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Gold

Gold yesterday settled up by 0.43% at 47039 in step with a dip in the dollar and Treasury yields, as investors turned their attention to the release of the U.S. monthly nonfarm payrolls report. The dollar index edged down and benchmark U.S. Treasury yields also moved lower to reduce non-yielding gold’s opportunity cost. Investors also kept a close watch on the spread of the Delta variant of the coronavirus, which prompted French authorities to delay easing COVID-19 restrictions. Market participants’ are eying Friday’s nonfarm payrolls report for clues on the timeline of the U.S. monetary policy shift, only days after Fed officials suggested the U.S. central bank should begin paring back stimulus this year. The number of Americans filing new claims for unemployment benefits fell more than expected last week, while layoffs plunged to a 21-year low in June, suggesting the labor market recovery from the COVID-19 pandemic was gaining traction. While job cuts are easing, a shortage of willing workers is constraining hiring amid a surge in demand following a reopening of the economy made possible by coronavirus vaccinations. Initial claims for state unemployment benefits dropped 51,000 to a seasonally adjusted 364,000 for the week ended June 26, the Labor Department said. Technically market is under short covering as market has witnessed drop in open interest by -4.24% to settled at 10528 while prices up 200 rupees, now Gold is getting support at 46892 and below same could see a test of 46744 levels, and resistance is now likely to be seen at 47199, a move above could see prices testing 47358.
Trading Ideas:
* Gold trading range for the day is 46744-47358.
* Gold rose in step with a dip in the dollar and Treasury yields, as investors turned their attention to the release of the U.S. monthly nonfarm payrolls report.
* Weekly jobless claims drop 51,000 to 364,000
* The dollar index edged down and benchmark U.S. Treasury yields also moved lower to reduce non-yielding gold’s opportunity cost.

Silver

Silver yesterday settled up by 0.07% at 69120 as the dollar exhibits some weakness after climbing higher against most of its peers a day earlier. Rising concerns about the spread of the dreadful delta variant of the coronavirus infection also appear to be prompting investors to seek the safe-haven commodity. U.S. manufacturing activity grew at a moderate pace in June, but employment contracted for the first time in seven months, likely because of rampant shortages of raw materials and labor. The Institute for Supply Management (ISM) said its index of national factory activity slipped to 60.6 last month, the lowest reading since January, from 61.2 in May. Massive fiscal stimulus boosted demand for long-lasting manufactured goods during the COVID-19 pandemic, with millions of Americans working from home and learning remotely. Factories are struggling to keep up as the pandemic fractured supply chains and disrupted the global shipping industry. U.S. construction spending unexpectedly fell in May as gains in private homebuilding were offset by persistent weakness in outlays on nonresidential structures and public projects. The number of Americans filing new claims for unemployment benefits fell more than expected last week, while layoffs plunged to a 21-year low in June, suggesting the labor market recovery from the COVID-19 pandemic was gaining traction. Technically market is under short covering as market has witnessed drop in open interest by -4% to settled at 10056 while prices up 46 rupees, now Silver is getting support at 68746 and below same could see a test of 68373 levels, and resistance is now likely to be seen at 69746, a move above could see prices testing 70373.
Trading Ideas:
* Silver trading range for the day is 68373-70373.
* Silver steadied as the dollar exhibits some weakness after climbing higher against most of its peers a day earlier.
* Rising concerns about the spread of the dreadful delta variant of the coronavirus infection also appear to be prompting investors to seek the safe-haven commodity.
* U.S. manufacturing activity grew at a moderate pace in June, but employment contracted for the first time in seven months

Crude oil

Crude oil yesterday settled up by 2.09% at 5607 supported by the prospect of strengthening demand, lower U.S. stocks and a report that OPEC+ producers could increase output in the coming months. At its meeting OPEC+ is moving towards adding about 2 million barrels per day (bpd) of oil to the market between August and December, an OPEC+ source told. Monthly output increases by the group comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia would amount to less than 0.5 million bpd. Responding to oil demand destruction caused by the COVID-19 crisis, OPEC+ last year agreed to cut output by almost 10 million bpd from May 2020, with plans to phase out the curbs by the end of April 2022. Cuts now stand at about 5.8 million bpd. An OPEC+ panel said it expected oil demand to grow by 6 million bpd in 2021 but flagged risks of a glut in 2022, saying there were “significant uncertainties” including an uneven global recovery and rising cases of the Delta variant of the coronavirus. In the United States, crude stockpiles fell last week for the sixth straight week in response to rising demand, data from the Energy Information Administration showed. Technically market is under fresh buying as market has witnessed gain in open interest by 28.73% to settled at 9964 while prices up 115 rupees, now Crude oil is getting support at 5494 and below same could see a test of 5381 levels, and resistance is now likely to be seen at 5699, a move above could see prices testing 5791.
Trading Ideas:
* Crude oil trading range for the day is 5381-5791.
* Crude oil rose supported by the prospect of strengthening demand, lower U.S. stocks and a report that OPEC+ producers could increase output in the coming months.
* Oil demand to gather pace in the second half of the year as more people are vaccinated against COVID-19 and travel restrictions are eased.
* In the United States, crude stockpiles fell last week for the sixth straight week in response to rising demand, data from EIA showed.

Nat.Gas

Nat.Gas yesterday settled up by 0.04% at 272.3 on a bigger than expected weekly storage build and forecasts for slightly less hot weather and lower demand over the next two weeks than previously expected. Earlier in the day, gas prices were up on a drop in output due to a pipeline upset and expectations soaring global gas prices will boost U.S. exports to record highs. The U.S. Energy Information Administration (EIA) said utilities added 76 billion cubic feet (bcf) of gas into storage during the week ended June 25. Data provider Refinitiv said gas output in the Lower 48 U.S. states dropped to a preliminary 85.5 billion cubic feet per day (bcfd) on Thursday, the lowest since cold weather in February froze gas wells and pipes in Texas, from an average of 92.2 bcfd in June. That compares with a monthly record high of 95.4 bcfd in November 2019. The amount of gas flowing to U.S. liquefied natural gas (LNG) export plants slipped to an average of 10.1 bcfd in June due mostly to short-term maintenance at Gulf Coast facilities and the pipelines that supply them with fuel. That compares with averages of 10.8 bcfd in May and a record 11.5 bcfd in April. U.S. pipeline exports to Mexico averaged a record 6.7 bcfd in June, topping the previous monthly high of 6.2 bcfd in May. Technically market is under short covering as market has witnessed drop in open interest by -4.27% to settled at 15444 while prices up 0.1 rupees, now Natural gas is getting support at 267 and below same could see a test of 261.8 levels, and resistance is now likely to be seen at 278.8, a move above could see prices testing 285.4.
Trading Ideas:
* Natural gas trading range for the day is 261.8-285.4.
* Natural gas settled flat on a bigger than expected weekly storage build and forecasts for slightly less hot weather
* Earlier in the day, gas prices were up on a drop in output due to a pipeline upset and expectations soaring global gas prices
* The U.S. EIA said utilities added 76 billion cubic feet (bcf) of gas into storage during the week ended June 25.

Copper


Copper yesterday settled down by -0.94% at 714.75 as ISM manufacturing activity index declined month on month, the output continued to rise. U.S. private payrolls increased more than expected in June as companies rushed to boost production and services amid a rapidly reopening economy. Though gains were capped on concerns of a sooner-than-expected U.S. policy tightening to tame inflation. Federal Reserve Bank of Dallas President Robert Kaplan said he would like the U.S. central bank to start reducing its support for the economy before the end of the year to make an abrupt policy tightening less likely later on. Chile's manufacturing output ticked up 8.9% year-on-year in May, government statistics agency INE said, while copper output dipped 0.4%, to 493,420 tonnes. Glencore plans to restart its Mutanda Mining copper and cobalt project in Congo before the end of this year. The mine has been idle for about two years. Glencore suspended production at the Mutanda project in 2019 after prices of battery metal cobalt plummeted and cost of the project rose. Data show that in the first three months of 2021, global copper production at mines increased by 3.7%. Copper concentrate output increased by 5.5%, while solvent extraction electrowinning copper production fell by 3.5%. Technically market is under fresh selling as market has witnessed gain in open interest by 8.22% to settled at 4425 while prices down -6.75 rupees, now Copper is getting support at 710.3 and below same could see a test of 705.7 levels, and resistance is now likely to be seen at 723.4, a move above could see prices testing 731.9.
Trading Ideas:
* Copper trading range for the day is 705.7-731.9.
* Copper prices dropped as ISM manufacturing activity index declined month on month, the output continued to rise.
* U.S. private payrolls increased more than expected in June as companies rushed to boost production and services amid a rapidly reopening economy.
* Though gains were capped on concerns of a sooner-than-expected U.S. policy tightening to tame inflation.

Zinc

Zinc yesterday settled down by -1% at 237.8 amid stronger dollar, the threat of tighter U.S. monetary policy and moves by China to keep a lid on prices. US non-farm payrolls registered 692,000, and Fed reverse repo volume got close to $1 trillion for the first time. Overseas market strengthened last night, and China’s PMI stood high, boosting the optimistic market sentiments. Economic data showed that the US house price and consumer confidence index rose strongly, and the house price rose the most in more than 30 years in April, boosting market optimism. China imported 57,500 mt of refined zinc in May, up 32.95% on the year and 41.07% on the month, the latest customs data showed. LME zinc stocks fell to 260,000 mt, indicating a recovering end consumption. LME cash-to-three-month backwardation shrank to $11/mt. Market supply showed a recovery growth as zinc smelters resumed production earlier than previously expected in Yunnan. The State Bureau of Grain and Material Reserves will release copper, aluminium, zinc and other national reserves in batches in the near future, pressuring on domestic zinc prices. However, the current lower inventories also supported spot premiums and SHFE/LME price ratio rose amid rising demand for imported zinc. Technically market is under long liquidation as market has witnessed drop in open interest by -11.78% to settled at 1827 while prices down -2.4 rupees, now Zinc is getting support at 236.3 and below same could see a test of 234.7 levels, and resistance is now likely to be seen at 240.2, a move above could see prices testing 242.5.
Trading Ideas:
* Zinc trading range for the day is 234.7-242.5.
* Zinc prices dropped amid stronger dollar, the threat of tighter U.S. monetary policy and moves by China to keep a lid on prices.
* US non-farm payrolls registered 692,000, and Fed reverse repo volume got close to $1 trillion for the first time.
* Overseas market strengthened last night, and China’s PMI stood high, boosting the optimistic market sentiments.

Nickel

Nickel yesterday settled down by -0.37% at 1358.8 as growth in China’s factory activity dipped to a four-month low in June. Other data showed that in May, Japan’s industrial output fell by the most in a year and South Korea’s dipped from April. U.S. manufacturing activity grew at a moderate pace in June, but employment contracted for the first time in seven months, likely because of rampant shortages of raw materials and labor. The Institute for Supply Management (ISM) said its index of national factory activity slipped to 60.6 last month, the lowest reading since January, from 61.2 in May. Massive fiscal stimulus boosted demand for long-lasting manufactured goods during the COVID-19 pandemic, with millions of Americans working from home and learning remotely. Factories are struggling to keep up as the pandemic fractured supply chains and disrupted the global shipping industry. U.S. construction spending unexpectedly fell in May as gains in private homebuilding were offset by persistent weakness in outlays on nonresidential structures and public projects. The Commerce Department said that construction spending dropped 0.3% after edging up 0.1% in April. Technically market is under fresh selling as market has witnessed gain in open interest by 15.71% to settled at 2541 while prices down -5.1 rupees, now Nickel is getting support at 1349.2 and below same could see a test of 1339.7 levels, and resistance is now likely to be seen at 1369.1, a move above could see prices testing 1379.5.
Trading Ideas:
* Nickel trading range for the day is 1339.7-1379.5.
* Nickel prices dropped as growth in China’s factory activity dipped to a four-month low in June.
* Data showed that in May, Japan’s industrial output fell by the most in a year and South Korea’s dipped from April.
* U.S. manufacturing activity grew at a moderate pace in June, but employment contracted for the first time in seven months

Aluminium

Aluminium yesterday settled down by -0.3% at 198.15 as 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 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%. According to the data released last night, US ADP employment figure registered 692,000, higher than expected, which supported US dollar index to hit a new high in the past two and a half months. U.S. construction spending unexpectedly fell in May as gains in private homebuilding were offset by persistent weakness in outlays on nonresidential structures and public projects. The number of Americans filing new claims for unemployment benefits fell more than expected last week, while layoffs plunged to a 21-year low in June, suggesting the labor market recovery from the COVID-19 pandemic was gaining traction. Technically market is under fresh selling as market has witnessed gain in open interest by 1.6% to settled at 2925 while prices down -0.6 rupees, now Aluminium is getting support at 197.3 and below same could see a test of 196.3 levels, and resistance is now likely to be seen at 199.1, a move above could see prices testing 199.9.
Trading Ideas:
* Aluminium trading range for the day is 196.3-199.9.
* Aluminium dropped as data showed that China’s social inventories of aluminium across eight consumption areas increased 2,000
* The outbound volume of the aluminium billet rose by 12,800 mt to 51,100 mt last week, an increase of 33.5%.
* U.S. construction spending unexpectedly fell in May

Mentha oil

Mentha oil yesterday settled down by -1.42% at 1059.1 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 dropped by -5.8 Rupees to end at 1109.8 Rupees per 360 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 5.88% to settled at 702 while prices down -15.3 rupees, now Mentha oil is getting support at 1048 and below same could see a test of 1037 levels, and resistance is now likely to be seen at 1077, a move above could see prices testing 1095.
Trading Ideas:
* Mentha oil trading range for the day is 1037-1095.
* In Sambhal spot market, Mentha oil dropped  by -5.8 Rupees to end at 1109.8 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 3.36% at 7422 tracking rise in CBOT prices after the U.S. Department of Agriculture pegged plantings below expectations. The USDA said U.S. farmers planted soy on 87.555 million acres, below analysts' 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.” Though sowing has started in some parts of Madhya Pradesh it is yet to pick up in many places due to lesser rains, Pathak said. Sowing of soyabean generally gets completed by the first week of July. “We still have time. If it rains, then sowing will pick up faster,” he said. At the Indore spot market in top producer MP, soybean gained 20 Rupees to 7345 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -9.43% to settled at 25935 while prices up 241 rupees, now Soyabean is getting support at 7252 and below same could see a test of 7083 levels, and resistance is now likely to be seen at 7529, a move above could see prices testing 7637.
Trading Ideas:
* Soyabean trading range for the day is 7083-7637.
* Soyabean prices gained tracking rise in CBOT prices after the U.S. Department of Agriculture pegged plantings below expectations.
* 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  20 Rupees to 7345 Rupees per 100 kgs.

Ref.Soyaoil

Ref.Soyaoil yesterday settled up by 2.69% at 1255.5 tracking rise in CPO prices driven by prospects of stronger demand after allowed imports of refined palm oil and cut tax on the commodity. 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 1277.6 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -10.45% to settled at 32420 while prices up 32.9 rupees, now Ref.Soya oil is getting support at 1235 and below same could see a test of 1213 levels, and resistance is now likely to be seen at 1275, a move above could see prices testing 1293.
Trading Ideas:
* Ref.Soya oil trading range for the day is 1213-1293.
* Ref soyoil prices gains tracking rise in CPO prices driven by prospects of stronger demand
* 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 1277.6 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled up by 3.03% at 1011.4 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 dropped by -3 Rupees to end at 1019.8 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 0.58% to settled at 4836 while prices up 29.7 rupees, now CPO is getting support at 993.9 and below same could see a test of 976.5 levels, and resistance is now likely to be seen at 1024.8, a move above could see prices testing 1038.3.
Trading Ideas:
* CPO trading range for the day is 976.5-1038.3.
* 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 dropped  by -3 Rupees to end at 1019.8 Rupees.

Mustard Seed

Mustard Seed yesterday settled up by 1.53% at 7030 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 60.25 Rupees to end at 7170.5 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -6.3% to settled at 34210 while prices up 106 rupees, now Rmseed is getting support at 6939 and below same could see a test of 6849 levels, and resistance is now likely to be seen at 7092, a move above could see prices testing 7155.
Trading Ideas:
* Rmseed trading range for the day is 6849-7155.
* Mustard seed gained 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.
* 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 60.25 Rupees to end at 7170.5 Rupees per 100 kg.


Turmeric

Turmeric yesterday settled down by -1.7% at 7188 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. According to Spices Board data, turmeric exports during the April-December period of the last fiscal increased 34 per cent to 1.39 lakh tonnes valued at ₹1,251 crore compared with 1.03 lakh tonnes valued at ₹1,047 crore. In Nizamabad, a major spot market in AP, the price ended at 7330 Rupees gained 5 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 0.36% to settled at 8410 while prices down -124 rupees, now Turmeric is getting support at 7108 and below same could see a test of 7026 levels, and resistance is now likely to be seen at 7320, a move above could see prices testing 7450.
Trading Ideas:
* Turmeric trading range for the day is 7026-7450.
* Turmeric dropped 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, a major spot market in AP, the price ended at 7330 Rupees gained 5 Rupees.

Jeera

Jeera yesterday settled down by -1.91% at 13125 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 down by -68.4 Rupees to end at 13600 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -1.69% to settled at 5586 while prices down -255 rupees, now Jeera is getting support at 13020 and below same could see a test of 12910 levels, and resistance is now likely to be seen at 13320, a move above could see prices testing 13510.
Trading Ideas:
* Jeera trading range for the day is 12910-13510.
* Jeera dropped 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.
* As India struggles against curbing the Corona pandemic, exports markets have turned subdued.
* In Unjha, a key spot market in Gujarat, jeera edged down by -68.4 Rupees to end at 13600 Rupees per 100 kg.

Cotton

Cotton yesterday settled up by 0.69% at 24820 supported 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. Meanwhile, mill owners and exporters are hoping to restore their supplies for the next two-three months, while the new crop is more than three months away. In spot market, Cotton dropped by -130 Rupees to end at 24660 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -1.01% to settled at 6833 while prices up 170 rupees, now Cotton is getting support at 24600 and below same could see a test of 24390 levels, and resistance is now likely to be seen at 24930, a move above could see prices testing 25050.
Trading Ideas:
* Cotton trading range for the day is 24390-25050.
* Cotton prices remained supported as pink bollworm infests cotton crop Bathinda, Mansa
* CAI has reduced the crop size by 4 lakh bales (each of 170 kg) to 356 lakh bales.
* CAI demand for withdrawal of 10 per cent customs duty on cotton imports.
* In spot market, Cotton dropped  by -130 Rupees to end at 24660 Rupees.

Chana

Chana yesterday settled up by 0.97% at 5015 as the slow progress of monsoon has delayed sowing of pulses, and some pockets of the country may have to go for re-sowing if rainfall does not revive in a week. The India Meteorology Department (IMD) has forecast a break in the monsoon till July 5, but the industry is hoping for a revival sooner as the next one week will be crucial for kharif output. It is observed that NAFED buying stopped after mid-April as market price move above the MSP level i.e. above Rs. 5100/qtl. So far, NAFED It is observed that NAFED buying stopped after mid-April as market price move above the MSP level i.e. above Rs. 5100/qtl. So far, NAFED. Chana import for FY 2020-21 (Apr-Feb) stood at 2.89 lakh tonnes which is down by 21% as against 3.66 lakh tonnes imported during the corresponding period of the previous year. Import and export in month of February 2021 reported at 0.12 lakh tonnes and 0.11 lakh tonnes, respectively. Apart from Chana, 10.97 lakh tonnes of Masur and 3.67 lakh tonnes of Urad & Moong have been imported during 2020-21 (Apr-Feb) and total Pulses import stood at 24.14 lakh tonnes. Australia's exports of Chana in March remained down on a monthly basis, shows the data released from Australia Bureau of Statistics reports. In Delhi spot market, chana dropped by -4 Rupees to end at 4946 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -4.86% to settled at 95670 while prices up 48 rupees, now Chana is getting support at 4969 and below same could see a test of 4924 levels, and resistance is now likely to be seen at 5042, a move above could see prices testing 5070.
Trading Ideas:
* Chana trading range for the day is 4924-5070.
* Chana prices seen supported earlier as the slow progress of monsoon has delayed sowing of pulses
* However some pockets of the country may have to go for re-sowing if rainfall does not revive in a week.
* IMD has forecast a break in the monsoon till July 5, but the industry is hoping for a revival sooner as the next one week will be crucial for kharif output.
* In Delhi spot market, chana dropped  by -4 Rupees to end at 4946 Rupees per 100 kgs.

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