Agro Commodity Update (8th-November-2017)
Fundamental Aspect:
Chana prices traded under pressure by good start to rabi sowing and higher stock levels in the country. As per the latest government sowing data, chana is planted in 30.6 lakh ha as on 3rd Nov as compared to 20.7 lakh ha noted last year. Madhya Pradesh farmers have planted chana in about 13 lakh ha this season, up from 3.3 lakh last year while in Rajasthan chana is planted in 3.1 lakh ha down from 5.6 lakh ha noted last year. Moreover to encourage farmers to plant more chana, Government increase MSP by 10% to Rs. 4,400 per quintal. As per the target estimate released by government, India’s chana production target estimated for 2017-18 is 97.5 mt.
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.
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.
Trading in a range .Either side decisively break will decide further trend in it.
Trade safely with levels only.
Turmeric
Our sell call from 7200—6980 proven great.
Now what to expect??
Support seen at 6950 and Resistance is 7200.
Panic likely to continue. Fresh selling can be initiated below 6950 for the next downside level of 6780—6650 and then 6530 mark in near term.
Fresh buying only can be seen above 7200 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 (Dec)
Support is at 3630 and Resistance is 3750.
Looks weak on chart. Break and close below 3630 will take it towards 3570 – 3530 and then 3450 mark in near term else it could touch its resistance level of 3750 mark.
Fresh buying can be seen above 3750 on closing basis.
Trade with levels only.
Chana (Dec)
Support is 4580 and Resistance is 4725.
Looks weak on chart and likely to touch 4580.Below 4580 panic likely to continue till 4520—4450 mark in near term.
Hurdle will remain at 4725 on closing basis.
Trade with levels only
RM Seed (Dec)
Support seen at 3920 and resistance is at 4020.
If prices unable to sustain above 4020 then we can expect a vertical crash in it till 3920. Break and sustain below 3920 will take it towards 3870—3820 and then 3750 mark in near term.
Fresh buying can be initiated above 4020 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 2945—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—1586.90 proven great…
Now what to expect??
Rally likely to continue above 1590. Break and sustain above 1590 will take it towards 1622—1645 ++mark.
Fresh selling can be seen below 1530 mark on closing basis.
Trade with levels only.
More will update soon!!!
