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Gold

Gold yesterday settled down by -0.43% at 46870 amid mixed cues from Fed officials on the approach the central bank could take to withdraw stimulus kept investors on their toes and muted gains. Investors digest mixed signals from US Federal Reserve officials on interest rate hikes and awaited more economic data to gauge inflationary pressures. Meantime, the labour market shows signs of a slowdown in the recovery as initial claims fell less than expected in the prior week. In congressional testimony, Powell vowed not to raise rates too quickly by stating that the central bank will continue its supportive stance on the economy. The dollar index lost further ground and bottomed around the 91.70 level as signs of diminished enthusiasm on the US reflation trade along with a dovish stance from the Federal Reserve capped any upside momentum for the greenback. Investors seem to have acknowledged that the Fed just wanted to signal it was ready to deal with higher inflation without taking any steps to pull back its crisis-era stimulus. A slew of economic data, including somewhat worse-than-expected weekly jobless claims numbers and disappointing durable goods orders, also kept sentiment in check. Climate change poses a “significant risk” to the global economy and the financial system, San Francisco Federal Reserve President Mary Daly said, adding that large swaths of the United States could be disrupted. Technically market is under fresh selling as market has witnessed gain in open interest by 2.06% to settled at 10847 while prices down -202 rupees, now Gold is getting support at 46735 and below same could see a test of 46599 levels, and resistance is now likely to be seen at 47083, a move above could see prices testing 47295.  

Trading Ideas:            

* Gold trading range for the day is 46599-47295.

* Gold dropped amid mixed cues from Fed officials on the approach the central bank could take to withdraw stimulus kept investors on their toes and muted gains.

* Investors digest mixed signals from US Federal Reserve officials on interest rate hikes and awaited more economic data to gauge inflationary pressures.

* Two Fed officials say inflation pressures may last some time

Silver           

Silver yesterday settled down by -0.29% at 67733 after two Fed officials said a period of high inflation in the United States could last longer than anticipated. Both Atlanta Fed President Raphael Bostic and Fed Governor Michelle Bowman said that recent price increases are likely to be temporary, but it may take longer than anticipated to fade. Bostic projected a rate hike in late 2022, citing faster growth and higher inflation. Fewer Americans filed new claims for unemployment benefits last week as the labor market steadily recovers from the COVID-19 pandemic amid a reopening economy, but a dearth of willing workers could hinder faster job growth in the near term. The economy appears to be at cruising speed more than half way through the second quarter, with other data showing strong growth in business spending on equipment in May. The yield on the US 10-year Treasury note erased early gains to fall slightly below 1.5%, after economic data showed durable goods orders rose 2.3% in May, missing market expectations of a 2.8% surge; while weekly jobless claims fell less than expected last week. Still, the yield remained well above four-month lows of 1.36% touched early in the week as the Federal Reserve continues to send mixed signals on inflation. Technically market is under long liquidation as market has witnessed drop in open interest by -7.35% to settled at 8050 while prices down -199 rupees, now Silver is getting support at 67334 and below same could see a test of 66936 levels, and resistance is now likely to be seen at 68165, a move above could see prices testing 68598.

Trading Ideas:            

* Silver trading range for the day is 66936-68598.

* Silver prices traded in range after two Fed officials said a period of high inflation in the United States could last longer than anticipated.

* The yield on the US 10-year Treasury note erased early gains to fall slightly below 1.5%

* Weekly jobless claims fall 7,000 to 411,000

Crude oil 

Crude oil yesterday settled flat at 5437 Crude oil settled flat paring all gains seen after a sharp drawdown in U.S. crude and gasoline stocks reinforced optimism of a quick recovery in fuel demand and on doubts about the future of the 2015 Iran nuclear deal that could end U.S. sanctions on Iranian crude exports. U.S. crude inventories fell by 7.6 million barrels in the week to June 18 to 459.1 million barrels, their lowest since March 2020, the U.S. Energy Information Administration said. The drawdown was nearly double expectations for a 3.9 million-barrel drop. U.S. gasoline stocks fell by 2.9 million barrels in the week, against expectations for an 833,000-barrel rise. Indian Oil Minister Dharmendra Pradhan again urged the Organisation of the Petroleum Exporting Countries (OPEC) to phase out crude output cuts as high prices are stoking inflation. The value of Saudi Arabia's oil exports in April climbed 109% to 51.7 billion riyals ($13.79 billion) from a year earlier while non-oil exports rose by 46.3%, official data showed. Oil exports made up 72.5% of total exports, up from 64.8% in April 2020 and 70% in March. Non-oil exports rose to 19.6 billion riyals from 13.4 billion but slipped from 22.5 billion riyals in March, the data from the General Authority for Statistics showed. Technically market is under long liquidation as market has witnessed drop in open interest by -9.27% to settled at 7154 while prices down -3 rupees, now Crude oil is getting support at 5382 and below same could see a test of 5327 levels, and resistance is now likely to be seen at 5482, a move above could see prices testing 5527.          

Trading Ideas:            

* Crude oil trading range for the day is 5327-5527.

* Crude oil settled flat paring all gains seen after a sharp drawdown in U.S. crude and gasoline stocks 

* U.S. crude, gasoline stockpiles slump last week-EIA

* Iran says U.S. to lift oil sanctions, U.S. says nothing agreed

Nat.Gas           

Nat.Gas yesterday settled up by 2.79% at 254.3 on a smaller-than-expected storage build, forecasts for hotter weather over the next two weeks, rising exports and projections for power demand in Texas to reach record highs for June. The U.S. Energy Information Administration (EIA) said utilities added 55 billion cubic feet (bcf) of gas into storage during the week ended June 18. Last week's build boosted U.S. stockpiles to 2.482 trillion cubic feet (tcf), or 5.8% below the five-year average of 2.636 tcf for this time of year. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 91.6 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 the coming of hotter summer weather, Refinitiv projected average gas demand, including exports, would rise from 88.2 bcfd this week to 93.1 bcfd next week. Those forecasts were similar to Refinitiv's projections. The amount of gas flowing to U.S. liquefied natural gas (LNG) export plants fell to 9.9 bcfd so far in June due mostly to short-term maintenance outages at Gulf Coast facilities and the pipelines that supply them with fuel. Technically market is under short covering as market has witnessed drop in open interest by -45.52% to settled at 1806 while prices up 6.9 rupees, now Natural gas is getting support at 247.6 and below same could see a test of 241 levels, and resistance is now likely to be seen at 258.1, a move above could see prices testing 262.    

Trading Ideas:            

* Natural gas trading range for the day is 241-262.

* Natural gas rose on a smaller-than-expected storage build, forecasts for hotter weather over the next two weeks.

* EIA said utilities added 55 billion cubic feet (bcf) of gas into storage during the week ended June 18.

* Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 91.6 bcfd so far in June

Copper           

Copper yesterday settled down by -0.08% at 725.85 as mixed signals from the U.S. Federal Reserve triggered investor jitters about the timing of interest rate increases, which could sap demand for metals. Also weighing on prices was a plan by China’s state reserves administration to auction its reserves of copper, zinc and aluminium on July 5-6 in a bid to cool surging prices. The global world refined copper market showed a 19,000 tonnes deficit in March, compared with a 108,000 tonnes surplus in February, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 3 months of the year, the market was in a 129,000 tonnes surplus compared with a 154,000 tonnes surplus in the same period a year earlier, the ICSG said. World refined copper output in March was 2.10 million tonnes, while consumption was 2.12 million tonnes. On-warrant stocks of copper in LME-registered warehouses registered climbed to their highest since June 2020 at 185,200 tonnes. The amount of cancelled warrants, metal earmarked for delivery, was at 5% of total stocks, which was its lowest since September 2011. New orders for key U.S.-made capital goods unexpectedly fell in May, likely held back by shortages of some products, but a solid increase in shipments suggested business spending remained strong in the second quarter. Technically market is under fresh selling as market has witnessed gain in open interest by 20.57% to settled at 3951 while prices down -0.55 rupees, now Copper is getting support at 719.9 and below same could see a test of 713.7 levels, and resistance is now likely to be seen at 729.6, a move above could see prices testing 733.1.        

Trading Ideas:            

* Copper trading range for the day is 713.7-733.1.

* Copper fell as mixed signals from the U.S. Federal Reserve triggered investor jitters about the timing of interest rate increases, which could sap demand for metals.

* Copper market in 19,000 tonnes deficit in Mar 2021 – ICSG

* China May copper exports hit 14-month peak as traders cash in on LME price jump

Zinc

Zinc yesterday settled up by 0.55% at 235.85 as US June Markit PMI for manufacturing industry registered 62.6, boosting the market confidence. Global investors digested comments from US Federal Reserve officials and looked ahead to various data releases. Zinc output is expected to be 513,200 mt in June, up 18,500 mt on the month, after the smelters in Yunnan gradually resume production. The support from the supply side will weaken amid the stable production at mines and the increased work at smelters. The consumption of galvanising and die casting weakened in the off-peak season, of which the orders declined. In addition, the release amounts of national reserves have been announced, so the social inventory may increase. The global zinc market moved into a deficit of 26,900 tonnes in April from a revised surplus of 700 tonnes the previous month, data from the International Lead and Zinc Study Group (ILZSG) showed. Previously, the ILZSG had reported a surplus of 2,100 tonnes in March. During the first four months of 2021, the ILZSG data showed a surplus of 31,000 tonnes, down from a surplus of 256,000 tonnes in the same period of 2020. Around 13.5 million tonnes of zinc are produced and consumed each year. Technically market is under fresh buying as market has witnessed gain in open interest by 19.38% to settled at 1608 while prices up 1.3 rupees, now Zinc is getting support at 233.6 and below same could see a test of 231.2 levels, and resistance is now likely to be seen at 237.3, a move above could see prices testing 238.6.          

Trading Ideas:            

* Zinc trading range for the day is 231.2-238.6.

* Zinc gains as US June Markit PMI for manufacturing industry registered 62.6, boosting the market confidence.

* Global zinc market swings to deficit of 26,900 T in April – ILZSG

* China May zinc output +1.2% y/y at 527,000 tonnes - stats bureau

Nickel           

Nickel yesterday settled up by 2.06% at 1374.7 as Indonesia is considering a plan to restrict construction of smelters producing nickel pig iron or ferronickel to optimise use of its limited ore reserves for higher-value products. Putting a restriction on construction of such plants is deemed necessary because of limited saprolite nickel ore reserves, the mining ministry said in a document presented to parliament this month. Eddy Soeparno, chairperson of the parliamentary committee, verified the document. The government also said that many plants producing nickel pig iron (NPI) or ferronickel (FeNi) are expected to export their output directly, without further processing into stainless steel at home, according to the document. Indonesia, a major nickel ore producer, banned exports of unprocessed ore last year to promote development of a nickel smelting industry. Support also seen amid strong Chinese demand and near record-low inventories in warehouses tracked by ShFE. The global nickel market deficit narrowed to 15,600 tonnes in April from a shortfall of 17,100 tonnes in March, data from the International Nickel Study Group (INSG) showed. During the first four months of the year, the nickel market saw a deficit of 34,900 tonnes compared with a 48,000 tonnes surplus in the same period last year, Lisbon-based INSG added. Technically market is under fresh buying as market has witnessed gain in open interest by 57.65% to settled at 2338 while prices up 27.7 rupees, now Nickel is getting support at 1348.2 and below same could see a test of 1321.6 levels, and resistance is now likely to be seen at 1388.7, a move above could see prices testing 1402.6.    

Trading Ideas:            

* Nickel trading range for the day is 1321.6-1402.6.

* Nickel gained as Indonesia is considering a plan to restrict construction of smelters producing nickel pig iron or ferronickel

* Support also seen amid strong Chinese demand and near record-low inventories in warehouses tracked by ShFE.

* Global nickel deficit narrows slightly in April

Aluminium           

Aluminium yesterday settled remain unchangeby 0% at 193.15 as global investors digested comments from US Federal Reserve officials and looked ahead to various data releases. Data showed that China’s social inventories of aluminium across eight consumption areas fell 16,000 mt on the week to 874,000 mt as of June 24. The stocks kept falling in Wuxi and Hainan. Global primary aluminium output rose to 5.744 million tonnes in May from revised 5.543 million tonnes in April, data from the International Aluminium Institute (IAI) showed. China's alumina output rose 11.2% from a year earlier to 6.6 million tonnes in May, the highest on record, data from the National Bureau of Statistics showed. Fewer Americans filed new claims for unemployment benefits last week as the labor market steadily recovers from the COVID-19 pandemic amid a reopening economy, but a dearth of willing workers could hinder faster job growth in the near term. The economy appears to be at cruising speed more than half way through the second quarter, with other data on Thursday showing strong growth in business spending on equipment in May. While the goods trade deficit widened last month, that was because of an increase in imports as businesses desperately try to keep up with robust demand. Technically market is under fresh selling as market has witnessed gain in open interest by 10.98% to settled at 2426 while prices remain unchanged 0 rupees, now Aluminium is getting support at 192.2 and below same could see a test of 191.2 levels, and resistance is now likely to be seen at 193.8, a move above could see prices testing 194.4. 

Trading Ideas:            

*  Aluminium trading range for the day is 191.2-194.4.

*  Aluminium remained in range as global investors digested comments from US Federal Reserve officials

*  Global aluminium output rises to 5.744 mln T in May – IAI

* China May alumina output rose 11.2% year-on-year to 6.6 million tonnes - stats bureau

Mentha oil

Mentha oil yesterday settled up by 0.28% at 1088.3 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 arrivals likely to increase due to favourable weather conditions. 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. Due to favourable weather condition,the production of mentha in the states has improved and is at much better terms compare to 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. In Sambhal spot market, Mentha oil gained by 8.8 Rupees to end at 1146.6 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 14.83% to settled at 395 while prices up 3 rupees, now Mentha oil is getting support at 1078.3 and below same could see a test of 1068.4 levels, and resistance is now likely to be seen at 1105.3, a move above could see prices testing 1122.4.          

Trading Ideas:            

*  Mentha oil trading range for the day is 1068.4-1122.4.

* In Sambhal spot market, Mentha oil gained  by 8.8 Rupees to end at 1146.6 Rupees per 360 kgs.

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

* Fresh season arrival started as the lock-down started to ease.

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

Soyabean           

Soyabean yesterday settled down by -0.73% at 6983 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. 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. The U.S. Department of Agriculture (USDA) confirmed exporters sold 336,000 tonnes of U.S. soybeans for delivery to China during the 2021/2022 marketing year, on the largest sale to the country in 4-1/2 months. Exporters also sold 120,000 tonnes of U.S. soybeans to unknown destinations for delivery during the 2021/2022 marketing year, according to the USDA. European Union soybean imports in the 2020/21 season that started last July had reached 14.87 million tonnes by June 20, data published by the European Commission showed. The Soy Food Promotion and Welfare Association (SFPWA), which represents soybean food processing industries in India has urged Prime Minister Narendra Modi to allow the processing industry to import 50,000 tonnes of food specialty soybeans from the US duty-free as prices of domestic soybeans have increased 50% during the past six months. At the Indore spot market in top producer MP, soybean dropped -61 Rupees to 7258 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -1.45% to settled at 35595 while prices down -51 rupees, now Soyabean is getting support at 6913 and below same could see a test of 6844 levels, and resistance is now likely to be seen at 7064, a move above could see prices testing 7146.   

Trading Ideas:            

* Soyabean trading range for the day is 6844-7146.

* Soyabean prices dropped as Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021. 

* USDA confirmed exporters sold 336,000 tonnes of U.S. soybeans for delivery to China during the 2021/2022 marketing year

* European Union soybean imports in the 2020/21 season that started last July had reached 14.87 million tonnes by June 20.

* At the Indore spot market in top producer MP, soybean dropped  -61 Rupees to 7258 Rupees per 100 kgs.

Ref.Soyaoil           

Ref.Soyaoil yesterday settled down by -1.62% at 1237.3 on profit booking tracking weakness in soyabean and overseas prices as concerns about U.S. crops eased. India exported 5.31 lakh tonnes of oilmeals in the first two months of the fiscal 2021-22 against 3.50 lakh tonnes in the same period a year ago, recording a growth of 52 per cent. BV Mehta, Executive Director of Solvent Extractors’ Association of India (SEA), said the export of oilmeals increased sharply on the back of shipments of rapeseed meal during the period. India has put on hold a proposal to reduce import taxes on edible oils as cooking oil prices started to fall in the world market after hitting record highs, two government and one industry officials told. India slashed the base import prices of palm oil and soybean oil for a fortnight, the government said in a statement, as prices of the cooking oils fell sharply in the global market. Imports would remain elevated even in June as many states are easing lockdowns and allowing restaurants to reopen. A coalition of nine Argentine port worker unions went on a nationwide 24-hour strike to press for vaccinations against the coronavirus. 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 1285.7 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -0.98% to settled at 36010 while prices down -20.4 rupees, now Ref.Soya oil is getting support at 1224 and below same could see a test of 1210 levels, and resistance is now likely to be seen at 1255, a move above could see prices testing 1272.

Trading Ideas:            

* Ref.Soya oil trading range for the day is 1210-1272.

* Ref soyoil dropped on profit booking tracking weakness in soyabean and overseas prices as concerns about U.S. crops eased. 

* India exported 5.31 lakh tonnes of oilmeals in the first two months of the fiscal 2021-22

*  A coalition of nine Argentine port worker unions went on a nationwide 24-hour strike to press for vaccinations against the coronavirus.

*  At the Indore spot market in Madhya Pradesh, soyoil was steady at 1285.7 Rupees per 10 kgs.

Crude palm Oil           

Crude palm Oil yesterday settled up by 0.07% at 1036.4 supported by stronger-than-expected biodiesel demand from the recovery in crude oil prices, economies reopening or higher mandate from producing countries. Malaysia has surpassed Indonesia to become the biggest crude palm oil (CPO) exporter to top consumer India in 2020/21, after Indonesia imposed heavy taxes on exports of the edible oil last year, industry officials told. Malaysia's palm oil exports to India surged 238% to 2.42 million tonnes in the first seven months of 2020/21 marketing year started on Nov. 1, according to data compiled by The Solvent Extractors' Association of India (SEA). During the period, Indonesia's palm oil shipments to India fell 32% to 2 million tonnes. It comes after Indonesia imposed higher levies on crude palm oil exports in December to raise funds for its ambitious palm-based biodiesel programme, aimed at maximising domestic use of the edible oil. Indonesia announced that it would reduce the ceiling rate for its crude palm oil levies from $255 to $175 per tonne, stoking concerns that it would take market share away from rival Malaysia. Exports of Malaysian palm oil products for Jun. 1-20 rose 11.2 percent to 962,184 tonnes from 865,236 tonnes shipped during May. 1-20, cargo surveyor Societe Generale de Surveillance said. In spot market, Crude palm oil dropped by -9.7 Rupees to end at 1048.8 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -1.74% to settled at 2089 while prices up 0.7 rupees, now CPO is getting support at 1021 and below same could see a test of 1005.7 levels, and resistance is now likely to be seen at 1053.8, a move above could see prices testing 1071.3.           

Trading Ideas:            

* CPO trading range for the day is 1005.7-1071.3.

* Crude palm oil gains supported by stronger-than-expected biodiesel demand from the recovery in crude oil prices

* Pressure also seen after Indonesia's plan to revise its palm oil export levy. 

*  Malaysia offered palm oil at a discount to entice buyers

*  In spot market, Crude palm oil dropped  by -9.7 Rupees to end at 1048.8 Rupees.

Mustard Seed      

Mustard Seed yesterday settled down by -0.1% at 6862 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. The arrival of mustard in the mandis has decreased at all places in the country. However upside seen limited pushed lower by flagging global overseas prices amid forecasts for beneficial rains across the Canadian Prairie. 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. 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 dropped -140.5 Rupees to end at 7059.5 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 1.75% to settled at 48960 while prices down -7 rupees, now Rmseed is getting support at 6813 and below same could see a test of 6763 levels, and resistance is now likely to be seen at 6915, a move above could see prices testing 6967.          

Trading Ideas:            

* Rmseed trading range for the day is 6763-6967.

* Mustard seed dropped 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.

* However upside seen limited pushed lower by flagging global overseas prices amid forecasts for beneficial rains across the Canadian Prairie.

* In Alwar spot market in Rajasthan the prices dropped -140.5 Rupees to end at 7059.5 Rupees per 100 kg.

Turmeric                      

Turmeric yesterday settled down by -1.91% at 7480 as sentiment is weak and sluggish demand from local stockists amid poor quality arrivals in the market has led to the fall in prices. However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh. 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 7497.75 Rupees dropped -17.45 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 1.85% to settled at 11025 while prices down -146 rupees, now Turmeric is getting support at 7404 and below same could see a test of 7330 levels, and resistance is now likely to be seen at 7608, a move above could see prices testing 7738.   

Trading Ideas:            

* Turmeric trading range for the day is 7330-7738.

* Turmeric dropped as sentiment is weak and sluggish demand from local stockists amid poor quality arrivals in the market has led to the fall in prices. 

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

* 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. 

* In Nizamabad, a major spot market in AP, the price ended at 7497.75 Rupees dropped -17.45 Rupees.

Jeera           

Jeera yesterday settled down by -0.45% at 13395 amid excess supply and as demand is likely to remain subdued on weak buying from local and overseas markets. Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions. In the benchmark market Unjha, 7,000 bags (1 bag = 55 kg) arrived yesterday as against 10,000 bags. 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 -2.35 Rupees to end at 13692.1 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -0.9% to settled at 6606 while prices down -60 rupees, now Jeera is getting support at 13365 and below same could see a test of 13330 levels, and resistance is now likely to be seen at 13440, a move above could see prices testing 13480.      

Trading Ideas:            

*  Jeera trading range for the day is 13330-13480.

* Jeera dropped amid excess supply and as demand is likely to remain subdued on weak buying from local and overseas markets.

* Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions.

*  As India struggles against curbing the Corona pandemic, exports markets have turned subdued.

* In Unjha, a key spot market in Gujarat, jeera edged down by -2.35 Rupees to end at 13692.1 Rupees per 100 kg.

Cotton           

Cotton yesterday settled up by 0.49% at 24470 as some support seen tracking overseas prices amid concerns over the weather in top growing regions. Meanwhile, heavy rains over the weekend from Tropical Storm Claudette threatened the natural fiber crop in the U.S. Delta region. There are concerns that remain about the size of the U.S. crop in 2021, with how many acres have been planted and on the flip side demand is still good overseas. Falling arrival numbers of raw cotton due to the lean supply season and thin stocks lying with ginners and farmers has resulted in supply crunch in the market. For the first time in six years, Punjab’s area under cotton cultivation this kharif season has crossed the 3 lakh hectare mark. This is an increase of 17% over 2020, when cotton was sown on 2.5 lakh hectare. The state, however, is still 41% short of the golden phase in 2011-12 when the area under the traditional cash crop was 5.2 lakh hectare. In 2015, cotton was sown on 3.25 lakh hectares in southern districts. After a devastating period of the worst whitefly attack on cotton that year, farmers turned away from sowing the crop. Before 2014, over 4 lakh hectare was under cotton. In spot market, Cotton gained by 70 Rupees to end at 24470 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 7.64% to settled at 6858 while prices up 120 rupees, now Cotton is getting support at 24290 and below same could see a test of 24120 levels, and resistance is now likely to be seen at 24640, a move above could see prices testing 24820.   

Trading Ideas:            

* Cotton trading range for the day is 24120-24820.

* Cotton gained as some support seen tracking overseas prices amid concerns over the weather in top growing regions.

*  Meanwhile, heavy rains over the weekend from Tropical Storm Claudette threatened the natural fiber crop in the U.S. Delta region.

* In Punjab, for first time in six years, area under cotton crosses 3 lakh hectare

* In spot market, Cotton gained  by 70 Rupees to end at 24470 Rupees.

Chana           

Chana yesterday settled flat at 5139 ahead of sowing report which can report higher sowing under Pulses area compare with last year. However 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 -10.65 Rupees to end at 5082.85 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -0.71% to settled at 117860 while prices up 1 rupees, now Chana is getting support at 5119 and below same could see a test of 5100 levels, and resistance is now likely to be seen at 5159, a move above could see prices testing 5180.   

Trading Ideas:            

* Chana trading range for the day is 5100-5180.

* Chana settled flat ahead of sowing report which can report higher sowing under Pulses area compare with last year.

* However 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.

* In Delhi spot market, chana dropped  by -10.65 Rupees to end at 5082.85 Rupees per 100 kgs.