Agro Commodity Update (1st-Nov-2017)
Fundamental Aspect:
Soybean Nov futures hits nearly 5-month low pressurized by subdued physical demand coupled with new season arrivals and higher stocks from last year. Arrivals of soybean are increasing as farmers want to raise cash for the Rabi sowing operation. As per the trader source, during the first 30 days of Oct. soybean arrivals have been noted at 9.84 lakh tonnes as compared to close of 10.43 lakh tones last year. Reports of lower meal export in September also worrying farmers and oil millers. India's soymeal exports during September were noted at 9,650 tn, down 21% from a year ago.
Chana futures recovered sharply due to short covering activity by the market participants while, medium term trend is still adverse due to higher stocks and steady demand. According to the trader source, chana sowing acreage in the coming Rabi season may be higher than last year as prices was firm throughout the year. According to the target 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.
Cotton futures falls from last consecutive sessions pressurized by higher than expected cotton production in the country. Textile industry has urged Cotton Corporation to procure about 100 lakh bales to stabilize the prices this season. Moreover, Gujarat government has announced a bonus of ₹500 per quintal over and above the minimum support price of ₹4,020. The CCI is set to open its procurement centers in major cotton growing states as it is believed that the prices may decrease below the MSP during the peak arrival season. The arrivals in the current season during Oct are about 4.21 lakh tonnes as compared with the 3.9 lakh tonnes last year.
Technical Aspect (Nov)
Jeera
Support seen at 18400 and Resistance is at 19000.
Panic likely to continue. Break and close below 18400 will take it towards 18180—17920 and then 17700 mark in near term.
Fresh buying can be initiated above 19000 on closing basis.
Trade safely with levels only.
Turmeric
Our sell call from 7080---6902 proven great yesterday.
Now what to expect??
Support seen at 6880 and Resistance is 7200.
Panic likely to continue. Break and sustain below 6880 will take it towards 6740—6550 and then 6400 mark in near term else could touch its resistance level of 7200.
Fresh buying only can be seen above 7200 mark.
Trade with levels only.
Castor Seed
Support at 4350 and Resistance at 4450.
Looks positive on chart and likely to touch 4450. Break and close above 4450 will take it to 4520 —4560 and then 4650++ mark else could touch its support level of 4350.
Fresh selling can be initiated below 4350 mark.
Trade with levels only.
Guar seed
Our sell call from 3600—3507 proven great…
Now what to expect??
Support is at 3500 and Resistance is 3650.
Panic likely to continue .Break and close below 3500 will take it towards 3430 – 3360 and then 3200 mark in near term else it could touch its resistance level of 3650.
Fresh buying can be seen above 3650 on closing basis.
Trade with levels only.
Chana
Sharp recovery seen at the end of the session. Hurdle is 4950. Break and sustain above 4950 will take it towards 5030---5100 and then to 5180++ mark in near term.
Trade with levels only
RM Seed
Support seen at 3840 and resistance is at 3920.
If prices unable to break and close below 3840 then we can expect good recovery from here till 3920. Break and sustain above 3920 will take it towards 3980—4040 and then 4150++ mark in near term.
Fresh selling can be initiated below 3840.
Trade with levels only.
Soybean (Dec)
Support seen at 2800 and Resistance is 2850
If prices unable to breach its immediate support of 2800 then we can see good upside in it till 2850.Break and close above 2850 will take it towards 2930—3000 and then 3080++ mark in near term. Positional, traders can accumulate more on decline in it.
Fresh selling can be initiated below 2800 on closing basis only.
Trade with levels only.
More will update soon!!!
