Agro Commodity Update (27th-Oct-2017)
Fundamental Aspect:
Mustard futures continued to trade with positive bias on winter demand and increase in minimum support price by the government. Support price for mustard in 2017-18 rose by 8.1% on year to 4,000 rupees per 100 kg. The prices also supported higher meal exports during the first 6 months of new financial year and increasing demand for winter crushing. As per the latest SEA data, during Nov-Sep, import of mustard oil noted sharply lower to 2.55 lt from 3.33 lt a year ago. There are improved mustard meal exports in first 6 month of FY 2017-18. Country exported 242,661 tonnes of mustard meal during this period which is 76.4% higher on year. As per report compiled by Mustard Oil Producers Association of India, Oil mills across the country crushed 425,000 tn of mustard seed in September, which was down by 6% from previous month.
Chana futures traded flat for the third consecutive day after plunged 4% on Monday. Government increase MSP by 10% to Rs. 4,400 per quintal by the government. Futures prices are well above the MSP prices while sufficient stocks levels in the country and good production forecast for next season may keep the prices near MSP during the sowing season. According to the market participants, chana sowing acreage in the coming rabi season may be higher than last year as prices was firm throughout the year. According to the board estimate released by government, India’s chana production target estimate for 2017-18 is 97.5 mt which is slightly higher than 2016-17 fourth advance estimates of 93.3 lakh tonnes.
Mentha Oil futures prices are expected to trade with upside biasness. As per the reports the global demand of essential oil will increase in the coming years. This will boost mentha oil demand, mainly from medicines, health products, cosmetics as well as food and beverages. From export front, the demand for mentha oil will emerge from the European Union, the UK, Japan, the UK, China and Singapore. Also the limited supply from the major producing regions of Uttar Pradesh is giving support to mentha in futures market.
Technical Aspect (Nov)
Jeera
Support seen at 19050 and Resistance is at 19400.
Rally likely to continue till 19400. Break and close above 19400 will take it towards 19650—19900 and then 20250++ mark in near term.
Fresh selling can be initiated below 19050 on closing basis.
Trade safely with levels only.
Castor Seed
Support at 4380 and Resistance at 4550.
Looks positive on chart. Break and close below 4550 will take it towards 4640 —4750 and then 4930++ mark else could touch its support level of 4380.
Fresh selling can be initiated below 4380 mark.
Trade with levels only.
Guar seed
Support is at 3600 and Resistance is 3730.
Looks positive on chart .Break and close above 3730 will take it towards 3805 – 3880 and then 3900++ mark in near term else it could touch its support level of 3600.
Fresh selling can be seen below 3600 on closing basis.
Trade with levels only.
Chana
Support seen at 5030 and Resistance at 5180.
If prices unable to breach its support of 5030 then we can see good upside in it till 5180. Break and close above 5180 will take to towards 5310---5380 and then 5550++ mark in near term else can touch its support level of 5030.
Fresh selling can be seen only close below 5030.
Trade with levels only
RM Seed
Support seen at 3880 and resistance is at 3980.
Looks positive on chart and likely to touch 3980. Break and close above 3980 will take it to 4030---4070 and then 4150++ mark in days to come else could touch its support level of 3880.
Fresh selling can be initiated below 3880.
Trade with levels only.
Soybean
Support seen at 2800 and Resistance is 2900
If prices unable to breach its immediate support of 2800 then we can see good upside in it till 2900. Break and close above 2900 will take it towards 2960—3020 and then 3100+++ mark in near term.
Trade with levels only.
CPO
Support at 535 and Resistance at 545
Looks positive on chart. Break and close above 545 will take it towards 551---556 and then 564++ mark in near term else could touch its support level of 535.
Fresh selling can be seen on close below 535.
Trade with levels only
More will update soon!!!
