Corporation of India, cotton arrivals till 7th Dec across the states are pegged at 74 lakh bales. Maharashtra is leading with 15.4 lakh bales followed by Telangana and Gujarat at 14.9 lakh bales and 12.9 lakh bales respectively.
The USDA raised the US production number noted at 21.44 million bales, on a 2 lb increase in yield to 902 lbs/ac. The US ending stocks number was lowered 0.3 million bales, as exports were raised by that amount. The world ending stocks number was trimmed 2.88 million bales to 88 million bales. Production in India was noted down by 0.5 mt, as Pakistan it was down 0.95 mt.
Chana prices traded below MSP from past couple of days due to weak physical demand, improved sowing progress and higher stocks in the country due to record imports. As per government data, India imported about 4.78 lakh tonnes of chana during April-Sep, up by 430% compared the last year imports. As per government sowing data, area under the chana crop across the country was noted up 10.25% on year at 89.6 lakh ha as on last week. The NCDEX have imposed a special margin of 5% on the sell side in all running contract and yet to be launched chana contracts seems unable to support its prices.
Technical Aspect (Jan)
Turmeric (Apr)
Our buy call from 7400—7584 has proven great
Now what to expect?
Support seen at 7350 and Resistance is 7650.
Rally likely to continue till 7650.Break and sustain above 7650 will take it towards 7740—7850 and then 8000++ mark in near term.
Fresh selling only can be seen only close below 7350 on closing basis.
Trade with levels only.
Jeera
Support seen at 21300 and Resistance is at 22050.
Looks weak on Chart. Break and sustain below 21300 will take it towards 20800—20550 and then 20300 mark in near term.
Fresh Buying can be seen on close above 22050 mark on closing basis.
Trade with levels only.
Castor Seed
Support at 4450 and Resistance at 4560.
Looks weak on chart. Sell on every rise till 4560.Break and sustain below 4450 will take it towards 4410—4360 and then 4250 mark in near term.
Fresh buying can be initiated above 4560 mark on closing basis.
Trade with levels only.
Guarseed
Support is at 3800 and Resistance is 3920.
Looks weak on chart and likely to touch 3800 .Break and sustain below 3800 will take it towards 3750—3720 and then 3650 mark in near term else could touch its resistance of 3920 mark.
Hurdle and stop loss will remain at 3920 mark on closing basis.
Trade with levels only.
Chana
Our sell call from 4480—3892 has proven great.
Now what to expect?
Support is 3850 and Resistance is 4050.
Panic likely to continue till 3850. Break and sustain below 3850 will take it towards 3780—3730 and then 3650 mark in near term. Hurdle will remain at 4050.
Take cautionary approach at lower levels.
Trade with levels only
RM Seed
Support seen at 3950 and resistance is at 4050.
Looks weak on chart. Sell on every rise till 4050 and likely to touch 3950. Break and close below 3950 will take it towards 3880—3830 and then 3750 mark in near term.
Fresh buying can be initiated above 4050 mark on closing basis.
Trade with levels only.
Soybean
Support seen at 2980 and Resistance is 3080
Looks weak on chart and likely to touch 2980. Break and sustain below 2980 will take it towards 2930—2880 and then 2820 mark in coming days.
Fresh buying can be seen on close above 3080 mark on closing basis.
Trade with levels only.
CPO
Support seen at 553 while Resistance is 565.
Looks positive on chart. Buy and accumulate more on decline and its likely to touch 565 soon. Break and sustain above 565 will see a new bullish era in the near term.
Support and stop loss will remain at below 553 mark on closing basis.
Trade with levels only.
More will update soon!!!
