Agro Commodity Update (20th-Nov-2017)
Fundamental Aspect:
In order to support farmers, Government has raised import tax on edible oil to the highest level in more than a decade, as the world’s biggest importer of edible oils. The new rates are applicable as on crude soybean oil raised at 30% (17.5%), soybean refined oil to 30% (20%), palm crude oil to 30% (15%), RBD palm oil hiked at 40% (25%), sunflower crude oil to 25% (12.5%), sunflower refined oil to 35% (20%), canola/rapeseed/mustard oil Crude to 25% (12.5%), canola/rapeseed/mustard oil refined to 35% (20%).
Chana futures traded sharply lower during last week despite government removed export curbs on all varieties of pulses to ensure farmers get remunerative prices as domestic rates have crashed below MSP in view of record production. Chana is pressured by good start to rabi sowing and higher stock levels in the country. Moreover, government which is sitting on a buffer stock of 18 lakh tonnes is set to dispose of 5 lt pulses by March next year will put pressure on prices. As per the latest government sowing data, chana is planted in 47.2 lakh ha as on 10 Nov, up by 43% as compared to 33 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 the government, India’s chana production target estimate for 2017-18 is 97.5 mt.
Technical Aspect (Dec)
Turmeric
Support seen at 6900 and Resistance is 7150.
Looks positive on chart .Break and sustain above 7150 will take it towards 7220—7290 and then 7350++ mark in near term.
Fresh selling only can be seen only close below 6900 mark.
Trade with levels only.
Jeera
Our buy call from 19300—20255 proven great.
Now what to expect?
Support seen at 19700 and Resistance is at 20380.
Rally likely to continue. Break and sustain above 20380 will take it towards 20550—20700 and then 20950++mark in near term.
Fresh selling can be seen on close below 19700 mark.
Trade safely with levels only.
Castor Seed
Our buy call from 4425—4485 proven great.
Now what to expect?
Support at 4350 and Resistance at 4500.
Rally likely to continue. Break and sustain above 4500 will take it to towards 4560 —4620 and then 4680++ 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 3650 and Resistance is 3780.
Any sharp rise will be a selling opportunity in it. It’s likely to touch 3650 in near term. Break and sustain below 3650 will take it towards 3610—3570 and then 3530 mark.
Hurdle will remain at 3780.
Fresh Buying can be seen on close above 3780 mark.
Trade with levels only.
Chana
Support is 4650 and Resistance is 4850
Trading in a range. Weekly close on either side will set the further trend in it.
Major downtrend will be seen only on close below 4650 mark .
Trade with levels only
RM Seed
Support seen at 3900 and resistance is at 4050.
Likely to touch 4050. Break and sustain above the same will take it towards 4120—4160 and then 4220++ mark in near term.
Fresh selling can be initiated below 3900 mark.
Trade with levels only.
Soybean
In line with our expectation we have seen sharp recovery in it and it’s opened today with a gap of 3% higher.
Now what to expect??
Support seen at 2800 and Resistance is 2935.
Rally likely to continue. Buy and accumulate more on decline. We expect good upside over the medium term. We have published a special report on soybean too.
Trade with levels only.
Soy Refined
Our buy call from 715--726 proven great.
Now what to expect??
Support is 710 and Resistance is 730.
Rally likely to continue. Break and sustain above 730 will take it towards 738—745 and the 756++ mark in near term.
Fresh selling only can be seen below 710 mark.
Trade with levels only.
CPO
Our buy call from 565—576.5 proven great.
Now what to expect?
Support seen at 558 while Resistance is 578.
Rally likely to continue. Break and sustain above 578 will take it towards 585—592 and then 599++ mark in near term.
Fresh selling only can be seen below 558 on closing basis.
Trade with levels only.
More will update soon!!!
