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CASTORSEED
Description:- Castor plant (Ricinus communis) is grown in arid and semi-arid regions. It
is cultivated in 30 different countries on commercial scale, of which India, China, Brazil, Russia,
Thailand, Ethiopia and Philippines are major castor seed growing countries which accounts about 88%
of the world's production. In India it is a kharif crop, sowing in July-August and arrivals from December
onwards till March. Gujarat is the chief producing state, having a share of 86% of domestic production,
followed by Andhra Pradesh and Rajasthan.
Castor seed value chain:-


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Current Scenario


India is the largest producer of castor seed and castor oil in the world. India contributes about 80% to
the world production (Source: Faostats.org). China is the major importer. Other major producers of
castor seed in the world are China, Brazil, Mozambique, Angola and Thailand. The following pie chart
shows the country wise production share in the year 2013.
Production of castor seed has remained more than 10 lakh metric tonnes per year in last few years with
production ranging between 10 to 16 lakh tonnes. The major states producing castor seed in India are
Gujarat, Andhra Pradesh, Rajasthan and Karnataka. The following pie chart shows
Castor is a non-edible oilseed crop; basically a cash crop, with average 46% oil recovery. Castor seed
production in India is around 9-10 lakh MT. Castor oil and its derivatives have vast and varied
applications in the manufacturing of soaps, lubricants, hydraulic and brake fluids, paints, dyes, coatings,
inks, cold resistant plastics, waxes and polishes, nylon, pharmaceuticals and perfumes.
Castor oil is the largest vegetable oil exported out of India. India is the biggest exporter of castor oil
holding about 70% share of the international trade in this commodity followed by China & Brazil.


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Factors affecting castor seed
prices:-
• Monsoon and level of rainfall
• Production and Yield level in other countries
• Prices of other competitive oils like hydrogenated oil, dehydrated oil
Sulfated oil etc.
• Demand of the importing countries and domestic demand
• Seasonal price variations
• Carryover stocks
• Development of new uses of the oil
India is the major player in the export market of castor derivatives. India exports 70-80% of total
production of its castor oil and almost all of its castor meal. Major export destinations for castor oil
are China, European union and USA while castor Meal is exported mainly to south-east Asian
countries. Indian exports are constantly growing every year with growth in industrial demand of
castor derivatives worldwide.
Indian exports:

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Given that castor seed have considerable price volatility and that the export realizations of castor oil have
also vacillated between years, Exchange traded castor seed futures are ideal for price risk management
needs of the processors, exporters and end users. Those with no natural exposure to castor seed trade can
also benefit by undertaking 'cash-and-carry' arbitrage and calendar spread’. Speculators can take
directional view on future prices and accordingly take positions in castor seed futures.
CASTOR SEED FUTURE
(CASTORSEED)
Technically, the trend in NCDEX Castorseed for July delivery looks positive. However it is likely to remain
negative during intra-day trade.support for the commodity is seen at 4215 while resistance at 4315 level.
Traders may buy around 4325 with the stop loss of 4220 for the target of 4440, according to our analyst at
TheEquicom.

TECHNICAL OUTLOOK

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‘’

Soy Bean
Description:-
Soybean is called as Golden Bean. The plant is classed as an oilseed and is an important global crop.
The processed soybean is the largest source of protein feed and second largest source of vegetable oil
in the world. The major portion of the global and domestic crop is solvent-extracted with hexane to
yield soy oil and obtain Soy meal, which is widely used in the animal feed industry.



Current Scenario:-
USA, Brazil, Argentina, China and India are the largest soybean producing countries in the world.
Soybean is largest grown oilseeds in the world and other major source of oilseeds are Rapeseed
(13%), Cottonseed (10%), Peanut(8%), Sunflower (7%) seed and Palm kernels. Among major
oilseeds, higher percentage of meal extracted from Soybean 82%. The Prices of soybean determined
by demand and supply of oil and meal.


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Factors affecting Soy bean prices:-
Domestic Factors:
Demand and Supply: -
• Domestic oilseed production .

• Pattern of consumption, Market share of Soy oil is
around 24%. From oil extractors and farmers.

• The crush margin between meal, oil and seed.

• Affect because prices of competitive oils, viz. Palm
oil If Soy meal export parity .

• Weather at all producing centers. The pod bearing
period, being the most crucial.

• Demand of FMCG companies .
Government Policies:-
• Import Export Policy

• Minimum Support
Prices (MSP)
• Stock Limit
Global Factor:-
• Global oilseed production US, Argentina and Brazil are major Exporters
• International soy price movement at CBOT, being the major international
reference market
• International market price for soy meal export
• International Soy bean price movement.
• Import demand from china and EU- 25.

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SOYBEAN FUTURE
(SYBEANIDR)
Soy bean prices in India are largely influenced by the international edible Soy bean price movements (especially
palm oil at BMD and soy bean at CBOT) and spot markets of Indore and Mumbai serve as the 'reference' market
for Soy bean prices. While the Indore price reflects the domestically crushed soybean, Mumbai price indicates
the imported soy oil price.
Soybean futures are expected to remain under downside pressure. We expect further downside in soybean
prices and we could see Rs 3915 in the immediate short term (a week), further short covering expected
soybean prices on NCDEX are exhibiting positive trend only due to short covering. Traders can sell soybean for
a downside of 2-3 percent in the short term.


TECHNICAL OUTLOOK

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Description:-
Chickpea or chana is a very important pulse crop that grows as a seed of a plant named Cicer
arietinum in the Leguminosae family. It contains 25% proteins, which is the maximum provided
by any pulse and 60% carbohydrates. It places third in the importance list of the food legumes
that are cultivated throughout the world.. Chana is used as an edible seed and is also used for
making flour throughout the globe. There are mainly two types of chic Desi and Kabuli.

Chana (Chickpea)
CHANA VALUE CHAIN

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Major trading centers of chana in india :-
















Chana future (CHARJDDEL):-
Chana Future started trading on NCDEX platform from April 2004 onwards. Because of higher open
interest even in the far month contracts it has become an excellent tool for price risk management for
processors and other market participants. Even an arbitrager can trade using strategies like cash and
carry and calendar spread . Speculators can take directional view on future prices and accordingly
take position in Chana futures.kpea produced i.e.

• Indore (Madhya Pradesh)
• Bhopal (Madhya Pradesh)
• Vidisha (Madhya Pradesh)
• Jalgaon (Maharashtra)
• Delhi
• Latur (Maharashtra)
• Mumbai (Maharashtra)
• Akola (Maharashtra)
• Jaipur (Rajasthan) etc.

Market Influencing Factors:-
• Rainfall level and level of moisture in the soil
• Obstruction in the information movement
• Black-marketing and hoarding
• Crop situation in the countries from where India imports the crop
• Prices of the other competitive pulses produced


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Demand supply scenario

Supplies of Chana since past one year has been ample as the country reaped bumper Chana output in 2012-13
season. For 2013-14 too government in their third advance estimates has projected record output of at 9.9 mn
tonnes in the Rabi season. Chana would however, continue to retain the tag of largest produced pulse crop in
India holding a lion’s share of 48-50 percent in total Indian Pulses production.

Technically Chana futures are expected to remain under downside pressure. We expect further downside in
Chana prices and we could see Rs 2690 in the immediate short term (a week), further short covering expected
Chana prices on NCDEX are exhibiting positive trend only due to short covering. Traders can sell Chana for a
downside of 2-2.5 percent in the short term.

TECHNICAL OUTLOOK

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SPICES COMPLEX
Description:-
India is the leading producer, consumer and exporter of spices in the world. From time immemorial India has
been known as the Land of Spices. Spices form an important ingredient of Indian cuisine. The delightful
combination of the variety of prices lends a distinctive Flavor to the palette. The same is true in the case of Spice
Futures Contract ,which not only add a zing to the commodity portfolio but also are an excellent hedging tool.
NCDEX, the country’s leading Agri futures exchange, offers a spectrum of spices futures on its platform for
managing price risk and providing an alternative investment avenue. Chilli, Coriander, Jeera, Pepper and
Turmeric constitute NCDEX’s spice complex for derivatives trading. The performance of these contracts
illustrates the success of efficient price discovery in the Indian domestic market through derivatives trading,
albeit the fact that no futures contracts in flavoring commodities are traded on any of the leading international
exchanges.
Indian spices market:-
India has been the oldest spices producing countries and one of the biggest markets of the premium grade of
spices. Spices in India mostly get harvested at the beginning of the year only. Kerala is the leading spices
producing state in India. India had been producing pepper for a very long time. India contributes to about 20%
of the world’s spice production.
SPICES VALUE CHAIN:-

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• Global and Domestic Production /Demand
• Climatic conditions
• Daily Arrivals and trades in the cash market
• International Price parity
• Year ending stocks and stocks-to-consumption ratio and Import/Export Data
• Prices received by farmers for other competing crops & Sowing progress
• Cost of Carry components (Warehousing, Assaying, Demat/Remat charges)
• Spot Prices
• Daily Margins

Factors affecting price of
spice:-
CORIANDER (DHANIYA ):-
Coriander futures contract was launched on August 2008. The supply
fluctuation due to underlying fundamental factors leads to high price volatility.
Inadequate storage period (6-8 months) effects availability and thus the prices
during low availability months, such supply fluctuations provide opportunity
to a speculator. For hedgers it minimizes price risk. Due to good availability in
physical markets arbitragers can make use of the futures platform to make
riskless profits. Thus the Coriander contract provides space for every investor
category.
TECHNICAL OUTLOOK
Dhaniya prices are expected to trade on a negative note.. However, lower level demand coupled with forecast
of below normal rains in the 2014 monsoon season and declining supplies in the physical markets may
support prices at lower levels. traders are advised to sell around 10420 with the stop loss of 10650 for the
target of 9965”, according to our analyst at TheEquicom.


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Jeera futures contract was launched on NCDEX platform on February 2004 and has
witnessed considerable volatility since its launch. Good availability in physical
markets provides cash and carry opportunity to arbitragers. It serves as a hedging
platform for the Producers and Exporters. The Cumin contract is highly liquid and
provides easy entry and exit to a speculator. Thus the Jeera contract provides space
for every investor category.
JEERA
(JEERAUNJHA):-
Jeera futures may trade on a mixed to positive note. Demand from the domestic as well as overseas markets
may support prices. However, comfortable supplies and higher arrivals may cap sharp gains. The trend in
NCDEX July delivery looks positive and further up-tick is expected for near term. “Support for the commodity is
seen at 10380 while resistance at 11530 level. Traders are advised to buy on dips around 11040 with the stop
loss of 10980 for the target of 11480”, according to our analyst at Theequicom.
TECHNICAL OUTLOOK
Chilli Futures contract was launched on 11th march 2005 and since then the
contract has witnessed good participation from various supply chain participants.
Using futures platform producers can hedge the price risk. With increasing export
demand, exporters can hedge themselves against price risk. Thus the chilli
contract provides space for every investor category.
CHILLI:-
The trend in NCDEX Chilli July delivery looks positive and further up-tick is expected for near term. “Support
for the commodity is seen at 9450 while resistance at 9710 level. Traders are advised to buy on dips around
9490 with the stop loss of 9430 for the target of 9690”, according to our analyst at Theequicom.

TECHNICAL OUTLOOK

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TURMERIC (TMCFGRNZM)
Turmeric futures contract was launched on NCDEX platform in April 2004 and since then it has witnessed
considerable participation from various supply chain participants. Using futures platform producers can
minimize their price risk .With ever increasing export demand, exporters can insure themselves against price
risk. Good stocks of Turmeric provide good arbitrage opportunities to the various market participants. Being
highly liquid contract speculators can easily enter or exit the market. Thus the Turmeric contract provides space
for every investor category.
Turmeric futures are expected to trade on a positive note. . The trend in NCDEX Chilli July delivery looks
positive and further up-tick is expected for near term. “Support for the commodity is seen at 5865 while
resistance at 6410 level. Traders are advised to buy on dips around 6420 with the stop loss of 6130 for the
target of 6545”, according to our analyst at Theequicom.

TECHNICAL OUTLOOK

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Conclusion:-
This report is based on our best research and various information of different
informative sites and important data. In this report we describe Technical view
of Agri commodity and key factors that affecting price of Agri commodity.

Disclaimer
About TheEquicom: - The Equicom Financial Research Pvt. Ltd. is India's largest independent, integrated research
house. We leverage our unique, integrated research platform and capabilities spanning the entire economy-industry-
company spectrum to deliver superior perspectives and insights to over 350 domestic clients, through a range of
subscription products and customized solutions.

The Equicom Financial Research Pvt Ltd has taken due care and caution in preparing this Report.
Information has been obtained by The Equicom Financial Research Pvt. Ltd. from sources which it considers reliable.
However the Equicom Financial Research Pvt. Ltd. Does not guarantee the accuracy, adequacy or completeness of any
information and is not responsible for any errors or omissions or for the results obtained from the use of such
information. The Equicom Financial Research Pvt. Ltd. is not liable for investment decisions which may be based on the
views expressed in this Report. The Equicom especially states that it has no financial liability whatsoever to the
subscribers/ users/ transmitters/ distributors of this Report. The Equicom Financial Research Pvt. Ltd. Operates
independently of, and does not have access to information obtained by The Equicom Financial Research Pvt. Ltd Division,
which may, in its regular operations, obtain information of a confidential nature which is not available to The Equicom
Financial Research Pvt. Ltd. No part of this Report may be published/reproduced in any form without The Equicom prior
written approval.

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