Fundamental Aspect
India's Kharif sowing acreage up by 10.44%...
Ministry of Agriculture reported, India’s kharif sowing acreage reached 6.916 million hectares as on May 26, which increased 10.44% from 6.262 million hectares during the same period last year. Rice acreage in the country was expected to increase by about 0.11% to 0.175 million hectares, when compared to 0.176 million hectares during last year, while pulses acreage increased to about 0.112 million hectares from 71000 hectares during 2016-17 period. Acreage under Cereals were estimated at 54000 hectares, which is 147% higher than last year's 22000 hectares. Oilseed acreage increased to about 0.127 million hectares, an increase of about three times when compared to 48000 hectares. Cotton acreage in the country increased by 27.21% to 1.124 million hectares when compared to 0.884 million hectares during a year ago period. Sugarcane acreage in the country increased to 4.653 million hectares against 4.387 million hectares, an increase of 6%.
Soybean futures dropped sharply for the 6th consecutive week due to higher supplies and good progress of new season crop. Moreover, lower demand in the spot market and good progress of new season crop capped some gains. Reports showed that India soybean sowing for the current kharif reached 23,000 ha so far vs. 20,000 ha year ago. As per the trader source, arrivals of soybean during the second half of May increase to 1.28 lt as compared with the first half of reading. As per weekly USDA exports report ending May 25, there is net sales of 610,200 MT for 2016-2017 marked up 29% from the previous week and 66% from the prior 4-week average. CFTC indicated that traders added another 26,955 contracts to their net short position in the week ending May 30.
Mentha oil futures traded lower as investors and speculators exited their positions in the agro-commodity on diminishing demand from major consuming industries in the domestic spot market. Further, ample stocks position on higher supplies from producing belts of Chandausi in Uttar Pradesh, too influenced mentha oil prices.
Cardamom futures traded higher as investors extended their bets amid surge in demand in the domestic spot market. Further, tight supplies on restricted arrivals from the major cardamom producing regions too added support to cardamom’s uptrend. Good pre monsoon have boosted the expectations of higher crop in the upcoming season which may weigh down the prices in near term.
Technical Aspect: (June Contract)
Soybean
Support is 2630 and resistance is at 2680.
Looks weak and close below 2630 will take it to 2580--- 2550 mark else could touch its resistance level of 2680.
Fresh buying can be seen only above 2680.
Trade with levels only and wait for confirmation
Soyaref
Support at 613 and resistance of 619---626.
Looks positive and close above 619 will take it to 626 else it could touch its support level of 613.
Fresh selling can be initiated below 613.
Trade with levels only and wait for confirmation
Dhaniya
Support at 4500 and Resistance is 4800
Weekly close below 4500 will take it to 4200—4050 else could touch its resistance level of 4800 again
Trade with levels only.
Jeera
Support is 17500 and resistance is at 18050
Looks positive and close above 18050 will take it to 18400---18700 mark in days to come
Fresh selling can be seen below 17500.
RM Seed
Support at 3450 and Resistance 3530
Looks weak and close below 3450 will take to 3390---3350 mark else could touch its resistance level of 3530 again.
Fresh buying can be initiated above 3530.
Trade with levels only.
Turmeric
Support is 5250 and resistance is at 5400.
Trade in a range with levels only and wait for confirmation
Cocudakl
Our sell call from 1740 to 1660 proven great and made a new low of 1659 today.
What to expect???
Support 1650 and resistance at 1710.
Looks weak and close below 1650 will take it to 1610---1570 mark else could touch its resistance level of 1710 again.
Book part profit and revise stop loss at cost to cost.
Mentha oil (June)
Support at 900 and resistance at 930
Trading in a range and either side breakout will confirm the further trend
Trade with levels only
CPO (June)
Support at 491 and Resistance at 500
Trading in a range and either side breakout will confirm the further trend
Trade with levels only
Castor Seed
Support at 4230 and Resistance at 4350.
Close above 4350 will take to 4520---4580 and then 4650 in near term else could touch its support level of 4230.
Fresh selling can be seen below 4230
Trade with levels only
More will update soon!!
