Agro Commodity Update (6th Feb-2018)
Fundamental Aspect:
Soybean future slipped more than 2.5% on long liquidation by market participants at higher prices. As per the trader source, Soybean arrivals during first 30 days in January were noted down 42% to 4.1 lakh tonnes on year. Over the medium term, the prices have been supported due to downward revision in soybean production form the top two producing states is mainly due to uneven rains during the monsoon season. Maharashtra also cut its soybean production by almost 16% to 38.6 lakh tonnes (Vs 46.23 lt last year) this year. Earlier, Madhya Pradesh has lowered its estimate for soybean production in 2017-18 (Jul-Jun) by 23% to 53 lakh tonnes from 69 lt projected in the first advanced estimate.
Jeera future showed some positive bias last week as fresh buying has been noticed in the market on the lower levels. The new season arrivals are expected to pick up in next 15-20 days. Jeera production may be higher in coming season on reports of higher acreage of cumin in Gujarat during current season. In Gujarat, Jeera acreage is up by 38% to 3.83 lakh hectares as on 15-Jan-18. Last year, it was 2.88 lakh ha at that same time. As per government data, Jeera exports during first 7 month of FY 2017-18 (Apr-Oct) is 88,229 tonnes, up 11% compared to last year exports volume for the same period. India's jeera exports in October increase by 37% on year to 10,402 tn.
Technical Aspect
Guar seed (Feb)
Support is at 4550 and Resistance is 4700.
If prices unable to breach its immediate support of 4550 then we can expect a “U” turn in it towards 4700. Break and close above 4700 will start a new bull run in it.
Fresh selling only can be seen on close below 4550 marks.
Trade with levels only.
Chana (March)
Support is 3750 and Resistance is 3850
Looks positive on chart and likely to hit 3850 mark. Break and close above 3850 will take it to 3920—4000 and then 4050 mark.
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.
Panic likely to continue till 4050. Break and close below 4050 will take it towards 3960--3900 and then 3840 mark.
Fresh buying can be initiated on close above 4150 mark.
Trade with levels only.
Soybean (March)
Support seen at 3450 and Resistance is 3550.
Panic likely to continue till 3450. Break and close below 3450 will take it towards 3380---3330 and then 3250 mark.
Fresh buying can be seen on close above 3550 mark.
Trade with levels only.
Castor Seed (Feb)
Support at 4200 and Resistance at 4350
Trading in a range. Either side break and close will set further trend in it.
Trade with levels only.
Cotton (Feb)
Support is 19850 and Resistance is 20450.
If prices unable to breach its key resistance of 20450 then we can expect a vertical crash in it. Break and sustain below 19850 will take it to 19550—19300 mark in near term.
Fresh buying can be seen on close above 20450 mark.
Trade with levels only.
Jeera (March)
Support seen at 16350 and Resistance is at 16850
Buy and accumulate. Break and sustain above 16850 will see sharp upside rally towards 17250--17500 and then 17850++ mark.
Fresh selling only can be seen below 16350 on closing basis.
Trade with levels only.
Turmeric (Apr)
Support is 7050 while Resistance is 7250
Panic likely to continue. Break and sustain below 7100 will take it towards 6950—6800 and then 6550 mark in near term.
Fresh buying only can be seen on close above 7250.
Trade with levels only.
CPO (Feb)
Support seen at 562 while Resistance is 575.
Looks positive on chart. Break and sustain above 575 will take it towards 584—592 mark in near term.
Fresh selling only can be initiated below 562 mark on closing basis.
Trade with levels only
More Will Update Soon!!
