Agro Commodity Update (25th-Sep-2017)
Fundamental Aspect:
Turmeric futures edged lower during the session on rising arrivals from the producing belts. Though, some losses were capped on expectation of fresh upcountry demand at the spot market. Coming to the sowing activities, sowing is almost same as last year in Telangana; however is behind the normal sowing area in states such as Tamil Nadu, Andhra Pradesh and Karnataka. As per the preliminary estimates, output in the next season is expected to be lower than last year due to decline in overall area.
Jeera futures are expected to trade in a tight range for the day. Expectations of higher acreage during the upcoming sowing season due to higher prices may weigh down the prices. Further, deposits to the NCDEX warehouses have improved considerably from past few days and this indicates that the quality of the stocks is not impacted by floods in Rajasthan and Gujarat. However, expectations of good export demand for the Indian jeera may support limit the major fall in jeera futures. Jeera exports have been lower than anticipated during the first quarter of new financial year 2017-18. The arrivals have been lower during the first 15 days of September at 3,625 tonnes compared to 3,923 tonnes in August for same period. India's jeera exports in Jun surged 29.6% on year to 13,503 tn. However, as per the latest government data, Jeera exports during first quarter in FY 2017-18 (Apr-Jun) is marked at 41,707 tonnes, which was down 10.8% compared to last year exports volume for the same period.
Soybean Oct futures traded in a limited range with positive bias due to bargain buying by the market participants as new season soybean has started to arrive in the physical market. As per the latest report, soybean arrivals during the first 15 days is pegged at 1.58 lakh tonnes compared to 1.24 lakh tonnes in August same period. As per the latest agro ministry data, India's soybean acreage was at 10.6 million ha as on last week, down 7.8% from a year ago. The fall in overall acreage has been led by a decline in area under the crop in Madhya Pradesh the largest producer because of poor rains in the state so far this monsoon season.
Technical Aspect (Oct)
Jeera
Support at 19300 and Resistance at 19800.
Looks weak on chart .Break and sustain below 19300 will take it to 18950—18700 and then 18200 mark else could touch its resistance level of 19800.
Fresh buying can be initiated above 19800.
Trade safely with levels only.
Castor Seed
Support at 4575 and Resistance at 4650.
Looks weak and likely to touch 4575. Break and sustain below 4575 will take it to 4540—4510 and 4450 mark else could touch its resistance level of 4650.
Fresh buying can be initiated above 4650 mark.
Trade with levels only.
Guar seed (Oct)
Support is at 3710 and Resistance is 3810.
Looks weak and likely to touch 3710. Break and sustain below 3710 will take it to 3650---3610 and then 3550 mark in near term else it could touch its resistance level of 3810.
Fresh buying can be seen above 3810.
Trade with levels only.
Chana
Our sell call from 5950---5700 proven great.
Now what to expect??
Support seen at 5700 and Resistance is at 5950
Break and close below 5700 will take it to 5550--- 5400 mark in days to come else it could touch its resistance level of 5950.
Fresh buying can be seen above 5950.
Trade with levels only.
RM Seed
Support seen at 3700 and resistance is at 3750.
Break and sustain above 3750 will take it to 3810---3860 and then 3900 mark in days to come else could touch its support level of 3700.
Fresh selling can be initiated below 3700.
Trade with levels only.
Soybean
Support seen at 3050 and Resistance is 3155.
Break and sustain above 3155 will take it to 3190---3240 and then 3400++ mark in near term else could touch its support level of 3050.
Fresh selling can be initiated below 3050 only.
Trade with levels only.
Mentha oil
Support is 1155 and Resistance is 1190.
Break and close above 1190 will take it to 1218---1230 and then 1252++ mark in near term else could touch its support level of 1155.
Fresh selling can be initiated below 1155 mark on closing basis.
Trade with levels only.
CPO
Support at 534 and Resistance at 545---552
Trading in a range. Either side decisively break or close will decide further trend in it.
Overall trend looks positive but trade with levels only.
More will update soon !!
