Agro Commodity Update (29th-Jan-2018)
Fundamental Aspect:
Soybean future prices settled the week with higher note and likely to maintain its uptrend backed by strong cues from physical market. Soybean arrivals during first 20 days in January were noted down 43% to 3 lakh tonnes on year. Moreover, reports on lower inventories compared to last year also support prices. As per the latest report of SOPA, soybean inventories with farmers, traders and plant owners at the end of December were marked at 6.5 MT, down from 8.2 MT a year ago. India's soymeal exports during Oct-Dec were pegged at 579,000 tonnes, as against 507,000 tonnes a year ago
Chana futures closed the week with higher tone due to fresh buying initiated by the market participants after prices slump to 33 months low in past couple of week on concern over higher domestic stocks amid expectation of higher production estimate due to record acreage. As per the latest government sowing data, area under the Chana crop across the country noted up 7.9% on year at 106.2 lakh ha as on last week. Moreover, higher imports during the current financial year too pressurize prices. As per government data, India imported about 5.84 lakh tonnes of Chana during Apr-Oct, up by 430% compared the last year imports. The imports were mostly done from Australia.
Technical Aspect
Guar seed (Feb)
Our buy call from 4320—4650 has proven great.
Now what to expect?
Support is at 4525 and Resistance is 4650.
Rally likely to continue. Break and sustain above 4650 will see sharp rally till 4730—4850++ mark in near term.
Fresh selling can be seen on close below 4525 marks.
Trade with levels only.
Chana (March)
Support is 3650 and Resistance is 3800
Looks positive on chart. Buy and accumulate on decline. Break and sustain above 3800 will take it to 3880—3950++ mark in near term.
Fresh selling only can be seen on close below 3650 mark.
Trade with levels only.
RM Seed (April)
Support seen at 4050 and resistance is at 4150.
Rally likely to continue in near term. Break and sustain above 4150 will take it towards 4230—4300 and then 4360++ mark.
Fresh selling can be initiated on close below 4020 mark.
Trade with levels only.
Soybean
Our buy call from 3300---3678 has proven great.
Now what to expect?
Support seen at 3550 and Resistance is 3680.
We expect positive move likely to continue in near term. Break and sustain above 3680 will see sharp upside rally till 3750--3900++ mark in coming days.
Fresh selling can be seen on close below 3550 mark.
Trade with levels only.
Castor Seed (Feb)
Support at 4030 and Resistance at 4180.
Break and close above 4180 will take it towards 4250—4320 and then 4450++ mark in near term.
Fresh selling can be initiated below 4030 mark on closing basis.
Trade with levels only.
Cotton (Feb)
Support is 20250 and Resistance is 20500.
Looks weak on chart and likely to hit 20250. Break and sustain below 20250 will take it to 20050—19800 and then 19650 mark in near term.
Fresh buying can be seen on close above 20500 mark.
Trade with levels only.
Jeera (March)
Support seen at 16300 and Resistance is at 16700.
Break and sustain below 16300 will see sharp panic till 16050—15850 and then 15500 mark.
Fresh buying only can be initiated above 16700 on closing basis.
Trade with levels only.
Turmeric (Apr)
Support is 7250 while Resistance is 7450.
Decisive move below 7250 will see sharp panic till 7120—7050 mark else could touch its resistance level of 7450.
Fresh buying only can be seen on close above 7450 on closing basis.
Trade with levels only.
CPO (Feb)
Our buy call from 561---578.5 has proven great.
Now what to expect?
Support seen at 565 while Resistance is 580.
Rally likely to continue. Break and sustain above 580 will take it towards 587—594 and then 608++ mark in near term.
Fresh selling only can be initiated below 565 mark on closing basis.
Trade with levels only
More will update soon !!
