Agro Commodity Report (2nd Feb-2018)
Fundamental Aspect:
The Union government has decided to increase the minimum support price for crops this Rabi season to 1.5 times of production costs to help the farmers produce more from the same land at a lesser cost, and get a better price. The MSP will cover all crops. Declaring that the focus is on strengthening agriculture and rural economy. Mr. Jaitley (FM) announced a Rs. 2,000-crore fund for development of agri-markets. He doubled the allocation for Agriculture Ministry to Rs 1,400 crore in FY2018-19. Apart from this, Operation Green will be launched for agriculture and allocated Rs. 500 crores for it along with proposed to raise institutional credit for agriculture to Rs.11 lakh crore for 2018-19.
Chana Mar futures traded marginally higher on fresh buying activity noticed in the physical market from lower levels. Still prices trading below its minimum support prices. As per government sowing data, area under the chana crop across the country was 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. 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)
Support is at 4550 and Resistance is 4700.
Looks positive on chart. Break and sustain above 4700 will take it towards 4780—4850++ mark.
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 weak on chart and likely to hit 3750 mark. Break and close below 3750 will take it to 3680—3600 and then 3550 mark.
Fresh buying only can be seen on close above 3850 mark.
Trade with levels only.
RM Seed (April)
Three black crows formation (Bearish)
Now what to expect?
Support seen at 4100 and resistance is at 4180.
Panic likely to continue. Break and close below 4100 will take it towards 4020—3950 and then 3800 mark.
Fresh buying can be initiated on close above 4180 mark.
Trade with levels only.
Soybean
Support seen at 3550 and Resistance is 3800.
Break and close below 3550 will take it to 3470—3400 mark else could touch its resistance level of 3800.
Fresh buying can be seen on close above 3800 mark.
Trade with levels only.
Castor Seed (Feb)
Support at 4200 and Resistance at 4350
Looks weak on chart. Break and close below 4200 will take it to 4120—4050 and then 3900 mark .
Fresh buying can be seen on close above 4350 mark .
Trade with levels only.
Cotton (Feb)
Support is 19950 and Resistance is 20450.
Break and sustain above 20450 will take it to 20600—20850 and then 21100++ mark in near term else could touch its support level of 19950.
Fresh selling can be seen on close below 19950 mark.
Trade with levels only.
Jeera (March)
Support seen at 16300 and Resistance is at 16700.
Buy and accumulate. Break and sustain above 16700 will see sharp upside rally towards 16980—17250 and then 17600++ mark.
Fresh selling only can be seen below 16300 on closing basis.
Trade with levels only.
Turmeric (Apr)
Support is 7100 while Resistance is 7300.
Looks weak on chart. Break and sustain below 7100 will take it towards 6950—6800 mark.
Fresh buying only can be seen on close above 7300.
Trade with levels only.
CPO (Feb)
Support seen at 562 while Resistance is 575.
Looks positive on chart. Break and sustain 575 will take it towards 582—594 and then 608 mark in near term.
Fresh selling only can be initiated below 562 mark on closing basis.
Trade with levels only
More will update soon !!
