Agro Commodity Update (3rd-Nov-2017)
Fundamental Aspect:
CPO traded sharply higher tracking firm Malaysian palm oil prices. Moreover, higher tariff value and expectation of further hike in import duty for edible oil also support prices. The government has raised the base import price of all palm oils. For the second first half of Nov, The base import price for crude palm oil and refined, bleached and deodorised palm oil were raised by $2 and $3 per ton, respectively. As per the SEA press release, during Nov-Sep period, crude palm oil import is 57.34 lakh tonnes, up 9.5% from 52.34 lt during the same period of the previous oil year.
Mustard seed recovered sharply as market participants initiated some fresh buying at lower levels expecting good demand from the oil mills. Moreover, sowing of mustard in Rajasthan started but slow compared to last year. As on 31st’Oct about 9.8 lakh ha have been sown as compared to 15.7 lakh ha noted earlier. This year target is 26 lakh ha as compared with last year area which was 25 lakh ha while, 5 year average is 25.8 lakh ha. Support price for mustard in 2017-18 rises by 8.1% on year to 4,000 rupees per 100 kg. Earlier the prices have hit 2-month high supported by higher meal exports during the first 6 months of new financial year and increasing demand for winter crushing. As per the latest report of SEA data, during Nov-Sep, import of mustard oil sharply down to 2.55 lt from 3.33 lt a year ago.
Mentha Oil futures prices traded sharply higher from last couple of days due to tight stock position which has been followed by fall in arrivals from the major producing belts of Chandausi in Uttar Pradesh has given support to the uptrend in prices. According to the market source, speculators have widened their positions because of pick-up in demand from consuming industries in the spot market against restricted supplies. As on 28th October 2017 stock positions of mentha in MCX accredited warehouses were around 9292 drums which is 24 drums less in comparison to the previous day, while in process were 372 drums, which is 48 drums more against the previous day.
Technical Aspect (Nov)
Jeera
Support seen at 18400 and Resistance is at 18900.
Break and close above 18900 will take it towards 19220—19450 in near term.
Fresh selling can be initiated below 18400 on closing basis.
Trade safely with levels only.
Turmeric
Support seen at 7000 and Resistance is 7200.
Break and sustain above 7200 will take it towards 7340—7500 and then 7650++ mark in near term else could touch its support level of 7000.
Fresh sell only can be seen above 7000 mark on closing basis.
Trade with levels only.
Castor Seed
Support at 4300 and Resistance at 4500.
Break and close above 4500 will take it to 4580 —4650 and then 4800++ mark else could touch its support level of 4300.
Fresh selling can be initiated below 4300 mark.
Trade with levels only.
Guar seed
Support is at 3450 and Resistance is 3550.
Looks positive on chart. Break and sustain above 3550 will take it towards 3620--3670 and then 3750++ mark in near term else it could touch its support level of 3450.
Fresh selling can be seen below 3450 on closing basis.
Trade with levels only.
Chana
Hurdle is 4980. Break and sustain above 4980 will take it towards 5080---5150 and then to 5240++ mark in near term.
Support will remain at 4650 on closing basis.
Trade with levels only
RM Seed (Dec)
Support seen at 3920 and resistance is at 3990.
Looks positive on chart. Break and sustain above 3990 will take it towards 4060—4120 and then 4220++ mark in near term.
Fresh selling can be initiated below 3920 on closing basis.
Trade with levels only.
Soybean (Dec)
Support seen at 2850 and Resistance is 2850--2935
Above 2850 rally likely to continue till 2935. Break and close above 2935 will take it towards 3000—3060 and then 3120++ mark in near term. Positional, traders can hold there long position in it.
Fresh selling can be initiated below 2850 on closing basis only.
Trade with levels only.
CPO (Dec)
Our buy call of CPO from 553—559 proven great…
Now what to expect??
Support at 542 and Resistance at 560
Rally likely to continue. Close above 560 will take it towards 567—572 and then 580++ mark in near term. Support will remain at 542.
Trade with levels only
More will update soon!!!
