Agro Commodity Update (7th-Nov-2017)
Fundamental Aspect:
Soybean futures traded lower due to profit booking at higher levels as arrivals from new season crop is increasing gradually. Last week the prices have improved due to reports that government may hike import duty on edible oil and oilseeds which will enhance domestic oilseed demand. As per trader source, during the month of Oct. soybean arrivals have been noted at 10.95 lakh tonnes as compared with 10.43 lakh tones noted same period last year. China is expected to buy about 5 mt of soybeans from Brazil for the fourth quarter of 2017, double the 2.49 million tonnes shipped over the same period last year.
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.
Cotton futures traded with small gain due to expectation of good demand form the mills and traders as CCI started its procurement from cotton growing states. Last week there was fresh buying initiated by market participants. The prices have been under pressure by higher than expected cotton production in the country. Textile industry has urged Cotton Corporation to procure about 100 lakh bales to stabilize the prices this season. Moreover, Gujarat government has announced a bonus of ₹500 per quintal over and above the minimum support price of ₹4,020. The arrivals in the current season during Oct marked at 20.27 lakh bales as compared to 18.72 lakh bales last year as per ICC.
Technical Aspect (Nov)
Jeera
Support seen at 18400 and Resistance is at 18900.
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 7200 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 4300 and Resistance at 4480.
Looks weak on chart and likely to touch 4300. Break and close below 4300 will take it to 4240 —4170 and then 4120 mark else could touch its resistance level of 4480 mark.
Fresh buying can be initiated above 4480 mark on closing basis.
Trade with levels only.
Guar seed
Support is at 3500 and Resistance is 3650.
Panic likely to continue till 3500. Break and close below 3500 will take it towards 3430 – 3380 and then 3250 mark in near term else it could touch its resistance level of 3650 mark.
Fresh buying can be seen above 3650 on closing basis.
Trade with levels only.
Chana
Prices unable to hold above 5050 and crashed vertically.
Now what to expect??
Support is 4900. Below 4900 panic likely to continue till 4800—4680 mark.
Hurdle will remain at 5050 on closing basis.
Trade with levels only
RM Seed
Support seen at 3900 and resistance is at 3980.
Break and sustain below 3900 will take it towards 3820—3750 and then 3700 mark in near term.
Fresh buying can be initiated above 3980 mark.
Trade with levels only.
Soybean (Dec)
Support seen at 2800 and Resistance is 2890--2935
If prices unable to breach its immediate support of 2800 then we can see good upside in it till 2890.Break and sustain above 2890 will take it towards 2935—3000 and then 3060++ mark in near term. Positional, traders can accumulate more on decline in it.
Trade with levels only.
Mentha Oil
Our buy call from 1475—1525.9 proven great…
Now what to expect??
Rally likely to continue. Hurdle is 1530. Break and sustain above 1530 will take it towards 1565—1580 and then 1608++mark.
Fresh selling can be seen below 1475 mark on closing basis.
Trade with levels only.
More will update soon!!!
