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Gold

Gold yesterday settled up by 0.18% at 48086 after remained in range as an uptick in risk appetite took some shine off the safe-haven metal, although a weaker dollar and a fall in U.S. bond yields limited losses for the bullion. The S&P 500 index neared a record high as a $1 trillion infrastructure bill and strong second-quarter corporate earnings lifted sentiment.

Focus now shifts to July's U.S. non-farm payroll numbers, due on Friday that is expected to shed more light on the health of the labour market. U.S. manufacturing continued to grow in July, though the pace slowed for the second straight month as spending rotates back to services from goods and shortages of raw materials persist.

The Institute for Supply Management (ISM) said its index of national factory activity fell to 59.5 last month, the lowest reading since January, from 60.6 in June. A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the U.S. economy. Nearly half of the population has been fully vaccinated against COVID-19, allowing Americans to travel, frequent restaurants, visit casinos and attend sporting events among services-related activities that were curbed early in the pandemic.

Technically market is under fresh buying as market has witnessed gain in open interest by 1.51% to settled at 12605 while prices up 85 rupees, now Gold is getting support at 47884 and below same could see a test of 47683 levels, and resistance is now likely to be seen at 48218, a move above could see prices testing 48351.

Trading Ideas:
* Gold trading range for the day is 47683-48351.
* Gold prices remained in range as an uptick in risk appetite took some shine off the safe-haven metal.
* U.S. manufacturing continued to grow in July, though the pace slowed for the second straight month
* The S&P 500 index neared a record high as a $1 trillion infrastructure bill and strong second-quarter corporate earnings lifted sentiment.

Silver 

Silver yesterday settled up by 0.06% at 67889 after remained in range as improved risk appetited for riskier assets prompted investors to move out of the so-called safe-haven asset. The U.S. Senate will try to complete work this week on a $1 trillion infrastructure investment bill that would bring long-awaited improvements to roads, bridges and mass-transit systems and deliver a rare bipartisan victory to President Joe Biden. Following long work sessions on Saturday and Sunday, Senate negotiators announced that they had finished drafting a 2,702-page bill, which promptly was introduced, clearing the way for senators to debate amendments. Fed Chair Jerome Powell said interest rate hikes were "ways away" and the job market still had "some ground to cover." British consumer price inflation will reach 3.9% early next year, almost double the Bank of England’s target, but should fall back to 2% the year after if the BoE begins to raise interest rates, a leading think tank forecast. The National Institute of Economic and Social Research (NIESR) also revised up its growth forecast for 2021 by 1.1 percentage points to 6.8% - broadly in with the most recent forecasts from the BoE and the International Monetary Fund. Technically market is under fresh buying as market has witnessed gain in open interest by 1.9% to settled at 8473 while prices up 42 rupees, now Silver is getting support at 67541 and below same could see a test of 67194 levels, and resistance is now likely to be seen at 68206, a move above could see prices testing 68524.

Trading Ideas:
* Silver trading range for the day is 67194-68524.
* Silver remained in range as improved risk appetited for riskier assets prompted investors to move out of the so-called safe-haven asset.
* U.S. Senate works to push $1 trillion bipartisan infrastructure bill to passage
* Fed Chair Jerome Powell said interest rate hikes were "ways away" and the job market still had "some ground to cover."

Crude oil 

Crude oil yesterday settled down by -3.97% at 5298 on worries over China's economy after a survey showed growth in factory activity slipped sharply in the world's second-largest oil consumer, with concerns compounded by a rise in oil output from OPEC producers. China's factory activity growth slipped sharply in July as demand contracted for the first time in more than a year, in part on high product prices, a business survey showed, underscoring challenges facing the world's manufacturing hub. Also weighing on prices, that oil output from the Organization of the Petroleum Exporting Countries (OPEC) rose in July to its highest since April 2020, as the group further eased production curbs under a pact with its allies while top exporter Saudi Arabia phased out a voluntary supply cut. The United States will not lock down again to curb COVID-19 but "things are going to get worse" as the Delta variant fuels a surge in cases, mostly among the unvaccinated, top U.S. infectious disease expert Dr. Anthony Fauci said. Russian Deputy Prime Minister Alexander Novak said that Russia is able to increase its oil output to 11.3 million barrels per day by the end of 2022. He added that the need for such production increase would depend on market conditions. Technically market is under long liquidation as market has witnessed drop in open interest by -34.76% to settled at 5475 while prices down -219 rupees, now Crude oil is getting support at 5204 and below same could see a test of 5109 levels, and resistance is now likely to be seen at 5444, a move above could see prices testing 5589.

Trading Ideas:
* Crude oil trading range for the day is 5109-5589.
* Crude oil prices fell on worries over China's economy after a survey showed growth in factory activity slipped sharply
* OPEC July oil output hits 15-month high
* Novak says Russia is able to boost oil output to 11.3 mln bpd by end 2022

Natural gas

Nat.Gas yesterday settled up by 1.9% at 295.5 as forecasts predicted hotter weather over the coming weeks than previously expected, which is likely to boost demand for cooling. Data provider Refinitiv projected U.S. demand, including exports, will rise from an average of 91.2 bcfd this week to 95.2 bcfd next week. But that is still slightly below last week's 95.7 bcfd. Flynn also expects U.S. LNG exports to stay "exceedingly" strong and U.S. supply to remain weak, leading to a tight market this year, which should support prices. The amount of gas flowing to U.S. LNG export plants averaged 10.8 bcfd in July, up from 10.1 bcfd in June but still below April's 11.5-bcfd record. Refinitiv said average U.S. production would remain unchanged at 92.2 billion cubic feet per day next week from this week. That is still well below November's all-time monthly high of 95.4 bcfd. The U.S. Energy Information Administration (EIA) forecast utilities added 36 billion cubic feet (bcf) of gas into storage during the week ended July 23. U.S. natural gas prices in 2021 at the Henry Hub benchmark in Louisiana will likely rise to their highest since 2018 as governments ease lockdowns and demand rises faster than producers can restore output shut during the 2020 coronavirus-linked price drop. Technically market is under short covering as market has witnessed drop in open interest by -17.88% to settled at 10812 while prices up 5.5 rupees, now Natural gas is getting support at 291.9 and below same could see a test of 288.4 levels, and resistance is now likely to be seen at 299.9, a move above could see prices testing 304.4.

Trading Ideas:
* Natural gas trading range for the day is 288.4-304.4.
* Natural gas rose as forecasts predicted hotter weather over the coming weeks than previously expected, which is likely to boost demand for cooling.
* EIA forecast utilities added 36 billion cubic feet (bcf) of gas into storage during the week ended July 23.
* U.S. natural gas prices in 2021 at the Henry Hub benchmark in Louisiana will likely rise to their highest since 2018

Copper
Copper yesterday settled down by -1.32% at 741.75 as China’s factory activity expanded in July at the slowest pace in 17 months, according to the official manufacturing Purchasing Manager’s Index (PMI). The Union of workers at BHP Group Ltd's Escondida mine rejected the firm's final labour contract offer, prompting BHP to request government-mediated talks, which will last five to 10 days before a strike begins if no agreement is reached. U.S. manufacturing continued to grow in July, though the pace slowed for the second straight month as spending rotates back to services from goods and shortages of raw materials persist. The Institute for Supply Management (ISM) said its index of national factory activity fell to 59.5 last month, the lowest reading since January, from 60.6 in June. The U.S. Senate will try to complete work this week on a $1 trillion infrastructure investment bill that would bring long-awaited improvements to roads, bridges and mass-transit systems and deliver a rare bipartisan victory to President Joe Biden. Following long work sessions on Saturday and Sunday, Senate negotiators announced that they had finished drafting a 2,702-page bill, which promptly was introduced, clearing the way for senators to debate amendments. Technically market is under fresh selling as market has witnessed gain in open interest by 23.59% to settled at 4615 while prices down -9.95 rupees, now Copper is getting support at 735.9 and below same could see a test of 730.1 levels, and resistance is now likely to be seen at 752.6, a move above could see prices testing 763.5.

Trading Ideas:
* Copper trading range for the day is 730.1-763.5.
* Copper prices dropped as China’s factory activity expanded in July at the slowest pace in 17 months
* The union of workers at BHP Group Ltd’s Escondida copper mine, the world’s largest, rejected the firm’s final labour contract offer.
* U.S. manufacturing sector growth slowing – ISM

Zinc

Zinc yesterday settled down by -0.08% at 247.95 on profit booking afte prices seen supported amid hopes for more stimulus in China after weak factory data. LME cash zinc has moved to a premium of $1.50 over the three month contract, the first time in over a year it has been more expensive, indicating tighter supply conditions. Data showed that social inventories of zinc ingots across seven major markets increased 5400 mt from last Friday July 30 or 5,700 mt from last Monday July 26 to 121400 mt. Shanghai inventories increased due to added arrivals and decreased purchasing demand after downstream companies taking in the first release of government reserves. Inventories increase in Guangdong was more obvious as a result of added arrivals and depressed demand. Situation in Tianjin was similar due to arrivals and downstream purchasing on-demand, leading to rallies in inventories. From the macro front, China July manufacturing PMI stood at 50.3, indicating an expanding economy. The central bank will maintain the stability of macro policies, which may signal a shored-up consumption market in 2H. On the other hand, July manufacturing PMI in the Eurozone stood at 62.8, higher than expected, indicating strong overseas consumption. July social inventories maintained de-stocking as released government reserves entered downstream market, which evidenced a high off-season. Technically market is under long liquidation as market has witnessed drop in open interest by -0.14% to settled at 2192 while prices down -0.2 rupees, now Zinc is getting support at 247.2 and below same could see a test of 246.3 levels, and resistance is now likely to be seen at 249.4, a move above could see prices testing 250.7.

Trading Ideas:
* Zinc trading range for the day is 246.3-250.7.
* Zinc settled flat on profit booking afte prices seen supported amid hopes for more stimulus in China after weak factory data.
* LME cash zinc has moved to a premium of $1.50 over the three month contract, indicating tighter supply conditions.
* Data showed that social inventories of zinc ingots across seven major markets increased 5400 mt.

Nickel

Nickel yesterday settled down by -0.38% at 1478.4 as China, July manufacturing PMI decreased from 50.9 in June to 50.4, lower than expectation. NBS explained that the broad maintenance and extreme weathers like high temperature and flood has hampered industry products market amid weakened expansion. U.S. manufacturing continued to grow in July, though the pace slowed for the second straight month as spending rotates back to services from goods and shortages of raw materials persist. The Institute for Supply Management (ISM) said its index of national factory activity fell to 59.5 last month, the lowest reading since January, from 60.6 in June. German retail sales increased much more than expected in June following an easing of COVID-19 restrictions, supporting hopes for a consumer-driven recovery in Europe’s largest economy over the summer months. The UK manufacturing sector growth slowed in July as supply gridlock resulted in a moderate deceleration in the rates of expansion of production, new orders and job creation, final survey results from IHS Markit showed. The Chartered Institute of Procurement & Supply manufacturing Purchasing Managers' Index came in at 60.4 in July, in line with flash estimate, but down from May's record high of 65.6. Nonetheless, the index signaled expansion for 14 months. Technically market is under long liquidation as market has witnessed drop in open interest by -0.8% to settled at 1992 while prices down -5.7 rupees, now Nickel is getting support at 1470.2 and below same could see a test of 1462 levels, and resistance is now likely to be seen at 1492.2, a move above could see prices testing 1506.

Trading Ideas:
* Nickel trading range for the day is 1462-1506.
* Nickel prices dropped as China, July manufacturing PMI decreased from 50.9 in June to 50.4, lower than expectation.
* U.S. manufacturing continued to grow in July, though the pace slowed for the second straight month
* The UK manufacturing sector growth slowed in July as supply gridlock resulted in a moderate deceleration in the rates of expansion of production.

Aluminium

Aluminium yesterday settled up by 0.58% at 207.95 as the production restriction in south-east China and the Inner Mongolia became stricter, and demand was not weaker than expected. While transportation in Henan will still be disrupted in the short term, sustaining de-stocking of social inventories, offering support to aluminium prices. From the macro front, president of Federal Reserve Bank of Minneapolis warned that the Delta mutant might hinder the recovery of US labour market. While the president of Federal Reserve Bank of St. Louis advised that the Fed shall shrink asset purchasing from autumn to March, 2022 as inflation was higher than expected. In China, July manufacturing PMI decreased from 50.9 in June to 50.4, lower than economists’ expectation. NBS explained that the broad maintenance and extreme weathers like high temperature and flood has hampered industry products market amid weakened expansion. Last week’s Fed meeting settled to maintain the interest rate unchanged, and Fed chairman Powell also stated that it was not time to tighten the monetary policy. The meeting result was basically in line with market expectations, but copper prices fell back significantly amid cooled bullish sentiments after the sharp gains. Technically market is under fresh buying as market has witnessed gain in open interest by 2.25% to settled at 3230 while prices up 1.2 rupees, now Aluminium is getting support at 207.3 and below same could see a test of 206.6 levels, and resistance is now likely to be seen at 208.9, a move above could see prices testing 209.8.

Trading Ideas:
* Aluminium trading range for the day is 206.6-209.8.
* Aluminium gains as the production restriction in south-east China and the Inner Mongolia became stricter, and demand was not weaker than expected.
* While transportation in Henan will still be disrupted in the short term, offering support to aluminium prices.
* President of Federal Reserve Bank of Minneapolis warned that the Delta mutant might hinder the recovery of US labour market.

Mentha oil 

Mentha oil yesterday settled down by -1.01% at 949.6 as average yield in Barabanki is improved by 5-6 kgs per acre due to better weather. Pressure seen arrivals likely to increase due to favourable weather conditions. Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days. Last week, prices rallied. The Lucknow-based Central Institute of Medicinal and Aromatic Plants estimates that this adverse effect of rains on the crop is expected to reduce production by 30% in the last two weeks. The crop is prone to rain because the leaves of the crop start falling due to waterlogging in the field. Most of the farmers have planted Mentha crops and this rain is not less than acid for 50 percent of Mentha crop. Last month, support seen due to the rotting of the crop due to stagnant water in the field. The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting. Due to drowning in the water, the rows have started to wither. With the harvesting of the crop, oil extraction work has also started. However upside seen limited In Sambhal spot market, Mentha oil dropped by -8 Rupees to end at 1073.7 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.95% to settled at 1070 while prices down -9.7 rupees, now Mentha oil is getting support at 944.6 and below same could see a test of 939.7 levels, and resistance is now likely to be seen at 955.9, a move above could see prices testing 962.3.

Trading Ideas:
* Mentha oil trading range for the day is 939.7-962.3.
* In Sambhal spot market, Mentha oil dropped  by -8 Rupees to end at 1073.7 Rupees per 360 kgs.
* Mentha oil prices dropped as average yield in Barabanki improved
* Pressure seen arrivals likely to increase due to favourable weather conditions.
* The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting.

Soyabean

Soyabean yesterday settled down by -5.49% at 9528 as about 112.15 lakh ha area coverage has been reported compared to normal of corresponding week (108.52 lakh ha). Thus 3.63 lakh ha more area has been covered compared to normal of corresponding week. However downside seen limited aided by global supply concerns following recent adverse weather in US key growing region. China has imported record tonnages of Brazilian soybeans and is forecast to import 40-43 million metric tons of U.S. soybeans in 2021-2022. Support also seen amid crop damage due to heavy rain have forced many soyabean farmers in Madhya Pradesh to shift to paddy cultivation this season, which may result in lower than normal production of the oilseed crop for the third time in a row. Soyabean is the largest oilseed crop of the kharif season. Madhya Pradesh was the biggest producer of soyabean until 2018-19, when the output was close to 67 lakh tonne. However, production dropped to 49 lakh tonne in 2019-20 and marginally improved to about 51 lakh tonne the following year — much below the normal production of 65 lakh tonne. Maharashtra emerged as the biggest producer with about 62 lakh tonne in 2020-21. At the Indore spot market in top producer MP, soybean dropped -21 Rupees to 10050 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -16.63% to settled at 15185 while prices down -553 rupees, now Soyabean is getting support at 9122 and below same could see a test of 8715 levels, and resistance is now likely to be seen at 10308, a move above could see prices testing 11087.

Trading Ideas:
* Soyabean trading range for the day is 8715-11087.
* Soyabean dropped as about 112.15 lakh ha area coverage, which is more by 3.63 lakh
* However downside seen limited aided by global supply concerns following recent adverse weather in US key growing region.
* China has imported record tonnages of Brazilian soybeans and is forecast to import 40-43 million metric tons of U.S. soybeans in 2021-2022.
* At the Indore spot market in top producer MP, soybean dropped  -21 Rupees to 10050 Rupees per 100 kgs.

Soyaoil 

Ref.Soyaoil yesterday settled down by -0.96% at 1396 as about 164.43 lakh ha area coverage has been reported compared to normal of corresponding week (159.16 lakh ha). Thus 5.28 lakh ha more area has covered compared to normal of corresponding week. However downside seen limited prices seen supported by lingering concerns over tight supply. China raised its forecast on imports of edible oils in 2020/21 marketing year, on increase of palm oil and sunflower oil shipments, the country's agriculture ministry said. China's 2020/21 edible oils imports were seen at 10.23 million tonnes, up 900,000 tonnes from last month's forecast, the Ministry of Agriculture and Rural Affairs said in its monthly crop report. Estimates on output, planting acreage and imports of corn, soybeans and cotton in the 2021/22 year remain unchanged from a month ago, according to the ministry. China's soybean acreage in 2021/22 year was seen at 9.347 million hectares, down 5.4% from 9.882 million hectares in the previous year, according to the report. India has slashed the base import price of palm oil and soyoil, the government said in a statement, as prices fell in the overseas market. India exported 5.31 lakh tonnes of oilmeals in the first two months of the fiscal 2021-22 against 3.50 lakh tonnes in the same period a year ago, recording a growth of 52 per cent. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1410 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 0.32% to settled at 28475 while prices down -13.5 rupees, now Ref.Soya oil is getting support at 1385 and below same could see a test of 1375 levels, and resistance is now likely to be seen at 1406, a move above could see prices testing 1417.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1375-1417.
* Ref soyoil prices dropped as overall area for oilseed covered to 164.43 lakh ha area more by 5.28 lakh ha.
* However downside seen limited prices seen supported by lingering concerns over tight supply.
* China's 2020/21 edible oils imports were seen at 10.23 million tonnes, up 900,000 tonnes from last month's forecast
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1410 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled down by -2.34% at 1118.1 weighed down by a drop in Malaysian July exports and weakness in competing oils on the Dalian and Chicago exchanges. Exports of Malaysian palm oil products for July fell 5.2 percent to 1,440,096 tonnes from 1,519,180 tonnes shipped during June, cargo surveyor Intertek Testing Services said. Malaysian palm oil production for July is expected to be lower on the month on lower oil yields and labour shortages at palm plantations. Considering the first half of the year domestic crude palm oil output is already 8% lower when compared with the same period last year, according to the Malaysian Palm Oil Board. Meantime, imports to India and China are falling due to high prices while demand for Indonesian oil is growing in India on higher supply levels and improved discounts. Indonesia has set the crude palm oil reference price lower in August, at $1,048.62 per tonne, the deputy minister for food and agriculture told. July's reference price was $1,094 per tonne. Export levies for crude palm oil remain unchanged at $175 per tonne, however, while export taxes will be lowered to $93 per tonne. In spot market, Crude palm oil dropped by -40.1 Rupees to end at 1147.4 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -4.26% to settled at 5365 while prices down -26.8 rupees, now CPO is getting support at 1104 and below same could see a test of 1090 levels, and resistance is now likely to be seen at 1131, a move above could see prices testing 1144.

Trading Ideas:
* CPO trading range for the day is 1090-1144.
* Crude palm oil dropped weighed down by a drop in Malaysian July exports and weakness in competing oils on the Dalian and Chicago exchanges.
* Exports of Malaysian palm oil products for July fell between 5.0% and 7.7% from June, cargo surveyors said.
* Malaysian palm oil production for July is expected to be lower on the month on lower oil yields and labour shortages at palm plantations.
* In spot market, Crude palm oil dropped  by -40.1 Rupees to end at 1147.4 Rupees.

Mustard Seed

Mustard Seed yesterday settled down by -1.22% at 7619 as mustard arrivals in its major producing states i.e. Rajasthan, Madhya Pradesh, Uttar Pradesh and Gujarat improved. As per sources, estimated mustard crushing during June 2021 stood at 6 lakh tonnes, lower by 33% compared to 9 lakh tonnes last month it is also lower by 25% against 8 lakh tonnes in June 2020. Further negative crush margin for mustard seed also discouraged crushing activity and further reduced buying interest for mustard seed. India’s Rapeseed meal exports fell by 46% to 0.97 lakh tonnes on M-o-M basis during May-2021. However mustard meal exports were higher by 66% as compared to same period last year. In 2022-22 marketing year (Mar-Feb), total arrivals reported were up by 309% as compared to the arrivals during the corresponding period last year. According DGFT, "import policy" of refined bleached deodorised palm oil, and refined bleached deodorised palmolein "is amended from restricted to free with immediate effect and for a period up to December 31, 2021". As per USDA in its June-21 update, World Mustard seed production for 2021-22 is estimated to increase by 4% at 741 lakh tonnes. The beginning stock estimated to fall by 25% to 57 lakh tonnes. Total consumption estimated to remain same around last year and ending stocks are also estimated to be lower by 1% at 57 lakh tonnes. In Alwar spot market in Rajasthan the prices gained 60 Rupees to end at 7900 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -6.09% to settled at 29120 while prices down -94 rupees, now Rmseed is getting support at 7565 and below same could see a test of 7510 levels, and resistance is now likely to be seen at 7703, a move above could see prices testing 7786.

Trading Ideas:
* Rmseed trading range for the day is 7510-7786.
* Mustard seed dropped as mustard arrivals in Rajasthan, Madhya Pradesh, Uttar Pradesh and Gujarat improved.
* In 2022-22 marketing year (Mar-Feb), total arrivals reported were up by 309% as compared to the arrivals during the corresponding period last year.
* Estimated mustard crushing during June 2021 stood at 6 lakh tonnes, lower by 33% compared to 9 lakh tonnes last month
* In Alwar spot market in Rajasthan the prices gained 60 Rupees to end at 7900 Rupees per 100 kg.
 

Turmeric

Turmeric yesterday settled down by -2.09% at 7216 amid comfortable supplies of Turmeric with pick-up in mandi arrivals along with sufficient availability of stocks with traders. Further there is expectation of increase in Turmeric sowings in some areas were the key factors that dented market sentiments in the month of June. As the lockdown restrictions were eased in the month of June, the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices. Mandi arrivals of Turmeric, at all-India level, more than doubled in June 2021 compared to the previous month supported by substantial increase in arrivals in Maharashtra and Telangana. Mandi arrivals had remained sluggish in April and May due to closure of mandis in many regions on account of festival season and Covid related lockdown restrictions. The demand remained subdued from bulk buyers from major consumption centres in the country. According to the statistics of the Department of Commerce, Government of India, the highest number of 1.84 lakh tonnes of turmeric was exported during the last financial year 2020-21. The export of turmeric is highest in the months of May, June and July. After the relaxation of the lockdown in some states, spot prices have started increasing in Erode and Nanded mandis last week. In Nizamabad, a major spot market in AP, the price ended at 7332.95 Rupees gained 52.95 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.92% to settled at 9950 while prices down -154 rupees, now Turmeric is getting support at 7140 and below same could see a test of 7066 levels, and resistance is now likely to be seen at 7334, a move above could see prices testing 7454.

Trading Ideas:
* Turmeric trading range for the day is 7066-7454.
* Turmeric dropped amid comfortable supplies of Turmeric with pick-up in mandi arrivals along with sufficient availability of stocks with traders.
* Further there is expectation of increase in Turmeric sowings in some areas were the key factors that dented market sentiments
* The demand remained subdued from bulk buyers from major consumption centres in the country.
* In Nizamabad, a major spot market in AP, the price ended at 7332.95 Rupees gained 52.95 Rupees.

Jeera 

Jeera yesterday settled down by -0.26% at 13250 due to higher availability with farmers and general demand from stockists. Pressure also seen due to the uncertainty of the lockdown over a possible third wave of Covid and low demand from the hotel industry. Mandi arrivals of Jeera, at all-India level more than doubled in June 2021 compared to the previous month following increased arrivals in Gujarat as well as Rajasthan. As per preliminary estimates suggested that carryover stocks of Jeera are likely to be around of about 20-25 Lakh bags (of 55 Kg each), i.e., 1.10 to 1.30 lakh tonnes which are higher than usual range of 7-12 Lakh bags. However, after accounting for wastage, and increased exports, market participants are expecting carryover stocks to be around 0.65-0.70 lakh tonnes. It may be noted that during the FY 2020-21 Jeera exports stood at 2.98 lakh tonnes, 39% higher over the previous year. As per sources, export demand for Jeera is expected to recover as close competitors of India in terms of exporting Jeera, viz., Turkey and Syria may not supply much to the world due to lower exportable surplus. It has been reported that production in Syria is likely to be lower because of political instability and in Turkey is also likely to be lower compared to previous year. In Unjha, a key spot market in Gujarat, jeera edged up by 83.8 Rupees to end at 13725 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -2.99% to settled at 5262 while prices down -35 rupees, now Jeera is getting support at 13150 and below same could see a test of 13050 levels, and resistance is now likely to be seen at 13385, a move above could see prices testing 13520.

Trading Ideas:
* Jeera trading range for the day is 13050-13520.
* Jeera dropped due to higher availability with farmers and general demand from stockists.
* Pressure also seen due to the uncertainty of the lockdown over a possible third wave of Covid and low demand from the hotel industry.
* As per preliminary estimates suggested that carryover stocks of Jeera are likely to be around of about 20-25 Lakh bags
* In Unjha, a key spot market in Gujarat, jeera edged up by 83.8 Rupees to end at 13725 Rupees per 100 kg.

Cotton

Cotton yesterday settled down by -0.69% at 27280 as about 110.73 lakh ha area coverage has been reported compared to normal of corresponding week (107.29 lakh ha). Thus 3.44 lakh ha more area has covered compared to normal of corresponding week. However downside seen limited as the yield per hectare of Indian cotton has dropped below 500 kg per hectare despite a rise in the area under the fibre crop. Data from the Committee on Cotton Production and Consumption (CCPC), a body comprising representatives from growers, traders, mills, exporters and government, show that while the area under cotton has topped 130 lakh hectares (lh) since 2019, the yield per hectare dropped below 500 kg, four times out of the last six years. According to the CCPC, cotton closing stocks, last season were 120.95 lakh bales, and for the current season, they have been estimated at 97.95. Industry and trader experts feel the closing stocks this season could be lower than CCPC’s estimates. CCPC data show that Maharashtra has the highest area under cotton at 41.84 lh, but its yield is the lowest among all States below 350 kg. Prices seen supported amid expectations of lower supply and increased demand from the textile industry as countries continue re-opening efforts. In spot market, Cotton gained by 170 Rupees to end at 27390 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -2.63% to settled at 5592 while prices down -190 rupees, now Cotton is getting support at 27050 and below same could see a test of 26830 levels, and resistance is now likely to be seen at 27660, a move above could see prices testing 28050.

Trading Ideas:
* Cotton trading range for the day is 26830-28050.
* Cotton dropped as about 110.73 lakh ha area coverage has been reported compared to normal of corresponding week 107.29 lakh ha.
* However downside seen limited as the yield per hectare of Indian cotton has dropped below 500 kg per hectare despite a rise in the area under the fibre crop.
* According to the CCPC, cotton closing stocks, last season were 120.95 lakh bales, and for the current season, they have been estimated at 97.95.
* In spot market, Cotton gained  by 170 Rupees to end at 27390 Rupees.
 

Chana

Chana yesterday settled down by -1.67% at 5054 continuing its weak trend as India is likely to receive an average amount of rainfall in August and September, the state-run weather office said, raising expectations of higher crop yields in Asia's third-biggest economy, which relies heavily on the vast farm sector. "As per most parameters, we expect monsoon rains to be normal in August and September this year," Mrutyunjay Mohapatra, Director General of the state-run India Meteorological Department (IMD), told a news conference. All over Pulses crop area seen at about 108.87 lakh ha compared to normal of corresponding week (110.68 lakh ha). Thus 2.81 lakh ha less area has been covered compared to normal of corresponding week. However downside seen limited as pulses crops in Maharashtra may be affected as these are grown mainly in Marathwada and Vidarbha regions where the monsoon rainfall so far was 59% and 11% above LPA, respectively. Waterlogged field for a long time might cut yield, as pulses don’t need continuous rains. Area under pulses continues to remain low in the current kharif season, raising the spectre of the government resorting to trade-restrictive measures like imposition of stock holding again in November-December to check of prices of these eatables. In Delhi spot market, chana dropped by -115 Rupees to end at 4981.65 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.54% to settled at 82990 while prices down -86 rupees, now Chana is getting support at 5019 and below same could see a test of 4983 levels, and resistance is now likely to be seen at 5113, a move above could see prices testing 5171.

Trading Ideas:
* Chana trading range for the day is 4983-5171.
* Chana prices dropped continuing its weak trend as India is likely to receive an average amount of rainfall in August and September
* All over Pulses crop area seen at about 108.87 lakh ha compared to normal of corresponding week 110.68 lakh ha.
* The Centre reduced the import duty on masur dal to zero
* In Delhi spot market, chana dropped  by -115 Rupees to end at 4981.65 Rupees per 100 kgs.

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