Agro Commodity Update (24th-Jan-2018)
Fundamental Aspect:
Soybean traded sharply higher supported by good physical demand and lower supplies. Futures Prices have touched 16 months high while spot prices have jumped more than 10% in last one month. As per the trader source, 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. According to SOPA, soybean inventories with farmers, traders and plant owners at the end of December were 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 future prices jumps higher in past two trading session due to fresh buying initiated by the market participants after prices slump to 33 months low last 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 was 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 the latest government data, *India imported about 5.84 lakh tonnes of Chana during Apr-Oct, up by 430% as compared with the last year imports. The imports were mostly done from Australia.
Technical Aspect
Guar seed (Feb)
Our buy call from 4320—4580 has proven great.
Now what to expect?
Support is at 4450 and Resistance is 4600.
Break and sustain above 4600 will see sharp rally till 4680—4750 mark in near term else could touch its support level of 4450.
Fresh selling can be seen on close below 4450 mark.
Trade with levels only.
Chana (March)
Our buy call from 3720—3800 has proven great.
Now what to expect?
Support is 3650 and Resistance is 3850
Rally likely to continue. Break and sustain above 3850 will take it towards 3930—4000++ 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 4050 mark.
Trade with levels only.
Soybean
Our buy call from 3300---3580 has proven great.
Now what to expect?
Support seen at 3450 and Resistance is 3600.
We expect positive move likely to continue in near term. Buy and accumulate more on decline and its likely to hit 3600 .Break and sustain above 3600 will see sharp upside rally till 3680—3750++ mark in coming days.
Fresh selling can be seen on close below 3450 mark .
Trade with levels only.
Castor Seed (Feb)
Support at 3950 and Resistance at 4150.
Break and close above 4150 will take it towards 4220—4300 and then 4380++ mark in near term.
Fresh selling can be initiated below 3950 mark on closing basis.
Trade with levels only.
Cotton
Support is 20500 and Resistance is 21050.
Break and sustain above 21050 will take it to 21350—21500 mark in near term.
Fresh selling can be seen on close below 20500 mark.
Trade with levels only.
Jeera (March)
Support seen at 16400 and Resistance is at 16800.
Break and sustain below 16400 will see sharp panic till 16250—16100 and then 15750 mark.
Fresh buying only can be initiated above 16800 on closing basis.
Trade with levels only.
Turmeric (Apr)
Support is 7250 while Resistance is 7600.
Decisive move below 7250 will see sharp panic till 7180—7120 mark else could touch its resistance level of 7600.
Fresh buying only can be seen on close above 7600 on closing basis.
Trade with levels only.
CPO (Feb)
Support seen at 554 while Resistance is 565.
Buy and accumulate on decline. Break and sustain above 565 will take it towards 572—577 and then 585++ mark in near term else could touch its support level of 554 mark
Fresh selling only can be initiated below 554 mark on closing basis.
Trade with levels only
More will update soon !!
