Agri Commodity Update (12th-Dec-2017)
Fundamental Aspect:
Soybean futures traded lower from last couple of days mainly on fresh selling initiated by the market participants tracking spot prices. However, the trend looks positive due to reports of good physical demand as Soybean Processors Association of India (SOPA) increased its estimates of meal exports for 2017-18. Moreover, earlier government has increased export incentives by 2% for all meals. As per the latest release of SOPA, Soymeal exports from the country in 2017-18 (Oct-Sep) noted a rise of around 20 lakh tn against previous estimate of 15 lakh tn due to a recent rise in export incentives.
Chana futures plunged more than 6% last week as fresh selling is triggered throughout the week due to improved sowing progress coupled with higher stocks in the country due to record imports. As per the latest government data, India imported about 4.78 lakh tonnes of chana during April-Sep, up by 430% as compared with the last year imports. As per government sowing data, area under the rabi chana crop across the country was noted up 10.25% on year at 89.6 lakh ha as on last week. The acreage of chana in MP and Karnataka, the largest and the second-largest grower of pulse, was up 17.1% on year at 31.24 lakh ha, and up 38.2% on year at 13.3 lakh ha respectively. According to the target estimate released by government, India’s chana production target estimate for 2017-18 is 97.5 mt.
Technical Aspect (Jan)
Turmeric (Apr)
Support seen at 7250 and Resistance is 7500.
Looks positive and likely to touch 7500.Break and sustain above 7500 will take it towards 7580—7650 and then 7800++ mark in near term.
Buy and accumulate more on decline.
Fresh selling only can be seen only close below 7250 on closing basis.
Trade with levels only.
Jeera
Support seen at 21100 and Resistance is at 21700.
Looks weak on chart and likely to touch 21100. Break and sustain below 21100 will take it towards 20850—20700 and then 20450 mark in near term.
Fresh buying can be seen on close above 21700 mark on closing basis.
Trade with levels only.
Castor Seed
Support at 4450 and Resistance at 4620.
Sharp recovery noticed from lower levels. Now it’s likely to touch 4620. Break and sustain above 4620 will take it towards 4680—4750 and then 4920+ mark in near term.
Fresh selling can be initiated below 4450 mark on closing basis.
Trade with levels only.
Guarseed
Support is at 3750 and Resistance is 3900.
Sharp recovery noticed from lower levels. Buy and accumulate more on decline as it’s likely to touch 3900. Break and sustain above 3900 will take it towards 3970—4050 and then 4120++ mark in near term.
Support and stop loss will remain at 3750 mark on closing basis.
Trade with levels only.
Chana
Our sell call from 4480—4098 has proven great.
Now what to expect?
Support is 4050 and Resistance is 4200.
Panic likely to continue. Break and close below 4050 will take it towards 3980—3920 and then 3850 mark in near term. Take cautionary approach at lower levels.
Fresh buying only can be seen on close above 4200 mark.
Trade with levels only
RM Seed
Support seen at 3950 and resistance is at 4050.
Looks weak on chart and likely to touch 3950. Break and close below 3950 will take it towards 3880—3830 and then 3750 mark in near term.
Fresh buying can be initiated above 4050 mark on closing basis.
Trade with levels only.
Soybean
Support seen at 3080 and Resistance is 3165.
If prices unable to break and close above 3165 then we can expect sharp downside panic in it from higher level till 3080. Break and sustain below 3080 will take it towards 3020—2960 and then 2850 mark in coming days.
Fresh buying can be seen on close above 3165 mark on closing basis.
Trade with levels only.
Soy Refined
Support is 721 and Resistance is 730.
Break and close above 730 will take it towards 716—712 and then 705 mark in near term.
Fresh buying only can be seen above 730 mark on closing basis.
Trade with levels only.
CPO (Dec)
Support seen at 556 while Resistance is 570.
Looks positive on chart. Buy and accumulate more on decline till 556 and its likely to touch 570 soon. Break and sustain above 570 will see a new bullish era in the near term.
Support and stop loss below 556 mark on closing basis.
Trade with levels only.
More will update soon!!!
