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Gold

Gold yesterday settled up by 1.17% at 48854 after data showing U.S. consumer prices increased more than expected in October bolstered the metal’s appeal as a hedge against inflation. U.S. consumer prices increased more than expected in October as the cost of gasoline and food surged, leading to the biggest annual gain since 1990. Prices of bullion have hovered around two-month highs over the past few sessions after assurances from key central banks last week that interest rates would remain low for the time being, with the Federal Reserve sticking to its view that inflation is “transitory.” The precious metal benefits from low rates as they reduce the opportunity cost of holding gold, which yields no interest. Investor appetite for gold continued to diminish led by sustained fall in prices in August and September, with gold-backed exchange-traded funds (ETFs) witnessing net outflows of 25.5 tonne, or worth $1.4 billion, in October, according to report by the World Gold Council (WGC). Gold ETFs have experienced outflows in six of the first 10 months of the current calendar year as ETF investors have generally followed gold price trends. Such funds saw net outflows of 15.2 tonne, or $830 million, during September as prices fell on the back of rising bond yields, a stronger dollar, and a decline in COMEX managed money net long positions. Technically market is under short covering as market has witnessed drop in open interest by -2.24% to settled at 7454 while prices up 567 rupees, now Gold is getting support at 48254 and below same could see a test of 47655 levels, and resistance is now likely to be seen at 49366, a move above could see prices testing 49879.

Trading Ideas:

* Gold trading range for the day is 47655-49879.

* U.S. consumer prices increased more than expected in October as the cost of gasoline and food surged, leading to the biggest annual gain since 1990.

* Prices remained supported after assurances from key central banks last week that interest rates would remain low for the time being
 

Silver

Silver yesterday settled up by 2.03% at 65878 after fresh data showed inflationary pressures in the US continue to increase, which could mean the Fed will have to raise interest rates faster than expected. The BoJ cut its inflation expectations due to the impact of cellphone fee cuts and the effects of rebasing the price index and signalled a delay in stimulus withdrawal, a divergent path from other major central banks. Meanwhile, the new Prime Minister Fumio Kishida announced he will compile a stimulus package worth several tens of trillion yen by the end of next week. Most Fed members agree that economic outlook and policy direction will gain more clarity after the Fed finishes winding down its asset purchases, depending on the inflation environment and employment situation. U.S. consumer prices increased more than expected in October as the cost of gasoline and food surged, leading to the biggest annual gain since 1990, further signs that inflation could remain uncomfortably high well into next year amid snarled global supply chains. The consumer price index rose 0.9% last month after gaining 0.4% in September, the Labor Department said. In the 12 months through October, the CPI accelerated 6.2%. That was the largest year-on-year advance since November 1990 and followed a 5.4% jump in September. Technically market is under short covering as market has witnessed drop in open interest by -6.85% to settled at 8661 while prices up 1308 rupees, now Silver is getting support at 64492 and below same could see a test of 63106 levels, and resistance is now likely to be seen at 67022, a move above could see prices testing 68166.

Trading Ideas:

* Silver trading range for the day is 63106-68166.

* Silver rose after fresh data showed inflationary pressures in the US continue to increase, which could mean the Fed will have to raise interest rates faster than expected.

* The annual inflation rate quickened to a three-decade high of 6.2% in October, bolstered by a 30% surge in energy prices.

* Data showed the US labor market continues to improve with initial weekly claims setting a fresh pre-pandemic low last week.

 

Crude oil

Crude oil yesterday settled down by -2.16% at 6072 after data showed an increase in U.S. crude stockpiles in the week ended November 5. U.S. crude stocks rose last week as refineries hiked output, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said. The U.S. Energy Information Administration's Short Term Energy Outlook report that said gasoline prices this year and in 2022 are likely to rise slightly more than forecast earlier supported oil prices. The passage of the $1 trillion U.S. infrastructure bill in Congress and strong Chinese exports data also contributed rising optimism about energy demand. China's imports of Iranian oil have held above half a million barrels per day on average for the last three months, traders and ship-tracking firms said, as buyers judge that getting crude at cheap prices outweighs any risks from busting U.S. sanctions. Chinese purchases of Iranian crude have continued this year despite the sanctions that, if enforced, would allow Washington to cut off those who violate them from the U.S. economy. President Joe Biden's administration has so far chosen not to enforce the sanctions against Chinese individuals and companies amid negotiations that could revive a 2015 nuclear deal that would allow Iran to sell its oil openly again. Technically market is under long liquidation as market has witnessed drop in open interest by -2.68% to settled at 5515 while prices down -134 rupees, now Crude oil is getting support at 5993 and below same could see a test of 5914 levels, and resistance is now likely to be seen at 6215, a move above could see prices testing 6358.

Trading Ideas:

* Crude oil trading range for the day is 5914-6358.

* Crude oil dropped after data showed an increase in U.S. crude stockpiles in the week ended November 5.

* U.S. crude stocks rose last week as refineries hiked output, while gasoline stocks decreased and distillate inventories fell, EIA said

* EIA report said gasoline prices this year and in 2022 are likely to rise slightly more than forecast earlier supported oil prices.


Nat.Gas

Nat.Gas yesterday settled down by -2.51% at 361.3 on rising output and expected lower demand over the next two weeks because of increased nuclear and wind power generation. Traders also noted that U.S. prices were following global gas prices lower – European gas was down about 4% – after Russian gas flows resumed to Germany, raising hopes that Moscow is acting on a pledge to increase supplies and ease concerns about shortages and high prices as winter approaches. The U.S. price drop came despite rising U.S. liquefied natural gas (LNG) exports now that the sixth train at Cheniere Energy Inc's Sabine Pass plant in Louisiana is producing LNG in test mode. Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 95.8 billion cubic feet per day (bcfd) so far in November, up from 94.1 bcfd in October and a monthly record of 95.4 bcfd in November 2019. Refinitiv projected average U.S. gas demand, including exports, would jump from 95.8 bcfd this week to 105.1 bcfd next week as the weather turns colder and homes and businesses crank up their heaters. The amount of gas flowing to U.S. LNG export plants has averaged 11.0 bcfd so far in November, up from 10.5 bcfd in October. Technically market is under fresh selling as market has witnessed gain in open interest by 6.13% to settled at 8334 while prices down -9.3 rupees, now Natural gas is getting support at 350.6 and below same could see a test of 340 levels, and resistance is now likely to be seen at 372.6, a move above could see prices testing 384.

Trading Ideas:

* Natural gas trading range for the day is 340-384.

* Natural gas fell on rising output and expected lower demand over the next two weeks because of increased nuclear and wind power generation.

* That price decline came despite forecasts for seasonally colder weather expected to boost heating demand in mid November.

* EIA said U.S. utilities added 63 billion cubic feet (bcf) of gas into storage during the week ended Oct. 29.



Copper

Copper yesterday settled down by -0.91% at 728.8 as China's October factory gate inflation hit a 26-year high and trimmed hopes of policy easing in the world's biggest consumer of the metal. However downside seen limited as signs of tight supply offset concerns that economic growth is slowing in China. China's producer price index climbed 13.5% from a year earlier in October, a pace not seen since July 1995, as coal prices soared amid a power crunch, further squeezing profit margins for producers and heightening stagflation concerns. China's October copper cathode output from major smelters fell 2.2% month-on-month due to power curbs and supply chain disruptions, but with smelter maintenance gradually easing and power supplies recovering, November output is likely to rise to around 780,000 tonnes. Protesters in Peru's Cotabambas province on Tuesday blocked once again a key mining corridor used by MMG Ltd's Las Bambas copper mine, despite a preliminary agreement to keep the road free, a community leader said. But copper inventories -- at least those in warehouses that publish data -- are so low that traders are paying large premiums to get their hands on metal. On-warrant inventories in LME-registered warehouses rose to 46,150 tonnes but quickly deliverable cash metal still costs about $250 more than the three-month contract, suggesting tight supply. Technically market is under fresh selling as market has witnessed gain in open interest by 4.85% to settled at 4950 while prices down -6.7 rupees, now Copper is getting support at 722.8 and below same could see a test of 716.7 levels, and resistance is now likely to be seen at 738.5, a move above could see prices testing 748.1.

Trading Ideas:

* Copper trading range for the day is 716.7-748.1.

* Copper dropped as China's October factory gate inflation hit a 26-year high and trimmed hopes of policy easing in the world's biggest consumer of the metal.

* However downside seen limited as signs of tight supply offset concerns that economic growth is slowing in China.

* China's producer price index climbed 13.5% from a year earlier in October, a pace not seen since July 1995

Zinc

Zinc yesterday settled down by -0.11% at 277.25 amid concerns that economic growth is slowing in China. However support seen earlier in the day as the zinc concentrate supply in Inner Mongolia tightened further due to power rationing. And the time and money required to transport zinc concentrate from one province to another increased significantly on the combined influences of COVID and transportation disruptions. Hence, TCs trended lower again. While the production of smelters are unlikely to return to the peak level either amid shrinking profits. Zinc smelters in China made 441,000 tonnes of the metal in October, down 14,000 tonnes from September but up 9.2% year-on-year. Zinc output was also hit by electricity curbs and energy consumption controls in regions such as Inner Mongolia, Hunan, Guangxi, Henan and Shaanxi. China's Jan-Oct zinc production at the surveyed companies rose 3.2% from same period a year earlier to 4.47 million tonnes. The research house said zinc inventory at major smelters has increased slightly so far this month compared with early October, and most companies that have maintained normal production are accumulating stockpiles. China's factory gate prices rose at the fastest pace in 26 years in October, beating forecasts and further squeezing profit margins for producers already grappling with soaring coal prices and other commodity costs due to a power crunch. Technically market is under fresh selling as market has witnessed gain in open interest by 7.18% to settled at 1329 while prices down -0.3 rupees, now Zinc is getting support at 275.1 and below same could see a test of 272.9 levels, and resistance is now likely to be seen at 280.5, a move above could see prices testing 283.7.

Trading Ideas:

* Zinc trading range for the day is 272.9-283.7.

* Zinc prices dropped amid concerns that economic growth is slowing in China.

* Zinc smelters in China made 441,000 tonnes of the metal in October, down 14,000 tonnes from September but up 9.2% year-on-year.

* While the production of smelters are unlikely to return to the peak level either amid shrinking profits.


Nickel

Nickel yesterday settled up by 0.75% at 1513.9 as nickel output from the Philippines, the second-largest producer, is expected to be 10% lower than the annual average due to frequent rainfalls and fewer vessels coming in. Also, the latest data showed nickel production at Russian miner Nornickel fell 23% from a year earlier to 129,858 tons in the first three quarters of the year; and Vale SA cut its production guidance for this year to 165,000-170,000 tonnes from 200,000 previously projected amid a strike at its Canadian mine while its Brazilian mine at Onca Puma is suspended by the court. Elsewhere, recent data showed China's imports of nickel pig iron, a cheap substitute of refined nickel, fell in September. China’s refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month. The average operating rate stood at 66%. The actual output in October did not decrease, and the output of major refineries in Gansu was relatively stable. The output of refined nickel is expected to stand at around 14,500 mt in November. Domestic refineries’ production activities are relatively stable at the moment. The national nickel pig iron (NPI) output picked up slightly in October 2021, rising by 0.12% year-on-year to 30,720 mt in nickel content. Technically market is under short covering as market has witnessed drop in open interest by -9.9% to settled at 1238 while prices up 11.3 rupees, now Nickel is getting support at 1498.2 and below same could see a test of 1482.4 levels, and resistance is now likely to be seen at 1530.4, a move above could see prices testing 1546.8.

Trading Ideas:

* Nickel trading range for the day is 1482.4-1546.8.

* Nickel gains as nickel output from the Philippines, is expected to be 10% lower than the annual average

* Data showed nickel production at Russian miner Nornickel fell 23% from a year earlier to 129,858 tons in the first three quarters of the year

* China’s refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month.

 

Aluminium

Aluminium yesterday settled up by 0.29% at 206 supported by solid demand from the manufacturing industry and as energy consumption restrictions persist. China produced 3.16 million mt of aluminium in October, down 2.55% on the year. The daily output averaged 102,000 mt, down 1,600 mt/day on the month. The output totalled 32.24 million mt from January to October, an increase of 5.1% on the year. The operating capacities in Shanxi, Henan, and Guizhou declined further due to the power rationing and production restriction in the heating season. On the macro front, MoM growth of US PPI in October rose by 0.6 percentage point, indicating that high inflation may stay for some time amid tight supply. It is expected that PPI will maintain its growth until December, 2021, which heightened the market’s worries over interest rate hike. Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, said that the Fed will consider the timeline of interest rate hike after the tapering of bond purchases completes. China's factory gate prices rose at the fastest pace in 26 years in October, beating forecasts and further squeezing profit margins for producers already grappling with soaring coal prices and other commodity costs due to a power crunch. Technically market is under short covering as market has witnessed drop in open interest by -8.98% to settled at 3161 while prices up 0.6 rupees, now Aluminium is getting support at 203.8 and below same could see a test of 201.5 levels, and resistance is now likely to be seen at 208.6, a move above could see prices testing 211.1.

Trading Ideas:

* Aluminium trading range for the day is 201.5-211.1.

*Aluminium gained supported by solid demand from the manufacturing industry and as energy consumption restrictions persist.

* China's factory gate inflation hits 26-year high as pressures grow

* MoM growth of US PPI in October rose by 0.6 percentage point, indicating that high inflation may stay for some time
 

Mentha oil

Mentha oil yesterday settled up by 0.38% at 935.8 on low level buying after prices dropped as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil dropped by -17.5 Rupees to end at 1037 Rupees per 360 kgs.Technically market is under short covering as market has witnessed drop in open interest by -3.52% to settled at 988 while prices up 3.5 rupees, now Mentha oil is getting support at 930.3 and below same could see a test of 924.9 levels, and resistance is now likely to be seen at 939.2, a move above could see prices testing 942.7.

Trading Ideas:

* Mentha oil trading range for the day is 924.9-942.7.

* In Sambhal spot market, Mentha oil dropped  by -17.5 Rupees to end at 1037 Rupees per 360 kgs.

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

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

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

Soyabean

Soyabean yesterday settled up by 1.64% at 5531 as support seen after Smaller-than-expected soybean harvests in the major production states of Indiana, Iowa, Kansas and Ohio sparked a surprise cut to the U.S. harvest outlook. Despite the cut to the soybean harvest view, the domestic ending stocks projection grew because of weakening export demand for U.S. supplies. Expectations for a massive crop in Brazil have raised concerns that top buyer China will source more of its purchases from South America. Soybean production was pegged at 4.425 billion bushels on a yield of 51.2 bushels per acre. Soybean ending stocks for the 2021/22 marketing year were pegged at 340 million bushels. European Union soybean imports in the 2021/22 season that started in July had reached 4.26 million tonnes by Nov. 7, data published by the European Commission showed. Soyabean production is estimated to rise by 14 per cent to nearly 119 lakh tonnes this year on higher sowing area and likely improvement in productivity, according to industry body SOPA. SOPA said that the total area under soybean for the year 2021 is 119.984 lakh hectares. The government's area estimate is 123.677 lakh hectares. In last year's Kharif (summer sow) season, total soyabean acreage stood at 118.383 lakh hectare. At the Indore spot market in top producer MP, soybean gained 93 Rupees to 5605 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 9.85% to settled at 73915 while prices up 89 rupees, now Soyabean is getting support at 5461 and below same could see a test of 5391 levels, and resistance is now likely to be seen at 5594, a move above could see prices testing 5657.

Trading Ideas:

* Soyabean trading range for the day is 5391-5657.

* Soyabean prices gains as support seen after U.S. soybean production to fall below expectations

* Soybean production was pegged at 4.425 billion bushels on a yield of 51.2 bushels per acre.

* Soybean ending stocks for the 2021/22 marketing year were pegged at 340 million bushels.

* At the Indore spot market in top producer MP, soybean gained  93 Rupees to 5605 Rupees per 100 kgs.

Soyaoil

Ref.Soyaoil yesterday settled up by 1.05% at 1200.4 as the vegetable oil market faces a significant squeeze due to lower output. India slashed its base import tax on crude palm oil, crude soyoil and crude sunflower oil to zero from 2.5%, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022. This decision has been taken to soften the prices of edible oils in the country and provide relief to consumers. The Ministry said that the stock limits will be decided by the respective state governments depending on local conditions. It has however decided to give exemption to importers and exporters subject to conditions. Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively. Favorable weather over the weekend boosted U.S. harvest, while exports remain capped by terminals on the U.S. Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1251.5 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 22.14% to settled at 27835 while prices up 12.5 rupees, now Ref.Soya oil is getting support at 1192 and below same could see a test of 1184 levels, and resistance is now likely to be seen at 1205, a move above could see prices testing 1210.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1184-1210.

* Ref soyoil gained as the vegetable oil market faces a significant squeeze due to lower output.

* Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected.

* India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1251.5 Rupees per 10 kgs.

 

palm Oil

Crude palm Oil yesterday settled up by 1.1% at 1104.3 as the market benefited from a rise in early November exports. Exports of Malaysian palm oil products for Nov. 1-10 rose 8.7% to 543,944 tonnes from 500,381 tonnes shipped during Oct. 1-10. A higher-than-expected forecast of 1.7% rise in October production by the Malaysian Palm Oil Association have stoked concerns that inventories may rise faster than previously estimated. However, the market's downside could be limited by adverse weather patterns amid the monsoon season across Malaysia and Indonesia, potentially curbing palm oil production. However downside seen limited as supply constraints due to the rainy season and strength in rival oils supported the market. October export data improved amid tight supply worries. The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated Oct. 1-15 production declined 0.2% from the month before in some parts of Malaysia. The Indian Vegetable Oils Producers Association says it is seeing early signs of demand shifting from palm oil to soft oils after India's duty cut made soft oil more attractive. Malaysia's crude palm oil production in 2021 is forecast to decline by 700,000 tonnes to 18.4 million tonnes due to a labour shortage and erratic weather conditions, state agency the Malaysian Palm Oil Council (MPOC) said. In spot market, Crude palm oil gained by 4 Rupees to end at 1116.8 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 6.29% to settled at 4745 while prices up 12 rupees, now CPO is getting support at 1097 and below same could see a test of 1089.8 levels, and resistance is now likely to be seen at 1110.7, a move above could see prices testing 1117.2.

Trading Ideas:

* CPO trading range for the day is 1089.8-1117.2.

* Crude palm oil gained as the market benefited from a rise in early November exports.

* Support also seen as supply constraints due to the rainy season and strength in rival oils supported the market.

* Exports of Malaysian palm oil products for Nov. 1-10 rose 8.7% to 543,944 tonnes from 500,381 tonnes shipped during Oct. 1-10.

* In spot market, Crude palm oil gained  by 4 Rupees to end at 1116.8 Rupees.

 

Turmeric

Turmeric yesterday settled down by -0.88% at 7408 amid prospects of better crop this kharif season along with tepid demand. However downside seen limited following export demand from Europe, Gulf countries and Bangladesh. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season. Besides, heavy carryover stocks and slack in bulk demand are keeping prices under pressure. In the first 4 months of FY 2021-22, turmeric exports declined by 26% to 53,000 tonnes as compared to the same period last year, but almost at the same level as the 5-year average. Support is expected on the news that due to June and July floods almost 10% crop washed away so we can see 10-15 % less sowing also farmers had shown interested in other crops as prices where more. Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices. In the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year, but could be higher in the coming months. In Nizamabad, a major spot market in AP, the price ended at 7025 Rupees dropped -139.3 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 2.28% to settled at 8530 while prices down -66 rupees, now Turmeric is getting support at 7252 and below same could see a test of 7094 levels, and resistance is now likely to be seen at 7506, a move above could see prices testing 7602.

Trading Ideas:

* Turmeric trading range for the day is 7094-7602.

* Turmeric dropped amid prospects of better crop this kharif season along with tepid demand.

* However downside seen limited following export demand from Europe, Gulf countries and Bangladesh.

* The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season.

* In Nizamabad, a major spot market in AP, the price ended at 7025 Rupees dropped -139.3 Rupees.

Jeera

Jeera yesterday settled down by -1.97% at 15410 as adequate stock with traders and farmers may keeping prices under pressure at higher levels. However downside seen limited as domestic festive demand is now picking up also the export inquiries to support price. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. As of now Exports of Jeera for Apr-Aug was down by 12% Y/Y at 1.24 lakh tonnes but expected improve in coming months as Rupee weakness will support exports. During last two months, the prices were higher compared to last year despite sufficient stocks with traders. Sowing can see drop as farmers preferred to have other crop against Jeera. Weather in key sowing area will be crucial in next few months. The export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. In Unjha, a key spot market in Gujarat, jeera edged down by -81.55 Rupees to end at 15038.45 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 2.45% to settled at 8541 while prices down -310 rupees, now Jeera is getting support at 15220 and below same could see a test of 15025 levels, and resistance is now likely to be seen at 15705, a move above could see prices testing 15995.

Trading Ideas:

* Jeera trading range for the day is 15025-15995.

* Jeera dropped as adequate stock with traders and farmers may keeping prices under pressure at higher levels.

* However downside seen limited as domestic festive demand is now picking up also the export inquiries to support price.

* India's cumin exports will increase due to less supply from Afghanistan-Syrian

* In Unjha, a key spot market in Gujarat, jeera edged down by -81.55 Rupees to end at 15038.45 Rupees per 100 kg.


Cotton

Cotton yesterday settled up by 2.05% at 32910 bolstered by strong demand from both the domestic textile sector and export markets over the last year, and high global prices. China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions, according to an official notice. It is the second batch of cotton to be released from reserves this year and is designed to better meet demand for the fibre from spinning companiesBoth production estimates for the 2021/22 crop year and ending stocks in the U.S. were largely unchanged at 18.20 million bales and 3.40 million bales respectively, the USDA said in its November World Agricultural Supply and Demand Estimates (WASDE) report. "The global cotton balance sheet for 2021/22 includes higher production and consumption, and slightly lower ending stocks," the USDA said. India’s cotton production in 2021-22 season is likely to be 360.13 lakh bales of 170 kg each (equivalent to 382.64 lakh running bales of 160 kg each), which is more by 7.13 lakh bales than the previous season’s crop of 353 lakh bales, the Cotton Association of India (CAI) has said in its first estimate for the new season beginning October 1, 2021. In spot market, Cotton gained by 160 Rupees to end at 32420 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 0.81% to settled at 3253 while prices up 660 rupees, now Cotton is getting support at 32540 and below same could see a test of 32160 levels, and resistance is now likely to be seen at 33160, a move above could see prices testing 33400.

Trading Ideas:

* Cotton trading range for the day is 32160-33400.

* Cotton gained bolstered by strong demand from both the domestic textile sector and export markets over the last year, and high global prices.

* China starts new round of cotton sales to boost supply

* Both production estimates for the 2021/22 crop year and ending stocks were largely unchanged at 18.20 million bales and 3.40 million bales respectively

* In spot market, Cotton gained  by 160 Rupees to end at 32420 Rupees.

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