Agro Commodity Update (21st-Nov-2017)
Fundamental Aspect:
Soybean futures traded sharply higher with gap of more than 3% on the back of India hikes its import tariffs to levels not seen for ten years, boosted the domestic sentiment excessively. 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%).
Jeera surged higher on anticipation of improved export demand from the country despite good sowing progress in Gujarat. In Gujarat, jeera sowing reached about 60,000 ha this year compared to 36,600 ha last year as on 13th Nov. As per the latest government data, Jeera exports during first five month of FY 2017-18 (Apr-Sep) is 63,085 tonnes, down 2.6% compared to last year exports volume for the same period. India's jeera exports in Aug rises to 46% on year to 13,879 tn. On the import front, country imported about 1,044 tonnes of jeera during the month of August about 209 percent higher than last year imports.
Technical Aspect (Dec)
Turmeric
Our buy call from 7150—7222 proven great.
Now what to expect?
Support seen at 7050 and Resistance is 7250.
Rally likely to continue .Above 7250 will take it towards 7310—7360 and then 7420++ mark in near term.
Fresh selling only can be seen only close below 7050 mark.
Trade with levels only.
Jeera
Our buy call from 19300—20445 proven great.
Now what to expect?
Support seen at 20000 and Resistance is at 20450.
Rally likely to continue. Above 20450 will take it towards 20700—20950 and then 21300++mark in near term.
Fresh selling can be seen on close below 20000 mark on closing basis.
Trade safely with levels only.
Castor Seed
Our buy call from 4425—4506 proven great.
Now what to expect?
Support at 4400 and Resistance at 4550.
Likely to touch 4550. Break and sustain above 4550 will take it to towards 4610 —4680 and then 4730++ mark else could touch its support level of 4400 mark.
Fresh selling can be initiated below 4400 mark on closing basis.
Trade with levels only.
Guar seed
Support is at 3630 and Resistance is 3730.
Any sharp rise will be a selling opportunity in it. It’s likely to touch 3630 in near term. Break and sustain below 3630 will take it towards 3570—3520 and then 3450 mark.
Hurdle will remain at 3710 mark.
Fresh Buying can be seen on close above 3730 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.
Now what to expect??
Support seen at 2850 and Resistance is 2950.
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 715 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!!!
