Fundamental Aspect
Refined soy oil futures traded sharply lower tracking weak cues from international market and higher domestic stocks. CBOT Soy oil posted the biggest percentage declines in the soy complex down by 2.4% at 32.02 cents per lb. Edible oil prices have increase over the week on anticipation that Government may increase import duty but government has no plans to raise import duty at this moment. Government increases the tariff value for crude soy oil for the second half of Jun by $1 to $812 per tonne. As per SEA, Import of soy oils during May 2017 is reported at 3.40 lt compared to 1.78 lt in May 2016 – up by 91% however, the import volume is down by about 30% for the period from Nov-May to 16.10 lt compared to 24.22 lt last year for same period.
Turmeric futures traded higher on improving demand from upcountry buyers at the spot market. Moreover, reports of good rains in turmeric growing areas too fuelled the uptrend. This is second successive weekly gain due to rising physical demand coupled with diminishing supplies. However, the trend seems to be little sideways on reports of good rains in turmeric growing areas. There was lower demand all season from upcountry and industrial buyers. Turmeric arrivals in the country are higher in the month of May. As per the trader source, about 6,378 tonnes arrived last week compared to 11,942 tonnes during previous week. As per the spice board, increased global demand for turmeric, especially in the pharmaceutical sector, drove its exports to attain figures of 1, 16,500 tonnes in volume and crossed Rs 1,241 cr. in value terms in 2016-17.
Coriander futures edged down as participants cut down their bets, driven by weak demand in the spot market. Besides, rising supplies from major producing belts also weighed on coriander futures.
Guar complex traded with lower bias as developing favourable weather condition for further advancement of monsoon across India may weigh down on prices. Sowing is likely to commence in Haryana and will start in Rajasthan in starting weeks of next month. Market is running with adequate availability of guar stocks whereas higher planting prospects for upcoming season could keep prices under pressure. Moreover, prices may track cues from weakness in crude oil prices which may affect the overseas demand of guar gum adversely. India exported about 54392 MT of guar gum during month of April, 2017 higher by 134% of last year export of 23158 Mt for corresponding time.
Technical Aspect: (July Contract)
Guarseed
Our sell call of Guarseed from 3445 to 3330 proven great.
Break and close below 3330 will see more downside panic in it.
Target looks 3270---3230.
Hurdle and revise stop loss of 3380
Trade with levels only.
Soyaref
Our sell call from 635 to 627 proven great and made a low of 627.05.
What to expect???
Now support at 625. Break and close below 625 will see more downside panic till 618---613 and then to 605 mark.
Hurdle and revise stop loss of 635.
Trade with levels only.
Dhaniya
Our buy call from 4800 to 5280 proven great.
Now what we expect???
Support is 4800 and resistance is 5150---5280.
We expect a bit correction from here towards 4800 and sustainable move below the same will drag down the prices towards 4600--- 4450 again.
Trade with levels only.
Jeera
Our buy call from 18600 to 19300 proven great and made a high of 19230 on Monday.
Now what to expect???
We expect a bit correction from here towards 18300 and sustainable move below the same will drag down the prices towards 17950 and then 17600 mark.
Fresh buying can be initiated above 19000 only.
Trade with levels only
RM Seed
Support seen at 3520 and resistance is at 3600.
Close below 3520 will take it to 3470---3440 mark else could touch its resistance level of 3600.
Fresh buying can be initiated above 3600.
Trade with levels only.
Cocudakl
Support 1650 and resistance at 1730
Either side decisive break or close will decide further.
Trade with levels only.
Mentha oil (June)
Hurdle at 935 and support at 910---886.
Looks positive and buy on every decline till 910 will be consider as a buying opportunity. Close above 935 will take it to 951--- 958+++ mark
Fresh selling can be initiated below 886 mark
CPO (June)
Below 486... Panic remain continue till 480---476 and then to 470 mark
Hurdle at 490.50
Trade with levels only.
More will update soon!!
