Agro Commodity Update (10th-November-2017)
Fundamental Aspect:
Chana prices traded sharply higher on yesterday due to hike in 50% import tax on all pea by the government. As per the latest government sowing data, chana is planted in 30.6 lakh ha as on 3rd Nov compared to 20.7 lakh ha last year. Madhya Pradesh farmers have planted chana in about 13 lakh ha this season, up from 3.3 lakh last year while in Rajasthan chana is planted in 3.1 lakh ha down from 5.6 lakh ha last year. Moreover to encourage farmers to plant more chana, Government increase MSP by 10% to Rs. 4,400 per quintal. According to the target estimate released by government, India’s chana production target estimate for 2017-18 is 97.5 mt.
Soybean prices traded with weak bias on expectation that soybean arrivals have peaked and pressure on edible oil counter. Encouraging soy meal exports from the country kept the prices supported this week. Total exports of soy oil meal in the first seven months of the fiscal started April is almost 5 times higher to 5.37 lakh tons compared to 1.07 lakh tons last year. As per the trader source, in the last week of October the arrivals of soybean in the country increased to 6.2 lt compared to 5 lt noted same period last year.
Mentha Oil prices continued to trade higher in past couple of days. According to the trader sources, arrivals are same in comparison to previous days in major spot markets of Uttar Pradesh. The demand is rising from both the major domestic consuming industries as well as stockists. From the export front there is expectation of demand in coming days which is supporting the prices .As on 01st November 2017 stock positions of mentha in MCX accredited warehouses were around 9388 drums which is same in comparison to the previous day, while in process were 396 drums, which is 12 drums more against the previous day.
Technical Aspect (Dec)
Jeera
Support seen at 18700 and Resistance is at 19050.
Trading in a range .Either side decisively break will decide further trend in it.
Trade safely with levels only.
Turmeric
Support seen at 6900 and Resistance is 7150.
Panic likely to continue till 6900. Break and sustain below 6900 will take it towards 6780—6700 and then 6630 mark in near term.
Fresh buying only can be seen above 7150 mark on closing basis.
Trade with levels only.
Castor Seed
Support at 4350 and Resistance at 4450.
Break and sustain above 4450 will take it to 4520 —4580 and then 4650++ mark else could touch its support level of 4350 mark.
Fresh selling can be initiated below 4350 mark on closing basis.
Trade with levels only.
Guar seed
Support is at 3600 and Resistance is 3750.
Looks weak on chart. Any sharp rise will be a selling opportunity in it. Break and sustain below 3600 will take it towards 3540 – 3500 and then 3460 mark in near term else it could touch its resistance level of 3750 mark.
Fresh buying can be seen above 3750 on closing basis.
Trade with levels only.
Chana
Support is 4650 and Resistance is 4950.
Traders can accumulate on decline till 4650. We expect medium term upside in it.
Major downtrend will be seen only on close below 4650 mark.
Trade with levels only
RM Seed
Support seen at 3950 and resistance is at 4050.
If prices unable to sustain above 4050 then we can see vertical crash in it till 3950. Break and sustain below 3950 will take it towards 3910—3860 and then 3820 mark in near term.
Fresh buying can be initiated above 4050 mark.
Trade with levels only.
Soybean
Support seen at 2820 and Resistance is 2935
Trading in a range .Either side break and close will set the further trend in it.
Trade with levels only.
CPO (Nov)
Our buy call from 560—575 proven great.
Now what to expect??
Support is 560 and Resistance is 575.
Rally likely to continue .Break and sustain above 575 will take it towards 582—587 and then 594++ mark in near term else could touch its support level of 560 mark.
Fresh selling can be seen below 560 on closing basis.
Trade with levels only.
More will update soon!!!
