Agro Commodity Update (14th-Nov-2017)
Fundamental Aspect:
Guar futures are expected to trade in a narrow range due to ongoing harvesting activities in major guar growing region could weigh on prices. However, losses could be limited as prices may track Improving export outlook for guar gum supported by gains in global crude oil prices. Moreover, weaker production outlook for year 2017-18 could restrict major losses. Overall production and yield for year 2017-18 is likely to be lower due to uneven distribution in western Rajasthan. Although Rajasthan government forecasted higher production for year 2017-18 pegged at 16.76 lakh tones in its first advanced estimates higher by 19% compare to last year. As per the latest data compiled by Agricultural and Processed Food Products Export Development Authority, India's guar gum exports for first four months of FY 2017-18 has reached up to 178,119 tonnes from 105214 tonnes recorded a year ago.
Dhaniya futures are likely to trade lower as supplies are expected to increase at major physical market as 3,692 MTs of commodity released from NCDEX warehouse recently, which may support prices to trade lower. Moreover, purchasing activities are likely to remain inactive on dull demand scenario, which may keep pressure in dhaniya futures. Export demand is expected to remain insignificant for Indian coriander due to off-season. Sowing of dhaniya is expected to commence by the middle of November and due to prevailing lower prices, there are expectations of remarkable decline in sowing area under the crop. Due to weak rainfall in Gujarat, Rajasthan and Madhya Pradesh for the past few weeks, moisture content of soil may reduce during the sowing activities, which may restrict major fall in dhaniya prices in near term.
Technical Aspect (Dec)
Turmeric
Support seen at 6900 and Resistance is 7120.
Break and sustain above 7120 will take it towards 7290—7350 and then 7480++ mark in near term.
Fresh selling only can be seen below 6900 mark on closing basis.
Trade with levels only.
Jeera
Support seen at 18750 and Resistance is at 19300.
Looks positive on chart. Break and sustain above 19300 will take it towards 19520—19700 and then 19980++mark in near term else could touch its support level of 18750.
Trade safely with levels only.
Castor Seed
Support at 4320 and Resistance at 4400.
Break and sustain above 4400 will take it to 4460 —4520 and then 4570++ mark else could touch its support level of 4320 mark.
Fresh selling can be initiated below 4320 mark on closing basis.
Trade with levels only.
Guar seed
Support is at 3650 and Resistance is 3780.
Any sharp rise will be a selling opportunity in it. It’s likely to touch 3650 in near term. Hurdle will remain at 3780.
Fresh Buying can be seen above 3780 mark on closing basis.
Trade with levels only.
Chana
In line with our expectation we have seen sharp recovery in it.
Now what to expect?
Support is 4650 and Resistance is 4850.
Rally likely to continue. Above 4850 will take it towards 4930—4990 and then 5050++ mark in near term.
Major downtrend will be seen only on close below 4650 mark.
Trade with levels only
RM Seed
Support seen at 3930 and resistance is at 3980--4050.
Break and sustain above 3980 will take it towards 4050 and then 4120++ mark in near term.
Fresh selling can be initiated below 3930 mark.
Trade with levels only.
Soybean
Support seen at 2800 and Resistance is 2880—2935
Look positive on chart. Break and sustain above 2880 will take it towards 2935—2970 and then 3050++ mark in near term else could touch its support level of 2800 mark.
Fresh selling can be seen on close below 2800 mark.
Trade with levels only.
CPO (Nov)
Our buy call from 560—575 proven great.
Now what to expect??
Support is 563 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 563 mark.
Fresh selling can be seen below 563 on closing basis.
Trade with levels only.
More will update soon!!!
