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Gold

Gold yesterday settled down by -0.34% at 48307 as U.S. yields inched higher, but a weaker dollar and inflation fears kept a floor under bullion prices. U.S. homebuilding fell more than expected in April, likely pulled down by soaring prices for lumber and other materials, but construction remains supported by an acute shortage of previously owned homes on the market. Housing starts tumbled 9.5% to a seasonally adjusted annual rate of 1.569 million units last month, the Commerce Department said. Data for March was revised lower to a rate of 1.733 million units, still the highest level since June 2006, from the previously reported 1.739 million units. Demand for bigger and more expensive accommodations amid the COVID-19 pandemic, which has forced millions of Americans to work from home and take classes remotely, has fueled a housing market boom. But the virus has disrupted labor supply at saw mills and ports, leading to shortages of lumber and other raw materials, boosting prices and threatening to sideline first-time homebuyers from the market. In the wake of rising prices in the United States, minutes of the Federal Reserve’s last policy meeting due on Wednesday are expected to provide further clarity on monetary policy outlook and policymakers’ views on inflation. Technically market is under long liquidation as market has witnessed drop in open interest by -4.84% to settled at 6277 while prices down -167 rupees, now Gold is getting support at 48184 and below same could see a test of 48062 levels, and resistance is now likely to be seen at 48459, a move above could see prices testing 48612.        

Trading Ideas:            

* Gold trading range for the day is 48062-48612.

* Gold eased from highs as U.S. yields inched higher, but a weaker dollar and inflation fears kept a floor under bullion prices.

* U.S. homebuilding fell more than expected in April, likely pulled down by soaring prices for lumber and other materials

* Inflows into gold exchange-traded-funds indicated investors were buying gold to hedge against inflation worries

Silver          

Silver yesterday settled down by -0.17% at 73196 on profit booking as US Fed’s April meeting minutes will also be monitored for further clarity on monetary policy outlook and policymakers' views on inflation. Dollar fell amid renewed expectations that the United States will not hike interest rates anytime soon. Dallas Federal Reserve President Robert Kaplan reiterated his view that he does not expect interest rates to rise until next year, fuelling a further decline in bets that inflationary pressure could force the Fed to act sooner. This week a host of Fed policymakers are scheduled to speak, and the U.S. central bank will also release minutes from its most recent meeting, which may give indications about where monetary policy is headed this year. However, the growing consensus is that the Fed will tolerate what it sees as a temporary acceleration in inflation, which will keep the dollar lower against most major currencies. Global silver demand will rise this year to its highest since 2015 as jewellery and industrial offtake rebounds after the coronavirus pandemic, helping to lift prices, the Silver Institute said in a report on. The pandemic triggered a rush of investor stockpiling but curtailed demand from industry and jewellers, particularly in India, one of the most important markets. Technically market is under long liquidation as market has witnessed drop in open interest by -3% to settled at 11303 while prices down -128 rupees, now Silver is getting support at 72542 and below same could see a test of 71889 levels, and resistance is now likely to be seen at 74035, a move above could see prices testing 74875.  

Trading Ideas:            

* Silver trading range for the day is 71889-74875.

* Silver dropped on profit booking as US Fed’s April meeting minutes will also be monitored for further clarity on monetary policy outlook and policymakers' views on inflation

* Dallas Federal Reserve President Robert Kaplan reiterated his view that he does not expect interest rates to rise until next year

*  Global silver demand will rise this year to its highest since 2015 as jewellery and industrial offtake rebounds after the coronavirus pandemic

Crude oil           

Crude oil yesterday settled down by -1.64% at 4799 on profit booking amid fears of slower fuel demand in Asia due to surging COVID-19 cases and a new wave of restrictions after prices earlier seen supported as optimism over the reopenings of the U.S. and European economies. The British economy reopened on, giving 65 million people a measure of freedom after a four-month COVID-19 lockdown. And with accelerating vaccination rates, France and Spain have relaxed restrictions, and Portugal and the Netherlands have opened up travel. Saudi Arabia's March crude oil exports fell to the lowest level since June 2020, while output dipped, official data showed. Total crude exports fell to 5.427 million barrels per day from 5.625 million bpd in February, while crude output was at 8.138 million bpd in March versus 8.147 million bpd the previous month, data showed. Monthly export figures are provided by Riyadh and other members of the Organization of the Petroleum Exporting Countries (OPEC) to the Joint Organizations Data Initiative (JODI), which published them on its website. Money managers cut their net long U.S. crude futures and options positions in the week to May 11, 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 19,321 contracts to 381,947 during the period. Technically market is under long liquidation as market has witnessed drop in open interest by -13.49% to settled at 4112 while prices down -80 rupees, now Crude oil is getting support at 4704 and below same could see a test of 4608 levels, and resistance is now likely to be seen at 4905, a move above could see prices testing 5010.

Trading Ideas:            

* Crude oil trading range for the day is 4608-5010.

*  Crude oil dropped on profit booking amid fears of slower fuel demand in Asia due to surging COVID-19 cases and a new wave of restrictions.

*  Saudi Arabia's March crude oil exports fell to the lowest level since June 2020, while output dipped, official data showed.

* China April crude oil production up 3.4% y/y at 16.41 mln tonnes

Nat.Gas           

Nat.Gas yesterday settled down by -4.5% at 220.5 on profit booking as exports declined and production edged up, as well as on forecasts for mild weather and lower demand next week. Traders noted that price decline came even though the weather was expected to warm up in two weeks, which should prompt power generators to burn more gas as homes and businesses crank up their air conditioners. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 90.8 billion cubic feet per day (bcfd) so far in May, up from 90.6 bcfd in April, but still well below November 2019's monthly record of 95.4 bcfd. U.S. natural gas prices in 2021 at the Henry Hub benchmark in Louisiana will likely rise to their highest since 2018 as governments ease lockdowns and demand rises faster than producers can restore output shut during the 2020 coronavirus-linked price drop. U.S. natural gas storage is expected to end the April-October injection season at 3.602 trillion cubic feet (tcf) on Oct. 31, the lowest since 2018. That compares with a four-year high of 3.929 tcf at the end of the summer injection season in 2020 and a five-year (2016-2020) average of 3.751 tcf. There was 3.326 tcf in storage at the end of October 2018, a 13-year low. Technically market is under long liquidation as market has witnessed drop in open interest by -30.19% to settled at 14169 while prices down -10.4 rupees, now Natural gas is getting support at 217.2 and below same could see a test of 214 levels, and resistance is now likely to be seen at 226.5, a move above could see prices testing 232.6.       

Trading Ideas:            

* Natural gas trading range for the day is 214-232.6.

* Natural gas slipped on profit booking as exports declined and production edged up, as well as on forecasts for mild weather and lower demand next week.

* Traders noted that price decline came even though the weather was expected to warm up in two weeks

* Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 90.8 billion cubic feet per day (bcfd) so far in May

Copper           

Copper yesterday settled up by 0.03% at 783.85 as rising Chinese premium showed signs of improved demand from the world's top consumer. The dollar was under pressure as Treasury yields stalled due to expectations that U.S. interest rates will remain low for an extended period, after Dallas Federal Reserve President Robert Kaplan said he does not expect rates to rise until next year. Yangshan copper premium rebounded $1.50 to $38.50 a tonne, climbing for the first time since February and signalling improved demand for imported metal into China. The premium hit its lowest since February 2016 on Friday, as near-record-high copper prices deterred demand from industrial buyers in China. The global copper market should see a surplus of 79,000 tonnes this year and of 109,000 tonnes in 2022, the International Copper Study Group (ICSG) said. The global world refined copper market showed a 28,000 tonnes surplus in January, compared with a 1,000 tonnes deficit in December, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first month of the year, the market was in a 28,000 tonnes surplus compared with a 34,000 tonnes deficit in the same period a year earlier, the ICSG said. World refined copper output in January was 2.10 million tonnes, while consumption was 2.07 million tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 2.69% to settled at 3397 while prices up 0.2 rupees, now Copper is getting support at 778.7 and below same could see a test of 773.5 levels, and resistance is now likely to be seen at 791, a move above could see prices testing 798.1.    

Trading Ideas:            

* Copper trading range for the day is 773.5-798.1.

* Copper prices settled flat rising Chinese premium showed signs of improved demand from the world's top consumer.

*  Yangshan copper premium rebounded $1.50 to $38.50 a tonne, climbing for the first time since February and signalling improved demand for imported metal into China.

* Global copper market to see 79,000 tonne surplus in 2021, says ICSG

Zinc            

Zinc yesterday settled up by 0.08% at 238.4 as zinc concentrate supply tightened in Yunnan amid the lack of imported zinc concentrate. Some smelters in this region reduced output due to power restrictions in Yunnan, alleviating the tight supply situation. Dallas Federal Reserve President Robert Kaplan on Monday reiterated his view that he does not expect interest rates to rise until next year, fuelling a further decline in bets that inflationary pressure could force the Fed to act sooner. China's economic strengthened and improved in April, boosting market sentiment. Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 5,100 mt from last Friday May 14 to 171,200 mt as of Monday May 17. The stocks were down 16,700 mt from May 10. On fundamentals, the supply of zinc ingots continued to be loose in May, and the spot market traded generally under the high zinc prices, which still limited the upward momentum of zinc prices. Output at U.S. factories increased in April as operations at plants that were damaged by February’s stormy weather in the South came back online, offsetting a decline in the production of motor vehicles. Technically market is under short covering as market has witnessed drop in open interest by -4.04% to settled at 1853 while prices up 0.2 rupees, now Zinc is getting support at 236.5 and below same could see a test of 234.5 levels, and resistance is now likely to be seen at 241.9, a move above could see prices testing 245.3.        

Trading Ideas:            

*  Zinc trading range for the day is 234.5-245.3.

*  Zinc prices gained as zinc concentrate supply tightened in Yunnan amid the lack of imported zinc concentrate.

* Some smelters in this region reduced output due to power restrictions in Yunnan, alleviating the tight supply situation.

*  LME zinc was up 2.4% at $3,085 a tonne after surging to $3,108.50, its highest since June 2018.

Nickel           

Nickel yesterday settled down by -0.07% at 1321.7 after China’s state planner said it would take measures to stabilise steel and iron ore markets after prices shot up. However, the dollar was under pressure due to expectations that U.S. interest rates will remain low for an extended period, after Dallas Federal Reserve President Robert Kaplan said he does not expect rates to rise until next year. China's industrial production as well as fixed asset investment growth moderated, while growth in retail sales eased sharply in April as the initial boost from the relaxation of coronavirus containment measures in March faded. Data published by the National Bureau of Statistics, on Monday, showed that industrial production grew 9.8 percent year-on-year in April, slower than the 14.1 percent increase in March but it in line with expectations. Retail sales climbed 17.7 percent annually, much slower than the 34.2 percent increase seen in March and the forecast of 24.9 percent. During January to April, fixed asset investment expanded 19.9 percent compared to 25.6 percent in three months to March. Likewise, growth in property investment slowed in January to April period to 21.6 percent from 25.6 percent. Technically market is under fresh selling as market has witnessed gain in open interest by 3.65% to settled at 1476 while prices down -0.9 rupees, now Nickel is getting support at 1313.6 and below same could see a test of 1305.4 levels, and resistance is now likely to be seen at 1333.7, a move above could see prices testing 1345.6.          

Trading Ideas:            

* Nickel trading range for the day is 1305.4-1345.6.

* Nickel pared gains after China’s state planner said it would take measures to stabilise steel and iron ore markets after prices shot up.

* However, the dollar was under pressure due to expectations that U.S. interest rates will remain low for an extended period

*  Dallas Federal Reserve President Robert Kaplan reiterated that he does not expect U.S. interest rates to rise until next year.

Aluminium           

Aluminium yesterday settled down by -1.67% at 194.7 on profit booking after China's aluminium imports in April rose 36.1% from the previous month, data released by the General Administration of Customs showed. Imports of unwrought aluminium and products - which include primary metal and unwrought, alloyed aluminium - were 281，139 tonnes last month, up from March's 206,556 tonnes and jumped 165.2% year-on-year. China, the world's top aluminium producer, brought in record amounts of the metal last year as strong demand helped Shanghai prices overtake London prices, opening an arbitrage window for cheaper overseas metal. The arbitrage was mostly closed in April but had opened briefly in mid-March, paving the way for more imports, while the spread between Shanghai and London prices on May 13 hit its widest since July last year. China's aluminium production in April rose 12.4% from March to a record monthly volume, official data showed, after a relaxation of output curbs in Inner Mongolia boosted supply. Primary aluminium output in China, by far the world's biggest producer of the metal, was 3.35 million tonnes in April, the National Bureau of Statistics said. In the first four months of the year, China produced 13.02 million tonnes, a rise of 9.6 percent from the same period a year earlier, the data showed. Technically market is under fresh selling as market has witnessed gain in open interest by 7.75% to settled at 1335 while prices down -3.3 rupees, now Aluminium is getting support at 192.9 and below same could see a test of 191.1 levels, and resistance is now likely to be seen at 197.9, a move above could see prices testing 201.1.          

Trading Ideas:            

*  Aluminium trading range for the day is 191.1-201.1.

*  Aluminium prices dropped on profit booking after China April aluminium imports rise 36% from prior month

* China's aluminium production in April rose 12.4% from March to a record monthly volume, official data showed

* The United States and the European Union agreed not to escalate their dispute over U.S. steel and aluminium tariffs, averting steep EU tariff hikes.

Mentha oil           

Mentha oil yesterday settled down by -0.4% at 957.9 amid worries of lockdown it is anticipated that there will be slow supply and same with demand in domestic as well as in the international market. Due to favourable wheather condition,the production of mentha in the states has improved and is at much better terms compare to last year. Sowing data is adequate and it is expected that Mentha can hit the market by 15th of June. Mentha has high demand in the production of cosmetics and confectionery goods but as it is not considered as necessity in present scenerio it is not much in demand. The COVID-19 outbreak has had a huge impact on the worldwide economy, and has posed a similar influence on the aroma chemicals market. The market has been faced with the lack of migrant labor, supply chain disruptions, shutdown of manufacturing activities, to name a few. In India, mentha is grown on 3,27,000-3,34,000 hectares, producing about 33,000-35,000 tonnes, accounting for 80 per cent share globally. With the boom in demand for oil and its derivatives in export markets, mentha production continued to rise until 2010. However, with the entry of synthetic menthol, the demand, price and production of mentha were hit. In Sambhal spot market, Mentha oil dropped by -20.3 Rupees to end at 1058.9 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.7% to settled at 26 while prices down -3.8 rupees, now Mentha oil is getting support at 957.9 and below same could see a test of 957.9 levels, and resistance is now likely to be seen at 957.9, a move above could see prices testing 957.9.          

Trading Ideas:            

* Mentha oil trading range for the day is 957.9-957.9.

* In Sambhal spot market, Mentha oil dropped  by -20.3 Rupees to end at 1058.9 Rupees per 360 kgs.

*  Mentha oil prices dropped amid worries of lockdown there will be slow demand 

* Due to favourable wheather condition,the production of mentha in the states has improved and is at much better terms compare to last year.

* The COVID-19 outbreak has had a huge impact on the worldwide economy, and has posed a similar influence on the aroma chemicals market.

Soyabean           

Soyabean yesterday settled up by 0.68% at 7399 tracking rise in overseas prices amid strong demand and concerns over global supplies. USDA recent report showed Soybean production in the world is likely to increase by 6% to 386 million tonnes in next season (September- 2021- August 2020) in expectation of higher crop size in US and India. Total crop size in India may stand higher by 750,000 tonnes to 11.2 Million tonnes against 10.45 Million tonnes in this season. Higher soybean prices in this season will encourage farmers in India to cover higher soybean area. European Union soybean imports in the 2020/21 season that started last July had reached 13.17 million tonnes by May 16, data published by the European Commission showed. That compared with 13.10 million tonnes cleared by the same week last season, the data showed. Since Jan. 1, the European Commission's data has covered the EU's 27 countries only, whereas previous figures up to Dec. 31 covered both the EU-27 and Britain. Global oilseed production is forecast to grow 5 percent in 2021/22, primarily on growth in soybean output in the United States and South America. Global oilseed production is projected to reach 632 million tons on record plantings. Soybean production is forecast to rise 23 million tons to 386 million, a 6-percent increase. At the Indore spot market in top producer MP, soybean dropped -64 Rupees to 7719 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -7.21% to settled at 53160 while prices up 50 rupees, now Soyabean is getting support at 7310 and below same could see a test of 7221 levels, and resistance is now likely to be seen at 7463, a move above could see prices testing 7527.          

Trading Ideas:            

* Soyabean trading range for the day is 7221-7527.

* Soyabean gained tracking rise in overseas prices amid strong demand and concerns over global supplies. 

* USDA recent report showed Soybean production in the world is likely to increase by 6% to 386 million tonnes

* Total crop size in India may stand higher by 750,000 tonnes to 11.2 Million tonnes against 10.45 Million tonnes in this season

* At the Indore spot market in top producer MP, soybean dropped  -64 Rupees to 7719 Rupees per 100 kgs.

Ref.Soyaoil           

Ref.Soyaoil yesterday settled down by -1.69% at 1441.2 on profit booking on rumors of Govt may remove integrated goods and services tax (IGST). Vegetable oils import, including both edible and non-edible oils, increased 32 per cent during April this year, while it grew 1.7 per cent during the first six months of the current oil year November 2020 to April 2021). According to the Solvent Extractors’ Association (SEA) of India, 1.05 million tonnes (mt) of vegetable oils were imported in April 2021 compared with 798,715 tonnes in the same period a year ago. The imports comprised 1.02 mt of edible oils and 23,435 tonnes of non-edible oils. The overall import of vegetable oils stood at 6.42 mt during November-April 2020-21 against 6.31 mt during the corresponding period a year ago. There is no impact of COVID-19 pandemic situation on progress of area coverage under summer crops in the country. Oilseeds 10.45 lakh ha area against 9.03 lakh ha area of last year, thus increase in area coverage by 1.41 lakh ha. Total vegetable oil imports rose marginally to 9,80,243 tonne in March 2021, compared to 9,55,422 tonne in the year-ago period. Support also seen due to low stocks, a slow recovery in output and higher global use in biofuel production. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1501.35 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 3.15% to settled at 38860 while prices down -24.8 rupees, now Ref.Soya oil is getting support at 1419 and below same could see a test of 1398 levels, and resistance is now likely to be seen at 1468, a move above could see prices testing 1496.         

Trading Ideas:            

* Ref.Soya oil trading range for the day is 1398-1496.

* Ref soyoil ended with losses on rumors of Govt may remove integrated goods and services tax (IGST).

*  Vegetable oils import, including both edible and non-edible oils, increased 32 per cent during April this year.

*  According to SEA, 1.05 million tonnes (mt) of vegetable oils were imported in April 2021 compared with 798,715 tonnes in the same period a year ago.

*  At the Indore spot market in Madhya Pradesh, soyoil was steady at 1501.35 Rupees per 10 kgs.

Crude palm Oil           

Crude palm Oil yesterday settled down by -2.39% at 1228.2 on rumors of Govt may remove integrated goods and services tax (IGST). Pressure also seen amid rising inventories and upbeat outlook for U.S crop plantings countered a surge in May exports so far. Malaysia's palm oil stocks at the end of April rose 7.1% from the previous month to 1.55 million tonnes, data from industry regulator the Malaysian Palm Oil Board (MPOB) showed. Crude palm oil production jumped 7% from March to 1.52 million tonnes, while palm oil exports expanded 12.6% to 1.34 tonnes, MPOB said. Indian edible oil refiners are curtailing palm oil imports for May and June as most states have imposed curbs on hotels and restaurants to arrest rising coronavirus infections, denting institutional demand, industry officials said. Lower imports by India, the world's biggest buyer of the edible oil, could limit a rally in benchmark Malaysian palm oil futures , which hit their highest level since 2008. The country was expected to import 850,000 tonnes of palm oil per month in May and June, but now industry officials estimate imports could come down to around 650,000 tonnes. India imports palm oil mainly from Indonesia and Malaysia, and other oils such as soy and sunflower from Argentina, Brazil, Ukraine and Russia. In spot market, Crude palm oil gained by 8.2 Rupees to end at 1281 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 2.13% to settled at 4275 while prices down -30.1 rupees, now CPO is getting support at 1201.2 and below same could see a test of 1174.3 levels, and resistance is now likely to be seen at 1261.8, a move above could see prices testing 1295.5.           

Trading Ideas:            

* CPO trading range for the day is 1174.3-1295.5.

* Crude palm oil dropped on rumors of Govt may remove integrated goods and services tax (IGST).

*  Pressure also seen amid rising inventories and upbeat outlook for U.S crop plantings countered a surge in May exports so far.

* Malaysia's palm oil stocks at the end of April rose 7.1% from the previous month to 1.55 million tonnes

* In spot market, Crude palm oil gained  by 8.2 Rupees to end at 1281 Rupees.

Mustard Seed           

Mustard Seed yesterday settled down by -0.16% at 7292 as 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. 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. Prices rallied in recent session lifted by higher soy prices and concerns about dry Canadian planting conditions. Support also seen as crushing as increased due to rise in mustard oil demand. A total of 1.2 million tonnes of mustard crushing occurred in the country in March 2021 compared to 5.50 lakh tonnes in the month of February. Whereas, the stock of mustard with farmers is estimated to be 62.50 lakh tonnes and processors and stockists have a stock of six lakh tonnes of mustard. India mustard output this year is projected at 104.27 lakh tonnes. 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 105 Rupees to end at 7325 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -0.43% to settled at 67660 while prices down -12 rupees, now Rmseed is getting support at 7215 and below same could see a test of 7139 levels, and resistance is now likely to be seen at 7357, a move above could see prices testing 7423.   

Trading Ideas:            

* Rmseed trading range for the day is 7139-7423.

*  Mustard seed prices dropped after U.S. rapeseed production is forecast to reach a record 1.8 million tons

* Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area.

* European Union rapeseed production is projected to show a modest gain in 2021/22 on increased planted area and improved yield

* In Alwar spot market in Rajasthan the prices gained 105 Rupees to end at 7325 Rupees per 100 kg.

Turmeric         

Turmeric yesterday settled up by 0.64% at 7912 as again demand is seen as an immune booster amid a resurgence in infections that has spurred curbs in some states. Support also seen on concerns over production prospects in the new season, relatively lower carryover stocks, active buying by bulk buyers and better exports prospects. The arrival so far this year has been 10.15 lakh bags (one bag of 50 kg) as compared to 11.50 lakh bags in the same period last year and 14 lakh bags in 2019.In Nanded in Maharashtra, arrivals are at least 40 per cent lower. In addition to this, stocks in the pipeline have also come down this year following the increase in turmeric exports. Export orders have come from Bangladesh and Gulf countries and shipment will start from April. According to data by the Ministry of Agriculture, turmeric production was estimated at 9.46 lakh tonnes during the 2019-20 season (July-June), compared with 9.61 lakh tonnes the previous year, despite the area under the crop rising by 4,000 hectares to 2.57 lakh hectares. According to data by the Spices Board, turmeric exports during the April-September period of the current fiscal were 99,000 tonnes compared with 69,500 tonnes during the same period a year ago with the value of the shipments rising 35 per cent. In Nizamabad, a major spot market in AP, the price ended at 7597.05 Rupees dropped -46.7 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.64% to settled at 10880 while prices up 50 rupees, now Turmeric is getting support at 7844 and below same could see a test of 7774 levels, and resistance is now likely to be seen at 7974, a move above could see prices testing 8034.         

Trading Ideas:            

* Turmeric trading range for the day is 7774-8034.

* Turmeric gained as again demand is seen as an immune booster amid a resurgence in infections that has spurred curbs in some states.

* Support also seen on concerns over production prospects in the new season, relatively lower carryover stocks, and better exports prospects.

* The arrival so far this year has been 10.15 lakh bags as compared to 11.50 lakh bags in the same period last year

* In Nizamabad, a major spot market in AP, the price ended at 7597.05 Rupees dropped -46.7 Rupees.

Jeera           

Jeera yesterday settled remain unchangeby 0% at 13905 on some short covering after prices dropped as lockdown restrictions increased against rising Covid cases, slowing spot trade interest weakened market sentiments and pushed prices lower. The wholesale offers for the NCDEX grade Jeera are currently offered around Rs.14000/qtl in Unjha and in Jodhpur, the mandi offers average near Rs.13900/qtl. Over a month, the wholesale prices in Unjha and Jodhpur have gone down by Rs.400/qtl and Rs.700/qtl respectively. 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 -40 Rupees to end at 14000 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 0.14% to settled at 6405 while prices remain unchanged 0 rupees, now Jeera is getting support at 13855 and below same could see a test of 13805 levels, and resistance is now likely to be seen at 13965, a move above could see prices testing 14025.   

Trading Ideas:            

* Jeera trading range for the day is 13805-14025.

* Jeera prices settled flat as lockdown restrictions increased against rising Covid cases

*  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.

* In Unjha, a key spot market in Gujarat, jeera edged down by -40 Rupees to end at 14000 Rupees per 100 kg.

Cotton            

Cotton yesterday settled up by 0.63% at 22190 as some support seen after Cotton sowing has been delayed in Punjab for the coming 2021-22 season. According to the Punjab Agriculture Department, sowing is been done on only 63,220 hectares till 10th May 2021, whereas the target is to cover 3.25 lakh hectares area and till now as less than 20 percent of the crop has been sown. The ideal time for sowing cotton is considered to be up to 15th May’2021. The late start of sowing is due to the unavailability of canal water for many days in the initial stage and also the late harvest of wheat crops in some areas. US Department of Agriculture (USDA) has pegged India’s cotton production next season (October 2021 - September 2022) at 378 lakh bales (of 170 kg each), up four per cent from its current season’s estimate of 362.5 lakh bales. But the Indian textile industry feels that it is too early to make any projection, given the vagaries of the South-West Monsoon. In its “Cotton and Products Update”, it said that the higher production would be in view of yield increasing by five per cent as the South-West Monsoon has been forecast to be normal by the India Meteorological Department (IMD). In spot market, Cotton gained by 80 Rupees to end at 22460 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -5.23% to settled at 5666 while prices up 140 rupees, now Cotton is getting support at 22080 and below same could see a test of 21970 levels, and resistance is now likely to be seen at 22300, a move above could see prices testing 22410.

Trading Ideas:            

* Cotton trading range for the day is 21970-22410.

* Cotton prices gained as some support seen after Cotton sowing has been delayed in Punjab for the coming 2021-22 season.

*  According to the Punjab Agriculture Department, sowing is been done on only 63,220 hectares, whereas the target is to cover 3.25 lakh hectares area

* USDA has pegged India’s cotton production next season at 378 lakh bales (of 170 kg each), up four per cent

* In spot market, Cotton gained  by 80 Rupees to end at 22460 Rupees.

Chana           

Chana yesterday settled down by -2.74% at 5191 as pressure seen after the Government amended the pulses import policy by moving tur, urad and moong from ‘restricted’ to ‘free’ category. The Commerce Ministry in a notification said the revision in pulses import policy is with immediate effect and will for the period up to October 31, 2021. Further, import consignments of these items with Bill of Landing issued on or before October 31 shall not be allowed by Customs beyond November 30, the notification said. “The Open General License (OGL) under the free import policy will enable the traders to quickly import the required quantity of tur, moong and urad to fulfil the shortage of the pulses. We are expecting minimum 250,000 tonnes of tur, 150,000 tonnes of urad and around 50,000-75,000 tonnes of moong beans to be imported primarily from Myanmar, African, and the neighbouring countries.” Total summer crops have been sown on 73.76 lakh ha area against 60.67 lakh ha during the corresponding period of last year, thus increase in total summer area coverage by 13.09 lakh ha compared to corresponding period of last year in the country. Sowing reported under Pulses 12.75 lakh ha against 6.45 lakh ha area of last year i.e. increase in area coverage by 6.30 lakh ha. In Delhi spot market, chana dropped by -86.1 Rupees to end at 5221.1 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -4.75% to settled at 146150 while prices down -146 rupees, now Chana is getting support at 5113 and below same could see a test of 5035 levels, and resistance is now likely to be seen at 5292, a move above could see prices testing 5393.  

Trading Ideas:            

* Chana trading range for the day is 5035-5393.

* Chana prices dropped after the Government amended the pulses import policy by moving tur, urad and moong from ‘restricted’ to ‘free’ category.

* The Commerce Ministry in a notification said the revision in pulses import policy is with immediate effect and will for the period up to October 31

*  Sowing reported under Pulses 12.75 lakh ha against 6.45 lakh ha area of last year i.e. increase in area coverage by 6.30 lakh ha.

* In Delhi spot market, chana dropped  by -86.1 Rupees to end at 5221.1 Rupees per 100 kgs.