Wednesday, February 7, 2018

Agro Commodity Update (7th Feb-2018)

Agro Commodity Update (7th Feb-2018) 

Fundamental Aspect:

Government doubles import duty on sugar to 100%, hikes Chana to 40%...
The government has doubled import duty on sugar to 100 percent and raised duty on chana to 40 percent to protect domestic farmers. At present, customs duty or import tax on sugar is 50 percent and that on chana (chickpeas) is 30 percent. The move is aimed at curbing cheaper imports and ensure remunerative prices to domestic growers. India’s sugar production estimate has been recently revised upwards by 4 per cent to 26.1 million tons (MT) in the current 2017-18 marketing year (October-September) as against 20.3 MT in 2016-17, as per industry data. The consumption is pegged at 25 MT for this year. In case of chana, the government has raised import duty to 40 per cent as it wants to contain inward shipments in view of record production of pulses to nearly 23 million tons this year. Already, the government has imposed quantitative restrictions on many varieties of pulses. As per the government data, the country has imported 50.8 lakh tons of pulses during April-December of this fiscal, while it has 1.8 million tons of pulses in its buffer stock.

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 tons, 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)

Image result for guar seed images

Support is at 4450 and Resistance is 4600.

Panic likely to continue . Break and close below 4450 will take it towards 4380--4300 and then 4250 mark . 

Fresh buying only can be seen on close above 4600 marks.

Trade with levels only.

Chana (March)

Image result for chana images

Support is 3800 and Resistance is 3950

Looks weak  on chart . Any rise close to 3950 will be a selling opportunity in it. Break and sustain below 3800 will take it to 3730—3650 and then 3500 mark.

Fresh buying only can be seen on close above 3950 mark.

Trade with levels only.

RM Seed (April)

Image result for rm seed  images

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)

Image result for soybean images

Support seen at 3400 and Resistance is 3550.

Bottom out pattern seems here. Buy and accumulate more on decline . Break and sustain above 3550 will take it towards 3630---3700 and then 3760++ mark.

Fresh selling can be seen on close below 3400 mark.

Trade with levels only.

Castor Seed (Feb)

Image result for castor seed images

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)

Image result for cotton seed images

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)

Image result for jeera images

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)

Image result for turmeric images

Support is 7000 while Resistance is 7250

Panic likely to continue. Break and sustain below 7000 will take it towards 6920—6850  and then 6700 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!!