Wednesday, December 6, 2017

Latest Levels of Agro Commodities (06th-Dec-2017)

Agro Commodity Update (06th-Dec-2017) 

Fundamental Aspect:

Indian Sugar Mills Association (ISMA) reported that, sugar production in Oct-Nov was noted a rise of at 39.5 lakh tonne versus 27.8 lakh a year ago same period. ISMA also stated that, the sentiment would improve if government agrees to withdraw the stock holding limit earlier. ISMA is now arguing that now the sugar output is plentiful and there is no need for stock limits.

Chana futures settled lower in the second consecutive days 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.

Mustard seed futures settled the day lower as market is stabilizing at the current levels due to steady demand and higher inventories with the traders. As per rabi sowing report from the government, The acreage of mustard seed was noted at 56 lakh ha, down from 61 lakh ha a year ago. Rajasthan is the largest mustard growing state but the sowing pace is slower than last year at 20.3 lakh ha Vs 27.3 lakh ha. The lower mustard acreage can be attributed to poor rains in Rajasthan that led to low soil moisture and hampered sowing. As per the latest data compiled by Mustard Oil Producers Association of India, country is still holding about 20 lt of mustard seed as compared with the last year, it is estimated that millers have crushed about 48 lt last year against the marketable surplus of 67.8 lt.

Technical Aspect (Dec)


Support seen at 7250 and Resistance is 7550.

Correction likely to due till 7250 where once we can expect “U” turn in it towards 7550.Break and sustain above 7550 will take it towards 7630—7710 and then 7800++ mark in near term.

Fresh selling only can be seen only close below 7050 (Major support) on closing basis.

Trade with levels only.


Support seen at 21500 and Resistance is at 22350.

Buy and accumulate more on decline  and likely to touch 22350 in near term.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 21500 mark on closing basis.

Trade with levels only.

Castor Seed 

Support at 4500 and Resistance at 4590.

Looks weak on chart and likely to touch 4500. Break and sustain below 4500 will take it to towards 4450—4410 and then 4360 mark else could touch its resistance level of 4590 mark.

Fresh buying can be initiated above 4590 mark on closing basis.

Trade with levels only.


Support is at 3800 and Resistance is 3930.

Looks weak on chart and likely to hit 3800. Break and sustain below 3800 will take it towards 3740—3690 and then 3650 mark in near term.

Hurdle and stop loss will remain at 3930 mark on closing basis.

Trade with levels only.

Chana (Jan)

Support is 4400 and Resistance is 4550

Sell on every rise till 4550 and likely to touch 4400. Break and sustain below 4400 will take it towards 4340—4270 mark in near term.

Major upside will be seen only on close above 4550 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.


Holding long from 2920—3094

Now what to expect??

Support seen at 2950 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 721 and Resistance is 730.

Either side break and close will set the further trend in it.

Fresh selling only can be seen below 721 mark on closing basis.

Trade with levels only.


Support seen at 575 while Resistance is 588.

Buy and accumulate more on decline till 575 and likely to touch 588 mark. Break and close above 588 will see a new bull run in the near term.

Fresh selling only can be seen below 575 mark on closing basis.

Trade with levels only.

More will update soon!!!