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Published on 3/12/2021 3:41:25 PM | Source: Kedia Advisory

Gold yesterday settled down by -0.98% at 47401 - Kedia Advisory

Posted in Commodities Reports| #Commodity Tips #Kedia Advisory

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Gold

Gold yesterday settled down by -0.98% at 47401 as U.S. Federal Reserve Chairman Jerome Powell's latest comments bolstered expectations for faster monetary policy tightening and overshadowed Omicron-led safe-haven inflows into bullion. Fed chair Jerome Powell doubled down on his hawkish tilt, stating in congress that policymakers will discuss an earlier end to the central bank’s stimulus in the next meeting. He also emphasized the need to be ready to respond to the possibility that inflation may not recede in the second half of next year as most forecasters currently expect. His comments buoyed the dollar, further pressuring the bullion, as a stronger dollar makes the yellow metal more expensive for buyers with other currencies. Investors now await the U.S. jobs report for November due on Friday that could influence the Fed's rate stance. Data showed private payrolls increased by 534,000 jobs last month. The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to tightening labor market conditions, while layoffs tumbled to a 28-1/2-year low in November. Initial claims for state unemployment benefits rose 28,000 to a seasonally adjusted 222,000 for the week ended Nov. 27, the Labor Department said. Claims, which dropped to 194,000 in the prior week, tend to be volatile around Thanksgiving, the start of the holiday season. Technically market is under fresh selling as market has witnessed gain in open interest by 8.25% to settled at 10581 while prices down -471 rupees, now Gold is getting support at 47223 and below same could see a test of 47045 levels, and resistance is now likely to be seen at 47706, a move above could see prices testing 48011.

Trading Ideas:

* Gold trading range for the day is 47045-48011.

* Gold prices fell as Fed’s Powell latest comments bolstered expectations for faster monetary policy tightening and overshadowed Omicron-led safe-haven inflows into bullion.

* Fed chair Powell doubled down on his hawkish tilt, stating in congress that policymakers will discuss an earlier end to the central bank’s stimulus in the next meeting.

* Data showed private payrolls increased by 534,000 jobs last month.
 


Silver

Silver yesterday settled down by -0.3% at 61123 amid reduced industrial demand and expectations of higher interest rates. Federal Reserve chair Jerome Powell said policymakers will discuss an earlier end to the central bank’s stimulus in the next meeting and emphasized the need to be ready to respond to the possibility that inflation may not recede in the second half of next year as most forecasters currently expect. Powell said the Fed needed to be ready to respond to the possibility that inflation might not recede in the second half of 2022 and that it would consider a faster tapering of its bond purchases at its meeting due to start on Dec. 14. At the same time, the spread of the Omicron coronavirus variant threatens global economic recovery and factory activity. The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to tightening labor market conditions, while layoffs tumbled to a 28-1/2-year low in November. Initial claims for state unemployment benefits rose 28,000 to a seasonally adjusted 222,000 for the week ended Nov. 27, the Labor Department said. Claims, which dropped to 194,000 in the prior week, tend to be volatile around Thanksgiving, the start of the holiday season. Technically market is under fresh selling as market has witnessed gain in open interest by 1.39% to settled at 12941 while prices down -184 rupees, now Silver is getting support at 60756 and below same could see a test of 60389 levels, and resistance is now likely to be seen at 61485, a move above could see prices testing 61847.

Trading Ideas:

* Silver trading range for the day is 60389-61847.

* Silver dropped amid reduced industrial demand and expectations of higher interest rates.

* Fed Chair Powell said policymakers will discuss an earlier end to the central bank’s stimulus in the next meeting

* At the same time, the spread of the Omicron coronavirus variant threatens global economic recovery and factory activity.
 


Crude oil

Crude oil yesterday settled down by -0.78% at 4967 after OPEC and its allies agreed to stick to their existing policy of monthly oil output increases despite fears that a U.S. release from crude reserves and the new coronavirus variant would lead to a new oil price rout. Under its existing pact, OPEC+ agreed to raise output by 400,000 bpd each month, winding down record cuts agreed in 2020 when demand crashed because of the pandemic. The agreement to stick to that pact and to add 400,000 bpd in January, confirmed by a draft OPEC+ statement and OPEC+ sources, sent prices below $67 before they recovered some ground. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have been resisting U.S. requests for speedier increases in oil output to help the global economy, fearing oversupply could hurt a fragile energy sector recovery. Washington repeatedly asked OPEC to pump more as U.S. gasoline prices soared and President Joe Biden's approval ratings slid. Russian oil and gas condensate output rose to 10.89 million barrels per day (bpd) in November from 10.84 million in October, according to energy ministry data. Total oil and gas condensate production was 44.56 million tonnes last month, Interfax said, down from 45.86 million in October, which is a day longer. Technically market is under fresh selling as market has witnessed gain in open interest by 11.52% to settled at 7316 while prices down -39 rupees, now Crude oil is getting support at 4760 and below same could see a test of 4554 levels, and resistance is now likely to be seen at 5118, a move above could see prices testing 5270.

Trading Ideas:

* Crude oil trading range for the day is 4554-5270.

* Crude oil dropped after OPEC+ agrees to add another 400,000 bpd in January

* Washington repeatedly asked OPEC to pump more as U.S. gasoline prices soared and President Joe Biden's approval ratings slid.

* Russia's Nov output of oil, gas condensate rises to 10.89 mln bpd

 

Nat.Gas

Nat.Gas yesterday settled down by -3.46% at 309.7 amid forecasts for milder weather and less heating demand over the next two weeks than previously expected, an easing of gas prices overseas and a small decline in liquefied natural gas (LNG) exports. However, downside seen limited with a small decline in output and a slightly bigger-than-expected storage withdrawal during last week's colder than normal weather. The U.S. Energy Information Administration (EIA) said utilities pulled 59 billion cubic feet (bcf) of gas from storage during the week ended Nov. 26. In recent months, global gas prices hit record highs as utilities around the world scrambled for LNG cargoes to replenish extremely low stockpiles in Europe and meet insatiable demand in Asia, where energy shortfalls have caused power blackouts in China. Following those global gas prices, U.S. futures jumped to a 12-year high in early October, but have since pulled back because the United States has plenty of gas in storage and ample production for the winter. Overseas prices were trading about seven times higher than U.S. futures. Data provider Refinitiv said output in the U.S. Lower 48 states averaged 95.8 billion cubic feet per day (bcfd) so far in December, down from a monthly record of 96.5 bcfd in November. Technically market is under fresh selling as market has witnessed gain in open interest by 8.38% to settled at 8250 while prices down -11.1 rupees, now Natural gas is getting support at 302.1 and below same could see a test of 294.5 levels, and resistance is now likely to be seen at 321.9, a move above could see prices testing 334.1.

Trading Ideas:

* Natural gas trading range for the day is 294.5-334.1.

* Natural gas dropped amid forecasts for milder weather and less heating demand over the next two weeks than previously expected

* However, downside seen limited with a small decline in output and a slightly bigger-than-expected storage withdrawal during last week's colder than normal weather.

* The U.S. Energy Information Administration (EIA) said utilities pulled 59 billion cubic feet (bcf) of gas from storage during the week ended Nov. 26.



Copper

Copper yesterday settled up by 0.86% at 725.45 as fears about further damage to growth and demand from the Omicron coronavirus variant were outweighed by low inventories of the industrial metal. The United States and France reported their first Omicron cases and countries around the world tightened travel restrictions. Investors continued to monitor developments related to the new COVID-19 strain and the possible impact on the global economic recovery and the tightening plans of some central banks. Advisers to China's government will recommend authorities set a 2022 economic growth target of 5-5.5%, below the 'above 6%' set for 2021. Three Chinese developers plan to sell bonds in China to raise a combined 18 billion yuan ($2.83 billion), which should ease liquidity strains on the sector. The world's largest copper producer, Chile's Codelco, expects copper prices to fall in 2022 and the market to be oversupplied until 2024. The global world refined copper market showed a 52,000 tonnes surplus in August, compared with a 39,000 tonnes deficit in July, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 8 months of the year, the market was in a 107,000 tonnes deficit compared with a 97,000 tonnes deficit in the same period a year earlier, the ICSG said. Technically market is under fresh buying as market has witnessed gain in open interest by 7.07% to settled at 5409 while prices up 6.2 rupees, now Copper is getting support at 719.4 and below same could see a test of 713.3 levels, and resistance is now likely to be seen at 729.5, a move above could see prices testing 733.5.

Trading Ideas:

* Copper trading range for the day is 713.3-733.5.

* Copper prices climbed as fears about further damage to growth and demand from the Omicron coronavirus variant were outweighed by low inventories

* Advisers to China's government will recommend authorities set a 2022 economic growth target of 5-5.5%, below the 'above 6%' set for 2021.

* Chile's Codelco, expects copper prices to fall in 2022 and the market to be oversupplied until 2024.
 


Zinc

Zinc yesterday settled down by -0.2% at 268.1 amid fears over COVID variant Omicron returned amid rising confirmed cases, and the hawkish signals from the Federal Reserve also suppressed the market sentiment. The zinc inventory has been at a low level, supporting zinc prices. On the supply side, the overseas production was reduced amid high electricity prices, and domestic zinc ore supply also dropped. The monthly TCs estimate has been revised down by 50 yuan/mt in metal content. It is expected that the zinc ingot output will lower by 10,000 mt. In China, the Caixin manufacturing PMI for November recorded 49.9, 0.7 lower than the estimate, indicating a slowing manufacturing recovery. China's factory activity unexpectedly picked up in November, growing for the first time in three months as raw material prices fell and power rationing abated, taking some pressure off a manufacturing sector grappling with soft demand. The official manufacturing Purchasing Manager's Index (PMI) was at 50.1 in November, up from 49.2 in October, data from the National Bureau of Statistics (NBS) showed. The world's second-largest economy, which staged an impressive rebound from last year's pandemic slump, has lost momentum in the second half of the year as it grapples with a slowing manufacturing sector, debt problems in the property market and COVID-19 outbreaks. Technically market is under fresh selling as market has witnessed gain in open interest by 3.04% to settled at 1527 while prices down -0.55 rupees, now Zinc is getting support at 265.5 and below same could see a test of 262.9 levels, and resistance is now likely to be seen at 271.7, a move above could see prices testing 275.3.

Trading Ideas:

* Zinc trading range for the day is 262.9-275.3.

* Zinc dropped amid fears over COVID variant Omicron returned amid rising confirmed cases

* On the supply side, the overseas production was reduced amid high electricity prices, and zinc ore supply also dropped.

* In China, the Caixin manufacturing PMI for November recorded 49.9, 0.7 lower than the estimate.

 

Nickel

Nickel yesterday settled flat at 1538.6 as pressure continues as stainless steel prices kept falling, and the marginal growth of new energy sector declined. Currently, pure nickel inventory was still low, offering some support to SHFE nickel. On the macro front, US Fed Chair Powell emphasised that the market shall stay alert to inflation, and suggested for the second time in two days that it is appropriate to consider wrapping up the stimulus package. Data released by the World Bureau of Metal Statistics (WBMS) showed that from January to September this year, the global apparent nickel consumption totalled 2,151,700 mt, approximately 108,500 mt more than the output of 2.04 million mt. In 2020, the global output of refined nickel was 84,000 mt higher than the apparent consumption. At the end of September 2021, the reported nickel inventory of the London Metal Exchange (LME) decreased by 117,000 mt from the end of last year. From January to September, the global nickel ore output was 1.97 million mt, a year-on-year increase of 207,000 mt. China's smelted and refined nickel output increased by 81,000 mt year-on-year, and the apparent consumption increased by 211,000 mt year-on-year to 1.22 million mt. The output of smelted and refined nickel in Indonesia increased by 43% year-on-year to 632,600 mt, and the demand nearly doubled year-on-year to 287,900 mt. Technically market is under long liquidation as market has witnessed drop in open interest by -0.46% to settled at 1502 while prices remain unchanged 0 rupees, now Nickel is getting support at 1530.6 and below same could see a test of 1522.7 levels, and resistance is now likely to be seen at 1546.9, a move above could see prices testing 1555.3.

Trading Ideas:

* Nickel trading range for the day is 1522.7-1555.3.

* Nickel pressure continues as stainless steel prices kept falling, and the marginal growth of new energy sector declined.

* Currently, pure nickel inventory was still low, offering some support to SHFE nickel.

* Global apparent nickel consumption at 2.15 million mt in first nine months
 


Aluminium

Aluminium yesterday settled down by -1.25% at 209.85 hit by worries over the potential economic impact of the Omicron coronavirus variant, but low inventories cushioned losses. Heavily mutated Omicron is rapidly becoming the dominant variant of the coronavirus in South Africa less than four weeks after it was first detected there, while the United States became the latest country to identify an Omicron case within its borders. LME inventories of the metal dropping to 893,775 tonnes, the lowest since September 2007 and down 55% from March. Most metals recently left warehouses in Malaysia, exchange data showed. The premium of LME cash aluminium over the three-month contract rose to $16.30 a tonne, indicating tightness in nearby supplies. On-warrant aluminium inventories in LME-registered warehouses rose by 16% to 677,225 tonnes, data showed. The aluminium supply side was relatively stable with no news heard regarding reduced or resumed production. On the demand side, the downstream operating rates rallied recently amid loosening power rationing. But the market shall closely watch whether the air pollution control measures in the heating season and during Winter Olympics will bring down the operating rates again. The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to tightening labor market conditions, while layoffs tumbled to a 28-1/2-year low in November. Technically market is under fresh selling as market has witnessed gain in open interest by 15.79% to settled at 2302 while prices down -2.65 rupees, now Aluminium is getting support at 208 and below same could see a test of 206 levels, and resistance is now likely to be seen at 212.6, a move above could see prices testing 215.2.

Trading Ideas:

* Aluminium trading range for the day is 206-215.2.

* Aluminium prices eased hit by worries over the potential economic impact of the Omicron coronavirus variant, but low inventories cushioned losses.

* The aluminium supply side was relatively stable with no news heard regarding reduced or resumed production.

* On-warrant aluminium inventories in LME-registered warehouses rose by 16% to 677,225 tonnes, data showed.



Mentha oil

Mentha oil yesterday settled up by 0.27% at 937.2 on low level buying after prices dropped as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil dropped by -1.6 Rupees to end at 1064 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 0.54% to settled at 934 while prices up 2.5 rupees, now Mentha oil is getting support at 931.7 and below same could see a test of 926.3 levels, and resistance is now likely to be seen at 940.8, a move above could see prices testing 944.5.

Trading Ideas:

* Mentha oil trading range for the day is 926.3-944.5.

* In Sambhal spot market, Mentha oil dropped  by -1.6 Rupees to end at 1064 Rupees per 360 kgs.

* Mentha oil gains on low level buying after prices dropped as demand from consumer side is extremely weak

* Prices got support in last few weeks as due to crop failure and low recovery of oil

* Availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season.



Soyabean

Soyabean yesterday settled down by -0.08% at 6393 pared gains on profit booking after seen support earlier in the day as Chinese importers bought soybean cargoes for shipment in December and January from the U.S. Gulf Coast and Brazilian ports. USDA said private exporters sold 132,000 tonnes of U.S. soybeans to unknown destinations for the 2021-2022 crop year. Brazil soybean exports are forecast to reach 2.286 million tonnes in November, versus the 2.6 million tonnes forecast in the previous week, according to ANEC. European Union soybean imports in the 2021/22 season that started in July had reached 5.07 million tonnes by Nov. 28, data published by the European Commission showed. That compared with 6.02 million tonnes by the same week in the previous 2020/21 season, the data showed. Poultry industry has demanded for extension of shipment period for import of soyameal, a by-product of soybean processing for manufacturing oil, upto March 31, 2022. Export of soyabean meal in October stood at 30,000 tonne, down by over 70 per cent from the corresponding period a year ago due to lack of price competitiveness for Indian soya meal and curtailed crushing. Overseas shipment of soyabean meal in the first month of the new oil year was recorded at 30,000 tonne as against 1.35 lakh tonne in the same period a year ago, according to Soybean Processors Association of India (SOPA). At the Indore spot market in top producer MP, soybean gained 105 Rupees to 6471 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.39% to settled at while prices down -5 rupees, now Soyabean is getting support at 6304 and below same could see a test of 6214 levels, and resistance is now likely to be seen at 6485, a move above could see prices testing 6576.

Trading Ideas:

* Soyabean trading range for the day is 6214-6576.

* Soyabean pared gains on profit booking after seen support earlier in the day as Chinese importers bought soybean cargoes from Brazilian ports

* Brazil soybean exports are forecast to reach 2.286 million tonnes in November, versus the 2.6 million tonnes forecast in the previous week

* European Union soybean imports in the 2021/22 season that started in July had reached 5.07 million tonnes by Nov. 28

* At the Indore spot market in top producer MP, soybean gained  105 Rupees to 6471 Rupees per 100 kgs.

 


Soyaoil

Ref.Soyaoil yesterday settled down by -1.1% at 1182.9 fuelled by concerns that the Omicron coronavirus variant could trigger renewed global lockdowns and dampen demand for global edible oils. Rajasthan Govt imposed stocks limits on soyabean oil. Pressure seen amid broad-based selling in commodities over concerns about a new variant of the coronavirus. The Maharashtra Government has decided not to put stock-limit on edible oil stocks after the edible oil traders made a representation before the state Food Secretary. The state government was to decide the stock-limit of edible oil stocks but the Maharashtra Government has decided to defer the decision after a delegation of edible oil traders met with the Food and Civil Supplies Secretary and requested for a deferment. India’s October edible oil imports fell 14.29 percent y-o- y to 10.49 lakh tons from 16.98 lakh tons in October 2020. India’s October’2021 soymeal exports declined by 88% to 14,538 metric tonnes compared to 120,290 metric tonnes in the same period last year. Global production of the top four vegetable oils – palm, sunflower, soy and rapeseed oils – is likely to rise the highest in four years. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1201.15 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 0.13% to settled at while prices down -13.1 rupees, now Ref.Soya oil is getting support at 1177 and below same could see a test of 1172 levels, and resistance is now likely to be seen at 1190, a move above could see prices testing 1198.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1172-1198.

* Ref soyoil pared gains fuelled by concerns that the Omicron coronavirus variant could trigger renewed global lockdowns and dampen demand

* Rajasthan Govt imposed stocks limits on soyabean oil.

* The Maharashtra Government has decided not to put stock-limit on edible oil stocks

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1201.15 Rupees per 10 kgs.

 

Crude palm Oil

Crude palm Oil yesterday settled down by -0.61% at 1091.4 as uncertainties over the impact of the Omicron coronavirus variant continue to batter broader markets. India is likely to buy more Malaysian palm oil after export levies imposed by top producer Indonesia hit record highs in the past year, B.V. Mehta, executive director of India's Solvent Extractors' Association, said. Indonesia had imposed higher export taxes and levies in the past year, making prices of palm oil – which had already reached record highs this year. "Indonesia's share of palm oil imports by India earlier was nearly 70-75%," Mehta told the annual Indonesian Palm Oil Conference. Indonesia started taxing crude palm oil exports again after three years absence in February last year, while export levies for the edible oil reached a record high of $255 per tonne in February earlier this year. Indian refiners have been reducing palm oil purchases and raising soybean oil and sunflower oil imports after a steep rally in the tropical oil reduced its discount to rivals. Lower purchases by the world's top edible oil importer could weigh on palm prices , which have corrected 10% from a record high hit last month. Soyoil imports in November jumped to around 400,000 tonnes from 217,000 tonnes a month ago, while sunflower oil imports rose to 200,000 tonnes from 117,000 tonnes. In spot market, Crude palm oil dropped by -5.6 Rupees to end at 1107.9 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -0.77% to settled at 4515 while prices down -6.7 rupees, now CPO is getting support at 1086.2 and below same could see a test of 1080.9 levels, and resistance is now likely to be seen at 1096.6, a move above could see prices testing 1101.7.

Trading Ideas:

* CPO trading range for the day is 1080.9-1101.7.

* Crude palm oil dropped as uncertainties over the impact of the Omicron coronavirus variant continue to batter broader markets.

* India is likely to buy more Malaysian palm oil after export levies imposed by Indonesia hit record highs in the past year

* Indian refiners have been reducing palm oil purchases and raising soybean oil and sunflower oil imports

* In spot market, Crude palm oil dropped  by -5.6 Rupees to end at 1107.9 Rupees.

 

Turmeric

Turmeric yesterday settled down by -0.3% at 7368 as turmeric standing crop quality reported well as of now, weather is favourable in growing regions. Currently, export demand reported lower due to increased shipping cost and some travel restriction in South Asian countries added the bearish sentiment. Turmeric all India production for 2022 is estimated at 4.89 lakh MT. Last year’s production was 4.46 lakh MT, up by 9.64% from last year. Pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. Exports of jeera during Apr-Sep declined 14% on year to 139,295 tn, from 162,033 tn a year ago. There were also reports of export demand from Europe, Gulf countries and Bangladesh. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season. Besides, heavy carryover stocks and slack in bulk demand are keeping prices under pressure. In Nizamabad, a major spot market in AP, the price ended at 7425 Rupees gained 26.2 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -8.43% to settled at while prices down -22 rupees, now Turmeric is getting support at 7182 and below same could see a test of 6996 levels, and resistance is now likely to be seen at 7486, a move above could see prices testing 7604.

Trading Ideas:

* Turmeric trading range for the day is 6996-7604.

* Turmeric dropped as turmeric standing crop quality reported well as of now, weather is favourable in growing regions.

* Spices Board pegs Apr-Sep turmeric exports at 77,245 tn, down 26%

* Turmeric all India production for 2022 is estimated at 4.89 lakh MT up by 9.64% from last year.

* In Nizamabad, a major spot market in AP, the price ended at 7425 Rupees gained 26.2 Rupees.
 


Jeera

Jeera yesterday settled down by -2.41% at 15575 as there were reports cumin seed sowing picked up in Gujarat and Rajasthan. The area under cumin in Gujarat is only 63,144 hectares as against 1.68 lakh hectares at the same time last year, while in Rajasthan 1.75 lakh hectares have been sown under cumin. Pressure also seen as adequate stock with traders and farmers may keeping prices under pressure at higher levels. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. India exported 77,245 tn of turmeric in Apr-Sep, down 26% on year. During last two months, the prices were higher compared to last year despite sufficient stocks with traders. Sowing can see drop as farmers preferred to have other crop against Jeera. Weather in key sowing area will be crucial in next few months. The export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. In Unjha, a key spot market in Gujarat, jeera edged down by -66.65 Rupees to end at 15900 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -10.46% to settled at while prices down -385 rupees, now Jeera is getting support at 15450 and below same could see a test of 15325 levels, and resistance is now likely to be seen at 15780, a move above could see prices testing 15985.

Trading Ideas:

* Jeera trading range for the day is 15325-15985.

* Jeera ended with losses as there were reports cumin seed sowing picked up in Gujarat and Rajasthan.

* The area under cumin in Gujarat is only 63,144 hectares as against 1.68 lakh hectares at the same time last year

* Spices Board pegs Apr-Sep jeera exports at 139,295 tn, down 14%

* In Unjha, a key spot market in Gujarat, jeera edged down by -66.65 Rupees to end at 15900 Rupees per 100 kg.



Cotton

Cotton yesterday settled down by -2.04% at 30270 as the arrivals gain momentum, stated the chief of the top cotton body Cotton Association of India (CAI). Pressure also seen weighed by worries over the likely impact of the Omicron coronavirus variant on demand for the natural fiber. China's cotton reserves management company said it will suspend its sales from Dec. 1 based on the current market situation. The Cotton Outlook has scaled up its estimate for global production in 2021-22 (Aug-Jul) by 97,000 tn to 26.0 mln tn, the agency said in its November report. The estimate has been revised upward as production in the African Franc zone and Turkey is expected to be higher. The agency has maintained its output estimate in the US at 3.92 mln tn. Global cotton ending stocks are estimated at 110,000 tn for the ongoing 2021-22 season. Arrivals of cotton in spot markets were at 184,300 bales (1 bale = 170 kg), higher than 171,500 bales on Monday. Of the total quantity, around 10,000 bales arrived in Haryana, 2,800 in Punjab, and 17,000 bales in Rajasthan. Arrivals were pegged at 42,000 bales in Gujarat, around 15,000 bales in Madhya Pradesh, and 44,000 bales in Maharashtra. In spot market, Cotton dropped by -250 Rupees to end at 31020 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.57% to settled at 4774 while prices down -630 rupees, now Cotton is getting support at 29940 and below same could see a test of 29620 levels, and resistance is now likely to be seen at 30710, a move above could see prices testing 31160.

Trading Ideas:

* Cotton trading range for the day is 29620-31160.

* Cotton prices dropped after CAI stated the arrivals gain momentum.

* Pressure also seen weighed by worries over the likely impact of the Omicron coronavirus variant on demand for the natural fiber.

* China's cotton reserves management company said it will suspend its sales from Dec. 1 based on the current market situation.

* In spot market, Cotton dropped  by -250 Rupees to end at 31020 Rupees.

 

 

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