IGI Logo

Gold

Gold yesterday settled down by -0.16% at 46991 in range-bound trading as investors ignored a subdued dollar and squared positions with focus still on Friday's non-farm payrolls data that could determine the U.S. Federal Reserve's tapering strategy. Market participants also took stock of data showing fewer Americans filed new claims for jobless benefits last week, despite a new COVID-19 infections surge. The data comes on the heels of the Jackson Hole annual Economic Policy Symposium, where Fed Chair Jerome Powell said the recovery in the labour market would determine when the central bank starts slowing its asset purchases. U.S. worker productivity grew a bit more slowly than initially thought in the second quarter, the Labor Department said. Nonfarm productivity, which measures hourly output per worker, increased at a downwardly revised 2.1% annualized rate last quarter. The number of Americans filing new claims for jobless benefits fell last week, while layoffs dropped to their lowest level in more than 24 years in August, suggesting the labor market was charging ahead even as new COVID-19 infections surge. The weekly unemployment claims report from the Labor Department, the most timely data on the economy's health, also showed the number of people on state unemployment rolls tumbling to a 17-month low in the third week of August. Technically market is under fresh selling as market has witnessed gain in open interest by 0.57% to settled at 11172 while prices down -77 rupees, now Gold is getting support at 46858 and below same could see a test of 46725 levels, and resistance is now likely to be seen at 47166, a move above could see prices testing 47341.

Trading Ideas:

* Gold trading range for the day is 46725-47341.
* Gold eased in range-bound trading as investors ignored a subdued dollar and with focus still on Friday's non-farm payrolls data
* Data showed fewer Americans filed new claims for jobless benefits last week, despite a new COVID-19 infections surge.
* U.S. worker productivity grew a bit more slowly than initially thought in the second quarter, the Labor Department said.

Silver

Silver yesterday settled down by -0.87% at 63285 ahead of nonfarm payrolls report due Friday for clues about the Fed's timelines for asset tapering and interest rate hikes. ADP private payrolls data eased concerns over an immediate tapering of the Fed's bond buying program. Payroll processor ADP said U.S. private sector employment climbed by 374,000 jobs in August after rising by a downwardly revised 326,000 jobs in July. Federal Reserve Chair Jerome Powell said last week the labor market recovery would determine when the central bank would start cutting asset purchases. Eurostat data showed that Eurozone producer price inflation accelerated further in July on higher energy prices. Producer prices increased 12.1 percent year-on-year in July, faster than the 10.2 percent rise seen in June. On a monthly basis, producer price inflation rose to 2.3 percent in July from 1.4 percent in June. The rate of growth was well above economists' forecast of 1.1 percent. The U.S. trade deficit narrowed more than expected in July as imports declined likely because of shortages and a shift in domestic spending from goods to services. The Commerce Department said that the trade gap fell 4.3% to $70.1 billion. Data for June was revised to show the deficit at $73.2 billion instead of $75.7 billion as previously reported. Technically market is under fresh selling as market has witnessed gain in open interest by 17.67% to settled at 11393 while prices down -555 rupees, now Silver is getting support at 62835 and below same could see a test of 62386 levels, and resistance is now likely to be seen at 63913, a move above could see prices testing 64542.

Trading Ideas:
* Silver trading range for the day is 62386-64542.
* Silver dropped ahead of nonfarm payrolls report due Friday for clues about the Fed's timelines for asset tapering and interest rate hikes.
* ADP private payrolls data eased concerns over an immediate tapering of the Fed's bond buying program.
* The U.S. trade deficit narrowed more than expected in July as imports declined likely because of shortages and a shift in domestic spending from goods to services.

Crude oil

Crude oil yesterday settled up by 2.86% at 5136 supported by optimism about the pace of the economic recovery from the pandemic, a sharp decline in U.S. crude stocks and a weaker dollar. In the United States, crude inventories dropped by 7.2 million barrels last week, the Energy Information Administration said. Hurricane Ida, meanwhile, has affected about 80% of the Gulf of Mexico’s oil and gas output. Oil refineries in Louisiana could take weeks to restart. Optimistic about the global economic recovery, the Organization of the Petroleum Exporting Countries and allied producers including Russia, together known as OPEC+, has raised its demand forecast for 2022. The group agreed to continue a policy of phasing out record production reductions by adding 400,000 barrels per day (bpd) to the market. Crude output in Venezuela's key Orinoco oil belt plunged by a quarter to less than 300,000 barrels per day (bpd) in August due to a shortage of diluents needed to blend with the region's extra-heavy crude. The drop comes as state oil company PDVSA directs more medium and light crudes to refining to boost supplies of scarce motor fuel in the crisis-stricken OPEC nation, leaving little to dilute the Orinoco's tar-like crude into exportable grades. Technically market is under fresh buying as market has witnessed gain in open interest by 23.69% to settled at 5863 while prices up 143 rupees, now Crude oil is getting support at 5027 and below same could see a test of 4917 levels, and resistance is now likely to be seen at 5203, a move above could see prices testing 5269.

Trading Ideas:

* Crude oil trading range for the day is 4917-5269.
* Crude oil rose supported by optimism about the pace of the economic recovery from the pandemic, a sharp decline in U.S. crude stocks and a weaker dollar.
* In the United States, crude inventories dropped by 7.2 million barrels last week, the Energy Information Administration said.
* Hurricane Ida, meanwhile, has affected about 80% of the Gulf of Mexico’s oil and gas output.
 

Natural gas

Nat.Gas yesterday settled down by -0.15% at 340.7 paring gains on profit booking after prices rose on a lower-than-expected storage build last week on warm weather lifting demand for fuel to power cooling. The U.S. Energy Information Administration (EIA) reported an injection of 20 Bcf natural gas into storage for the week ended Aug. 27. That was lower than the 25-bcf build analysts forecast in a Reuters poll and compared with an increase of 36 bcf in the same week last year and a five-year (2016-2020) average increase of 53 bcf. Last week's injection lifted stockpiles to 2.871 trillion cubic feet (tcf), or 7.2% below the five-year average of 3.093 tcf for the same week. Temperatures last week were higher than usual for this time of year with 95 cooling degree days (CDDs) compared with a 30-year average of 78 CDDs for the period. Earlier this week, prices climbed after Ida knocked out most of supply from the Gulf of Mexico. Data provider Refinitiv said total U.S. production has averaged 88.4 billion cubic feet per day (bcfd) so far in September, down from 92.0 bcfd in August. The all-time monthly high is 95.4 bcfd set in November 2019. Technically market is under long liquidation as market has witnessed drop in open interest by -20.75% to settled at 15924 while prices down -0.5 rupees, now Natural gas is getting support at 334.9 and below same could see a test of 329.1 levels, and resistance is now likely to be seen at 346, a move above could see prices testing 351.3.

Trading Ideas:

* Natural gas trading range for the day is 329.1-351.3.
* Natural gas paring gains on profit booking after prices rose on a lower-than-expected storage build last week on warm weather lifting demand for fuel to power cooling.
* Hurricane Ida knocked out most of supply from the Gulf of Mexico.
* EIA reported an injection of 20 Bcf natural gas into storage for the week ended Aug. 27.
 

Copper 

Copper yesterday settled up by 0.54% at 712.05 as China is likely to accelerate fiscal spending and credit growth as its economic recovery slows, but investors are expecting any easing measures from Beijing to be finely targeted as the U.S. Federal Reserve prepares to taper its own stimulus. Market participants are increasing their bets that the People’s Bank of China (PBOC) will once again reduce banks’ reserve requirement ratio (RRR) to make up for liquidity shortfalls towards the year-end. At the same time, market yields are low enough that few expect a policy rate cut which would widen the Sino-U.S. monetary stance gap, risking a surge in capital outflows. China’s factory activity contracted in August for the first time in nearly 1-1/2 years as COVID-19 mostly due to containment measures to curb rising cases of the Delta strain, supply bottlenecks, and high raw materials cost. Also, Chile's state-owned Codelco, the world's largest copper producer, said it has reached an early collective bargaining agreement with the five unions representing workers at its key El Teniente mine. US ISM manufacturing PMI rose to 59.9 in August, and the manufacturing price index fell from 85.7 in July to 79.4, the lowest since beginning of this year. August CPI for euro zone rose 3% year-on-year, and largest gain in a decade. Technically market is under short covering as market has witnessed drop in open interest by -4.01% to settled at 4597 while prices up 3.8 rupees, now Copper is getting support at 707.3 and below same could see a test of 702.5 levels, and resistance is now likely to be seen at 714.8, a move above could see prices testing 717.5.

Trading Ideas:

* Copper trading range for the day is 702.5-717.5.
* Copper prices gained as China likely to quicken fiscal spending, but policy rate cuts not on the cards
* China’s factory activity contracted in August for the first time in nearly 1-1/2 years as COVID-19 mostly due to containment measures to curb rising cases of the Delta strain
* Chile's state-owned Codelco, said it has reached an early collective bargaining agreement with the five unions representing workers at its key El Teniente mine.

Zinc

Zinc yesterday settled up by 0.35% at 243.95 as new orders for U.S.-made goods rose in July, while business spending on equipment remained strong, signs that manufacturing was holding up despite persistent supply constraints and spending rotating back to services from goods. The Commerce Department said that factory orders increased 0.4% in July after advancing 1.5% in June. The Institute for Supply Management reported an unexpected pickup in August even as manufacturers complained that labor and raw materials remained scarce. The number of Americans filing new claims for jobless benefits fell last week, while layoffs dropped to their lowest level in more than 24 years in August, suggesting the labor market was charging ahead even as new COVID-19 infections surge. The weekly unemployment claims report from the Labor Department, the most timely data on the economy's health, also showed the number of people on state unemployment rolls tumbling to a 17-month low in the third week of August. U.S. worker productivity grew a bit more slowly than initially thought in the second quarter, the Labor Department said. Nonfarm productivity, which measures hourly output per worker, increased at a downwardly revised 2.1% annualized rate last quarter. Technically market is under short covering as market has witnessed drop in open interest by -1.78% to settled at 992 while prices up 0.85 rupees, now Zinc is getting support at 243.2 and below same could see a test of 242.3 levels, and resistance is now likely to be seen at 245, a move above could see prices testing 245.9.

Trading Ideas:

* Zinc trading range for the day is 242.3-245.9.
* Zinc prices rose as new orders for U.S.-made goods rose in July
* The Commerce Department said that factory orders increased 0.4% in July after advancing 1.5% in June.
* U.S. worker productivity grew a bit more slowly than initially thought in the second quarter, the Labor Department said

Nickel

Nickel yesterday settled up by 0.54% at 1439.3 supported by strong demand from industrial sector and electric vehicle battery makers, amid tight supply. China’s sales of new energy vehicles more than doubled in July, including battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles. On the supply side, refined nickel inventories in ShFE warehouses hit a record low while stockpiles in LME warehouses fell to their lowest since January 2020. The number of Americans filing new claims for jobless benefits fell last week, while layoffs dropped to their lowest level in more than 24 years in August, suggesting the labor market was charging ahead even as new COVID-19 infections surge. The weekly unemployment claims report from the Labor Department, the most timely data on the economy's health, also showed the number of people on state unemployment rolls tumbling to a 17-month low in the third week of August. The U.S. trade deficit narrowed more than expected in July as imports declined likely because of shortages and a shift in domestic spending from goods to services. The Commerce Department said that the trade gap fell 4.3% to $70.1 billion. Data for June was revised to show the deficit at $73.2 billion instead of $75.7 billion as previously reported. Technically market is under fresh buying as market has witnessed gain in open interest by 5.14% to settled at 1678 while prices up 7.7 rupees, now Nickel is getting support at 1425.2 and below same could see a test of 1411.2 levels, and resistance is now likely to be seen at 1447.1, a move above could see prices testing 1455.

Trading Ideas:
* Nickel trading range for the day is 1411.2-1455.
* Nickel prices rose supported by strong demand from industrial sector and electric vehicle battery makers, amid tight supply.
* Refined nickel inventories in ShFE warehouses hit a record low while stockpiles in LME warehouses fell to their lowest since January 2020.
* The global nickel market deficit narrowed to 20,100 tonnes in June compared a shortfall of 23,600 tonnes in May
 

Aluminium

Aluminium yesterday settled up by 0.43% at 212.4 on concerns over supply of the energy-intensive metal, which were stoked further as several power plants in India were on the verge of running out of coal. A prefecture in China's Xinjiang region has imposed output limits on five aluminium smelters starting from this month as part of efforts to stamp out illegal production, sending Shanghai aluminium prices to a 13-year high. Across the five smelters, the monthly limits represent a 10% reduction in production from output levels in the first seven months of this year. Xinjiang is a major smelting hub in China, accounting for almost one-fifth of supply in the world's biggest producer and consumer of aluminium. India, the second-biggest producer of primary aluminium after China, urged utilities to import coal to boost domestic supply of the fuel as coal-fired generation surged after an easing of coronavirus-related curbs. The inadequate coal supply in India has raised concerns about a potential disruption in local aluminium production. Several Chinese regions – including the smelting hubs of Yunnan, Xinjiang and Inner Mongolia – have imposed restrictions on aluminium makers' electricity consumption or metal production in recent months because of tight power supplies and pressure to reduce emissions. Technically market is under short covering as market has witnessed drop in open interest by -0.78% to settled at 1789 while prices up 0.9 rupees, now Aluminium is getting support at 211.1 and below same could see a test of 209.8 levels, and resistance is now likely to be seen at 214.2, a move above could see prices testing 216.

Trading Ideas:
* Aluminium trading range for the day is 209.8-216.
* Aluminium prices rose as supply worries grow
* Production curbs in key Chinese smelting regions sparked fears of tight supply.
* India, urged utilities to import coal to boost domestic supply of the fuel as coal-fired generation surged after an easing of coronavirus-related curbs.

Mentha oil 

Mentha oil yesterday settled up by 1.09% at 946.7 on low level buying after prices dropped as average yield in Barabanki is improved by 5-6 kgs per acre due to better weather. Pressure seen arrivals likely to increase due to favourable weather conditions. Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days. Last week, prices rallied. The Lucknow-based Central Institute of Medicinal and Aromatic Plants estimates that this adverse effect of rains on the crop is expected to reduce production by 30% in the last two weeks. The crop is prone to rain because the leaves of the crop start falling due to waterlogging in the field. Most of the farmers have planted Mentha crops and this rain is not less than acid for 50 percent of Mentha crop. Last month, support seen due to the rotting of the crop due to stagnant water in the field. The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting. Due to drowning in the water, the rows have started to wither. With the harvesting of the crop, oil extraction work has also started. In Sambhal spot market, Mentha oil gained by 28.6 Rupees to end at 1068 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 4.42% to settled at 1276 while prices up 10.2 rupees, now Mentha oil is getting support at 938.9 and below same could see a test of 931 levels, and resistance is now likely to be seen at 951.8, a move above could see prices testing 956.8.

Trading Ideas:
* Mentha oil trading range for the day is 931-956.8.
* In Sambhal spot market, Mentha oil gained  by 28.6 Rupees to end at 1068 Rupees per 360 kgs.
* Mentha oil  gained on low level buying after prices dropped as average yield in Barabanki improved
* Pressure seen arrivals likely to increase due to favourable weather conditions.
* The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting.

Soyabean

Soyabean yesterday settled up by 5.6% at 8743 as in Marathwada, there were concerns about mosaic virus, as well as infestation of pink and American bollworm. Meanwhile, soybean has now overtaken cotton to become the number one crop in the state and has been sown on 44.73 lakh hectares. In recent sessions prices trading with weakness since last week after Brazil said that they will be reducing there mandatory bio-diesel blend to 10% from 12%. The latest USDA release is slightly bearish, and as per the report the 2021/22 global oilseed supply and demand forecasts include lower production, crush, exports, and slightly higher ending stocks compared to last month. Foreign oilseed production is reduced 3.6 million tons to 501.4 million, reflecting lower canola production for Canada and sunflower seed for Russia. The 2021/22 global oilseed supply and demand forecasts, as reported in the latest USDA release include lower production, crush, exports, and slightly higher ending stocks compared to last month. India has relaxed import rules to allow shipments of 1.2 million tonnes of genetically modified (GMD) soymeal, the government said, a move that could help the poultry industry after animal feed prices tripled in a year. At the Indore spot market in top producer MP, soybean gained 132 Rupees to 9338 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -18.78% to settled at 13130 while prices up 464 rupees, now Soyabean is getting support at 8381 and below same could see a test of 8019 levels, and resistance is now likely to be seen at 8940, a move above could see prices testing 9137.

Trading Ideas:

* Soyabean trading range for the day is 8019-9137.
* Soyabean gained as in Marathwada, there were concerns about mosaic virus, as well as infestation of pink and American bollworm.
* As per the USDA report the 2021/22 global oilseed supply and demand forecasts include lower production, crush, exports
* Brazil said that they will be reducing there mandatory bio-diesel blend to 10% from 12%.
* At the Indore spot market in top producer MP, soybean gained  132 Rupees to 9338 Rupees per 100 kgs.

Soyaoil 

Ref.Soyaoil yesterday settled up by 2.06% at 1401.2 supported by lingering concerns over tight supply. The Government has reduced the import duty of Soyadegum oil to 7.50 percent from 15 percent earlier. Edible oil prices are likely to remain elevated till the arrival of new crop in the October-November period, industry officials said. The rates are unlikely to come down anytime soon as India meets more than half of domestic demand through imports, BV Mehta, executive director, Solvent Extractors Association of India (SEA) said. The soybean oil price has surged due to efforts of making renewable bio-diesel fuel from it in the US, Brazil and other countries. Total oilseeds production in the country during 2020-21 is estimated at record 36.10 million tonnes which is higher by 2.88 million tonnes than the production during 2019-20. Further, the production of oilseeds during 2020-21 is higher by 5.56 million tonnes than the average oilseeds production of 30.55 million tonnes. India's imports of sunflower oil could rise to a record in 2021/22 as potential bumper crops in Russia and Ukraine pull prices below rival soyoil, making it lucrative for price-sensitive buyers from the subcontinent, industry officials said. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1395.15 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -9.06% to settled at 23775 while prices up 28.3 rupees, now Ref.Soya oil is getting support at 1379 and below same could see a test of 1358 levels, and resistance is now likely to be seen at 1412, a move above could see prices testing 1424.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1358-1424.
* Ref soyoil gained supported by lingering concerns over tight supply.
* The Government has reduced the import duty of Soyadegum oil to 7.50 percent from 15 percent earlier.
* Edible oil prices are likely to remain elevated till the arrival of new crop in the October-November period, industry officials said.
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1395.15 Rupees per 10 kgs.
 

Crude palm Oil 

Crude palm Oil yesterday settled up by 2.28% at 1154.5 on some low level buying after prices dropped as exports of Malaysian palm oil products for August fell 15.8 percent to 1,213,126 tonnes from 1,440,096 tonnes shipped during July, cargo surveyor Intertek Testing Services. Exports of Malaysian palm oil products for Aug. 1-25 fell 13.1 percent to 999,668 tonnes from 1,150,452 tonnes shipped during Jul. 1-25, cargo surveyor Societe Generale de Surveillance said. Indonesia's plans to raise the mandatory bio-content in its palm oil-based biodiesel to 40% may face further delays, after the high price of the vegetable oil has made the programme too costly, a senior government official told. Indonesia set its crude palm oil (CPO) export reference price 13% higher in September, Musdhalifah Machmud, the deputy minister for food and agriculture, told. September's CPO is set at $1,185.26 per tonne, up from $1,048.62 a month earlier. This means that the export tax for the edible oil has jumped from $93 per tonne in August to $166 in September. Export levies for CPO, however, remain the same at $175 per tonne. In spot market, Crude palm oil gained by 0.6 Rupees to end at 1193.3 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 5.44% to settled at 4186 while prices up 25.7 rupees, now CPO is getting support at 1134.5 and below same could see a test of 1114.4 levels, and resistance is now likely to be seen at 1167.2, a move above could see prices testing 1179.8.

Trading Ideas:
* CPO trading range for the day is 1114.4-1179.8.
* Crude palm oil gained on some low level buying after prices dropped as Malaysia's Aug palm oil exports fall 15.8 percent
* Exports of Malaysian palm oil products for August fell 15.8 percent to 1,213,126 tonnes from 1,440,096 tonnes shipped during July
* Slow palm oil output growth to lift Malaysia's 2021 average prices to 3,600 rgt/T – MPOB
* In spot market, Crude palm oil gained  by 0.6 Rupees to end at 1193.3 Rupees.
 

Mustard Seed

Mustard Seed yesterday settled up by 2.75% at 8365 amid regular demand from the stockists and lowering all India arrivals. In their August report, analysts from the IGC lowered their forecast for the world rapeseed production to 70.9 million tons (-2.2 compared to July and 72.1 compared to 2020/21). The rapeseed production in Canada will be 16 million tons (-2.8 and 18.7), 4.5 million tons in Australia (4.2 and 4.1), 2.8 million tons in Ukraine (2.7 and 2.7). USDA estimates Canada rapeseed production for marketing year 2021/22 at 16.0 million metric tons (mmt), down 4.2 mmt (21 percent) from last month, 3.0 mmt (16 percent) from last year, and 20 percent below the 5-year average. Harvested area is estimated at 8.7 million hectares, down 3 percent from last month, but 4 percent above last year, and roughly equivalent to the 5-year average. The month-to-month decrease in area is due to the expectation of weather-related abandonment with prospects for hay being the best use. Yield is estimated at 1.84 metric tons per hectare, down 18 percent from last month and 20 percent below the 5-year average. There were reports that the U.S. Environmental Protection Agency (EPA) will recommend lowering the nation's biofuel blending mandates. In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8355 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -8.55% to settled at 17320 while prices up 224 rupees, now Rmseed is getting support at 8190 and below same could see a test of 8016 levels, and resistance is now likely to be seen at 8469, a move above could see prices testing 8574.

Trading Ideas:
* Rmseed trading range for the day is 8016-8574.
* Rmseed prices gained amid regular demand from the stockists and lowering all India arrivals.
* In their August report, the IGC lowered their forecast for the world rapeseed production to 70.9 million tons.
* USDA estimates Canada rapeseed production for marketing year 2021/22 at 16.0 million metric tons (mmt), down 4.2 mmt (21 percent) from last month.
* In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8355 Rupees per 100 kg.

Turmeric

Turmeric yesterday settled down by -0.1% at 7886 paring gains on profit booking after prices rose following export demand from Europe, Gulf countries and Bangladesh. Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains. India is likely to receive above average rainfall in September, helping millions of farmers who had to endure patchy rains in July and August. India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough, and ensure that the most important crops for the kharif season have normal sowing. This is good news for agricultural production and food prices. 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. Mandi arrivals of Turmeric, at all-India level, more than doubled in June 2021 compared to the previous month supported by substantial increase in arrivals in Maharashtra and Telangana. According to the statistics of the Department of Commerce, Government of India, the highest number of 1.84 lakh tonnes of turmeric was exported during the last financial year 2020-21. In Nizamabad, a major spot market in AP, the price ended at 7520 Rupees dropped -6.2 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -6.54% to settled at 9355 while prices down -8 rupees, now Turmeric is getting support at 7800 and below same could see a test of 7716 levels, and resistance is now likely to be seen at 7974, a move above could see prices testing 8064.

Trading Ideas:
* Turmeric trading range for the day is 7716-8064.
* Turmeric settled flat paring gains on profit booking after prices rose following export demand from Europe, Gulf countries and Bangladesh.
* Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains.
* India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough.
* In Nizamabad, a major spot market in AP, the price ended at 7520 Rupees dropped -6.2 Rupees.

Jeera

Jeera yesterday settled up by 0.45% at 14500 due to the forecast of drought in Gujarat-Rajasthan by Skymet. With Gujarat and Rajasthan being the only producers of cumin in the country, the most impact of Skymet's forecast is visible on the cumin market. 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. However, the freight of container-vessels has increased and the shortage of containers is increasing continuously. Despite this, exporters are now exporting by bargaining at FOB price and in some cases the freight of both side containers is being settled. The export of cumin seeds from Turkey and Syria was visible in the international market in July-August every year, due to which the export of Indian cumin decreased after July-August, but due to the very bad condition of cumin crop exports cannot be dome from these two countries in the current year. On the contrary, importers from Syria and Turkey are currently buying cumin seeds from India. There is a lack of rainfall in the cumin growing centers of Rajasthan and Gujarat and due to higher prices of other commodities than cumin in Rabi season, there is a perception that the sowing of cumin is low. In Unjha, a key spot market in Gujarat, jeera edged up by 52.6 Rupees to end at 14626.3 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -8.99% to settled at 4404 while prices up 65 rupees, now Jeera is getting support at 14320 and below same could see a test of 14135 levels, and resistance is now likely to be seen at 14725, a move above could see prices testing 14945.

Trading Ideas:
* Jeera trading range for the day is 14135-14945.
* Jeera prices gained due to the forecast of drought like conditions in Gujarat-Rajasthan.
* India's cumin exports will increase due to less supply from Afghanistan-Syrian
* Export of cumin is expected to reach a record level of 2.50 to 2.75 lakh tonnes in the current year
* In Unjha, a key spot market in Gujarat, jeera edged up by 52.6 Rupees to end at 14626.3 Rupees per 100 kg.

Cotton

Cotton yesterday settled down by -0.2% at 25450 as crop seems to be in good condition after Gujarat received very good rainfall from last night. Consumption by mills is strong and there is good demand for yarn. The Centre has fixed an MSP for medium staple cotton at Rs 5,716 per quintal for the 2021-22 season, higher than the previous year’s Rs 5,515. For the long-staple cotton, the MSP for 2021-22 has been fixed at Rs. 6,025 per quintal, against Rs 5,825 in the previous year. Around 19 quintals of raw cotton has arrived in Bathinda grain market with the starting of the week. The cotton prices are higher and farmers are getting Rs.300-400 per quintal more than the MSP. Cotton Corporation of India is expected to enter the market in October for the new season. The low pressure creating in Bay of Bengal will bring good rain in Gujarat and adjourning parts of Rajasthan. A much needed for the standing kharif crop. Cotton production will still be high because of good rains and may touch 350-360 lakh bales despite the area under coverage has gone down by 6-8%, from 133 lakh hectares last year to 125 lakh hectares in the current season. In the domestic market prices are capped as higher supplies in the Gujarat & Maharashtra spot markets due to easing lockdown. In spot market, Cotton dropped by -70 Rupees to end at 26720 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 2.03% to settled at 1756 while prices down -50 rupees, now Cotton is getting support at 25220 and below same could see a test of 25000 levels, and resistance is now likely to be seen at 25610, a move above could see prices testing 25780.

Trading Ideas:
* Cotton trading range for the day is 25000-25780.
* Cotton prices dropped as crop seems to be in good condition after Gujarat received very good rainfall from last night.
* Cotton ginners across the country are hopeful of a better season in 2021-22
* New cotton arrivals have started in Bathinda Mandi
* In spot market, Cotton dropped  by -70 Rupees to end at 26720 Rupees.

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer