Agro Commodity Update (6th-Nov-2017)
Fundamental Aspect:
Chana futures surged almost 2% on Friday mainly on short covering by market participants on reports of good start to chana sowing in Maharashtra. In Maharashtra, the second largest chana growing state, the area planted under chana was 1.3 lakh ha last week compared to 61,326 hectares last year same period. However, in Rajasthan till 31st Oct, chana is planted on only 3 lakh ha as compared to 5.6 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 government, India’s chana production target estimate for 2017-18 is 97.5 mt.
Jeera closed higher last week tracking improved demand in the physical market. Moreover, lower stocks reports in the physical market also supporting prices. The arrivals have been reported higher during October this year at 3,760 tonnes compared to 2,130 tonnes last year same period. However, in the second half of Oct the arrivals have been reduced significantly to 963 tons Vs 2,795 tons in the first half. As per the latest government data, Jeera exports during first four month of FY 2017-18 (Apr-Jul) is 49,205 tonnes, down 11% compared to last year exports volume for the same period. India's jeera exports in Jul noted down 12% on year to 7,498 tn.
Mentha Oil prices continued to trade higher in past couple of days. According to the trader sources, arrivals are same in comparison to previous days in major spot markets of Uttar Pradesh. The demand is rising from both the major domestic consuming industries as well as stockists. From the export front there is expectation of demand in coming days which is supporting the prices .As on 01st November 2017 stock positions of mentha in MCX accredited warehouses were around 9388 drums which is same in comparison to the previous day, while in process were 396 drums, which is 12 drums more against the previous day.
Technical Aspect (Nov)
Jeera
Support seen at 18400 and Resistance is at 18900.
Looks positive on chart. Break and sustain above 18900 will take it towards 19150—19400 and then 19700++ mark in near term.
Fresh selling can be initiated below 18500 on closing basis.
Trade safely with levels only.
Turmeric
Support seen at 7100 and Resistance is 7350.
Break and sustain above 7350 will take it towards 7440—7550 and then 7700++ mark in near term else could touch its support level of 7100.
Fresh selling only can be seen below 7100 mark.
Trade with levels only.
Castor Seed
Support at 4350 and Resistance at 4470.
Looks weak on chart and likely to touch 4350. Break and close below 4350 will take it to 4280 —4230 and then 4150 mark else could touch its resistance level of 4470 mark.
Fresh buying can be initiated above 4470 mark.
Trade with levels only.
Guar seed
Support is at 3500 and Resistance is 3650.
Rally likely to continue till 3650.Break and close above 3650 will take it towards 3730 – 3780 and then 3850++ mark in near term else it could touch its support level of 3500 mark.
Fresh selling can be seen below 3500 on closing basis.
Trade with levels only.
Chana
Our buy call from 4950—5052 proven great…
Above 5050 rally likely to continue. Break and sustain above 5050 will take it towards 5130---5190 and then to 5250++ mark in near term.
Fresh selling can be seen on close below 4900 mark.
Trade with levels only
RM Seed
Support seen at 3900 and resistance is at 3980.
Break and sustain above 3980 will take it towards 4040—4100 and then 4160++ mark in near term.
Fresh selling can be initiated below 3900 mark.
Trade with levels only.
Soybean (Dec)
Support seen at 2850 and Resistance is 2950
If prices unable to breach its immediate support of 2850 then we can see good upside in it till 2950.Break and sustain above 2950 will take it towards 2990—3040 and then 3120++ mark in near term. Positional, traders can accumulate more on decline in it.
Fresh selling can be initiated below 2850 on closing basis only.
Trade with levels only.
Mentha Oil
Support seen at 1425 and Resistance is at 1475.
Looks positive on chart. Break and sustain above 1475 will take it towards 1510—1535 and the 1560++ mark in near term else could touch its support level of 1425 mark
Fresh selling can be seen below 1425 mark.
Trade with levels only.
More will update soon!!!
