Daily Agri Report of 07 Aug 2018 by Epic Research

Page 1

07-Aug-2018 Agri Commodity Update

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Agri Commodity Update Market Views MONTH

OPEN

HIGH

LOW

CLOSE

% CHG

VOL

MONTH

OPEN

HIGH

LOW

CORIANDER

AUG

5012

5041

4914

SUPPORT

SUPP.1

SUPP. 2

4942

4864

5020

4991 RESISTANCE

RES. 1

RES. 2

5069

5118

-1.24

6660

Coriander short term trend is bearish and may continue in coming days.

-

-

-

-

SUPPORT

SUPP. 1

SUPP. 2

-

-

7152

7260

7118

SUPPORT

SUPP. 1

SUPP. 2

7114

7045

7184

7187 RESISTANCE

RES. 1

RES. 2

7256

7329

-

-

-

PIVOT

LEVELS

RESISTANC E

RES. 1

RES. 2

-

-

-

-

GUARGUM 5MT

PIVOT

INTRADAY LEVELS

VOL

INTRADAY

TURMERIC

AUG

% CHG

CASTORSEED

PIVOT

INTRADAY LEVELS

CLOSE

0.61

2605

Turmeric short term trend is bearish and may continue in coming days.

AUG

9670

9670

9332

SUPPORT

SUPP. 1

SUPP. 2

9478

9236

9720

PIVOT

INTRADAY LEVELS

9574 RESISTANCE

RES. 1

RES. 2

9816

9912

-3.99

26585

Guargum Short term trend is bearish and may continue in coming days.


Agri Commodity Update Most Active Contract TOP GAINERS

NCDEX INDICES Symbol

Expiry Date

Current Price

Change

Change %

MAIZE FEED/INDUSTRIAL GRADE

20-08-2018

1279.00

7.00

0.55%

Index

TURMERIC

20-08-2018

7228.00

22.00

0.31%

Castorseed

4598

4721

-2.61

BARLEY

20-08-2018

1607.00

0.50

0.03%

Chana

4092

4240

-3.49

Coriander

4958

5020

-1.24

Guargum5MT

8880

8785

1.08

Value

Pre. Close

% Change

TOP LOSERS Symbol

Expiry Date

Current Price

Change

Change %

COTTON SEED OIL CAKE AKOLA

20-08-2018

1712.00

-99.50

-5.49%

GUAR GUM 5 MT

16-10-2018

9332.00

-528.00

-5.35%

Jeera

19875

20355

-2.36

GUAR SEED 10 MT

16-10-2018

4270.00

-234.00

-5.20%

Musterseed

4089

4124

-0.85

CHANA

20-08-2018

4092.00

-147.00

-3.47%

Soybean

3384

3409

-0.73

JEERA

20-08-2018

19875.00

-595.00

-2.91%

Turmeric

7228

7184

0.61


Agri Commodity Update Commodities In News  China’s annual Soybean import of around 100 million tonnes is mostly for domestic consumption. Although this product does not have an exportable surplus in India yet, Indian industry players anticipate exports of USD 100 million worth of Soybean meal to China. A delegation of the Soybean Processors Association (Sopa) of India is expected to visit China in August. They want to assuage Chinese quarantine concerns and ensure market availability for Indian Soybean exporters. Currently, there are no Soybean oil and Soybean flour exports and negligible oilcake exports from India to China. India is expecting a bumper crop of Soybean this year. Stiff competition from Brazil and Vietnam will likely also lessen Indian Soybean’s competitiveness in the Chinese market.  Malaysia's Palm Oil stocks are expected to have risen to their highest in five months at end-July, a second straight gain as output growth outpaced exports. Palm oil stocks in the world's No.2 producer grew 7% in July to 2.34 million tonnes from the previous month, highest since February, according to a median estimate from eight planters, traders and analysts surveyed by Reuters. Production rose 15.9 percent from June to 1.54 million tonnes, according to the survey, the first month-on-month gain since March but the lowest for July since 2010.  Good distribution of rains coupled with the incentive of higher and assured minimum support prices have boosted the prospect of the 2018 kharif output being at par with the last summer crop’s. As on Friday, kharif sowing area was down just 1.8% from the year-ago period, from a wider gap of 7.5% prevailing a week earlier. Among major crops, sowing areas for Paddy, Pulses and Cotton are now just 4% below the levels a year ago compared with 12%, 9% and 8%, respectively, a week ago, but the area under oilseeds is now 6% higher than a year ago, a marked improvement from down 1% last week.

ECONOMIC NEWS 

Indian farmers have planted summer-sown crops on 85.456 million hectares as of Aug. 3, down 1.8 percent from a year earlier, government data showed. Cotton sowing was down 4 percent, while rice planting lagged 4.2 percent. Monsoon rainfall was 10 percent lower than normal as of Aug. 5, but in some states such as Manipur the rainfall deficit was as high as 64 percent, data compiled by the state-run India Meteorological Department (IMD) showed. India's monsoon rains, a crucial element for the country's farm output, are likely to be below average in 2018, after the country experienced tepid rainfall during the first half of the season. 

Rating agency ICRA feels that steep interim hike in wage rates for tea estate workers is expected to result in higher cost pressure for the tea trade. In a report issued on Monday, it said that as per an order by the Governor of Assam dated July 03, 2018, it has been decided that the state government will notify an interim enhancement of wages of tea plantation workers by a minimum amount of Rs. 30 per day with retrospective effect from 1st March 2018, till finalization of the revised minimum wages proposed earlier by the state government. While formal notification of the interim hike is pending, ICRA understands that large tea players have commenced pay-out of wages at the increased rate from 1st August 2018. However, clarity on payment of arrear wages for the period March-July 2018 is yet to emerge. With wage rates increasing in Assam, West Bengal, the other major producer of bulk tea, is also likely to implement an increase shortly, given the historical alignment of wage revisions in the two states. This steep increase is expected to have a significant adverse impact on the operating cost of bulk tea players, given that Assam and West Bengal are the two largest tea producing states in India, accounting for almost 80% of India’s bulk tea production.


Agri Commodity Update Technical Outlook

SELL CORIANDER AUG BELOW 4900 TARGET 4880/4860/4840 SL 4930

SELL GUARGUM5 OCT BELOW 9280 TARGET 9240/9200/9160 SL 9330

BUY TURMERIC AUG ABOVE 7270 TARGET 7300/7330/7360 SL 7230


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