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Gold yesterday settled down by -1.86% at 48677 as better-than-expected U.S. employment and service-sector data propelled the dollar higher and boosted expectations that the strong economic readings may reignite taper talk from the Federal Reserve. Signalling a strong labor market recovery, new U.S. jobless claims dropped below 400,000 last week, while private employers stepped up hiring in May, the ADP National Employment Report showed. Meanwhile, a measure of U.S. services industry activity increased to a record high in May. U.S. labor market signals are conflicting to an “unprecedented” degree, but those suggesting labor market slack should be given more weight than those pointing to tightness. The paper looked at 26 labor market measures that typically move in tandem and found that during the current recovery they are giving wildly divergent signals about the health of the job market. Investors were now awaiting U.S. payrolls data due on Friday to gauge cues on future monetary policy. Bottlenecks in the supply chain and rising commodity prices could limit U.S. manufacturing growth potential, and the Federal Reserve is paying attention to labour market data. The Perth Mint's gold sales fell to a four-month low in May, as an uptick in prices of the metal dented demand for minted products. Technically market is under long liquidation as market has witnessed drop in open interest by -3.47% to settled at 12048 while prices down -924 rupees, now Gold is getting support at 48256 and below same could see a test of 47836 levels, and resistance is now likely to be seen at 49370, a move above could see prices testing 50064.       

Trading Ideas:            

* Gold trading range for the day is 47836-50064.

* Gold slid as better-than-expected U.S. employment and service-sector data propelled the dollar higher

* U.S. weekly jobless claims drop below 400,000

* U.S. service sector index at record high in May

 Silver          

Silver yesterday settled down by -2.57% at 70810 amid a broad dollar strength and the release of fresh US labor market data that pointed towards the consolidation of the economic recovery. Initial weekly jobless claims fell to 385 thousand last week, going below the 400 thousand level for the first time since March 2020. The Federal Reserve’s response to the COVID crisis, which included tried and true tools as well as novel ones, helped offset the unprecedented blow to the U.S. economy last year and will continue to bolster it this year, a top U.S. central banker said. In an academic paper that summarized the Fed’s pandemic response but did little to foreshadow its policy plans going forward, Fed Vice Chair Richard Clarida noted that the fiscal and monetary policy actions taken since March 2020 were “unprecedented in their scale, scope and speed.” U.S. worker productivity rebounded solidly in the first quarter, the government confirmed, also noting that labor costs grew instead of contracting as previously reported. Nonfarm productivity, which measures hourly output per worker, increased at an unrevised 5.4% annualized rate last quarter, the Labor Department said. Productivity fell at a 3.8% rate in the fourth quarter. Productivity shot up early in the pandemic before slumping in the final three months of 2020. Technically market is under fresh selling as market has witnessed gain in open interest by 15.2% to settled at 12987 while prices down -1868 rupees, now Silver is getting support at 69457 and below same could see a test of 68104 levels, and resistance is now likely to be seen at 72506, a move above could see prices testing 74202.     

Trading Ideas:            

* Silver trading range for the day is 68104-74202.

* Silver dropped amid a broad dollar strength and the release of fresh US labor market data that pointed towards the consolidation of the economic recovery.

* The Federal Reserve’s response to the COVID crisis, helped offset the unprecedented blow to the U.S. economy last year and will continue to bolster it this year

* U.S. worker productivity rebounded solidly in the first quarter, the government confirmed

Crude oil           

Crude oil yesterday settled down by -0.3% at 5011 paring gains after gasoline stocks increased and distillate inventories rose while U.S. crude stocks fell last week as refineries hiked output. Crude inventories fell by 5.1 million barrels in the week ended May 28, compared with expectations for decrease of 2.4 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 784,000 barrels, EIA said. Refinery crude runs rose by 358,000 barrels per day, EIA data showed. Refinery utilization rates rose by 1.7 percentage points. Gasoline stocks rose by 1.5 million barrels, compared with expectations for a 1.5 million barrel drop. Distillate stockpiles , which include diesel and heating oil, rose by 3.7 million barrels, versus expectations for a 1.5 million barrel drop, the EIA data showed. Russian Deputy Prime Minister Alexander Novak said it was premature to talk about output decisions due to be made by the so-called OPEC+ group of oil producers in August. Novak said the group would look at seasonal demand growth and also consider the potential return of Iranian oil supplies to the market. Meanwhile, the Saudi Arabian energy minister said it would be premature to talk about potential overheating in the global oil market before seeing higher demand. Technically market is under long liquidation as market has witnessed drop in open interest by -10.08% to settled at 9345 while prices down -15 rupees, now Crude oil is getting support at 4969 and below same could see a test of 4928 levels, and resistance is now likely to be seen at 5065, a move above could see prices testing 5120.    

Trading Ideas:            

* Crude oil trading range for the day is 4928-5120.

* Crude oil prices dropped paring gains after gasoline stocks increased and distillate inventories rose.

* Russia's Novak says premature to talk about August OPEC+ output decisions

* Meanwhile, the Saudi Arabian energy minister said it would be premature to talk about potential overheating in the global oil market before seeing higher demand.

Nat.Gas           

Nat.Gas yesterday settled down by -0.36% at 222.4 on forecasts for milder weather and lower demand over the next two weeks than previously expected and a report showing an expected, near-normal storage build last week. The U.S. Energy Information Administration (EIA) said U.S. utilities added 98 billion cubic feet (bcf) of gas into storage during the week ended May 28. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 91.3 billion cubic feet per day (bcfd) so far in June, up from 91.0 bcfd in May but still well below the monthly record high of 95.4 bcfd in November 2019. U.S. pipeline exports to Mexico, meanwhile, averaged 6.64 bcfd so far in June, which would top the 6.11-bcfd average in May and the all-time high of 6.14 bcfd in April, according to Refinitiv data. Israel is considering rolling back export limits on natural gas, allowing energy companies to sell more abroad before demand wanes in the global market, according a draft government report. Fewer restrictions could attract more energy groups to explore Israeli waters, ensuring the country receives tens of billion of dollars in taxes and royalties, said a panel that recommends export policy. Technically market is under long liquidation as market has witnessed drop in open interest by -1.67% to settled at 13928 while prices down -0.8 rupees, now Natural gas is getting support at 220.5 and below same could see a test of 218.7 levels, and resistance is now likely to be seen at 225, a move above could see prices testing 227.7. 

Trading Ideas:            

*  Natural gas trading range for the day is 218.7-227.7.

*  Natural gas eased on forecasts for milder weather and lower demand over the next two weeks than previously expected

* The U.S. EIA said U.S. utilities added 98 billion cubic feet (bcf) of gas into storage

* Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 91.3 bcfd so far in June

Copper           

Copper yesterday settled down by -3.29% at 734.15 as weak demand in top consumer China outweighed a supply threat in the Americas. China's appetite for overseas metal is fading, with Yangshan copper import premiums falling to $28.50 a tonne, the lowest since at least 2012. PMI surveys showed that China’s services sector expansion slowed in May, though factory activity grew at the fastest pace this year. Production at BHP’s Escondida, the world’s biggest copper mine, dropped 16.5% year-on-year to 85,700 tonnes in April, while output at Codelco’s copper mine fell 0.5% to 132,700 tonnes, Chile’s copper commission said. Botswana's new copper mine Khoemacau aims to start production at the end of this month with first sales expected in the third quarter of the year, its chief executive said. Situated in the Kalahari Copper Belt, which stretches from northeast Botswana to western Namibia, the Khoemacau mine will be the only operational one in the diamond-rich country after two other copper mines were placed under liquidation. The global world refined copper market showed a 111,000 tonnes surplus in February, compared with a 20,000 tonnes surplus in January, the International Copper Study Group (ICSG) said in its latest monthly bulletin. Technically market is under fresh selling as market has witnessed gain in open interest by 15.98% to settled at 4907 while prices down -25 rupees, now Copper is getting support at 722 and below same could see a test of 709.9 levels, and resistance is now likely to be seen at 754.4, a move above could see prices testing 774.7.       

Trading Ideas:            

* Copper trading range for the day is 709.9-774.7.

* Copper prices dropped as weak demand in top consumer China outweighed a supply threat in the Americas.

* China's appetite for overseas metal is fading, with Yangshan copper import premiums falling to $28.50 a tonne

* Botswana's new copper mine Khoemacau aims to start production at the end of this month with first sales expected in the third quarter of the year

Zinc           

Zinc yesterday settled down by -2.48% at 235.7 after strong U.S. jobs data fuels concerns that monetary policy could tighten. The dollar rose after stronger-than-expected U.S. jobs data that suggested an improving labor market, reinforcing signs that the world’s largest economy was on its way to a steady path to recovery from the pandemic. U.S. private payrolls increased by 978,000 jobs in May, the ADP National Employment Report showed, the biggest increase since June 2020. At the same time, U.S. initial jobless claims dropped below 400,000 last week for the first time since the COVID-19 pandemic started more than a year ago. According to the Beige Book survey of the Federal Reserve, the pace of economic recovery in the US moderately accelerated in April and May, and the overall price pressure further increased. It is planned to gradually reduce the corporate credit tools for the COVID-19. European Commission said that Fiscal policy need to be supportive in 2021 and 2022, and countries should avoid launching support too early. China's PPI and CPI scissors may give the central bank a longer window phase to avoid using monetary policy tools. Technically market is under long liquidation as market has witnessed drop in open interest by -27.71% to settled at 2134 while prices down -6 rupees, now Zinc is getting support at 233.2 and below same could see a test of 230.5 levels, and resistance is now likely to be seen at 240.2, a move above could see prices testing 244.5. 

Trading Ideas:            

*  Zinc trading range for the day is 230.5-244.5.

* Zinc prices dropped after strong U.S. jobs data fuels concerns that monetary policy could tighten.

* U.S. private payrolls increased by 978,000 jobs in May, the ADP National Employment Report showed, the biggest increase since June 2020.

*  At the same time, U.S. initial jobless claims dropped below 400,000 last week for the first time since the COVID-19 pandemic started more than a year ago.

Nickel           

Nickel yesterday settled down by -1.55% at 1313.4 as China's service sector growth moderated in May as activity and new order growth softened since April. The Caixin services Purchasing Managers' Index dropped to 55.1 in May from a four-month high of 56.3 in April. Business activity as well as new orders rose sharply in May, despite rates of expansion softening since April. Customer demand continued to expand due to the successful containment of COVID-19 in China, while there were also reports of new product offerings boosting sales. U.S. President Joe Biden offered to scrap his proposed corporate tax hike during negotiations with Republicans on an infrastructure package, in what would be a major concession by the Democratic president as he works to hammer out a deal this week. Fundamentals remained stable, but the expectation of an increase in deliverable products weakened the long-term forecast, and the concerns of the high production of stainless steel also affected the long-term sentiment of nickel futures. The ADP report showed US companies added the most jobs in 11 months, well above forecasts, initial jobless claims fell more than expected and services PMIs pointed to record growth in the services sector. The payrolls report on Friday will provide a more clear picture on the labour market recovery. Technically market is under fresh selling as market has witnessed gain in open interest by 5.88% to settled at 1782 while prices down -20.7 rupees, now Nickel is getting support at 1291.3 and below same could see a test of 1269.3 levels, and resistance is now likely to be seen at 1344.7, a move above could see prices testing 1376.1.      

Trading Ideas:            

* Nickel trading range for the day is 1269.3-1376.1.

* Nickel prices dropped as China's service sector growth moderated in May as activity and new order growth softened since April.

* Pressure also seen after rise in dollar as U.S. President Joe Biden offered to scrap his proposed corporate tax hike

* The Caixin services Purchasing Managers' Index dropped to 55.1 in May from a four-month high of 56.3 in April.

Aluminium         

Aluminium yesterday settled down by -1.76% at 189.35 after output of primary aluminium in China will increase until 2024, after which secondary, or recycled metal will start to claim a bigger share of plateauing consumption, state-backed research house Antaike said. China is by far the world's biggest aluminium maker, churning out a record 37.08 million tonnes in 2020. However, its government wants to cap annual smelting capacity at 45 million tonnes and producers, under pressure to reduce emissions, are looking to recycle more scrap metal instead. After years of rapid growth, China's aluminium consumption has "entered the stage of slowing down" and is also expected to peak around 2024. Aluminium stocks at three major Japanese ports rose 1.3% to 273,600 tonnes at the end of April, from 270,200 tonnes at the end of March. However, total stocks were down about 11.5% from the same month last year. U.S. worker productivity rebounded solidly in the first quarter, the government confirmed, also noting that labor costs grew instead of contracting as previously reported. Nonfarm productivity, which measures hourly output per worker, increased at an unrevised 5.4% annualized rate last quarter, the Labor Department said. Productivity fell at a 3.8% rate in the fourth quarter. Technically market is under long liquidation as market has witnessed drop in open interest by -4.25% to settled at 1870 while prices down -3.4 rupees, now Aluminium is getting support at 187.4 and below same could see a test of 185.3 levels, and resistance is now likely to be seen at 192.6, a move above could see prices testing 195.7. 

Trading Ideas:            

* Aluminium trading range for the day is 185.3-195.7.

*  Aluminium prices dropped after output of primary aluminium in China will increase until 2024

* U.S. worker productivity rebounded solidly in the first quarter, also noting that labor costs grew instead of contracting as previously reported.

*  Aluminium stocks at three major Japanese ports rose 1.3% to 273,600 tonnes at the end of April, from 270,200 tonnes at the end of March

Mentha oil           

Mentha oil yesterday settled up by 0.32% at 914.9 on short covering after prices dropped as fresh season arrival started while the lock-down extension is impacting sentiments. As of now, daily arrival of fresh oil is relatively small (10-15 drums across Uttar Pradesh). Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days. Overall post-lock-down demand will be likely to improve as demand from the health industry will likely continue also as per CIMAP (Central Institute of Medicinal and Aromatic Plants) Herbal products may boost immunity to avoid infection and demand for same has improved significantly since last year. Mentha exhibits important biological activities. For that reason, it has been used through the years as a remedy for respiratory diseases like bronchitis, sinusitis, tuberculosis, and the common cold. Due to favourable wheather condition,the production of mentha in the states has improved and is at much better terms compare to last year. 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. In Sambhal spot market, Mentha oil gained by 15.4 Rupees to end at 1032.7 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 20.69% to settled at 35 while prices up 2.9 rupees, now Mentha oil is getting support at 910.2 and below same could see a test of 905.6 levels, and resistance is now likely to be seen at 917.7, a move above could see prices testing 920.6. 

Trading Ideas:            

* Mentha oil trading range for the day is 905.6-920.6.

* In Sambhal spot market, Mentha oil gained  by 15.4 Rupees to end at 1032.7 Rupees per 360 kgs.

* Mentha oil gained on short covering after prices dropped as fresh season arrival started while the lock-down extension is impacting sentiments.

* As of now, daily arrival of fresh oil is relatively small (10-15 drums across Uttar Pradesh).

* Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days.

Soyabean           

Soyabean yesterday settled up by 0.06% at 7065 on profit booking paring gains seen earlier after update late arrival of southwest monsoon rains in India may delay sowing of crops. Farmers generally wait for the monsoon to start before they begin planting food grains, cotton, soybeans, peanuts and sugarcane. Any deficit in rains during the early part of the season could delay sowing and reduce harvests, even if the monsoon gathers pace later. According to the third advance estimate, the total production of oilseeds in the country during 2020-21 is estimated to be a record 36.57 million tonnes which is 3.35 million tonnes more than the production of 33.22 million tonnes during 2019-20. In addition, the production of oilseeds during 2020-21 is 6.02 million tonnes more than the average oilseeds production of five years. The Russian government has reduced the country's export tax on soybeans to 20% from 30% starting from July 1, TASS news agency reported, citing the government. 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. At the Indore spot market in top producer MP, soybean gained 179 Rupees to 7447 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -13.38% to settled at 35485 while prices up 4 rupees, now Soyabean is getting support at 6999 and below same could see a test of 6932 levels, and resistance is now likely to be seen at 7154, a move above could see prices testing 7242.   

Trading Ideas:            

* Soyabean trading range for the day is 6932-7242.

* Soyabean settled flat on profit booking paring earlier gains seen after update late arrival of monsoon rains may delay sowing of crop

* Farmers generally wait for the monsoon to start before they begin planting soybeans.

*  According to the third advance estimate, the total production of oilseeds in the country during 2020-21 is estimated to be a record 36.57 million tonnes

* At the Indore spot market in top producer MP, soybean gained  179 Rupees to 7447 Rupees per 100 kgs.

Ref.Soyaoil           

Ref.Soyaoil yesterday settled down by -1.05% at 1400.6 as India is considering reducing import taxes on edible oils after cooking oil prices hit record highs last month, to reduce food costs in the world's biggest vegetable oil importer. While no decision has been made, the tax reduction could lower local prices and boost consumption, giving support to Malaysian palm oil, along with soy and sunflower oil prices, and dampening prices of local oilseeds such as rapeseed, soybean and groundnut. 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. Edible Oil industry cautioned the government against resorting to any knee-jerk reaction of lowering import duties to cool down domestic prices, saying it could have a 'very negative’ impact on oilseed farmers, kharif planting for which will start in the coming few weeks. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1430 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -6.96% to settled at 28690 while prices down -14.8 rupees, now Ref.Soya oil is getting support at 1382 and below same could see a test of 1364 levels, and resistance is now likely to be seen at 1428, a move above could see prices testing 1456.           

Trading Ideas:            

* Ref.Soya oil trading range for the day is 1364-1456.

* Ref soyoil prices dropped on concerns about tight global supplies of edible oils.

* However downside seen limited supported on concerns about tight global supplies of edible oils.

* Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1430 Rupees per 10 kgs.

Crude palm Oil           

Crude palm Oil yesterday settled down by -1.72% at 1127.7 after reports that India is considering reducing import taxes on edible oils after cooking oil prices hit record highs last month, to reduce food costs in the world's biggest vegetable oil importer. While no decision has been made, the tax reduction could lower local prices and boost consumption, giving support to Malaysian palm oil, along with soy and sunflower oil prices, and dampening prices of local oilseeds such as rapeseed, soybean and groundnut. However downside limited amid firmness in overseas prices on supply concerns arising from adverse weather in the United States. The lower reversal led to demand opportunities in Q4 2021 and Q1 2022 due to improved import and processing margins at China and India. However, a fresh coronavirus lockdown in Malaysia and a slow rise in May exports hurt demand outlook. The world's second largest producer of the edible oil prepared for a two-week nationwide lockdown due to a spike in new coronavirus infections. Malaysia will commence a two-week nationwide lockdown starting Tuesday that will see the closure of non-essential businesses and services to control the pandemic. Palm oil plantations will be allowed to operate while manufacturing sector are allowed to operate with reduced capacity. Market expects an increase in production and hit by demand and lockdown concerns in Malaysia. In spot market, Crude palm oil gained by 9.9 Rupees to end at 1173.9 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -2.88% to settled at 5973 while prices down -19.7 rupees, now CPO is getting support at 1109.2 and below same could see a test of 1090.6 levels, and resistance is now likely to be seen at 1158.2, a move above could see prices testing 1188.6.       

Trading Ideas:            

* CPO trading range for the day is 1090.6-1188.6.

* Crude palm oil dropped after reports that India is considering reducing import taxes on edible oils

*  Further a fresh coronavirus lockdown in Malaysia and a slow rise in May exports hurt demand outlook.

* However downside limited amid firmness in overseas prices on supply concerns arising from adverse weather in the United States.

* In spot market, Crude palm oil gained  by 9.9 Rupees to end at 1173.9 Rupees.

Mustard Seed           

Mustard Seed yesterday settled up by 0.41% at 7152 as support seen after COOIT was against any reduction in import duties on edible oils but wanted the Centre to remove the GST of 5 per cent on mustard seed and oil as it will help farmers and consumers both. The decision to ban the adulteration of mustard oil from June 8, the demand for soybean degum and palmolein has weakened. Due to this, the prices of these imported oils are also very soft. The ban on adulteration of edible oils would be beneficial for both domestic consumers and producers. While oil without adulteration will be available, its production will increase in the country. According to sources, the arrival of mustard in the mandis has decreased at all places in the country. The daily arrival of mustard was 15-20 thousand bags in Najafgarh Mandi, Delhi. It was reduced from 500 to 600 bags. U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield. Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. 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. In Alwar spot market in Rajasthan the prices gained 105 Rupees to end at 7325 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -17.89% to settled at 31660 while prices up 29 rupees, now Rmseed is getting support at 7116 and below same could see a test of 7081 levels, and resistance is now likely to be seen at 7198, a move above could see prices testing 7245.

Trading Ideas:            

* Rmseed trading range for the day is 7081-7245.

* Mustard seed gains as support seen after COOIT was against any reduction in import duties on edible oils

* The decision to ban the adulteration of mustard oil from June 8, the demand for soybean degum and palmolein has weakened.

* U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend 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 1.19% at 7816 on following export demand from Europe, Gulf countries and Bangladesh. However upside seen limited as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading. In Nizamabad APMC in Telangana, the modal price of the finger variety turmeric was quoted at ₹6,950 a quintal. Prices are up about ₹400 since the beginning of this month. At Bangalore in Karnataka, turmeric is quoted at ₹11,500 at the APMC yard with most markets closed in the State to control the Covid-19 pandemic. In Tamil Nadu, too, the agricultural markets are closed as part of the lockdown to tackle the pandemic. Demand for exports to Bangladesh and Europe are helping turmeric prices to gain. Exporters are looking to pick up stocks from Nanded in view of its quality. Turmeric has been in demand over the last two years as it is reported to be effective in medical use, particularly in combating Covid-19. According to Spices Board data, turmeric exports during the April-December period of the last fiscal increased 34 per cent to 1.39 lakh tonnes valued at ₹1,251 crore compared with 1.03 lakh tonnes valued at ₹1,047 crore. In Nizamabad, a major spot market in AP, the price ended at 7561.95 Rupees dropped -32.8 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -6.73% to settled at 7690 while prices up 92 rupees, now Turmeric is getting support at 7724 and below same could see a test of 7632 levels, and resistance is now likely to be seen at 7870, a move above could see prices testing 7924.    

Trading Ideas:            

* Turmeric trading range for the day is 7632-7924.

* Turmeric gained on following export demand from Europe, Gulf countries and Bangladesh.

* However upside seen limited as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading.

* At least 50 per cent of the crop cultivated in the Maharashtra growing regions are estimated to have arrived at the terminal agricultural markets.

* In Nizamabad, a major spot market in AP, the price ended at 7561.95 Rupees dropped -32.8 Rupees.

Jeera           

Jeera yesterday settled up by 0.29% at 13750 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 up by 22.85 Rupees to end at 13842.85 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -5.62% to settled at 5091 while prices up 40 rupees, now Jeera is getting support at 13685 and below same could see a test of 13620 levels, and resistance is now likely to be seen at 13795, a move above could see prices testing 13840.    

Trading Ideas:            

*  Jeera trading range for the day is 13620-13840.

*  Jeera gained on some short covering after prices dropped 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 up by 22.85 Rupees to end at 13842.85 Rupees per 100 kg.

Cotton           

Cotton yesterday settled down by -0.17% at 23690 paring gains on profit booking after seen supported as sowing of cotton may be delayed in India as the southwest monsoon, is set to reach the mainland two days later than usual. Cotton Cooperation of India has increased prices by 200-500 Rs Candy across all growths of all Zones for 2020-21 season and for 2019-20 season. Cotton crop is at risk due to water shortage in Sindh and Punjab. The increasing trend in the rate of cotton remained continued in international markets. Agriculture Minster Punjab Hussain Jahanian Gardezi said that Punjab is facing water shortage of 22 % while Sindh is facing shortage of around 17%.According to the Third Advance Estimate released by the government, cotton production is estimated at 36.49 million bales higher by 4.59 million bales than the average cotton production. In the previous season 2019-20 cotton production was estimated at 36.07 million bales. The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 171,200 Running Bales for the 2020/2021 marking year, 59% higher than the prior week. 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. In spot market, Cotton gained by 100 Rupees to end at 23750 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -0.25% to settled at 7270 while prices down -40 rupees, now Cotton is getting support at 23540 and below same could see a test of 23400 levels, and resistance is now likely to be seen at 23880, a move above could see prices testing 24080.           

Trading Ideas:            

*  Cotton trading range for the day is 23400-24080.

*  Cotton settled flat paring gains on profit booking after seen supported as sowing of cotton may be delayed in India

* The country’s cotton exports are likely to be 20 percent higher at 1.02 million tonnes in 2020-21.

* Cotton crop is at risk due to water shortage in Sindh and Punjab.

*  In spot market, Cotton gained  by 100 Rupees to end at 23750 Rupees.

Chana           

Chana yesterday settled down by -0.82% at 5216 on profit booking after prices seen supported as India’s supply of Kabuli chickpea is expected to plunge 32 percent to 396,000 tonnes due to low carryout and very poor production prospects for all of India’s rabi (winter) season crops. Exports will fall to an estimated 50,000 tonnes, down from 115,000 tonnes each of the previous two years. The situation is so dire that India is expected to import 50,000 tonnes from Canada, Argentina and Turkey. Even with that injection of supplies, India will end the year with 36,000 tonnes of kabulis, which is a far cry from the 200,000 tonnes it needs to balance supply and demand the following year. According to the latest forecast of the Ministry of Agriculture of India, the forecast for lentils production estimate has been decreased from 13.50 to 12.60 lakh MT. Govt increased Bengal Gram production by 10 lakh MT to 126.1 lakh MT. For tur, it is 41.40 lakh MT, Urad at23.70 lakh MT, Masur at 12.60 lakh MT, Masur production estimate has been decreased from 13.50 to 12.60 lakh MT. Trades are of the view that Bengal Gram production estimate is very optimistic. In Delhi spot market, chana gained by 13.6 Rupees to end at 5227.25 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.28% to settled at 83640 while prices down -43 rupees, now Chana is getting support at 5184 and below same could see a test of 5151 levels, and resistance is now likely to be seen at 5269, a move above could see prices testing 5321. 

Trading Ideas:            

* Chana trading range for the day is 5151-5321.

* Chana dropped on profit booking after prices seen supported as India’s supply of Kabuli chickpea is expected to plunge 32 percent

* Even with that injection of supplies, India will end the year with 36,000 tonnes of kabulis, which is a far cry from the 200,000 tonnes it needs

* Govt. raised Bengal Gram production estimate by 10 lakh mt to 12.61 lakh mt for 2020-21

* In Delhi spot market, chana gained  by 13.6 Rupees to end at 5227.25 Rupees per 100 kgs.

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