Sell MCX Crude oil; target of Rs 5980: Dani Commodities

Dani Commodities' report on metals & energy

FAS/Moscow estimates production of Russia's three major oilseed crops (sunflowerseeds, soybeans, and rapeseeds) at 11.2 million metric tons (MMT), including 8.5 MMT of sunflowerseeds (6 percent up from last year), 1.4 MMT of soybeans (22 percent decrease from 2012), and 1.3 MMT of rapeseeds (26 percent up from 2012)*Area sown to these three oilseeds in 2013 increased by 10 percent (0.86 million hectares) to 10.06 million hectares*This includes an 11.4 percent increase in sunflowerseed sown area, and a 13.6 percent increase in rapeseed area*Area sown to soybeans in 2013, however, decreased by 25,000 hectares or 0.8 percent*For soybeans, severe floods in the Far East, Russia's major soybean producing area, reduced both soybean harvested area and yields in this region, and FAS/Moscow has decreased the estimate for soybean production as a result*For sunflowerseeds, heavy rains in August and September in European Russia postponed the harvest*Despite improved weather in the first half of October, harvesting is still lagging behind last year*So far reported yields are higher than in the last two years, which increases chances for an above average sunflowerseed crop in Russia*FAS/Moscow forecasts a larger 2013 rapeseed crop because of increased area and low winterkill of high yielding winter rapeseeds*Also, due to the fact that it is harvested earlier, the rapeseed crop was not impacted by the heavy September rains.

MCX CRUDE OIL
International: Major Support for WTI at USD100 Bullish above USD 100
Domestic: Sell below 6020, Stoploss 6048, Target 5980.

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