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Gold

Gold yesterday settled up by 0.14% at 47872 as lingering concerns surrounding the Omicron coronavirus variant helped bullion recoup some losses from the last session that were driven by the U.S. Federal Reserve chief's seemingly hawkish stance. Meanwhile, the United States imposed tougher COVID-19 testing rules for air travellers, and more countries tightened their borders amid uncertainty over the new variant. U.S. central bankers in December will discuss whether to end their bond purchases a few months earlier than had been anticipated, Federal Reserve Chair Jerome Powell said, pointing to a strong economy, stalled workforce growth, and high inflation that is expected to last into mid-2022. Powell twinned his remarks, whose hawkish tone took some analysts by surprise, with an observation that the economic risk from an emergent variant of COVID-19 will be better understood by the Fed's Dec. 14-15 policy meeting but will in any case be far less than in the spring of 2020 when the pandemic erupted. Interest-rate futures traders returned to pricing in a June start to Fed interest rate hikes and at least one more increase in borrowing costs before the end of 2022. Health officials are racing to determine how transmissible and deadly the new Omicron variant is and to what extent current vaccines remain protective. Technically market is under short covering as market has witnessed drop in open interest by -2.64% to settled at 9775 while prices up 67 rupees, now Gold is getting support at 47687 and below same could see a test of 47502 levels, and resistance is now likely to be seen at 48052, a move above could see prices testing 48232.

Trading Ideas:

* Gold trading range for the day is 47502-48232.

* Gold remained supported as lingering concerns surrounding the Omicron coronavirus variant helped bullion recoup some losses

* Inflation part of Fed rate hike test likely met in coming meetings: Powell

* Powell places faster bond-buying taper on Fed's Christmas table

Silver

Silver yesterday settled down by -1.57% at 61307 as the dollar found support in renewed expectations for interest rates hikes. Pressure also seen after Fed Chair Jerome Powell's hawkish comments pushing U.S. Treasury yields higher, especially at the short end of the curve. In his testimony before the Senate Banking Committee, Powell said that the description of the term 'transitory' for inflation is no longer appropriate and signaled a discussion on faster tapering of bond purchases when the Fed meets this month. The ISM Manufacturing PMI in the United States edged up to 61.1 in November 2021, from 60.8 in the previous month and broadly in line with market consensus of 61.0. The latest reading indicated expansion in the manufacturing sector for the 18th month in a row after a contraction in April 2020, even as factories continued to struggle with pandemic-related shortages of raw materials. Private businesses in the US hired 534K workers in November, compared with a 570K increase in October and expectations of a 525K rise, as the labor market continued to show signs of a solid recovery amid the ongoing economic rebound. The service-providing sector added 424K jobs, led by leisure & hospitality and professional & business, while the goods-producing sector added 110K jobs. Technically market is under fresh selling as market has witnessed gain in open interest by 22.93% to settled at 12763 while prices down -980 rupees, now Silver is getting support at 60770 and below same could see a test of 60234 levels, and resistance is now likely to be seen at 62257, a move above could see prices testing 63208.

Trading Ideas:

* Silver trading range for the day is 60234-63208.

* Silver dropped as the dollar found support in renewed expectations for interest rates hikes.

* Pressure also seen after Fed Chair Powell's hawkish comments pushing U.S. Treasury yields higher, especially at the short end of the curve.

* Federal Reserve Chair Jerome Powell said asset purchases may need to be tapered faster to fight rising inflation.

Crude oil

Crude oil yesterday settled up by 2.25% at 5006 as major producers started to discuss future output against the backdrop of a new coronavirus variant triggering fresh travel restrictions that could dampen oil demand. U.S. crude oil production fell in September, according to a monthly report from the U.S. Energy Information Administration. Crude output dropped 380,000 bpd to 10.809 mln bpd from a revised 11.189 mln bpd in August, the report said. The decline came as production in the offshore Gulf of Mexico fell by 464,000 bpd, offsetting onshore gains. Oil production in Texas, the top-producing state, rose 87,000 barrels per day in the month, and North Dakota, the second-largest producer, had a gain of 8,000 barrels a day, the data said. Iraqi oil minister Ihsan Abdul Jabbar expects OPEC to agree on extending its current production policies over the short term, he told the state news agency. Iraq's stance will be aligned with the outcome of the next meeting of the Organization of the Petroleum Exporting Countries (OPEC), the minister said. Data from the American Petroleum Institute industry group showed U.S. crude stocks fell by 747,000 barrels in the week ended Nov. 26, which was a smaller decline than expected. Technically market is under short covering as market has witnessed drop in open interest by -19.39% to settled at 6560 while prices up 110 rupees, now Crude oil is getting support at 4916 and below same could see a test of 4827 levels, and resistance is now likely to be seen at 5160, a move above could see prices testing 5315.

Trading Ideas:

* Crude oil trading range for the day is 4827-5315.

* Crude oil gains as major producers started to discuss future output against the backdrop of a new coronavirus variant

* U.S. crude production falls 3.5% in Sept after Ida hit offshore output -EIA

* Iraq expects OPEC to agree to sustain current output policy
 

Nat.Gas

Nat.Gas yesterday settled down by -7.55% at 320.8 as forecasts for a milder December dampened the demand outlook for the fuel used to heat homes and businesses. Output of natural gas in the US Lower 48 states averaged 96.5 billion cubic feet (bcf) per day so far this month, compared with a record 95.4 bcf a day in November 2019. Data provider Refinitiv projected 310 heating degree days (HDDs) over the next two weeks compared with a 30-year normal of 370 HDDs for the period. HDDs, used to estimate demand to heat homes and businesses, measure the number of degrees a day's average temperature is below 65 degrees Fahrenheit (18 degrees Celsius). Preliminary data from Refinitiv showed output in the U.S. Lower 48 states averaged 96.5 billion cubic feet per day (bcfd) in November, up from 94.1 bcfd in October, and compared with a monthly record of 95.4 bcfd set in November 2019. Refinitiv forecast average U.S. gas demand, including exports, to rise slightly from 111.5 bcfd this week to 115.6 bcfd next week, but this was still lower than Monday's projections. With gas prices around $32 per mmBtu in Europe and $36 in Asia, traders have said buyers around the world will keep purchasing all the LNG the United States can produce. Technically market is under fresh selling as market has witnessed gain in open interest by 44.99% to settled at 7612 while prices down -26.2 rupees, now Natural gas is getting support at 309.4 and below same could see a test of 297.9 levels, and resistance is now likely to be seen at 341.6, a move above could see prices testing 362.3.

Trading Ideas:

* Natural gas trading range for the day is 297.9-362.3.

* Natural gas fell as forecasts for a milder December dampened the demand outlook for the fuel used to heat homes and businesses.

* Pressure also seen amid near record output caused last week's storage withdrawal to be smaller-than-usual, as expected.

* EIA said utilities pulled 21 bcf of gas from storage during the week ended Nov. 19, which was the first withdrawal of the 2021-2022 winter season.



Copper

Copper yesterday settled down by -0.83% at 719.25 amid concerns about the new Omicron coronavirus variant that has rattled market sentiment in recent days. The European Union drug regulator said existing COVID-19 vaccines would provide protection against Omicron, calming markets shaken by Moderna Chief Executive Officer saying existing shots would be less effective against the new variant. Chile's state copper commission Cochilco said that it slightly raised its copper price for this year to $4.23 per pound, supported by a rally in the metal this year. In September, Cochilco had forecast a price of $4.20 for 2021. Cochilco maintained its projection for an average price of about $3.95 per pound in 2022. 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. World refined copper output in August was 2.09 million tonnes , while consumption was 2.04 million tonnes. Technically market is under long liquidation as market has witnessed drop in open interest by -5.39% to settled at 5052 while prices down -6.05 rupees, now Copper is getting support at 713.5 and below same could see a test of 707.5 levels, and resistance is now likely to be seen at 729.7, a move above could see prices testing 739.9.

Trading Ideas:

* Copper trading range for the day is 707.5-739.9.

* Copper prices dropped as investors concerned about the new Omicron coronavirus variant that has rattled market sentiment

* Chile raises copper price estimate to $4.23 per pound for 2021

* Copper market in 52,000 tonnes surplus in Aug 2021 – ICSG

 

Zinc

"Zinc yesterday settled down by -0.68% at 268.65 as the virus mutation and expectations of US interest rate hike suppressed 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 4.51% to settled at 1482 while prices down -1.85 rupees, now Zinc is getting support at 266.7 and below same could see a test of 264.6 levels, and resistance is now likely to be seen at 272.4, a move above could see prices testing 276."

Trading Ideas:

* Zinc trading range for the day is 264.6-276.

* Zinc dropped as the virus mutation and expectations of US interest rate hike suppressed market sentiment.

* On the supply side, the overseas production was reduced amid high electricity prices, and domestic 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 down by -0.17% at 1538.6 as China’s, the Caixin manufacturing PMI for November recorded 49.9, 0.7 lower than the estimate. Philippine nickel mine will be decommissioned in end-2021, global nickel supply may tighten further. Berong nickel mine in the Philippines is expected to run out of resources before the end of the year, and the mine will be decommissioned and repaired. According to government data, from January to September this year, the production of nickel in the Philippines increased by 29% to 325,848 mt on the year. Berong nickel mine was put into production in October 2006 and has so far yielded 10.3 million wmt of nickel ore output. The global nickel market deficit narrowed to 5,200 tonnes in September from a shortfall a month earlier of 14,600 tonnes, data from the International Nickel Study Group (INSG) showed. During the first nine months of the year, the nickel market saw a deficit of 174,900 tonnes compared with a surplus of 88,000 tonnes in the same period last year, Lisbon-based INSG added. Data showed that the purchasing manager's index (PMI) for downstream nickel industries, including stainless steel, electroplating, alloy and battery, stood at 49.92 in November. In China, the Caixin manufacturing PMI for November recorded 49.9, 0.7 lower than the estimate, indicating a slowing manufacturing recovery. Technically market is under fresh selling as market has witnessed gain in open interest by 2.93% to settled at 1509 while prices down -2.6 rupees, now Nickel is getting support at 1529.4 and below same could see a test of 1520.3 levels, and resistance is now likely to be seen at 1552.4, a move above could see prices testing 1566.3.

Trading Ideas:

* Nickel trading range for the day is 1520.3-1566.3.

* Nickel prices remained under pressure as China’s Caixin manufacturing PMI for November recorded 49.9, 0.7 lower than the estimate.

* Data showed that the PMI for downstream nickel industries, stood at 49.92 in November.

* Global nickel market deficit shrinks in Sept to 5,200 tonnes – INSG
 

Aluminium

Aluminium yesterday settled up by 0.62% at 212.5 as processing companies in the north may be subject to production restrictions due to the prevention of air pollution during the heating season. Metals benefited from investors' increased risk appetite, which sent stock markets surging, using a dip in prices to bet the latest COVID-19 variant would not derail the economic recovery, while oil also rallied. LME cash aluminium traded at a $9.75-a-tonne premium over the three-month contract, indicating tight nearby supplies, as LME aluminium stocks fell to a 14-year low of 893,775 tonnes. China, the world's largest aluminium producer, is still running short of primary metal. The country imported another 140,000 tonnes in October, bringing the year-to-date total to 1.27 million tonnes. Multiple Chinese smelters have been ordered to reduce or curtail production as provincial governments try to meet quarterly energy usage and efficiency targets. China's national output of aluminium peaked in February, when it was running at an annualised rate of 39.7 million tonnes. The International Aluminium Institute (IAI) estimates it was 38.5 million tonnes in October. The call on metal from the rest of the world is depleting inventories. London Metal Exchange (LME) stocks have fallen to 893,775 tonnes, their lowest level since 2007. The price incentive is there. LME three-month aluminium is currently trading around $2,640 per tonne, off October's 13-year peak of $3,229 but still at a historically elevated level. Technically market is under short covering as market has witnessed drop in open interest by -3.35% to settled at 1988 while prices up 1.3 rupees, now Aluminium is getting support at 210 and below same could see a test of 207.5 levels, and resistance is now likely to be seen at 214.5, a move above could see prices testing 216.5.

Trading Ideas:

* Aluminium trading range for the day is 207.5-216.5.

* Aluminium gained as processing companies in the north may be subject to production restrictions due to the prevention of air pollution during the heating season

* LME aluminium inventories slide to 14-year low

* LME cash aluminium traded at a $9.75-a-tonne premium over the three-month contract, indicating tight nearby supplies

Mentha oil

Mentha oil yesterday settled down by -0.63% at 934.7 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 -0.4 Rupees to end at 1065.6 Rupees per 360 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 1.09% to settled at 929 while prices down -5.9 rupees, now Mentha oil is getting support at 927.2 and below same could see a test of 919.7 levels, and resistance is now likely to be seen at 943, a move above could see prices testing 951.3.

Trading Ideas:

* Mentha oil trading range for the day is 919.7-951.3.

* In Sambhal spot market, Mentha oil dropped  by -0.4 Rupees to end at 1065.6 Rupees per 360 kgs.

* Mentha oil 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 up by 4.68% at 6398 on short covering after reports 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). Data compiled by the body of soyabean processors has estimated crushing of soybean meal in October at 4.79 lakh tonne. At the Indore spot market in top producer MP, soybean gained 74 Rupees to 6366 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -6.71% to settled at while prices up 286 rupees, now Soyabean is getting support at 6201 and below same could see a test of 6003 levels, and resistance is now likely to be seen at 6526, a move above could see prices testing 6653.

Trading Ideas:

* Soyabean trading range for the day is 6003-6653.

 * Soyabean prices gained on short covering after reports USDA said private exporters sold 132,000 tonnes of U.S. soybeans

* 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  74 Rupees to 6366 Rupees per 100 kgs.
 

 

Soyaoil

Ref.Soyaoil yesterday settled down by -0.01% at 1196 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 1208.25 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -2.89% to settled at while prices down -0.1 rupees, now Ref.Soya oil is getting support at 1188 and below same could see a test of 1178 levels, and resistance is now likely to be seen at 1206, a move above could see prices testing 1214.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1178-1214.

* 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 1208.25 Rupees per 10 kgs.
 

Crude palm Oil

Crude palm Oil yesterday settled down by -0.05% at 1098.1 on profit booking after prices gained ealier as the Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated November production fell 6.8% from the month before. Indonesia set its crude palm oil export reference price at $1,365.99 per tonne for December, up from November's $1,283.38 per tonne, a Trade Ministry regulation showed. Indonesia's 2022 unblended biodiesel consumption is seen at 10 million kilolitres (KL), up from the targeted 9.2 million KL this year, according to a senior energy ministry official. Exports of Malaysian palm oil products for Nov. 1-25 rose 10.8 percent to 1,336,125 tonnes from 1,205,755 tonnes shipped during Oct. 1-25, cargo surveyor Societe Generale de Surveillance said. Southern Peninsula Palm Oil Millers' Association's (SPPOMA) production data had cushioned the fall in CPO prices. SPPOMA revealed the Nov 1-20 production data was lower by 2.4%, compared to the same period last month. Indonesia's crude palm oil exports, meanwhile, are expected to plummet by 60.5% this year compared to 2020, vice chairman Togar Sitanggang told. India's palm oil imports in 2020/21 rose 15.2% from a year ago to 8.32 million tonnes, while soyoil imports fell 15% to 2.87 million tonnes, a leading trade body said. In spot market, Crude palm oil gained by 0.6 Rupees to end at 1113.5 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 2.32% to settled at 4550 while prices down -0.5 rupees, now CPO is getting support at 1091.2 and below same could see a test of 1084.3 levels, and resistance is now likely to be seen at 1105, a move above could see prices testing 1111.9.

Trading Ideas:

* CPO trading range for the day is 1084.3-1111.9.

* Crude palm oil pared gains on profit booking after prices gained as the SPPOMA estimated November production fell 6.8% from the month before.

* Indonesia set its crude palm oil export reference price at $1,365.99 per tonne for December, up from November's $1,283.38 per tonne.

* Indonesia's 2022 unblended biodiesel consumption is seen at 10 million kilolitres (KL), up from the targeted 9.2 million KL this year

* In spot market, Crude palm oil gained  by 0.6 Rupees to end at 1113.5 Rupees.

 

Turmeric

Turmeric yesterday settled down by -1.62% at 7390 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 7398.8 Rupees dropped -29.6 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -5.28% to settled at while prices down -122 rupees, now Turmeric is getting support at 7324 and below same could see a test of 7258 levels, and resistance is now likely to be seen at 7482, a move above could see prices testing 7574.

Trading Ideas:

* Turmeric trading range for the day is 7258-7574.

* 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 7398.8 Rupees dropped -29.6 Rupees.
 

Jeera

Jeera yesterday settled down by -0.13% at 15960 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 -61.9 Rupees to end at 15966.65 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -11.7% to settled at while prices down -20 rupees, now Jeera is getting support at 15790 and below same could see a test of 15615 levels, and resistance is now likely to be seen at 16120, a move above could see prices testing 16275.

Trading Ideas:

* Jeera trading range for the day is 15615-16275.

* 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 -61.9 Rupees to end at 15966.65 Rupees per 100 kg.

Cotton

Cotton yesterday settled up by 0.26% at 30900 as China's cotton reserves management company said it will suspend its sales from Dec. 1 based on the current market situation. Cotton prices have dropped recently after Beijing launched a new round of daily auctions to boost supply of the fibre to the market. 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. Nearly 10,000 bales arrived in Karnataka, 3,500 in Odisha, and 40,000 bales in Telangana and Andhra Pradesh combined. In spot market, Cotton dropped by -60 Rupees to end at 31270 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 1.78% to settled at 4850 while prices up 80 rupees, now Cotton is getting support at 30570 and below same could see a test of 30250 levels, and resistance is now likely to be seen at 31290, a move above could see prices testing 31690.

Trading Ideas:

* Cotton trading range for the day is 30250-31690.

* Cotton prices rose as China to suspend sales from cotton reserves from Dec 1

* Cotton Outlook has scaled up its estimate for global production in 2021-22 by 97,000 tn to 26.0 mln tn

* Arrivals of cotton in spot markets were at 184,300 bales, higher than 171,500 bales on Monday

* In spot market, Cotton dropped  by -60 Rupees to end at 31270 Rupees.

 

 

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