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Gold

Gold yesterday settled down by -0.27% at 48544 as pressure seen after the Federal Reserve's hints on possible tapering of economic support measures. Some pressure also seen after a drop in the number of Americans filing new claims for unemployment benefits. The U.S. Federal Reserve in coming months may need to adjust the tools used to keep its benchmark policy rate well within its intended range if open market overnight borrowing costs keep drifting lower, a readout of the central bank's latest meeting signaled. Policymakers also received a detailed briefing last month on the pros and cons of making the support they provide to money markets permanent, according to the minutes. The central bank began intervening in overnight lending markets in September 2019, when a shortage of reserves led to a spike in short-term borrowing rates. But in recent weeks markets have been plagued by the opposite problem: too much cash. Firms swimming in excess reserves are flocking to the New York Fed's facility for reverse repurchase agreements, or reverse repo, which gives them a place to temporarily park their cash. Money market funds and other eligible firms placed $294 billion in cash with the Fed overnight on Wednesday, up from about $100 billion at the time of the meeting and topping the levels reached in March 2020 at the start of the coronavirus pandemic. Technically market is under long liquidation as market has witnessed drop in open interest by -1.5% to settled at 6103 while prices down -130 rupees, now Gold is getting support at 48321 and below same could see a test of 48097 levels, and resistance is now likely to be seen at 48717, a move above could see prices testing 48889.
Trading Ideas:
* Gold trading range for the day is 48097-48889.
* Gold prices dropped as pressure seen after the Federal Reserve's hints on possible tapering of economic support measures.
* Some pressure also seen after a drop in the number of Americans filing new claims for unemployment benefits.
* Fed minutes showed "a number" of officials thought that if the recovery holds up, it might be appropriate to "begin discussing a plan for adjusting the pace of asset purchases".

Silver

Silver yesterday settled down by -0.1% at 72304 as the number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week, suggesting job growth picked up this month, though companies still are desperate for workers. Initial claims for state unemployment benefits totaled a seasonally adjusted 444,000 for the week ended May 15, compared to 478,000 in the prior week, the Labor Department said. From manufacturing to restaurants and bars, employers are scrambling to find workers, even as nearly 10 million Americans are officially unemployed. The enhanced unemployment benefits pay more than most minimum wage jobs. The minimum wage is as low as $7.25 per hour to as high as $15. Minutes of the Federal Reserve's April 27-28 policy meeting published on Wednesday acknowledged reports of businesses "having trouble hiring workers," noting that some of the factors behind the worker scarcity "were seen as likely to remain significant while pandemic-related risks persisted." Euro zone government bond yields rose today, catching up with a rise in U.S. Treasury yields after the Federal Reserve hinted at a possible shift in future policy. Fed officials at their April meeting said "it might be appropriate at some point" to consider tapering asset purchases if the economy shows "rapid progress" toward the committee's goals. Technically market is under fresh selling as market has witnessed gain in open interest by 0.76% to settled at 10408 while prices down -70 rupees, now Silver is getting support at 71710 and below same could see a test of 71117 levels, and resistance is now likely to be seen at 72718, a move above could see prices testing 73133.
Trading Ideas:
* Silver trading range for the day is 71117-73133.
* Silver seen some pressure as the number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week
* Fed officials said "it might be appropriate at some point" to consider tapering asset purchases if the economy shows "rapid progress" toward the committee's goals.
* Chair Jerome Powell had said that it was premature to start talking about tapering.


Crude oil

Crude oil yesterday settled down by -2.55% at 4550 after diplomats said progress was made towards a deal to lift sanctions on Iran, which could boost crude supply. Iranian President Hassan Rouhani said in a televised speech that sanctions on oil, shipping, petrochemicals, insurance and the central bank had been dealt with in the talks. Concerns about the demand outlook in Asia also dragged prices down. Speculation that the U.S. Federal Reserve might at some point start to tighten policy weighed on the outlook for economic growth and has prompted some investors to reduce exposure to oil and other commodities. Swiss bank UBS said it expected oil inventories to fall to pre-COVID-19 levels by midyear with an oil price of $75 a barrel in the second half. U.S. crude stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration said. Crude inventories rose by 1.3 million barrels in the week to May 14 to 486 million barrels, compared with expectations in a poll for a 1.6 million-barrel rise. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 142,000 barrels in the last week, EIA said. Refinery crude runs rose by 96,000 barrels per day in the last week, EIA said. Refinery utilization rates rose by 0.2 percentage points in the week. Technically market is under fresh selling as market has witnessed gain in open interest by 37.23% to settled at 6402 while prices down -119 rupees, now Crude oil is getting support at 4487 and below same could see a test of 4425 levels, and resistance is now likely to be seen at 4655, a move above could see prices testing 4761.
Trading Ideas:
* Crude oil trading range for the day is 4425-4761.
* Crude oil dropped after diplomats said progress was made towards a deal to lift sanctions on Iran, which could boost crude supply.
* OPEC+ compliance with oil production cuts in April at 113%, slightly below March
* Concerns about the demand outlook in Asia also dragged prices down.

Nat.Gas

Nat.Gas yesterday settled down by -2.02% at 213.6 on a bigger-than-expected weekly storage build, a gradual increase in output and a small decline in exports. The U.S. Energy Information Administration (EIA) said U.S. utilities added 71 billion cubic feet (bcf) of gas into storage during the week ended May 14. That injection boosted stockpiles to 2.100 trillion cubic feet (tcf), or 4.0% below the five-year average of 2.187 tcf for this time of year. 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. That is still well below November 2019's monthly record of 95.4 bcfd. With the summer air conditioning season approaching, Refinitiv projected average gas demand, including exports, would rise from 81.0 bcfd this week to 84.8 bcfd next week. The forecast for next week was higher than Refinitiv projected on Tuesday due to expectations of higher exports. The amount of gas flowing to U.S. LNG export plants averaged 10.9 bcfd so far in May, down from April's monthly record of 11.5 bcfd. The decline was due to short-term issues and normal spring maintenance at a few Gulf Coast plants and the gas pipelines that supply them. Technically market is under long liquidation as market has witnessed drop in open interest by -22.78% to settled at 7302 while prices down -4.4 rupees, now Natural gas is getting support at 211.3 and below same could see a test of 208.9 levels, and resistance is now likely to be seen at 217.2, a move above could see prices testing 220.7.
Trading Ideas:
* Natural gas trading range for the day is 208.9-220.7.
* Natural gas slipped on a bigger-than-expected weekly storage build, a gradual increase in output and a small decline in exports.
* EIA said U.S. utilities added 71 billion cubic feet (bcf) of gas into storage during the week ended May 14.
* U.S. pipeline exports to Mexico, meanwhile, averaged 6.0 bcfd so far in May, just off April's monthly record of 6.1 bcfd, Refinitiv data showed.


Copper

Copper yesterday settled down by -1.1% at 752.15 as pressure seen after China's refined copper production rose 16.6% year-on-year to 901,000 tonnes in April. However upside seen limited as a softer dollar and worries about a strike in Chile spurred purchases. The union representing workers at Chile’s Escondida copper mine, the world’s largest, said it was preparing for a lengthy strike if owner BHP did not reach a “fair and equitable” deal in looming contract talks. Some support also seen is political uncertainty in top producer Chile and Peru. An overhaul of Chile’s market-orientated constitution is underway and the country is debating whether to increase royalties on miners. Peru, the No. 2 producer, is heading for a polarized June presidential election with a little-known socialist leading in the polls who wants to redistribute mining wealth. The world’s top metal consumer said it will strengthen its management of the supply and demand of commodities to curb “unreasonable” increases in prices and prevent them being passed on to consumers. US Federal Reserve’s meeting minutes showed that some Fed officials were open to discussing debt purchase reduction in the “next few meetings”, and the interest rate market raised their expectations for interest rate hikes. Technically market is under long liquidation as market has witnessed drop in open interest by -2.15% to settled at 3184 while prices down -8.35 rupees, now Copper is getting support at 746.3 and below same could see a test of 740.5 levels, and resistance is now likely to be seen at 762.3, a move above could see prices testing 772.5.
Trading Ideas:
* Copper trading range for the day is 740.5-772.5.
* Copper prices dropped as pressure seen after China's refined copper production rose 16.6% year-on-year to 901,000 tonnes in April.
* However upside seen limited as a softer dollar and worries about a strike in Chile spurred purchases.
* The world’s top metal consumer said it will strengthen its management of the supply and demand of commodities to curb “unreasonable” increases in prices

Zinc

Zinc yesterday settled down by -0.26% at 230.9 as pressure seen after China April zinc output gained by 3.4% y/y at 544,000 tonnes. The global zinc market surplus narrowed in March to 2,100 tonnes from a revised surplus of 56,900 tonnes the previous month, data from the International Lead and Zinc Study Group (ILZSG) showed. Previously, the ILZSG had reported a surplus of 65,400 tonnes in February. During the first three months of 2021, the ILZSG data showed a surplus of 54,000 tonnes, down from a surplus of 249,000 tonnes in the same period of 2020. Around 13.5 million tonnes of zinc are produced and consumed each year. China kept its benchmark lending rate for corporate and household loans unchanged for the 13th straight month at its May fixing, in line with market expectations. The one-year loan prime rate (LPR) was kept at 3.85%. The five-year LPR remained at 4.65%. The five-year rate influences the pricing of mortgages. According to the minutes of the April meeting of the Federal Reserve, in view of the continued strong economic recovery, some Fed officials were open to the discussion of shrinking bond purchases at the next meeting. Technically market is under long liquidation as market has witnessed drop in open interest by -13.04% to settled at 1280 while prices down -0.6 rupees, now Zinc is getting support at 229.4 and below same could see a test of 228 levels, and resistance is now likely to be seen at 232.7, a move above could see prices testing 234.6.
Trading Ideas:
* Zinc trading range for the day is 228-234.6.
* Zinc prices dropped as pressure seen after China April zinc output gained by 3.4% y/y at 544,000 tonnes.
* The global zinc market surplus narrowed in March to 2,100 tonnes from a revised surplus of 56,900 tonnes the previous month
* China keeps lending benchmark rate unchanged for 13th straight month

Nickel

Nickel yesterday settled down by -1.64% at 1251.3 continuing its weakness as the State Council of China required to curb unreasonable rises in commodities prices. Some US Fed officials were open to discussing debt purchase reduction in the “next few meetings”. Pressure also seen on prices due to oversupply concerns. China’s Lygend Mining said its nickel and cobalt smelting project in Indonesia had produced first batch of nickel and cobalt hydroxide products which will gradually enter the global market. Also, early in March, China’s Tsingshan said it would produce a large amount of nickel matte in Indonesia. Meantime, the commodity growing usage in lithium-ion batteries and the accelerated roll-out of electric vehicles remains a positive backdrop for markets. US Federal Reserve’s meeting minutes showed that some Fed officials were open to discussing debt purchase reduction in the “next few meetings”, and the interest rate market raised their expectations for interest rate hikes. China will strengthen management of both supply and demand sides to curb "unreasonable" increases in commodity prices and prevent the pass-through to consumers, the country's cabinet said. 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. Technically market is under fresh selling as market has witnessed gain in open interest by 14.18% to settled at 1940 while prices down -20.9 rupees, now Nickel is getting support at 1239.8 and below same could see a test of 1228.2 levels, and resistance is now likely to be seen at 1272.3, a move above could see prices testing 1293.2.
Trading Ideas:
* Nickel trading range for the day is 1228.2-1293.2.
* Nickel dropped continuing its weakness as the State Council of China required to curb unreasonable rises in commodities prices.
* Some US Fed officials were open to discussing debt purchase reduction in the “next few meetings”.
* China’s Lygend Mining said its nickel smelting project in Indonesia had produced first batch of nickel products which will gradually enter the global market.

Aluminium

Aluminium yesterday settled down by -2.14% at 187.65 following a global dip in markets as fears about rising inflation continued to weigh on sentiment. China kept its benchmark lending rate for corporate and household loans unchanged for the 13th straight month at its May fixing, in line with market expectations. The one-year loan prime rate (LPR) was kept at 3.85%. Global primary aluminium output fell to 5.56 million tonnes in April from revised 5.744 million tonnes in March, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production fell to 3.223 million tonnes in April from revised 3.33 million tonnes in March, it added. Primary aluminium ingot inventories in China fell this week, showed data. Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, decreased 41,000 mt from last Thursday to 1.02 million mt as of May 20. Stocks in all of the eight places except Chongqing fell. The outbound quantity of aluminium billet increased 28,800 mt or 77.8% to 65,800 mt last week. Data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China decreased 15.8% or 16,600 mt from a week ago to 88,600 mt as of Thursday May 20. Technically market is under long liquidation as market has witnessed remain unchanged in open interest by 0% to settled at 1191 while prices down -4.1 rupees, now Aluminium is getting support at 185 and below same could see a test of 182.4 levels, and resistance is now likely to be seen at 191.3, a move above could see prices testing 195.
Trading Ideas:
* Aluminium trading range for the day is 182.4-195.
* Aluminium prices dropped following a global dip in markets as fears about rising inflation continued to weigh on sentiment.
* Global aluminium output falls to 5.56 mln T in Apr – IAI
* China April alumina output +7.0% y/y at 6.49 mln tonnes - stats bureau

Mentha oil

Mentha oil yesterday settled down by -0.39% at 957 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 remain unchanged in open interest by 0% to settled at 25 while prices down -3.7 rupees, now Mentha oil is getting support at 957 and below same could see a test of 957 levels, and resistance is now likely to be seen at 957, a move above could see prices testing 957.
Trading Ideas:
* Mentha oil trading range for the day is 957-957.
* 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 down by -3.26% at 7031 as USDA 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. China's soybean imports from Brazil surged in April from the previous month, customs data showed, as cargoes that had been delayed by poor weather cleared customs. China, the world's top importer of soybeans, brought in 5.08 million tonnes of the oilseed from top supplier Brazil in April, up from only 315,334 tonnes in March, data from the General Administration of Customs showed. Chinese crushers stepped up purchases of soybeans in expectation of increasing demand for animal feed from the steadily recovering pig sector. Rain, however, delayed the harvest and exports from the South American country. 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. At the Indore spot market in top producer MP, soybean dropped -74 Rupees to 7619 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 9.77% to settled at 59145 while prices down -237 rupees, now Soyabean is getting support at 6907 and below same could see a test of 6784 levels, and resistance is now likely to be seen at 7224, a move above could see prices testing 7418.
Trading Ideas:
* Soyabean trading range for the day is 6784-7418.
* Soyabean prices remained under pressure as USDA report showed Soybean production in the world is likely to increase by 6%
* China's April soybean imports from Brazil surge from previous month
* Brazil's Abiove sees 2021 soybean exports at record 85.6 million tns
* At the Indore spot market in top producer MP, soybean dropped  -74 Rupees to 7619 Rupees per 100 kgs.

Ref.Soyaoil

Ref.Soyaoil yesterday settled down by -0.33% at 1402.9 as higher soybean output could limit edible oil imports. Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021 as record high prices for the oilseed could prompt some to switch from cultivating competing commodities such as cotton and pulses, industry officials said. Increased production of India's main summer-sown oilseed could help the world's biggest vegetable oil importer trim costly purchases of palm oil, soyoil and sunflower oil from Indonesia, Malaysia, Argentina and Ukraine. 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. Production of all oilseeds is forecast to increase, with all but cottonseed and rapeseed reaching at least 10-year records. The U.S. Department of Agriculture projected U.S. 2021/22 soybean ending stocks at 140 million bushels, up only slightly from the 120 million expected at the end of 2020/21. The USDA projected a U.S. 2021/22 soybean crop of 4.405 billion bushels, based on an average yield of 50.8 bushels per acre. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1468.8 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -0.93% to settled at 36075 while prices down -4.6 rupees, now Ref.Soya oil is getting support at 1380 and below same could see a test of 1356 levels, and resistance is now likely to be seen at 1426, a move above could see prices testing 1448.
Trading Ideas:
* Ref.Soya oil trading range for the day is 1356-1448.
* Ref soyoil prices dropped as higher soybean output could limit edible oil imports.
* Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021
* 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.
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1468.8 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled up by 0.93% at 1219.4 amid lower output in Malaysia and concerns over global edible oil supply. The Southern Peninsula Palm Oil Millers' Association estimated production during the first 15 days of May in some parts of Malaysia likely fell 18% month-on-month. European Union palm oil imports in the 2020/21 season reached 4.61 million tonnes versus 5.07 million a year ago, European Commission data showed. Malaysia has kept its May export tax for crude palm oil at 8% but raised the reference price, a circular on the Malaysian Palm Oil Board website showed. The world's second-largest palm exporter calculated a reference price of 4,533.40 ringgit per tonne for May, up from 4,331.48 ringgit a tonne in April. The maximum tax rate is set at 8% when prices exceed 3,450 ringgit a tonne. India's palm oil imports in 2021 are set to fall for the second consecutive year as pandemic concerns continue to unfold in the country, forcing refiners to dial back production and keep stocks at a bare minimum level. India's imports of palm oil imports jumped 82% in April on the year as refiners stepped up purchases of the tropical oil to reduce imports of expensive soyoil and sunflower oil, a trade body said. In spot market, Crude palm oil dropped by -12.1 Rupees to end at 1250.2 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -10.26% to settled at 3121 while prices up 11.2 rupees, now CPO is getting support at 1197 and below same could see a test of 1174.6 levels, and resistance is now likely to be seen at 1233.3, a move above could see prices testing 1247.2.
Trading Ideas:
* CPO trading range for the day is 1174.6-1247.2.
* Crude palm oil gains amid lower output in Malaysia and concerns over global edible oil supply.
* Malaysia's April 1 – 20 palm oil exports rise 16%
* Malaysia maintains May crude palm oil export duty at 8%
* In spot market, Crude palm oil dropped  by -12.1 Rupees to end at 1250.2 Rupees.

Mustard Seed

Mustard Seed yesterday settled down by -3.35% at 6957 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 fresh selling as market has witnessed gain in open interest by 0.06% to settled at 66890 while prices down -241 rupees, now Rmseed is getting support at 6822 and below same could see a test of 6687 levels, and resistance is now likely to be seen at 7181, a move above could see prices testing 7405.
Trading Ideas:
* Rmseed trading range for the day is 6687-7405.
* 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 1.25% at 8240 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 7705.55 Rupees gained 108.5 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 2.76% to settled at 11170 while prices up 102 rupees, now Turmeric is getting support at 8102 and below same could see a test of 7966 levels, and resistance is now likely to be seen at 8374, a move above could see prices testing 8510.
Trading Ideas:
* Turmeric trading range for the day is 7966-8510.
* 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 7705.55 Rupees gained 108.5 Rupees.

Jeera

Jeera yesterday settled up by 0.14% at 14005 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 up by 42.85 Rupees to end at 14042.85 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -2.78% to settled at 6180 while prices up 20 rupees, now Jeera is getting support at 13890 and below same could see a test of 13770 levels, and resistance is now likely to be seen at 14150, a move above could see prices testing 14290.
Trading Ideas:
* Jeera trading range for the day is 13770-14290.
* Jeera settled flat as lockdown restrictions increased against rising Covid cases, slowing spot trade interest weakened market sentiments.
* 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 up by 42.85 Rupees to end at 14042.85 Rupees per 100 kg.

Cotton

Cotton yesterday settled remain unchangeby 0% at 22020 as support seen after CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales against 60 lakh bales projected till last month. Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (July-June) season due to yield loss. India’s cotton output in the 2020-21 (October-September) market year is seen at 38 million bales, up 4 percent on the year. The country’s cotton exports are likely to be 20 percent higher at 1.02 million tonnes in 2020-21 (October-September) backed by competitive pricing in the global markets and an improvement in international cotton consumption, said Care Rating. Higher exports along with a recovery in domestic cotton demand will help reduce the surplus availability of cotton in the nation despite higher supply, the rating agency said in a note. Cotton farmers from various states are planning to increase the area under cultivation in the coming 2021-22 Kharif season. Indian textile mills have reduced production due to lower domestic demand and labour shortage. The government has allowed mills to operate but markets are closed so mills are facing a cash crunch. Textiles mills dealing in exports are still going strong as Indian yarn prices are attractive. In spot market, Cotton dropped by -40 Rupees to end at 22460 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -10.09% to settled at 4453 while prices remain unchanged 0 rupees, now Cotton is getting support at 21890 and below same could see a test of 21760 levels, and resistance is now likely to be seen at 22180, a move above could see prices testing 22340.
Trading Ideas:
* Cotton trading range for the day is 21760-22340.
* Cotton settled flat paring gains earlier seen as CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales
* Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (July-June) season due to yield loss.
* 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.
* In spot market, Cotton dropped  by -40 Rupees to end at 22460 Rupees.

Chana

Chana yesterday settled down by -0.33% at 5184 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 gained by 35 Rupees to end at 5222.5 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -2.98% to settled at 136690 while prices down -17 rupees, now Chana is getting support at 5151 and below same could see a test of 5119 levels, and resistance is now likely to be seen at 5226, a move above could see prices testing 5269.
Trading Ideas:
* Chana trading range for the day is 5119-5269.
* Chana dropped as pressure seen after the Government amended the pulses import policy
* 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 gained  by 35 Rupees to end at 5222.5 Rupees per 100 kgs.

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