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Published on 27/02/2020 10:35:17 AM | Source: Kedia Commodity Ltd

Zinc trading range for the day is 151.9-158.9 - Kedia Commodity

Posted in Commodities Reports| #Kedia Commodity Ltd #Commodity Tips

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Gold

Gold on MCX settled down -0.66% at 42504, prices eased though concerns of a worsening economic hit from the coronavirus outbreak helped to limit overall losses to some extent. Leaving interest rates at their current levels is likely to remain appropriate for some time, according to the assessments offered by Federal Reserve officials in the minutes of the central bank's latest monetary policy meeting. The minutes of the January meeting made several references to the coronavirus outbreak but are likely to reinforce expectations that the Fed will remain on hold at upcoming meetings. Meeting participants viewed the current stance of monetary policy as likely to remain appropriate for "a time" as long as incoming data remains consistent with the Fed's outlook for moderate economic growth. " Of course, if developments emerged that led to a material reassessment of the outlook, an adjustment to the stance of monetary policy would be appropriate, in order to foster achievement of the Committee's dual mandate objectives," the Fed said. Partly reflecting sharp increases in the Midwest and West, the Commerce Department released a report on Wednesday showing new home sales in the U.S. jumped to their highest level in over twelve years in the month of January. The report said new home sales spiked by 7.9 per cent to an annual rate of 764,000 in January after jumping by 2.3 per cent to an upwardly revised rate of 708,000 in December. Technically market is under long liquidation as market has witnessed drop in open interest by -3.13% to settled at 14433 while prices down -284 rupees, now Gold is getting support at 42118 and below same could see a test of 41732 levels, and resistance is now likely to be seen at 42872, a move above could see prices testing 43240.

Trading Ideas:
* Gold trading range for the day is 41732-43240.
* Gold eased through concerns of a worsening economic hit from the coronavirus helped to limit losses.
* Leaving interest rates at their current levels is likely to remain appropriate for some time, Fed Reserve said.
* Gold has done well against a backdrop of declines in Treasury yields and the U.S. stock market

 

Silver

Silver on MCX settled down -2.08% at 46576, dropped as the U.S. dollar rebounded from a two-week low hit in the previous session in step with U.S. equity markets, though moves were muted as investors remained cautious as the coronavirus continues to spread. Investors scaled back expectations that the U.S. Federal Reserve would signal more policy easing in response to the spread of the coronavirus outside of China. Fed Vice Chair Richard Clarida said that while the central bank is monitoring the impact of the epidemic on the U.S. economy, it is still too soon to gauge if it would require a change in monetary policy. Expectations of a rate cut at the Fed’s June meeting fell from 80.8% to 79.2%, according to CME Group’s FedWatch tool. Sales of new U.S. single-family homes raced to a 12-1/2-year high in January, pointing to housing market strength that could help to blunt any hit on the economy from the coronavirus and keep the longest economic expansion in history on the track. The Commerce Department said on Wednesday new home sales jumped 7.9% to a seasonally adjusted annual rate of 764,000 units last month, the highest level since July 2007. Money markets have boosted their bets on Federal Reserve interest rate cuts. The U.S. central bank cut rates three times last year and has signalled its intention to keep monetary policy on hold at least through 2020. Technically market is under long liquidation as market has witnessed drop in open interest by -34.73% to settled at 3293 while prices down -991 rupees, now Silver is getting support at 46157 and below same could see a test of 45737 levels, and resistance is now likely to be seen at 47188, a move above could see prices testing 47799.

Trading Ideas:
* Silver trading range for the day is 45737-47799.
* Silver dropped as the dollar rebounded though moves were muted as investors remained cautious about coronavirus
* WHO stated that the coronavirus has not yet transformed into a global pandemic, but it stressed.
* Sales of new U.S. single-family homes raced to a 12-1/2-year high in Jan, pointing to hsg market strength.

 

Crude Oil

Crude oil on MCX settled down -2.69% at 3546, declined sharply, extending losses to a fourth successive session, amid rising concerns about the outlook for energy demand due to the impact of the coronavirus outbreak on the global economy. Data showing an increase in U.S. crude inventories last week contributed as well to oil's sharp decline today. Data released by the EIA said oil inventories climbed by 452,000 barrels in the week ended February 21, although the rise was much less than an expected increase of 2mbls. Gasoline inventories dropped by 2.7mbls last week, more than expected. Distillate stockpiles fell by 2.1mbls in the week. On Tuesday, the API reported an increase of 1.3mbls of crude oil in the U.S. crude oil inventories for the week ending Feb. 21. API reported an increase of 4.2mbls of crude oil inventories for the previous week ending Feb. 14. Meanwhile, the number of confirmed new coronavirus cases in South Korea topped 1,100 and outbreaks in Italy and Iran spread to more countries, raising concerns about the impact of the outbreak on global growth. The flu-like virus has now spread to several countries in Europe and the Middle East, with Switzerland, Austria and Romania reporting their first infections on Tuesday. OPEC and allies are scheduled to meet in Vienna on March 5 and 6 to take a call on deepening production cuts. Saudi Arabia's energy minister said on Tuesday he was confident that OPEC and its partners would respond responsibly to the spread of the coronavirus. Technically market is under fresh selling as market has witnessed gain in open interest by 0.85% to settled at 24514 while prices down -98 rupees, now Crude oil is getting support at 3499 and below same could see a test of 3453 levels, and resistance is now likely to be seen at 3618, a move above could see prices testing 3691.

Trading Ideas:
* Crude oil trading range for the day is 3453-3691.
* Crude fell as concerns about the spread of the coronavirus and its impact on oil demand weighed.
* Oil inventories climbed by 452,000 barrels for the week ended Feb. 21, the EIA said.
* The Saudi said he was confident that OPEC and its partners would respond responsibly to the spread of the virus.

 

Natural Gas

Natural gas on MCX settled unchanged at 134.20, slightly recovered after hitting their lowest level since February 12. The early price action suggests a slight change in the forecast to colder after yesterday’s reports showed little change. A little of the short-covering could be related to speculation of higher demand next week beginning Tuesday through March 8, with a slightly stronger cool shot across the northern United States, according to NatGasWeather. The forecaster also said, “There’s still potential for better pushes of subfreezing air into the northern US around March 9-10, but far from convincing.” According to NatGasWeather for February 26 to March 3, “A strong cold shot will push into the central US today with highs of 10s to 30s, then across the Southern Great Lakes, Ohio Valley and Northeast Thursday – Friday for a surge in national demand, aided by lows of 20s and 30s into the South and Southeast.” The EIA reported on February 20 that domestic supplies of natural gas fell by 151bcf for the week ended February 14. Last year’s withdrawal was 163 Bcf and the five-year average draw is 136 Bcf, according to the EIA. Total stocks now stand at 2.343 trillion cubic feet, up 613bcf from a year ago, and 200bcf above the five-year average, the government said. Most traders are pricing in a cold snap from March 3 to March 8. If it goes beyond March 9 then things could get interesting in the market. But at this time, forecasts calling for subfreezing temperatures after March 9 are “far from convincing,” NatGasWeather added. Technically market is under fresh selling as market has witnessed gain in open interest by 5.59% to settled at 28638 while prices are getting support at 132 and below same could see a test of 129.9 levels, and resistance is now likely to be seen at 136.1, a move above could see prices testing 138.1.

Trading Ideas:
* Natural gas trading range for the day is 129.9-138.1.
* Natural gas on MCX settled 134.20 slightly recovered after hitting their lowest level since February 12.
* The slight change in the forecast to colder after yesterday’s reports showed little change.
* A little of the short-covering could be related to speculation of higher demand next week

 

Copper

Copper on MCX settled down -0.64% at 425.10 dropped after the release of data showed that copper stocks across LME-approved warehouses increased more than 60,000 mt, or 38.17% to 221,425 mt as of February 26, marking the biggest one-day gain since 2004. Pressure also seen as concerns over the economic impact from the COVID-19 coronavirus outbreak grew on the back of another jump in new cases in South Korea. In China, the number of new cases declined, but end-user consumption struggled to recover due to the virus containment measures—travel and transportation restrictions. The World Health Organization warned earlier this week that the new coronavirus has peaked in China but could still grow into a pandemic. China's central bank said on Wednesday it is cutting re-lending interest rates for small business or agricultural borrowers by 25 basis points as part of the efforts to support small and micro companies amid the virus outbreak. That comes along with an increase of 500 billion yuan in the refinancing and rediscounting quota. Social inventories of copper cathode in south China’s Guangdong province have hit a record high as the coronavirus outbreak deterred the recovery of downstream demand. Technically market is under fresh selling as market has witnessed gain in open interest by 5.36% to settled at 4638 while prices down -2.75 rupees, now Copper is getting support at 421.6 and below same could see a test of 417.9 levels, and resistance is now likely to be seen at 428.5, a move above could see prices testing 431.7.

Trading Ideas:
* Copper trading range for the day is 417.9-431.7.
* Copper dropped after data showed that stocks across LME increased more than 60,000 mt, or 38.17%
* Pressure also seen as concerns over the economic impact from the COVID-19 coronavirus outbreak grew
* Global copper mine production fell 0.6% during the first 11 months of 2019, according to the ICSG.

 

Zinc

Zinc on MCX settled down -0.13% at 155.90, dropped on fresh selling after prices seen earlier some support on the back of production cut at some Chinese smelters. However, social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei stood at 306,400 mt, up 11,900 mt from Friday February 21 and 33,900 mt from Monday February 17, showed data. Stocks in Shanghai jumped over 7,000 mt over the weekend, as arrivals increased following logistical recovery, while purchases by downstream consumers remained muted. Guangdong saw a smaller gain, as demand gradually recovered. Stocks in Tianjin dipped over the weekend, as arrivals dwindled after some smelters trimmed output. Compared to last Friday, social inventories of refined zinc ingots across Shanghai, Tianjin and Guangdong climbed 9,800 mt. German business morale rose unexpectedly in February, an Ifo survey showed on Monday, easing recession fears in Europe's largest economy and reflecting a slight improvement in its manufacturing sector, which has been struggling with falling exports. Technically market is under fresh selling as market has witnessed gain in open interest by 0.18% to settled at 16558 while prices down -0.2 rupees, now Zinc is getting support at 154 and below same could see a test of 151.9 levels, and resistance is now likely to be seen at 157.5, a move above could see prices testing 158.9.

Trading Ideas:

* Zinc trading range for the day is 151.9-158.9.
* Zinc pared gains on profit booking after prices seen earlier some support on the back of production cut.
* Stocks in Tianjin dipped over the weekend, as arrivals dwindled after some smelters trimmed output.
* Inventories of refined zinc ingots across Shanghai stood at 306,400 mt , up 11,900 mt.

 

Nickel

Nickel on MCX settled down -0.69% at 914.70, dropped as investors worried about the economic impact of the COVID-19 following rising cases worldwide. New cases are being reported in Europe and the Middle East, far outside the epicentre of China. This has raised fears that the virus could spread further. The Federal Reserve would cut interest rates this year to relieve pressure on the economy caused by China's coronavirus outbreak. On the data front, the US Conference Board consumer confidence index improved slightly in February, following an increase in January. The Index now stands at 130.7, up from 130.4 in January. Germany's economy stalled in the fourth quarter as consumption lost steam, Germany's Federal Statistical Office said, confirming a preliminary estimate. Household consumption stagnated in the fourth quarter and government consumption rose only 0.3%, Destatis said. Handan, a major steelmaking hub in north China’s Hebei province, will activate level II response to heavy pollution on 14:00 CST February 26, according to a statement by the city government. The level II response, which is the second-highest in Beijing’s three-tier warning system, will remain in place until further notice. Technically market is under fresh selling as market has witnessed gain in open interest by 3.07% to settled at 1543 while prices down -6.4 rupees, now Nickel is getting support at 907.2 and below same could see a test of 899.7 levels, and resistance is now likely to be seen at 921.3, a move above could see prices testing 927.9.


Trading Ideas:
* Nickel trading range for the day is 899.7-927.9.
* Nickel dropped as investors worried about the economic impact of the COVID-19 following rising cases
* Fed would cut interest rates this year to relieve pressure on the economy caused by China's coronavirus
* US Conference Board consumer confidence index improved slightly in Feb, following an increase in Jan.

 

Aluminium

Aluminium on MCX settled down -0.66% at 135.25, prices ended with losses after trading in range as consumption recovers slowly. Social inventories of primary aluminium in China continued to trend higher over the weekend, as demand recovered slowly amid the ongoing coronavirus outbreak. Data showed that social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, increased 84,000 mt from Thursday February 20 to 1.314 million mt. China's central bank said on Wednesday it is cutting re-lending interest rates for small business or agricultural borrowers by 25 basis points as part of the efforts to support small and micro companies amid the virus outbreak. That comes along with an increase of 500 billion yuan in the refinancing and rediscounting quota. Sales of new U.S. single-family homes raced to a 12-1/2-year high in January, pointing to housing market strength that could help to blunt any hit on the economy from the coronavirus and keep the longest economic expansion in history on the track. Now a day ahead traders will be eyeing for economical data, the US will publish data on its new home sales for January and the weekly crude oil change surveyed by the Energy Information Administration (EIA). Technically market is under fresh selling as market has witnessed gain in open interest by 8.28% to settled at 4772 while prices down -0.9 rupees, now Aluminium is getting support at 134.5 and below same could see a test of 133.7 levels, and resistance is now likely to be seen at 136.1, a move above could see prices testing 136.9.

Trading Ideas:
* Aluminium trading range for the day is 133.7-136.9.
* Aluminium prices ended with losses after trading in range as consumption recovers slowly.
* Social inventories of primary aluminium in China continued to trend higher.
* Inventories of primary aluminium ingots across China, including SHFE warrants, increased 84,000 mt.

 

Mentha Oil

Mentha oil yesterday settled up by 0.54% at 1183.3 gained on fresh buying as support seen after the news that stocks at exchange-accredited warehouses declined. Mentha oil stock at MCX-accredited warehouses was 49.7 tn on Tuesday, down 10.8 tn from the previous day, bourse's data showed. While upside is capped as a higher mentha harvest is likely in 2020-21 as more area is expected to brought under the crop in the new season. Exports were already affected by this, but now its impact has reached the retail market. Mentha-producing farmers are also affected by this. Market prices have broken up to Rs 100 per kg since Jan 2020. Mentha and menthol products from Sambhal have an annual export of Rs.3000–3500 crores. China's consumption in it is Rs 1500-2000 crore annually. According to market sources, India’s mentha oil production in 2019-20 was around 50,000 tonnes, although no official data is available. Around 75 per cent of the mentha oil produced in India is exported. The commodity has touched a lifetime high of ₹1,336. Stocks of mentha oil at MCX-accredited warehouses had declined to 77,799.35 kg by February 11 against 88,601.70 kg a week earlier. Technically market is under fresh buying as market has witnessed gain in open interest by 6.68% to settled at 719 while prices up 6.3 rupees, now Mentha oil is getting support at 1172.4 and below same could see a test of 1161.5 levels, and resistance is now likely to be seen at 1190.1, a move above could see prices testing 1196.9.

Trading Ideas:
* Mentha oil trading range for the day is 1161.5-1196.9.
* Mentha oil spot at Sambhal closed below 1200 level as demand concerns
* Menthaoil gained on fresh buying as support seen after the news that stocks at warehouses declined.
* Stock at MCX-accredited warehouses was 49.7 tn on Tuesday, down 10.8 tn from the previous day
* Upside is capped as a higher mentha harvest is likely in 2020-21 as more area is expected to brought under the crop in the new season.

 

Soyabean

Soyabean yesterday settled down by -1.46% at 3772 as concerns that the spread of coronavirus could stall grain shipments around the world and dent global economic growth. While US soybean futures on Wednesday extended a rebound from a sharp drop earlier this week as investors anticipated changes to Argentine export taxes that could reduce export competition from the major soy supplier. Soybean and soymeal futures bounced at midmorning on news that Argentina's Ministry of Agriculture suspended the registration of agricultural exports until further notice. The move was seen as foreshadowing a jump in grain export tariffs under the country's new Peronist government. As per reports, the Poultry Federation of India has written a letter to PM Modi, in which it has described difficulties of farmers. He says that the domestic poultry industry is a major source of additional income of farmers. For this, they need help, so that they can flourish properly. Moreover, it says that chicken leg grinding is used less in the US, so the US wants to bring it to India which will cause great harm to the domestic poultry industry. Technically market is under long liquidation as market has witnessed drop in open interest by -8.14% to settled at 108190 while prices down -56 rupees, now Soyabean is getting support at 3730 and below same could see a test of 3689 levels, and resistance is now likely to be seen at 3834, a move above could see prices testing 3897.

Trading Ideas:
* Soyabean trading range for the day is 3689-3897.
* Soyabean on NCDEX settled down -1.41% at 3774 as concerns that the spread of coronavirus
* US soybean rebound from a sharp drop earlier this week as investors anticipated changes to Argentine export taxes
* The US soy complex saw support on news that Argentina's Ministry of Agriculture suspended the registration of agricultural exports until further notice
* At the Indore spot market in top producer MP, soybean dropped  -44 Rupees to 3962 Rupees per 100 kgs.

 

Ref.Soyaoil

Ref.Soyaoil yesterday settled down by -0.94% at 782.8 fall due to fears over a global outbreak of the coronavirus. India’s Soymeal export slumped by 92% to 5876 tonnes on an M-o-M basis during December. During Apr-Dec 2019, India’s Soymeal export fell by 46% to about 5.03 lakh tonnes as compared to 9.2 lakh tonnes last year during the same period. The fall is mainly due to disparity in export of Soymeal, Indian Soymeal is expensive in the International Market as compared to other origins. NAFED has Soybean stock of 10,677 tonnes, out of which more than 99% stock is available in Telangana and rest is available in Maharashtra. USDA has pegged Brazil's soybean production at a record high of 1235 lakh tonnes in 2019-20, about 6% higher on year, as farmers have planted the oilseed over a larger area this year, expecting better returns from exports. The agency pegged Brazil's 2019-20 soybean export at 760 lakh tonnes, nearly 3% higher on year, but lower than the USDA's official estimate of 763 lakh tonnes as China's demand may shift back to the US if the two countries finalised a trade deal. Technically market is under long liquidation as market has witnessed drop in open interest by -0.57% to settled at 38145 while prices down -7.4 rupees, now Ref.Soya oil is getting support at 777 and below same could see a test of 772 levels, and resistance is now likely to be seen at 791, a move above could see prices testing 800.

Trading Ideas:
*  Ref.Soya oil trading range for the day is 772-800.
* Ref.Soya oil settled down -0.94% due to fears over a global outbreak of the coronavirus.
* India’s Soymeal export slumped by 92% to 5876 tonnes on an M-o-M basis during December.
* Technically market is under long liquidation as market has witnessed drop in open interest by -0.57% to settled at 38145
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 810.2 Rupees per 10 kgs.

 

Crude palm Oil

Crude palm Oil yesterday settled down by -0.19% at 668.6 on fresh selling as prices came under pressure from prospects of higher production and concerns over falling demand due to the global spread of the coronavirus. Malaysian Southern Peninsular Palm Oil Millers Association had forecast Feb. 1-20 production to increase by 33.6 per cent. Also uncertainty prevailed as Malaysia's Mahathir Mohamad unexpectedly quit as prime minister, leaving the country in political turmoil and sending the local currency, bond and stock markets lower. Investors now await Feb. 1-25 export data due later in the day. The Malaysian Palm Oil Association on Monday forecast Feb. 1-20 production to increase by 17.4 per cent, in line with the Southern Peninsular Palm Oil Millers Association's expectation of higher output, according to traders. United Nations Secretary-General Antonio Guterres on Monday urged countries to prevent the novel coronavirus epidemic from spiralling into a crisis with "dramatic consequences" for global health and the world economy. The virus has now spread to 29 countries and territories. Dalian's most-active soyoil contract fell 1.56 percent, while its palm oil contract tumbled 2.6 per cent. Soyoil prices on the Chicago Board of Trade inched up 0.1 per cent. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Technically market is under fresh selling as market has witnessed gain in open interest by 8.35% to settled at 6112 while prices down -1.3 rupees, now CPO is getting support at 663.1 and below same could see a test of 657.5 levels, and resistance is now likely to be seen at 675.8, a move above could see prices testing 682.9.

Trading Ideas:
* CPO trading range for the day is 657.5-682.9.
* CPO settled flat on prospects of higher production and concerns over falling demand due to the global spread of the coronavirus.
* Malaysian Southern Peninsular Palm Oil Millers Association had forecast Feb. 1-20 production to increase by 33.6 per cent.
* The Malaysian Palm Oil Association on Monday forecast Feb. 1-20 production to increase by 17.4 per cent
* Malaysia's Mahathir Mohamad unexpectedly quit as prime minister, leaving the country in political turmoil

 

Mustard Seed

Mustard Seed yesterday settled down by -0.15% at 4007 dropped on long liquidation tracking weakness from other agri commodities as concerns that the spread of coronavirus dent global economic growth. Prices of mustard in Jaipur, the benchmark market, fell 15 rupees to 4,300 rupees per 100 kg due to relatively weak demand and an increase in supply of the fresh crop. Mustard prices are likely to fall to around 4,000 rupees in a month due to "depressed" demand. Arrivals of mustard in major spot markets across the country rose to 160,000 bags today (1 bag = 85 kg) of which almost 40,000 bags were of the fresh crop. Technically market is under long liquidation as market has witnessed drop in open interest by -1.92% to settled at 17340 while prices down -6 rupees, now Rmseed is getting support at 3985 and below same could see a test of 3963 levels, and resistance is now likely to be seen at 4027, a move above could see prices testing 4047.

Trading Ideas:
* Rmseed trading range for the day is 3963-4047.
* Rmseed dropped on long liquidation tracking weakness from other agri commodities
* Concerns that the spread of coronavirus dent global economic growth.
* Prices of mustard in Jaipur, fell 15 rupees to 4,300 rupees per 100 kg due to relatively weak demand
* In Alwar spot market in Rajasthan the prices gained 77.25 Rupees to end at 4308.25 Rupees per 100 kg.

 

Turmeric

Turmeric yesterday settled down by -0.87% at 5896 amid sufficient supply in the physical markets amid weak demand at higher price levels and expectation of bigger crop in the current season weighed. Meanwhile as per market reports, the Government of Andhra Pradesh has revised the MSP to Rs. 6,850 per quintal and will start procuring in the beginning February, 2020. Also, APMC of Nizamabad has decided to withdraw this policy of disallowing excess moisture turmeric from auction. They will only have a floor price of Rs. 4,000 per quintal as the floor price for auction. Any bids below that would be rejected. The news of ‘Government of Andhra Pradesh’ procuring Turmeric produced in Duggirala and Cuddapah regions of Andhra Pradesh at a predetermined price and banning import of Turmeric by Government had a huge impact on the prices where the prices peaked by 10-12% in the past month. Prices have seen a correction then after amid weak demand. Technically market is under long liquidation as market has witnessed drop in open interest by -5.93% to settled at 3170 while prices down -52 rupees, now Turmeric is getting support at 5848 and below same could see a test of 5802 levels, and resistance is now likely to be seen at 5974, a move above could see prices testing 6054.

Trading Ideas:
* Turmeric trading range for the day is 5802-6054.
* Turmeric settled down -0.13% at 5946 dropped on long liquidation lingering fears over the coronavirus
* The Government of Andhra Pradesh has revised the MSP to Rs. 6,850 per quintal and will start procuring
* APMC of Nizamabad has decided to withdraw this policy of disallowing excess moisture turmeric from auction
* In Nizamabad, a major spot market in AP, the price ended at 5793.75 Rupees gained 10.4 Rupees.

 

Jeera

Jeera on NCDEX settled down -0.33% at 13605 as pressure continues to see weakness because of the coronavirus outbreak in China, which is the largest buyer of the spice commodity from India. China is expected to buy about 50,000 tonnes this year on account of increased consumption. While pressure continues to be seen as In the 2019-20 rabi season, Jeera acreage in Gujarat as on January 27, 2020 is reported at 4.88 lakh hectares, higher by 40% from 3.47 lakh hectares a year ago. And the government has diverted $4.3 million as compensation for farmers who have lost their crops. Meanwhile prices are expected to remain weak as farmers in Gujarat and Rajasthan were expecting a bumper yield and a profitable season this year, but the Coronavirus emergency has caused a sharp fall in wholesale jeera prices. This is because China happens to be the biggest importer of cumin from India. Traders were expecting to sell at least 50,000 tonnes of jeera to Chinese importers this year, but there is now a dent in demand. At wholesale markets in Gujarat, the rate of jeera per quintal fell from Rs 16,062 in mid-January to Rs 14,500 in early February. However, since India is known to be the only supplier of jeera for China, Indian traders are expecting sales to bounce back once the threat of the virus has subsided. Technically market is under long liquidation as market has witnessed drop in open interest by -2.92% to settled at 1896 while prices down -45 rupees, now Jeera is getting support at 13503 and below same could see a test of 13402 level, and resistance is now likely to be seen at 13703, a move above could see prices testing 13802.

Trading Ideas:

* Jeera trading range for the day is 13395-13795.
* Jeera dropped as pressure continues to see weakness because of the coronavirus outbreak in China
* Jeera acreage in Gujarat is reported at 4.88 lakh hectares, higher by 40% from 3.47 lakh hectares a year ago.
* Traders were expecting to sell at least 50,000 tonnes of jeera to Chinese importers this year, but there is now a dent in demand.
* In Unjha, a key spot market in Gujarat, jeera edged down by -23.4 Rupees to end at 13971.05 Rupees per 100 kg.

 

Cotton

Cotton yesterday settled down by -1.1% at 18920 as new season cotton crop arrival has picked pace amid estimates of better production this year as compared to last year. Concerns over decline in demand from China amid the outbreak of Coronavirus there and huge stock with the government agency has pressurized Cotton prices in the domestic market and spillover effect of the same might have undermined the prices of COCUD as well. Concerns over decline in demand from China amid the outbreak of Coronavirus there and huge stock with the government agency has pressurized Cotton prices in the domestic market and spillover effect of the same might have undermined the prices of COCUD as well. Cotton Corporation of India has purchased Around 40 lakh bales of Cotton as on Jan 16, 2020 during ongoing procurement season. (Source: Cogencis) The Maharashtra State Cooperative Cotton Growers Marketing Federation Ltd is looking to procure nearly 10 lakh bales (1 bale – 170 kg) of cotton in the current year that started Oct 1, as prices are likely to be near the minimum support price for a prolonged period due to expectation of bumper crop coupled with slowdown in the textile sector. " So far we have bought around 360,000 bales at the minimum support price," said a senior official of the state-owned federation. Technically market is under fresh selling as market has witnessed gain in open interest by 1.87% to settled at 7830 while prices down -210 rupees, now Cotton is getting support at 18830 and below same could see a test of 18730 levels, and resistance is now likely to be seen at 19060, a move above could see prices testing 19190.

Trading Ideas:
* Cotton trading range for the day is 18730-19190.
* Cotton dropped as new season cotton crop arrival has picked pace amid estimates of better production this year as compared to last year.
* The Maharashtra State Cooperative Cotton Growers Marketing Federation Ltd is looking to procure nearly 10 lakh bales
* Technically market is under fresh selling as market has witnessed gain in open interest by 1.87% to settled at 7830.
* Corona virus is affecting the global trade and world economies

 

Chana

Chana yesterday settled down by -0.4% at 3959 as fresh harvest hit the market. Pressure seen as a second consecutive year of bumper production, rampant smuggling of yellow peas and ample storage with the government have combined to keep chana supply robust and prices suppressed. Responding to the hike in MSP and good soil moisture levels thanks to the bountiful monsoon this year, farmers increased area under rabi pulses. But as the clock counts down to the visit, the chances of a deal remain elusive, especially after US Trade Representative Robert Lighthizer reportedly cancelled his trip which had been scheduled for earlier this month. While in another news Swaraj India leader Yogendra Yadav has said India is in the midst of a "policy-driven crisis in which the farmers are bound to suffer despite a bumper crop." Alleging that the "agri-trade policy in this country is dictated by the traders' lobby", Yadav said it is expected that "the government will suspend the imports for pulses in the face of a bumper harvest". Chickpea growing states of Maharashtra, Rajasthan, Uttar Pradesh, Andhra Pradesh, and Karnataka have been under the fear that imports will dampen their bumper crop. The Union Agriculture Ministry estimates that India’s chickpea production for 2019-20 will be at 11.22 million tonnes (mt), a sharp increase from last year’s 9.94 mt and marginally short of 2017-18's record high of 11.38 mt. Technically market is under fresh selling as market has witnessed gain in open interest by 3.43% to settled at 15360 while prices down -16 rupees, now Chana is getting support at 3918 and below same could see a test of 3876 levels, and resistance is now likely to be seen at 4004, a move above could see prices testing 4048.

Trading Ideas:
* Chana trading range for the day is 3876-4048.
* Chana dropped as fresh harvest hit the market and pressure continues on second consecutive year of bumper production
* The area sown under gram increased to 10.72 million hectares, up 11 per cent over the previous year’s area of 9.62 hectares.
* The Union Agriculture Ministry estimates that India’s chickpea production for 2019-20 will be at 11.22 million tonnes
* In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4000 Rupees per 100 kgs.

 

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