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Gold

Gold yesterday settled up by 0.03% at 47299 as a subdued dollar and lower bond yields amid a mixed bag of U.S. labour data allayed investor concerns about a faster policy tightening. Data showed U.S. companies in June hired the most workers in 10 months, but unemployment ticked higher, workforce participation didn’t budge and the pace of hourly earnings growth slowed. On investors’ radar this week are minutes of the Fed’s latest meeting due to be published on Wednesday, which could shed more light on policymakers’ views on inflation and monetary policy. Data showed U.S. job growth accelerated in June as non-farm payrolls increased by 850,000 jobs after rising by 583,000 in May, although the unemployment rate rose to 5.9% from 5.8% the previous month. The data follows suggestions from U.S. Federal Reserve officials that the central bank should begin to taper its asset purchases this year. Also on investor’s radar was the highly contagious Delta variant which prompted some countries in Asia and Europe to walk back on reopening plans. Gold in India was being sold at a premium for the first time in more than two months as demand gained traction after curbs to combat the second wave of the coronavirus were slightly relaxed. Technically market is under short covering as market has witnessed drop in open interest by -1.51% to settled at 10434 while prices up 14 rupees, now Gold is getting support at 47225 and below same could see a test of 47150 levels, and resistance is now likely to be seen at 47400, a move above could see prices testing 47500.
Trading Ideas:
* Gold trading range for the day is 47150-47500.
* Gold prices inched higher as a subdued dollar and lower bond yields amid a mixed bag of U.S. labour data allayed investor concerns about a faster policy tightening.
* Data showed U.S. companies in June hired the most workers in 10 months, but unemployment ticked higher.
* On investors’ radar this week are minutes of the Fed’s latest meeting due to be published on Wednesday

Silver

Silver yesterday settled down by -0.21% at 70039 after a mixed U.S. jobs report helped ease investor concerns over an earlier-than-expected rate hike by the Federal Reserve. Data showed U.S. companies hired the most workers in 10 months in June. However, unemployment ticked higher, the labor force participation remained unchanged and the pace of hourly earnings growth slowed, helping ease fears about the timing of U.S. interest rate hikes. Investors may get a deeper glimpse at the Fed's views on inflation when the minutes from the recent FOMC meeting will be released on Wednesday. Investors also reacted to the data from the Labor Department that showed a bigger than expected increase in U.S. non-farm payrolls in the month of June. The U.S. Labor Department's report showed a continued reacceleration in the pace of U.S. job growth in the month of June. The report showed non-farm payroll employment spiked by 850,000 jobs in June after surging by an upwardly revised 583,000 jobs in May. Meanwhile, the Labor Department said the unemployment rate unexpectedly inched up to 5.9% in June from 5.8% in May. The unemployment rate was expected to edge down to 5.7%.A separate report from the Commerce Department showed the U.S. trade deficit widened roughly in line with estimates in the month of May. Technically market is under long liquidation as market has witnessed drop in open interest by -1.73% to settled at 9129 while prices down -149 rupees, now Silver is getting support at 69729 and below same could see a test of 69420 levels, and resistance is now likely to be seen at 70468, a move above could see prices testing 70898.
Trading Ideas:
* Silver trading range for the day is 69420-70898.
* Silver traded in range after a mixed U.S. jobs report helped ease investor concerns over an earlier-than-expected rate hike by the Federal Reserve.
* Data showed U.S. companies hired the most workers in 10 months in June.
* Investors also reacted to the data from the Labor Department that showed a bigger than expected increase in U.S. non-farm payrolls in the month of June.

Crude oil

Crude oil yesterday settled up by 1.61% at 5687 after OPEC and its allies failed to reach an agreement over oil production policy. Saudi Arabia's energy minister pushed back against opposition by fellow Gulf producer the United Arab Emirates to a proposed OPEC+ deal and called for "compromise and rationality" to secure agreement when the group reconvenes on Monday. It was a rare public spat between allies whose national interests have increasingly diverged, spilling over into OPEC+ policy setting at a time consumers want more crude to aid a global recovery from the COVID-19 pandemic. Money managers cut their net long U.S. crude futures and options positions in the week to June 29, the U.S. Commodity Futures Trading Commission (CFTC) said. The speculator group cut its combined futures and options position in New York and London by 9,499 contracts to 418,336 during the period. U.S. energy firms added oil and natural gas rigs for a third time in four weeks as oil prices rose to their highest since 2018, prompting some drillers to return to the wellpad. The oil and gas rig count, an early indicator of future output, rose by 5 to 475 in the week to July 2, its highest since April 2020, energy services firm Baker Hughes Co said. Technically market is under fresh buying as market has witnessed gain in open interest by 29.6% to settled at 11112 while prices up 90 rupees, now Crude oil is getting support at 5613 and below same could see a test of 5539 levels, and resistance is now likely to be seen at 5728, a move above could see prices testing 5769.
Trading Ideas:
* Crude oil trading range for the day is 5539-5769.
* Crude oil prices gained after OPEC and its allies failed to reach an agreement over oil production policy.
* Saudi Arabia pushes back on UAE opposition to OPEC+ deal
* Money managers cut their net long U.S. crude futures and options positions in the week to June 29, CFTC said.

Nat.Gas

Nat.Gas yesterday settled up by 1.33% at 281.2 on strong demand for US exports of liquified natural gas as global gas continues to trade more than three times above US prices. Meantime, forecasts point for slightly milder weather and less air conditioning demand in the US over the next two weeks than previously expected. As for storage, the Energy Information Administration reported a 55 Bcf injection into inventories for the week ending June 11. Support also seen amid a drop in output to the lowest level since gas wells and pipes froze in Texas during February. Output decline was due to a problem with a natural gas liquids pipeline in West Virginia. Data provider Refinitiv said gas output in the Lower 48 U.S. states dropped to an average of 87.5 billion cubic feet per day (bcfd) so far in July due mostly to the pipeline problems in West Virginia. Refinitiv projected average gas demand, including exports, would slide from 93.3 bcfd this week to 89.9 bcfd next week as the U.S. July 4 holiday and milder weather cuts air conditioning use, before rising to 93.8 bcfd in two weeks when the weather turns seasonally hotter. Technically market is under fresh buying as market has witnessed gain in open interest by 6.97% to settled at 19823 while prices up 3.7 rupees, now Natural gas is getting support at 277.8 and below same could see a test of 274.5 levels, and resistance is now likely to be seen at 283.1, a move above could see prices testing 285.1.
Trading Ideas:
* Natural gas trading range for the day is 274.5-285.1.
* Natural gas prices gained on strong demand for US exports of LNG as global gas continues to trade more than three times above US prices.
* As for storage, the Energy Information Administration reported a 55 Bcf injection into inventories for the week ending June 11.
* Support also seen amid a drop in output to the lowest level since gas wells and pipes froze in Texas during February.

Copper


Copper yesterday settled up by 1.23% at 731 as the dollar’s uptrend stalled and prompted fund buying, but expectations of higher supplies to come and slowing demand in top consumer China limited gains. Factory activity in China expanded at a softer pace in June, rising COVID-19 cases and supply chain woes drove output growth to the lowest in 15 months. Prices of the metal used by investors to make bets on manufacturing and economic growth earlier touched $9,536, the highest since June 16. Global copper smelting activity slipped in June after a rebound a month earlier as Chinese plants closed for maintenance, data from satellite surveillance of copper plants showed. Satellite service SAVANT and broker Marex said in a joint statement that they were now monitoring nickel smelters, which showed weak refined nickel production, but a jump in nickel pig iron (NPI) activity. Chilean miner Antofagasta PLC signed contracts to supply Chinese copper smelters with copper concentrate at treatment charges of around the mid-$50s per tonne in deals covering at least half of next year. Shfe copper stocks declined to their lowest since Feb. 19 at 142,520 tonnes. Meanwhile, copper stocks in bonded warehouses in China rose to their highest since July 2019 at 435,600 tonnes, data showed. Technically market is under short covering as market has witnessed drop in open interest by -1.58% to settled at 3917 while prices up 8.85 rupees, now Copper is getting support at 725.5 and below same could see a test of 720 levels, and resistance is now likely to be seen at 734.9, a move above could see prices testing 738.8.
Trading Ideas:
* Copper trading range for the day is 720-738.8.
* Copper prices rose as the dollar’s uptrend stalled and prompted fund buying
* Shfe copper stocks declined to their lowest since Feb. 19 at 142,520 tonnes
* Global copper smelting eases in June

Zinc

Zinc yesterday settled up by 0.13% at 238.25 as data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 3,600 mt in the week ended July 2 to 112,900 mt. The stocks fell 3,600 mt from Monday June 28. Stocks in Shanghai continued to decrease as the arrivals of imported zinc were limited and the market mainly digested domestic zinc. In south China's Guangdong, market arrivals improved slightly, downstream demand weakened, and inventories stopped falling and rebounded. In Tianjin, downstream demand declined obviously due to production cut and shutdown for the environmental protection, and traders sent some Tianjin stocks to East China, resulting in an increase in outbound goods on week. The U.S. trade deficit increased in May as efforts by business to rebuild inventories amid booming demand pulled in imports. The Commerce Department said that the trade gap rose 3.1% to $71.2 billion in May. Goods imports rose 1.2% to $234.7 billion. Massive fiscal stimulus and a reopening economy, thanks to vaccinations against COVID-19, are fueling demand for goods and services. Raw material shortages are hampering production. Business inventories were drawn down in the first quarter. Technically market is under short covering as market has witnessed drop in open interest by -4.34% to settled at 1652 while prices up 0.3 rupees, now Zinc is getting support at 236.9 and below same could see a test of 235.6 levels, and resistance is now likely to be seen at 240.1, a move above could see prices testing 242.
Trading Ideas:
* Zinc trading range for the day is 235.6-242.
* Zinc gains as data showed that social inventories of refined zinc ingots decreased 3,600 mt to 112,900 mt.
* Stocks in Shanghai continued to decrease as the arrivals of imported zinc were limited and the market mainly digested domestic zinc.
* The U.S. trade deficit increased in May as efforts by business to rebuild inventories amid booming demand pulled in imports.

Nickel

Nickel yesterday settled up by 0.25% at 1375.6 as support seen after Russia's planned export tax on nickel and the strike at Vale's Sudbury operation in Canada. Expectations of shortages have created a premium for the cash over the three month LME contract. The number of nonfarm payrolls in the US in June hit the biggest increase in ten months, and the unemployment rate rose slightly to 5.9%. The mixed employment data played down the Fed's hawkish expectations, and US stocks hit another record high. The US trade deficit widened to the second highest on record in May, as imports grew faster than exports. It is possible to meet the conditions of loose code reduction later this year. European Central Bank President Lagarde warned that Delta mutant strain might threaten the equilibrium of economic risks, and Central Bank Executive Committee Schnabel said that inflation should be temporarily higher than the target, the market pays more attention to the mutant virus, and the market view may remain dovish in the near term. New orders for U.S.-made goods rebounded sharply in May, while business spending on equipment remained solid, despite bottlenecks in the supply chain. Nickel ore inventories across all Chinese ports increased 129,000 wmt from June 25 to 5.23 million wmt as of July 2, showed data. Technically market is under short covering as market has witnessed drop in open interest by -7.16% to settled at 2334 while prices up 3.4 rupees, now Nickel is getting support at 1364.8 and below same could see a test of 1354 levels, and resistance is now likely to be seen at 1385.6, a move above could see prices testing 1395.6.
Trading Ideas:
* Nickel trading range for the day is 1354-1395.6.
* Nickel prices gained as support seen after Russia's planned export tax on nickel and the strike at Vale's Sudbury operation in Canada.
* Expectations of shortages have created a premium for the cash over the three month LME contract.
* The number of nonfarm payrolls in the US in June hit the biggest increase in ten months, and the unemployment rate rose slightly to 5.9%.

Aluminium

Aluminium yesterday settled up by 0.15% at 200.8 supported by strong global demand, supply restrictions in China (due to elevated electricity prices), and Russia’s proposed export tax that will come into effect in August. ShFE aluminium inventories in ShFE warehouses fell to 278,383 tonnes, their lowest since Feb. 10. Data showed that China’s social inventories of aluminium across eight consumption areas increased 2,000 mt on the week to 876,000 mt as of July 1. The stocks kept falling in Wuxi and Hainan, while the inventories in the regions of South China Sea rose from the previous week due to the higher arrivals and lower outbound volume. The outbound volume of the aluminium billet rose by 12,800 mt to 51,100 mt last week, an increase of 33.5%. The transportation was severely restricted in some regions with the approaching of the 100th anniversary of the founding of CPC last week, and the downstream willingness to restock slightly recovered. The stocks of aluminium billet in five major consumption increased by 1,400 mt to 111,200 mt from the previous week, an increase of 14.35%. Foshan saw the largest increase volume by 4,200 mt, and Huzhou registered the highest growth rate by 37.5%. Technically market is under short covering as market has witnessed drop in open interest by -2.2% to settled at 3107 while prices up 0.3 rupees, now Aluminium is getting support at 199.6 and below same could see a test of 198.4 levels, and resistance is now likely to be seen at 202.2, a move above could see prices testing 203.6.
Trading Ideas:
* Aluminium trading range for the day is 198.4-203.6.
* Aluminium remained steady supported by strong global demand, supply restrictions in China.
* ShFE aluminium inventories in ShFE warehouses fell to 278,383 tonnes, their lowest since Feb. 10.
* Data showed that China’s social inventories of aluminium across eight consumption areas increased 2,000 mt.

Mentha oil

Mentha oil yesterday settled down by -0.85% at 1014.3 on profit booking as average yield in Barabanki is improved by 5-6 kgs per acre due to better weather. Prices gained in recent sessions 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 as 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. In Sambhal spot market, Mentha oil gained by 19.2 Rupees to end at 1112.1 Rupees per 360 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 4.26% to settled at 808 while prices down -8.7 rupees, now Mentha oil is getting support at 1001.5 and below same could see a test of 988.6 levels, and resistance is now likely to be seen at 1030.6, a move above could see prices testing 1046.8.
Trading Ideas:
* Mentha oil trading range for the day is 988.6-1046.8.
* In Sambhal spot market, Mentha oil gained  by 19.2 Rupees to end at 1112.1 Rupees per 360 kgs.
* Mentha oil prices dropped on profit booking as average yield in Barabanki is improved by 5-6 kgs per acre due to better weather.
* Prices gained in recent sessions 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.

Soyabean

Soyabean yesterday settled up by 1.31% at 7571 as the area is expected to decline amid less rain and overseas prices fueled by supply worries in the US. The sowing cost of the farmer has increased, due to which the farmer is worried about not getting the proper price for the crop, due to limited stock and slow sowing due to delayed rains, soybean prices will be supported. The USDA said U.S. farmers planted soy on 87.555 million acres, below expectations for 88.955 million. In a quarterly stocks report, USDA said domestic soybean stocks as of June 1 came in at a six-year low of 767 million bushels. Support also seen as slow monsoon progress and lesser availability of certified soyabean seeds may impact kharif sowing of the oilseed in Madhya Pradesh and Rajasthan, top two producers of the crop in the country. “There is lesser availability of certified seeds this year,” D N Pathak, executive director of leading trade body Soyabean Processors Association of India (SOPA), told. “The soyabean crop last year was damaged due to excessive rains, high temperature and pest attack, for which the quality of seeds with the farmers maybe not so good.” At the Indore spot market in top producer MP, soybean gained 149 Rupees to 7634 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -11.85% to settled at 21875 while prices up 98 rupees, now Soyabean is getting support at 7468 and below same could see a test of 7364 levels, and resistance is now likely to be seen at 7713, a move above could see prices testing 7854.
Trading Ideas:
* Soyabean trading range for the day is 7364-7854.
* Soyabean prices gained as the area is expected to decline amid less rain and overseas prices fueled by supply worries in the US.
* The USDA said U.S. farmers planted soy on 87.555 million acres, below analysts' expectations for 88.955 million.
* CME raises soybean futures maintenance margins by 11.1% to $5,000 per contract from $4,500 for July 2021
* At the Indore spot market in top producer MP, soybean gained  149 Rupees to 7634 Rupees per 100 kgs.

Ref.Soyaoil

Ref.Soyaoil yesterday settled up by 1.46% at 1310.2 as concerns over tightening edible oil supply underpinned prices. 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. BV Mehta, Executive Director of Solvent Extractors’ Association of India (SEA), said the export of oilmeals increased sharply on the back of shipments of rapeseed meal during the period. India has put on hold a proposal to reduce import taxes on edible oils as cooking oil prices started to fall in the world market after hitting record highs, two government and one industry officials told. India slashed the base import prices of palm oil and soybean oil for a fortnight, the government said in a statement, as prices of the cooking oils fell sharply in the global market. Imports would remain elevated even in June as many states are easing lockdowns and allowing restaurants to reopen. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1323.95 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -12.4% to settled at 24235 while prices up 18.9 rupees, now Ref.Soya oil is getting support at 1298 and below same could see a test of 1286 levels, and resistance is now likely to be seen at 1321, a move above could see prices testing 1332.
Trading Ideas:
* Ref.Soya oil trading range for the day is 1286-1332.
* Ref soyoil ended with gains as concerns over tightening edible oil supply underpinned prices.
* 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
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1323.95 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled up by 0.71% at 1032.1 driven by prospects of stronger demand after allowed imports of refined palm oil and cut tax on the commodity. India declared that the import of refined palm oil is amended from 'Restricted' to 'Free', allowing imports of the product for six months. India allowed imports of refined bleached deodorized palm oil for six months, the government said in a statement. 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. The country cut the import tax on refined palm oil to 41.25% from 49.5% for three months to bring down local edible oil prices. Malaysia is facing a labour shortfall of around 32,000 people and annual losses of 10 billion ringgit ($2.41 billion) due to corononavirus restrictions, the country's commodities minister said. Top producer Indonesia has set a lower reference price in July for crude palm oil at $1,094.15 a tonne. Exports of Malaysian palm oil products for June rose 7.1 percent to 1,519,180 tonnes from 1,418,932 tonnes shipped during May. In spot market, Crude palm oil gained by 18.7 Rupees to end at 1046 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 0.77% to settled at 4852 while prices up 7.3 rupees, now CPO is getting support at 1022.4 and below same could see a test of 1012.7 levels, and resistance is now likely to be seen at 1039.8, a move above could see prices testing 1047.5.
Trading Ideas:
* CPO trading range for the day is 1012.7-1047.5.
* Crude palm oil gains driven by prospects of stronger demand after allowed imports of refined palm oil and cut tax on the commodity.
* India declared that the import of refined palm oil is amended from 'Restricted' to 'Free', allowing imports of the product for six months.
* Fitch says Indonesia's export levy revision to pressure crude palm oil prices
* In spot market, Crude palm oil gained  by 18.7 Rupees to end at 1046 Rupees.

Mustard Seed

Mustard Seed yesterday settled down by -0.21% at 7184 paring gains on profit booking after prices seen supported as the arrival of mustard in the mandis has decreased at all places in the country. U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield. Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. However upside seen limited pushed lower by flagging global overseas prices amid forecasts for beneficial rains across the Canadian Prairie. U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield. Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. COOIT was against any reduction in import duties on edible oils but wanted the Centre to remove the GST of 5 per cent on mustard seed and oil as it will help farmers and consumers both. European Union rapeseed production is projected to show a modest gain in 2021/22 on increased planted area and improved yield but will remain below the levels observed from 2016 to 2018. However, the Central Organisation for Oil Industry and Trade (COOIT) and the Mustard Oil Producers' Association (MOPA) have estimated the production at 89.50 lakh tonnes. In Alwar spot market in Rajasthan the prices gained 164 Rupees to end at 7376.5 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 1.17% to settled at 35370 while prices down -15 rupees, now Rmseed is getting support at 7072 and below same could see a test of 6960 levels, and resistance is now likely to be seen at 7314, a move above could see prices testing 7444.
Trading Ideas:
* Rmseed trading range for the day is 6960-7444.
* Mustard seed pared gains on profit booking after prices seen supported as as the arrival has decreased
* U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield.
* Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area.
* In Alwar spot market in Rajasthan the prices gained 164 Rupees to end at 7376.5 Rupees per 100 kg.


Turmeric

Turmeric yesterday settled down by -0.41% at 7324 as sentiment is weak and sluggish demand from local stockists amid poor quality arrivals in the market has led to the fall in prices. However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh. . The curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading. In Nizamabad APMC in Telangana, the modal price of the finger variety turmeric was quoted at ₹6,950 a quintal. Prices are up about ₹400 since the beginning of this month. At Bangalore in Karnataka, turmeric is quoted at ₹11,500 at the APMC yard with most markets closed in the State to control the Covid-19 pandemic. In Tamil Nadu, too, the agricultural markets are closed as part of the lockdown to tackle the pandemic. Demand for exports to Bangladesh and Europe are helping turmeric prices to gain. Exporters are looking to pick up stocks from Nanded in view of its quality. Turmeric has been in demand over the last two years as it is reported to be effective in medical use, particularly in combating Covid-19. In Nizamabad, a major spot market in AP, the price ended at 7340 Rupees gained 2.5 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -11.65% to settled at 6445 while prices down -30 rupees, now Turmeric is getting support at 7240 and below same could see a test of 7158 levels, and resistance is now likely to be seen at 7428, a move above could see prices testing 7534.
Trading Ideas:
* Turmeric trading range for the day is 7158-7534.
* Turmeric prices dropped as sentiment is weak and sluggish demand from local stockists amid poor quality arrivals in the market
* However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh.
* The curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading.
* In Nizamabad, a major spot market in AP, the price ended at 7340 Rupees gained 2.5 Rupees.

Jeera

Jeera yesterday settled down by -0.23% at 13185 amid excess supply and as demand is likely to remain subdued on weak buying from local and overseas markets. Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions. In the benchmark market Unjha, 7,000 bags (1 bag = 55 kg) arrived yesterday as against 10,000 bags. As India struggles against curbing the Corona pandemic, exports markets have turned subdued. The importers prefer to wait for the situation to normalize before negotiating for fresh deals. They rather prefer to clear their older stocks first and presently they feel that the older inventory may be sufficient to balance the existing demand for next few weeks easily. The new season arrivals shall continue with good numbers hence there will be ample availability in the market. However from a broader perspective, India’s exports outlook has brightened while crop is expected to be lower versus year on year. Also, the nearest export competitors i.e. Turkey and Syria may not supply much to the world due to lower exportable surplus. In Unjha, a key spot market in Gujarat, jeera edged up by 47.2 Rupees to end at 13600 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -7.8% to settled at 4755 while prices down -30 rupees, now Jeera is getting support at 13110 and below same could see a test of 13040 levels, and resistance is now likely to be seen at 13290, a move above could see prices testing 13400.
Trading Ideas:
* Jeera trading range for the day is 13040-13400.
* Jeera settled down amid excess supply and as demand is likely to remain subdued on weak buying
* Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions.
* As India struggles against curbing the Corona pandemic, exports markets have turned subdued.
* In Unjha, a key spot market in Gujarat, jeera edged up by 47.2 Rupees to end at 13600 Rupees per 100 kg.

Cotton

Cotton yesterday settled up by 0.56% at 24930 as the cotton crop in Bathinda and Mansa districts of Punjab has been infected with a pest called pink bollworm for the second consecutive year. CAI demand for withdrawal of 10 per cent customs duty on cotton imports. Trade body Cotton Association of India (CAI) has expressed concerns of India losing its competitiveness to China, Pakistan and Bangladesh in the international market. With 10 per cent customs duty on cotton varieties including extra-long staple (ELS), the export-oriented garments and cotton-madeups become costlier thereby giving an edge to the close competitors. The 10 per cent customs duty was imposed on cotton imports on February 2, 2021. The CAI has written a letter to the Union Finance Minister Nirmala Sitharaman seeking the withdrawal of duty. In the letter, Atul Ganatra, President, CAI, said that India produced merely 5-6 lakh bales (each of 170 kg) of ELS variety of cotton as against the local requirement of about 12 to 15 lakh bales of ELS and about 5-7 lakh bales of non ELS contamination-free sustainable cotton. The daily arrivals have stopped, as farmers and stockists have less stock. In spot market, Cotton gained by 120 Rupees to end at 24880 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.43% to settled at 6784 while prices up 140 rupees, now Cotton is getting support at 24830 and below same could see a test of 24740 levels, and resistance is now likely to be seen at 24980, a move above could see prices testing 25040.
Trading Ideas:
* Cotton trading range for the day is 24740-25040.
* Cotton remained supported as the cotton crop in Punjab has been infected with a pest called pink bollworm for the second consecutive year.
* CAI demand for withdrawal of 10 per cent customs duty on cotton imports.
* CAI has expressed concerns of India losing its competitiveness to China, Pakistan and Bangladesh in the international market.
* In spot market, Cotton gained  by 120 Rupees to end at 24880 Rupees.

Chana

Chana yesterday settled down by -3.99% at 4864 as the Govt imposed stock limits on all pulses except moong for wholesalers, retailers, millers and importers, to bring down the prices of these items, which have risen in retail markets since March. According to the order issued by the food ministry, valid until October 31, wholesalers can keep with them maximum 200 tonne of all pulses, including not more than 100 tonne in one variety. The stock limit for retailers has been fixed at 5 tonne. For millers, the limit is total production during last three months or 25% of annual installed capacity, whichever is higher. Importers are allowed to keep maximum 200 tonne of all pulses, including not more than 100 tonne in one variety (same as for wholesalers), for stocks held/imported before 15th May. However, this same stock limit will be applicable on importers after 45 days from date of customs clearance for stocks imported after May 15. Besides, in order to enhance domestic availability, ban on import of tur, urad and moong was lifted for the period between May 15 and October 31. The government also signed a 5-year agreement with Myanmar for annual import of 2.5 lakh tonne of urad and 1 lakh tonne of tur. In Delhi spot market, chana dropped by -273.75 Rupees to end at 4754.6 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 0.3% to settled at 91210 while prices down -202 rupees, now Chana is getting support at 4812 and below same could see a test of 4761 levels, and resistance is now likely to be seen at 4966, a move above could see prices testing 5069.
Trading Ideas:
* Chana trading range for the day is 4761-5069.
* Chana prices dropped as Govt imposes stock limits for pulses to cool rising prices
* Wholesalers can keep with them maximum 200 tonne of all pulses, including not more than 100 tonne in one variety.
* Importers are allowed to keep maximum 200 tonne of all pulses, including not more than 100 tonne in one variety
* In Delhi spot market, chana dropped  by -273.75 Rupees to end at 4754.6 Rupees per 100 kgs.