Agri Commodity Update (16th-Jan-2018)
Fundamental Aspect:
Chana future price showed a bit gain against previous closing due to bargain buying by the local traders has been witnessed during the day. Bikaner market reported arrivals of 250 bags (1 bag=60kgs). It is higher by 100 bags compared to previous day. The domestic traders are expected to continue buying Chana in small lots to support the farmers and any major price decline. Prices are likely to sustain at current levels only for short term, as we are expecting bumper crop during the harvest season (February-March). For the day, we expect sideways to bullish trend in spot price for the day. Bullish trend in prices is estimated to continue for next week as well as there is good demand in the market.
Soybean futures traded marginally higher as speculators enlarged their positions as supplies have been diminishing slowly in the physical market. Moreover, reports on inventories lower compared to last year. Meanwhile, Soybeans at overseas market faced biggest weekly decline since mid-December on pressure from large US supplies and forecasts of a near-record Brazilian crop. CBOT Mar Soybean futures gained on reports of higher soybean exports to China during December 2017. However, price closed lower on week on pressure from large U.S. supplies and forecasts of a near-record Brazilian crop. As per latest USDA monthly report, US ending stocks for the 17-18 soybean crop was increased 664,000 tonnes to 12.8 mt, as exports were reduced by 1.8 mt. The USDA increased Brazilian production 2 mt to 110 mt, while Argentina’s production was reduced 1 mt to 56 mt, all in line with estimates. That boosted the world ending stocks number to 98.57 mt.
Technical Aspect
Guarseed (Feb)
Support is at 4300 and Resistance is 4420.
We expect ongoing rally likely to continue till 4420. Break and sustain above 4420 will see sharp upside rally till 4480—4550++ mark in near term.
Fresh selling can be seen on close below 4300 mark.
Trade with levels only.
Chana (March)
Support is 3750 and Resistance is 3900
Traders can buy and accumulate more here. Looks positive on chart and likely to hit 3900. Break and close above 3900 will take it towards 3960—4030 and then 4150++ mark in near term.
Fresh selling only can be seen on close below 3750 mark.
Trade with levels only.
RM Seed (April)
Support seen at 4050 and resistance is at 4150.
Looks positive on chart. Buy and accumulate more on decline till 4050 and its likely to hit 4150 mark. Break and sustain above 4150 will take it to 4230—4350++ mark in near term.
Fresh selling can be initiated on close below 4050.
Trade with levels only.
Soybean
Support seen at 3220 and Resistance is 3350.
We expect positive move likely to continue in near term. Buy and accumulate more on decline and its likely to hit 3350 in near term. Break and sustain above 3350 will see sharp upside rally till 3420—3500++ mark in coming days.
Fresh selling can be seen on close below 3220 mark on closing basis.
Trade with levels only.
Castor Seed (Feb)
Support at 4050 and Resistance at 4220.
Forming strong base at lower levels. Buy and accumulate more on decline as it’s likely to hit 4220 mark. Break and sustain above 4220 will take it towards 4270—4350++ mark in days to come.
Fresh selling can be initiated below 4050 mark on closing basis.
Trade with levels only.
Cotton
Support is 20500 and Resistance is 20900.
Looks weak on chart. Break and sustain below 20500 will take it to 20200—19950 mark in near term.
Fresh buying can be seen on close above 20900 mark..
Trade with levels only.
Jeera (March)
Support seen at 16700 and Resistance is at 17100.
If prices unable to break and close below 16700 then we can expect good upside in it till 17100. Break and sustain above 17100 will see sharp upside rally till 17350—17500 and then 17950++ mark.
Fresh selling only can be initiated below 16700 on closing basis.
Trade with levels only.
Turmeric (Apr)
Support is 7500 while Resistance is 7700.
Looks weak on chart and likely to hit 7500. Decisive move below 7500 will see sharp panic till 7420—7350 mark in near term.
Fresh buying only can be seen on close above 7700 on closing basis.
Trade with levels only.
Soy Refined (Feb)
Support is 738 and Resistance is 748.
Looks positive on chart. Buy and accumulate more on decline till 738. It is likely to touch 748 in near term. Break and close above 748 will see sharp upside rally in coming days.
Fresh selling can be seen on close below 738 mark.
Trade with levels only.
CPO (Feb)
Support seen at 558 while Resistance is 572.
Buy and accumulate more on decline till 558. We expect near term positive sentiment in it. It’s likely to hit 572 mark soon. Decisive close above 572 will see a new bull run in it.
Fresh selling only can be initiated below 558 mark on closing basis.
Trade with levels only
More will update soon!!!
