Agro Commodity Update (23rd-Nov-2017)
Fundamental Aspect:
Soybean extended its gains for the second consecutive days supported by speculative buying at futures platform. Reports of rise in import duty on veg oil amid improving demand helped prices to settle higher. However, CBOT soybean prices traded on weaker note tracked cues from the beneficial rainfall in major soybean growing region in Brazil which helped planting activities and crop development. Soybean planting in Brazil for year 2017-18 has completed up to 73% as compared with last year and 68% at five-year average In the meanwhile, The USDA reported export sales of U.S. soybeans in the latest week at 1,176,900 tonnes (old and new crop years combined), near the low end of trade expectations for 1.1 million to 1.55 million tonne. SOPA released its first advance estimates for soybean production for year 2017- 18 and pegged at 91.46 lakh tonnes compare to 109.92 lakh tonnes of last year. As per Ministry of Agriculture, soybean production in India for 2017-18 seasons is estimated to be around 12.22 million MT down by 11% Y/Y.
Guar complex futures traded higher from last couple of days in anticipation of rise in domestic demand at physical market. Improving export outlook of gum in line with strengthen crude oil prices may prompt stockiest to indulge in fresh buying at lower level. Weaker production outlook of guar for year 2017-18 and reports of crop damage in major guar growing region is likely to bolster prices in near term. Every dip in prices may emerge as buying opportunity in guar as production in likely to fall significantly in year 2017-18 may stand near about at 60 – 65 lakh tonnes compare to 10 lakh tones of last year. 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.
Technical Aspect (Dec)
Turmeric
Support seen at 7080 and Resistance is 7250.
Look positive on chart and likely to touch 7250 .Break and sustain above 7250 will take it towards 7350—7470 and then 7600++ mark in near term.
Fresh selling only can be seen only close below 7080 mark on closing basis.
Trade with levels only.
Jeera
Our buy call from 19300—20445 proven great.
Now what to expect?
Support seen at 19950 and Resistance is at 20450.
Rally likely to continue. Break and sustain above 20450 will take it towards 20680—20900 and then 21250++mark in near term.
Fresh selling can be seen on close below 19950 mark on closing basis.
Trade safely with levels only.
Castor Seed
Support at 4350 and Resistance at 4520.
Looks positive and likely to touch 4520.Buy and accumulate more on decline. Break and sustain above 4520 will take it to towards 4580—4630 and then 4700++ 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.
Looks positive on chart and likely to touch 3780. Break and sustain above 3780 will take it towards 3840—3900 and then 3960++ mark in near term.
Support will remain at 3650 mark.
Trade with levels only.
Chana
Support is 4800 and Resistance is 5050
Looks weak on chart. Sell on every rise till 5050.It’s likely to touch 4800. Break and sustain below 4800 will take it towards 4740—4650 mark in near term.
Major uptrend will be seen only on close above 5050 mark.
Trade with levels only
RM Seed
Support seen at 3880 and resistance is at 3980.
Buy and accumulate on decline till 3880 and it’s likely to touch 3980 in near term. Break and sustain above the same will take it towards 4060—4120 and then 4200++ mark in near term.
Fresh selling can be initiated below 3880 mark on closing basis.
Trade with levels only.
Soybean
Our buy call from 2920---3005 proven great.
Now what to expect??
Support seen at 2920 and Resistance is 3050.
Rally likely to continue till 3050. Break and close above 3050 will take it towards 3120—3160 and then 3220 mark in near term.
Buy and accumulate more on decline.
Trade with levels only.
Soy Refined
Our buy call from 715--735 proven great.
Now what to expect??
Support is 728 and Resistance is 750.
Rally likely to continue till 750. Break and sustain above 750 will take it towards 765—772 and the 780++ mark in near term.
Fresh selling only can be seen below 725 mark on closing basis.
Trade with levels only.
CPO
Support seen at 580 while Resistance is 594.
Rally likely to continue till 594. Break and close above 594 will take it towards 608—622 and then 635+ mark in near term.
Fresh selling only can be seen below 580 mark on closing basis.
Trade with levels only.
More will update soon!!!
