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Gold

Gold yesterday settled up by 0.15% at 49198 reversed early losses to edge up after data showed U.S. consumer prices increased more than expected last month. Investors also took stock of the European Central Bank policy decision to continue to run its emergency bond purchases at a higher pace than at the start of the year. Data showed U.S. consumer prices increased further in May as the coronavirus pandemic’s easing grip on the economy continued to boost domestic demand. Weekly jobless claims also dropped to their lowest level in nearly 15 months. The European Central Bank raised its growth and inflation outlooks but promised to keep ample stimulus flowing, fearing that a retreat now would accelerate a worrisome rise in borrowing costs and choke off recovery. ECB President Christine Lagarde said policymakers agreed to make further emergency purchases over the next quarter “at a significantly higher pace” than during the first months of the year” but gave no further detail about the expected levels. Gold imports by India plummeted in May after a deadly new wave of the pandemic shuttered stores and restricted mobility, wiping out demand during key festivals and weddings. Inbound purchases slumped to 11.3 tons last month from 70.3 tons in April. Technically market is under fresh buying as market has witnessed gain in open interest by 0.09% to settled at 11539 while prices up 74 rupees, now Gold is getting support at 48827 and below same could see a test of 48457 levels, and resistance is now likely to be seen at 49415, a move above could see prices testing 49633.

Trading Ideas: 

* Gold trading range for the day is 48457-49633.

* Gold prices reversed early losses to edge up after data showed U.S. consumer prices increased more than expected last month.

* Investors also took stock of the European Central Bank policy decision to continue to run its emergency bond purchases at a higher pace than at the start of the year.

* Data showed U.S. consumer prices increased further in May as the coronavirus pandemic’s easing grip on the economy continued to boost domestic demand.

Silver

Silver yesterday settled up by 0.16% at 71999 as US annual inflation data showed consumer prices jump a higher-than-expected 5% in May. It was the fastest inflation rate in the United States since August 2008, mostly reflecting the ongoing economic recovery and low base effects caused by the pandemic last year. However, investors remained mostly confident that policymakers won’t start tightening its monetary policy sooner than expected, even though the latest inflation figure stood well above the Fed’s 2% target. A highly anticipated report released by the Labor Department showed consumer prices in the U.S. increased by more than expected in the month of May. The Labor Department said its consumer price index rose by 0.6 percent in May after climbing by 0.8 percent in April. Elsewhere, the European Central Bank pledged to keep running its emergency bond purchases at a “significantly higher pace” than early this year. The number of Americans filing new claims for unemployment benefits dropped to 376 thousand in the week ending June 5th, the lowest level in nearly 15 months and compared with market expectations of 370 thousand, as the labor market continues to be supported by broader economic re-opening amid a steady decline in the number of daily COVID cases and the rapid pace of vaccinations. Technically market is under fresh buying as market has witnessed gain in open interest by 5.27% to settled at 12015 while prices up 115 rupees, now Silver is getting support at 71210 and below same could see a test of 70420 levels, and resistance is now likely to be seen at 72480, a move above could see prices testing 72960.

Trading Ideas: 

* Silver trading range for the day is 70420-72960.

* Silver gained as US annual inflation data showed consumer prices jump a higher-than-expected 5% in May.

* The Labor Department said its consumer price index rose by 0.6 percent in May after climbing by 0.8 percent in April.

* However, investors remained mostly confident that policymakers won’t start tightening its monetary policy sooner than expected

Crude oil

Crude oil yesterday settled up by 0.59% at 5120 as support seen after OPEC stuck to its prediction of a strong world oil demand recovery in 2021 led by the United States and China despite uncertainties stemming from the pandemic, pointing to a need for more oil from the producer group. The Organization of the Petroleum Exporting Countries said demand would rise by 6.6% or 5.95 million barrels per day (bpd) this year. The forecast was unchanged for a second consecutive month. OPEC sees 2021 world economic growth at 5.5%, unchanged from last month, assuming the impact of the pandemic will have been "largely contained" by the beginning of the second half. The report's forecast comes despite a slower-than-expected recovery in the first half of this year and as it warns of "significant uncertainties" such as the potential emergence of new variants of the coronavirus. U.S. government data showed new unemployment claims fell to the lowest level since the country’s first wave of COVID-19 last year while inflation was higher than expected. U.S. crude oil stockpiles that include the Strategic Petroleum Reserve (SPR) fell for the 11th straight week as refiners ramped up output, but fuel inventories grew sharply due to weak consumer demand, the Energy Information Administration (EIA) said. Technically market is under fresh buying as market has witnessed gain in open interest by 2.96% to settled at 9337 while prices up 30 rupees, now Crude oil is getting support at 5040 and below same could see a test of 4960 levels, and resistance is now likely to be seen at 5180, a move above could see prices testing 5240.

Trading Ideas: 

* Crude oil trading range for the day is 4960-5240.

* Crude oil gains as support seen after OPEC stuck to its prediction of a strong world oil demand recovery in 2021 led by the United States and China.

* OPEC said demand would rise by 6.6% or 5.95 million barrels per day (bpd) this year.

* OPEC sees 2021 world economic growth at 5.5%, unchanged from last month

Nat.Gas

Nat.Gas yesterday settled up by 0.35% at 229.2 on forecasts for rising air conditioning demand and higher exports over the next two weeks than previously expected. The U.S. Energy Information Administration (EIA) said utilities added 98 billion cubic feet (bcf) of gas into storage during the week ended June 4. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 91.8 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. With warmer weather on the horizon, Refinitiv projected average gas demand, including exports, would rise from 88.1 bcfd this week to 90.0 bcfd next week. Those forecasts were higher than Refinitiv forecast on Wednesday on a rise in exports and expectations power generators would burn more gas to keep air conditioners humming. The amount of gas flowing to U.S. LNG export plants slid to an average of 9.7 bcfd so far in June, down from 10.8 bcfd in May and the all-time high of 11.5 bcfd in April. Traders noted LNG feedgas to was down due to short-term maintenance at the Sabine Pass and Cameron export plants in Louisiana and some of the pipelines that provide them with fuel. Technically market is under fresh buying as market has witnessed gain in open interest by 3.79% to settled at 19866 while prices up 0.8 rupees, now Natural gas is getting support at 227.6 and below same could see a test of 225.9 levels, and resistance is now likely to be seen at 232.2, a move above could see prices testing 235.1.

Trading Ideas: 

* Natural gas trading range for the day is 225.9-235.1.

* Natural gas gained on forecasts for rising air conditioning demand and higher exports over the next two weeks than previously expected.

* EIA said utilities added 98 billion cubic feet (bcf) of gas into storage during the week ended June 4.

* Despite the hotter forecast, overall demand for gas over the next two weeks was expected to be down a bit

Copper

Copper yesterday settled down by -0.8% at 738.1 hit by fresh concerns about price controls after surging producer inflation strengthened China’s resolve to keep commodity prices in check. China’s state planner renewed its pledge to step up monitoring of commodity prices and strengthen supervision of spot and futures markets, as domestic producer inflation hit its highest in more than 12 years. China's major copper smelters reduced output by 4.34% in May from a month earlier to 765,100 tonnes as several of them carried out maintenance. Output of copper cathode last month from the 22 companies surveyed by Antaike was up 10.45% year-on-year. The European Central Bank raised its growth and inflation outlooks on Thursday but promised to keep ample stimulus flowing, fearing that a retreat now would accelerate a worrisome rise in borrowing costs and choke off recovery. ECB President Christine Lagarde said policymakers agreed to make further emergency purchases over the next quarter “at a significantly higher pace” than during the first months of the year” but gave no further detail about the expected levels. “We are going to do that in next three months according to market conditions, which clearly include seasonality,” she told a news conference, referring to the typically lower levels of liquidity in Europe’s summer months. Technically market is under fresh selling as market has witnessed gain in open interest by 6.48% to settled at 4748 while prices down -5.95 rupees, now Copper is getting support at 732.5 and below same could see a test of 726.9 levels, and resistance is now likely to be seen at 743, a move above could see prices testing 747.9.

Trading Ideas: 

* Copper trading range for the day is 726.9-747.9.

* Copper fell hit by fresh concerns about price controls after surging producer inflation strengthened China’s resolve to keep commodity prices in check.

* China’s state planner renewed its pledge to step up monitoring of commodity prices and strengthen supervision of spot and futures markets

* China's major copper smelters reduced output by 4.34% in May from a month earlier to 765,100 tonnes as several of them carried out maintenance.

Zinc

Zinc yesterday settled down by -0.19% at 237.6 due to the recovery of the production capacity of some smelters, arrivals increased. The negotiation between US President Biden and the Republican Party on infrastructure bill has broken down, while the bipartisan group in the US House of Representatives announced an eight-year infrastructure plan with a scale of $1.25 trillion, breaking the deadlock. China’s state planner renewed its pledge to step up monitoring of commodity prices and strengthen supervision of spot and futures markets, as domestic producer inflation hit its highest in more than 12 years. A highly anticipated report released by the Labor Department showed consumer prices in the U.S. increased by more than expected in the month of May. The Labor Department said its consumer price index rose by 0.6 percent in May after climbing by 0.8 percent in April. About one-third of the increase in consumer prices was due to a 7.3 percent spike in prices for use cars and trucks. Food prices also rose by 0.4 percent, while energy prices were unchanged. Technically market is under long liquidation as market has witnessed drop in open interest by -3.05% to settled at 2165 while prices down -0.45 rupees, now Zinc is getting support at 236 and below same could see a test of 234.2 levels, and resistance is now likely to be seen at 239, a move above could see prices testing 240.2.

Trading Ideas: 

* Zinc trading range for the day is 234.2-240.2.

* Zinc prices remained under pressure due to the recovery of the production capacity of some smelters, arrivals increased.

* The negotiation between US President Biden and the Republican Party on infrastructure bill has broken down

* A highly anticipated report released by the Labor Department showed consumer prices in the U.S. increased by more than expected in the month of May.

Nickel

Nickel yesterday settled up by 0.37% at 1330.4 after U.S. government data showed new unemployment claims fell to the lowest level since the country’s first wave of COVID-19 last year while inflation was higher than expected. The national refined nickel output decreased 590 mt or 4.53% month on month to 12,400 mt in May, and operating rates stood at 57%.Among them, Gansu smelter carried out overhaul of the top-blowing furnace, but maintained the overall normal production, with the affected output within 1,000 mt. Xinjiang smelter continued to produce normally, achieving an output of 1,074 mt. Jilin smelter resumed production in May, with the output at 350 mt. The refined nickel production was still in suspension in the smelters in Shandong, Tianjin, and Guangxi. Indonesia aims for three nickel smelters to be completed and operational this year, an official at the country's energy and natural resources ministry said, without specifying the capacity of the smelters. Two of the smelters, operated by PT Smelter Nickel Indonesia and PT Cahaya Modern Metal Industri, were now completed and had gone through production trials, Ridwan Djamaluddin, director general of mineral and coal at the energy ministry, said. Technically market is under short covering as market has witnessed drop in open interest by -15.51% to settled at 1400 while prices up 4.9 rupees, now Nickel is getting support at 1307.6 and below same could see a test of 1284.9 levels, and resistance is now likely to be seen at 1347.1, a move above could see prices testing 1363.9.

Trading Ideas: 

* Nickel trading range for the day is 1284.9-1363.9.

* Nickel recovered after U.S. government data showed new unemployment claims fell to the lowest level since the country’s first wave of COVID-19

* The national refined nickel output decreased 590 mt or 4.53% month on month to 12,400 mt in May, and operating rates stood at 57%.

* China's output of nickel sulphate stood at 97,700 mt or 21,500 mt in metal content in May, down 5.82% from the previous month

Aluminium

Aluminium yesterday settled up by 1.69% at 195.25 as the premium of LME cash aluminium and the three-month contract to $11.80 a tonne, its biggest since December 2019, indicating tightening supply of nearby contracts. China is looking to release 800,000-900,000 tonnes of primary aluminium from its state reserves as soon as next month to ease high prices for the metal. China, by far the world’s biggest producer of aluminium, rarely sells state metal stockpiles. A 900,000 tonnes release would be bigger than the 500,000 tonnes China was reported to be considering in March but still only amounts to around one-quarter of its recent monthly production levels. Data showed that China’s social inventories of aluminium across eight consumption areas fell 35,000 mt on the week to 919,000 mt as of June 10. The stocks kept falling in Nanhai, Shanghai, Wuxi, Gongyi, and Chongqing. The European Central Bank raised its growth and inflation outlooks but promised to keep ample stimulus flowing, fearing that a retreat now would accelerate a worrisome rise in borrowing costs and choke off recovery. ECB President Christine Lagarde said policymakers agreed to make further emergency purchases over the next quarter “at a significantly higher pace” than during the first months of the year” but gave no further detail about the expected levels. Technically market is under fresh buying as market has witnessed gain in open interest by 31.75% to settled at 2606 while prices up 3.25 rupees, now Aluminium is getting support at 192.5 and below same could see a test of 189.6 levels, and resistance is now likely to be seen at 197, a move above could see prices testing 198.6.

Trading Ideas: 

* Aluminium trading range for the day is 189.6-198.6.

* Aluminium gains as the premium of LME cash aluminium and the three-month contract to $11.80 a tonne, indicating tightening supply.

* China is looking to release 800,000-900,000 tonnes of primary aluminium from its state reserves

* Data showed that China’s social inventories of aluminium across eight consumption areas fell 35,000 mt

Mentha oil

Mentha oil yesterday settled up by 2% at 952.3 due to rain harvesting of menthe crop will be affected and also production get affected. 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. However upside seen limited 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. In Sambhal spot market, Mentha oil gained by 28.9 Rupees to end at 1066.2 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 23.81% to settled at 26 while prices up 18.7 rupees, now Mentha oil is getting support at 946.6 and below same could see a test of 940.9 levels, and resistance is now likely to be seen at 956.6, a move above could see prices testing 960.9.

Trading Ideas: 

* Mentha oil trading range for the day is 940.9-960.9.

* In Sambhal spot market, Mentha oil gained  by 28.9 Rupees to end at 1066.2 Rupees per 360 kgs.

* Mentha gained due to rain harvesting of menthe crop will be affected and also production get affected.

* However upside seen limited as fresh season arrival started while the lock-down extension is impacting sentiments.

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

Soyabean

Soyabean yesterday settled down by -1.87% at 6780 as 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. China’s soybean imports in May rose from the previous month, customs data showed, as more cargoes from top supplier Brazil cleared customs. China, the world’s top importer of soybeans, brought in 9.61 million tonnes of the oilseed in May, up 29% from 7.45 million tonnes in April, when some Brazilian shipments were delayed, data from the General Administration of Customs showed. 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. It could also boost Indian exports of animal feed ingredient soymeal to places such as Bangladesh, Japan, Vietnam and Iran, industry officials said. At the Indore spot market in top producer MP, soybean dropped -82 Rupees to 7398 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 7.28% to settled at 34850 while prices down -129 rupees, now Soyabean is getting support at 6687 and below same could see a test of 6594 levels, and resistance is now likely to be seen at 6906, a move above could see prices testing 7032.

Trading Ideas: 

* Soyabean trading range for the day is 6594-7032.

* Soyabean prices dropped as India's soybean planting could rise by over 10% on record prices

* China Jan-May soybean imports up 12.8% at 38.23 million tonnes

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

* At the Indore spot market in top producer MP, soybean dropped  -82 Rupees to 7398 Rupees per 100 kgs.

Ref.Soyaoil

Ref.Soyaoil yesterday settled down by -2.01% at 1334.8 on profit booking tracking weakness in soyabean prices after seen supported on concerns about tight global supplies of edible oils. 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 1401.8 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 19.7% to settled at 35480 while prices down -27.4 rupees, now Ref.Soya oil is getting support at 1318 and below same could see a test of 1300 levels, and resistance is now likely to be seen at 1364, a move above could see prices testing 1392.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1300-1392.

* Ref soyoil dropped on profit booking tracking weakness in soyabean prices after seen supported on concerns about tight global supplies of edible oils. 

* India is considering reducing import taxes on edible oils after cooking oil prices hit record highs last month

* 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 1401.8 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled down by -0.85% at 1090.8 dragged down by expectations of rising production and stocks ahead of official data. Pressure also seen as surveys pegged Malaysia’s May stockpile to climb to an eight-month peak. Malaysia's palm oil stockpiles at the end of May likely jumped 6.3% on-month to their highest in eight months, as production rose amid sluggish exports. Inventories at the world's second-largest producer are seen at 1.64 million tonnes, their highest since last September. Production is pegged to rise 3.4% from April to 1.58 million tonnes, its highest in seven months, as plantations enter the seasonal higher production months. Exports in May are expected to climb 0.9% month-on-month to 1.35 million tonnes, with cargo surveyor data showing slightly smaller shipments to the world's biggest palm oil buyer, India. India is considering reducing import taxes on edible oils after cooking oil prices last month hit record highs, which may support palm oil prices. The market will be anticipating lower domestic consumption and higher supply in June. A labour shortage in Malaysia's plantations that has curbed output throughout the coronavirus pandemic is expected to prolong as a resurgence of COVID-19 cases forced the nation into a two-week lockdown. The palm oil supply chain is allowed to operate during the lockdown, but local consumption will likely decline due to the closure of hotels, restaurants and catering services. In spot market, Crude palm oil dropped by -0.5 Rupees to end at 1138.8 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -5.28% to settled at 3947 while prices down -9.3 rupees, now CPO is getting support at 1079.4 and below same could see a test of 1067.9 levels, and resistance is now likely to be seen at 1108.2, a move above could see prices testing 1125.5.

Trading Ideas: 

* CPO trading range for the day is 1067.9-1125.5.

* Crude palm oil dropped dragged down by expectations of rising production and stocks ahead of official data. 

* May palm oil stocks rose 1.5% to 1.57 mln T – MPOB

* Crude palm oil production gained 2.84% from April to 1.57 million tonnes, while palm oil exports fell 6.01% to 1.27 million tonnes

* In spot market, Crude palm oil dropped  by -0.5 Rupees to end at 1138.8 Rupees.

Mustard Seed

Mustard Seed yesterday settled down by -2.05% at 6843 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. COOIT was against any reduction in import duties on edible oils but wanted the Centre to remove the GST of 5 per cent on mustard seed and oil as it will help farmers and consumers both. European Union rapeseed production is projected to show a modest gain in 2021/22 on increased planted area and improved yield but will remain below the levels observed from 2016 to 2018. 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. 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 50 Rupees to end at 7200 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -0.94% to settled at 60250 while prices down -143 rupees, now Rmseed is getting support at 6765 and below same could see a test of 6688 levels, and resistance is now likely to be seen at 6969, a move above could see prices testing 7096.

Trading Ideas: 

* Rmseed trading range for the day is 6688-7096.

* Mustard seed dropped as 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.

* The arrival of mustard in the mandis has decreased at all places in the country.

* In Alwar spot market in Rajasthan the prices gained 50 Rupees to end at 7200 Rupees per 100 kg.

Turmeric

Turmeric yesterday settled down by -0.51% at 7732 as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading. However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh. 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 7545.65 Rupees dropped -10.85 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 10.47% to settled at 9340 while prices down -40 rupees, now Turmeric is getting support at 7674 and below same could see a test of 7614 levels, and resistance is now likely to be seen at 7832, a move above could see prices testing 7930.

Trading Ideas: 

* Turmeric trading range for the day is 7614-7930.

* Turmeric dropped as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading.

* However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh.

* 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 7545.65 Rupees dropped -10.85 Rupees.

Jeera

Jeera yesterday settled down by -0.69% at 13720 as lockdown restrictions increased against rising Covid cases, slowing spot trade interest weakened market sentiments. The wholesale offers for the NCDEX grade Jeera are currently offered around Rs.14000/qtl in Unjha and in Jodhpur, the mandi offers average near Rs.13900/qtl. Over a month, the wholesale prices in Unjha and Jodhpur have gone down by Rs.400/qtl and Rs.700/qtl respectively. As India struggles against curbing the Corona pandemic, exports markets have turned subdued. The importers prefer to wait for the situation to normalize before negotiating for fresh deals. They rather prefer to clear their older stocks first and presently they feel that the older inventory may be sufficient to balance the existing demand for next few weeks easily. The new season arrivals shall continue with good numbers hence there will be ample availability in the market. However from a broader perspective, India’s exports outlook has brightened while crop is expected to be lower versus year on year. Also, the nearest export competitors i.e. Turkey and Syria may not supply much to the world due to lower exportable surplus. In Unjha, a key spot market in Gujarat, jeera edged down by -11.1 Rupees to end at 13900 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 16.86% to settled at 5697 while prices down -95 rupees, now Jeera is getting support at 13675 and below same could see a test of 13630 levels, and resistance is now likely to be seen at 13795, a move above could see prices testing 13870.

Trading Ideas: 

* Jeera trading range for the day is 13630-13870.

* Jeera 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 down by -11.1 Rupees to end at 13900 Rupees per 100 kg.

Cotton

Cotton yesterday settled down by -1.14% at 24220 on profit booking after prices gained amid prospects of higher exports and falling supply in physical markets. Cotton sowing area grows despite of delays. Despite sowing of cotton stretching beyond the ideal sowing time in Punjab, it is close to reaching the target for 2021-22. The state agriculture department had the target of sowing cotton on 3.25 lakh hectares the crop had been sown over 3.01 lakh hectares. New figures show global cotton stock levels are set to increase to 22m tonnes by the end of 2020/21 as the stocks-to-use ratio declines. According to the latest update from the International Cotton Advisory Committee (ICAC), China’s stocks, however, are expected to decline as the rest of the world’s expands slightly. Cotton consumption is expected to increase by 2% to 25.3m tonnes as the global economy continues to recover. Decreases in Brazil, India and the US have caused a reduction in the 2020/21 global production estimate but cotton production — along with consumption and trade — are all expected to increase in 2021/22: Production is expected to increase by 5% to 25.5m tonnes, with increases in planted areas in the US and West Africa. In spot market, Cotton gained by 100 Rupees to end at 24540 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -7.8% to settled at 4729 while prices down -280 rupees, now Cotton is getting support at 23940 and below same could see a test of 23650 levels, and resistance is now likely to be seen at 24540, a move above could see prices testing 24850.

Trading Ideas: 

* Cotton trading range for the day is 23650-24850.

* Cotton dropped on profit booking after prices gained amid prospects of higher exports and falling supply in physical markets

* Cotton stock levels are set to increase to 22m tonnes by the end of 2020/21

* According to the latest update from the ICAC, China’s stocks, however, are expected to decline as the rest of the world’s expands slightly.

* In spot market, Cotton gained  by 100 Rupees to end at 24540 Rupees.

Chana

Chana yesterday settled down by -0.91% at 5146 on profit booking after prices seen supported as there is a strong possibility of shortage in pulses production, especially due to uncertainty over sowing this crop year due to the pandemic. The country is most likely to face scarcity of pulses this year including masoor, chana and other pulses. There could be a shortage of around 10 lakh tonne in the production of tur this year. As the apex body for the trade, IPGA is bringing it to the notice of the government well in advance to augment the supply side. However, as per trade estimates, the production for tur has been around 2.90 million tonne, urad approximately 2.06 million tonne, moong around 2 million tonne, Chana around 9 million tonne and masoor around 0.95 million tonne. 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. In Delhi spot market, chana dropped by -51.5 Rupees to end at 5075 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 8.16% to settled at 126600 while prices down -47 rupees, now Chana is getting support at 5118 and below same could see a test of 5090 levels, and resistance is now likely to be seen at 5196, a move above could see prices testing 5246.

Trading Ideas: 

* Chana trading range for the day is 5090-5246.

* Chana dropped on profit booking after prices seen supported as shortage of pulses likely as production expected to decline

* The country is most likely to face scarcity of pulses this year including masoor, chana and other pulses.

* 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

* In Delhi spot market, chana dropped  by -51.5 Rupees to end at 5075 Rupees per 100 kgs.

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