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Gold

Gold yesterday settled down by -1.32% at 46056 pressured by an overall uptick in appetite for riskier assets, as investors continued to position themselves for a sooner-than-expected interest rate hike from the U.S. Federal Reserve. Pressure seen amid a general improvement in risk aversion as investors hope the Evergrande debt crisis can be contained and digest recent monetary policy updates. The U.S. central bank said it will likely begin reducing its bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected, as the Fed’s turn from pandemic crisis policies gains momentum. The number of Americans filing new claims for jobless benefits unexpectedly rose last week amid a surge in California, but the labor market continues to steadily recover. Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 351,000 for the week ended Sept. 18, the Labor Department said. There was a 24,221 jump in unadjusted claims in California. That offset a sharp decrease in filings in Louisiana, which was devastated by Hurricane Ida in late August. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 750 to 335,750 last week. Technically market is under long liquidation as market has witnessed drop in open interest by -3.27% to settled at 6575 while prices down -616 rupees, now Gold is getting support at 45820 and below same could see a test of 45583 levels, and resistance is now likely to be seen at 46414, a move above could see prices testing 46771.

Trading Ideas:
Gold trading range for the day is 45583-46771.
Gold dropped pressured as investors continued to position themselves for a sooner-than-expected interest rate hike from the U.S. Federal Reserve
The U.S. central bank said it will likely begin reducing its bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected
Pressure seen amid a general improvement in risk aversion as investors hope the Evergrande debt crisis can be contained

Silver

Silver yesterday settled down by -0.64% at 60789 amid fading concerns over China’s Evergrande and as investors largely brushed off concerns over the Fed’s tapering plans. The Fed said in the announcement of its latest monetary policy decision that a "moderation in the pace of asset purchases may soon be warranted" if progress towards its dual goals continues broadly as expected. The central bank currently plans to continue its bond purchases at a rate of at least $120 billion per month but is expected to begin scaling back later this year. Fed Chair Jerome Powell indicated the central bank could begin tapering its asset purchases as soon as its next meeting in early November. A report released by the Labor Department a little while ago showed first-time claims for U.S. unemployment benefits unexpectedly increased for the second straight week in the week ended September 18th. The Labor Department said initial jobless claims rose to 351,000, an increase of 16,000 from the previous week's revised level of 335,000. With the uptick, jobless claims climbed further off the pandemic-era low of 312,000 set in the week ended September 4th. U.S. business activity expanded at its slowest pace in a year in September amid relentless supply constraints and peaking demand, in line with expectations for a sharp slowdown in economic growth in the third quarter. Technically market is under fresh selling as market has witnessed gain in open interest by 3.2% to settled at 12215 while prices down -391 rupees, now Silver is getting support at 60400 and below same could see a test of 60010 levels, and resistance is now likely to be seen at 61100, a move above could see prices testing 61410.
 

Trading Ideas:
Silver trading range for the day is 60010-61410.
Silver dropped amid fading concerns over China’s Evergrande and as investors largely brushed off concerns over the Fed’s tapering plans.
Fed Chair Powell indicated the central bank could begin tapering its asset purchases as soon as its next meeting in early November.
Data showed first-time claims for U.S. unemployment benefits unexpectedly increased for the second straight week


Crude oil

Crude oil yesterday settled up by 1.9% at 5425 supported by growing fuel demand and a draw in U.S. crude inventories as production remained hampered in the Gulf of Mexico after two hurricanes. Oil prices continue to thrive on the momentum of supply constraints in the U.S. Gulf of Mexico, which was reflected in the large crude inventory draws report of last week. Data from the U.S. Energy Information Administration showed U.S. crude stocks in the week to Sept. 17 fell by 3.5 million barrels to 414 million - the lowest total since October 2018. Oil also found some support as several members of the Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively known as OPEC+, struggled in recent months to raise output due to years of under-investment or delays to maintenance work because of the coronavirus pandemic. The oil market was also supported by a return of appetite for risk assets as concerns eased over a possible near-term default by Chinese property developer China Evergrande on its dollar bonds. Iraq's oil minister said OPEC and its allies are working to keep crude prices close to $70 per barrel as the global economy recovers, state news agency INA reported. The minister Ihsan Abdul-Jabbar added the ministry "hopes to maintain oil price at more than $65 per barrel." Technically market is under fresh buying as market has witnessed gain in open interest by 48.75% to settled at 7656 while prices up 101 rupees, now Crude oil is getting support at 5332 and below same could see a test of 5240 levels, and resistance is now likely to be seen at 5475, a move above could see prices testing 5526.
 

Trading Ideas:
Crude oil trading range for the day is 5240-5526.
Crude oil prices rose supported by growing fuel demand and a draw in U.S. crude inventories.
U.S. crude stocks fall to lowest since Oct. 2018, EIA says
The U.S. EIA data showed U.S. crude stocks in the week to Sept. 17 fell by 3.5 million barrels to 414 million


Natural gas

Nat.Gas yesterday settled up by 2.86% at 366.9 as soaring global gas prices kept demand for U.S. liquefied natural gas (LNG) exports high and output remained sluggish after Hurricane Ida in late August. Limiting price gains were a storage build in line with estimates and the five-year average, and forecasts for milder weather that would cap U.S. demand for gas. The U.S. Energy Information Administration (EIA) said utilities added 76 billion cubic feet (bcf) of gas into storage during the week ended Sept. 17. Last week's injection boosted stockpiles to 3.082 trillion cubic feet (tcf), or 6.9% below the five-year average of 3.311 tcf for this time of year. With gas prices near record highs of around $24 per mmBtu in Europe and $27 in Asia , versus just about $5 in the United States, traders noted buyers around the world were purchasing all the super-chilled gas the United States can produce. Despite reductions at several plants this month, data provider Refinitiv said, the amount of gas flowing to U.S. LNG export plants was only down to an average of 10.4 billion cubic feet per day (bcfd) so far in September, from 10.5 bcfd in August. Technically market is under short covering as market has witnessed drop in open interest by -38.19% to settled at 1499 while prices up 10.2 rupees, now Natural gas is getting support at 354.5 and below same could see a test of 342.1 levels, and resistance is now likely to be seen at 374.6, a move above could see prices testing 382.3.

Trading Ideas:
Natural gas trading range for the day is 342.1-382.3.
Natural gas rose as soaring global gas prices kept demand for U.S. LNG exports high and output remained sluggish after Hurricane Ida in late August.
Soaring gas prices ripple through heavy industry, supply chains
The U.S. Energy Information Administration (EIA) said utilities added 76 billion cubic feet (bcf) of gas into storage


Copper

Copper yesterday settled up by 0.11% at 714.9 as market concerns eased about the default of Evergrande. The U.S. Federal Reserve said it would begin tapering its stimulus programme as soon as November. The Fed said it would likely begin reducing its monthly bond purchases as soon as November and signaled interest rate increases may follow more quickly than expected. The global world refined copper market showed a 90,000 tonnes deficit in June, compared with a 4,000 tonnes surplus in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 6 months of the year, the market was in a 2,000 tonnes deficit compared with a 67,000 tonnes surplus in the same period a year earlier, the ICSG said. The People's Bank of China injected a total CNY 120 billion of reverse repos to maintain liquidity in the banking system on September 23rd, 2021. The injection comes at a time when China's second largest private property developer Evergrande faced a Thursday deadline to pay interest on one of its dollar bonds. The amount included CNY 60 billion of seven-day reverse repos at an interest rate of 2.2 percent, and CNY 60 billion of 14-day reverse repos at an interest rate of 2.35 percent. Technically market is under fresh buying as market has witnessed gain in open interest by 40.43% to settled at 3553 while prices up 0.8 rupees, now Copper is getting support at 709.6 and below same could see a test of 704.2 levels, and resistance is now likely to be seen at 718.8, a move above could see prices testing 722.6.

Trading Ideas:
Copper trading range for the day is 704.2-722.6.
Copper prices gained as market concerns eased about the default of Evergrande.
Copper market in 90,000 tonnes deficit in Jun 2021 – ICSG
PBoC Injects CNY 120 Billion into Market


Zinc

Zinc yesterday settled up by 1.77% at 255.9 as support seen due to production restrictions in southwest China. In China, power rationing sustained, and many zinc smelters have received notices to reduce their power consumption by 20 – 50%, which is expected to last until the end of September. The output of zinc ingot affected by power rationing in Hunan is estimated at 350 – 400 mt/day based on rough calculation. Global zinc market remained in a marginal surplus of 11kt between January and July 2021, much smaller than the 420kt surplus seen during the same period last year. Total refined zinc production rose by 4.4% YoY to 8.15mt, while total consumption jumped 10.2% YoY to 8.14mt in the first seven months of the year. Canadian miner Teck Resources Ltd cut its forecast for annual refined zinc production, citing an impact on its operations from wildfires in British Columbia. The company projected refined zinc production for 2021 to be in the range of 285,000 tonnes to 290,000 tonnes, down from a previous estimate of 290,000 tonnes to 300,000 tonnes. Production in Guangxi and Jiangsu has cut output due to power rationing. Technically market is under fresh buying as market has witnessed gain in open interest by 37.37% to settled at 1283 while prices up 4.45 rupees, now Zinc is getting support at 251.8 and below same could see a test of 247.8 levels, and resistance is now likely to be seen at 258.1, a move above could see prices testing 260.4.

Trading Ideas:
Zinc trading range for the day is 247.8-260.4.
Zinc prices rose as support seen due to production restrictions in southwest China.
In China, power rationing sustained, and many zinc smelters have received notices to reduce their power consumption by 20 – 50%
Global zinc market remained in a marginal surplus of 11kt between January and July 2021


Nickel

Nickel yesterday settled up by 1.38% at 1464.1 as prices seen supported by optimism that China, the biggest market, can avoid a damaging collapse of one of its biggest property developers, Evergrande. Chinese regulators have asked China Evergrande Group to avoid a near-term default on its dollar bonds. The global nickel market deficit declined to 24,700 tonnes in July from a June shortfall of 32,400 tonnes, data from the International Nickel Study Group (INSG) showed. During the first seven months of the year, the nickel market saw a deficit of 158,900 tonnes compared with a surplus of 80,500 tonnes in the same period last year, the INSG added. The demand of nickel fell as the influence of production reduction of stainless steel began to materialise. Transactions of ferronickel and nickel ore were thin. But the inventory of pure nickel stood at a low level, support nickel prices amid falling LME warrants. The number of Americans filing new claims for jobless benefits unexpectedly rose last week amid a surge in California, but the labor market continues to steadily recover. Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 351,000 for the week ended Sept. 18, the Labor Department said. Technically market is under fresh buying as market has witnessed gain in open interest by 52.8% to settled at 1010 while prices up 19.9 rupees, now Nickel is getting support at 1441.7 and below same could see a test of 1419.2 levels, and resistance is now likely to be seen at 1479.7, a move above could see prices testing 1495.2.

Trading Ideas:
Nickel trading range for the day is 1419.2-1495.2.
Nickel gains as prices seen supported by optimism that China, can avoid a damaging collapse of one of its biggest property developers, Evergrande.
Chinese regulators have asked China Evergrande Group to avoid a near-term default on its dollar bonds.
Global nickel market deficit narrows in July to 24,700 T – INSG

Aluminium

Aluminium yesterday settled up by 1.23% at 234.55 on concerns over supply and as debt troubles at China Evergrande Group soothe. Meantime, China produced 3.16 million tonnes of primary aluminum in August, 3.2% less than in July as the country suppressed smelting to reduce pollution and meet green targets. Also, supply was further disrupted by a military coup in Guinea, the second-largest producer of bauxite and the largest supplier of China. Elsewhere, smelters in the European Union are also facing rising costs with both carbon credit and power inputs at record highs. U.S. business activity expanded at its slowest pace in a year in September amid relentless supply constraints and peaking demand, in line with expectations for a sharp slowdown in economic growth in the third quarter. Data firm IHS Markit said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 54.5 this month. That was the lowest reading since September 2020 and followed 55.4 in August. Global primary aluminium output dropped to 5.699 million tonnes in August from a downwardly revised 5.733 million tonnes in July, data from the International Aluminium Institute (IAI) showed. Overall, primary aluminium production in August rose 3.15% year on year, the IAI said. Technically market is under fresh buying as market has witnessed gain in open interest by 3.36% to settled at 2369 while prices up 2.85 rupees, now Aluminium is getting support at 232.5 and below same could see a test of 230.4 levels, and resistance is now likely to be seen at 235.8, a move above could see prices testing 237.

Trading Ideas:
Aluminium trading range for the day is 230.4-237.
Aluminum prices rose on concerns over supply and as debt troubles at China Evergrande Group soothe.
China produced 3.16 million tonnes of primary aluminum in August, 3.2% less than in July
Smelters in the European Union are also facing rising costs with both carbon credit and power inputs at record highs.


Mentha oil

Mentha oil yesterday settled up by 0.35% at 937.3 on short covering after prices dropped after the news that US House Democrats have proposed a tax hike on tobacco and nicotine to help fund their $3.5 trillion spending plan. The measure may increase current levies on cigarettes, cigars and roll-your-own and smokeless tobacco, according to a plan summary. They have also proposed new taxes on vaping products. Pressure also seen after the news that the Food and Drug Administration has proposed a ban on menthol cigarettes, suggesting it may prompt 923,000 U.S. smokers to quit, according to one study. Goldman Sachs covering the beverage and tobacco sectors, pointed to the potential federal menthol ban as another area of concern for retailers. This year US FDA announced it is taking steps to ban menthol as a characterizing flavor in cigarettes, and ban all characterizing flavors — including menthol — in cigars within the next year. In Goldman Sachs' Nicotine Nuggets survey, nearly 70 percent of retailers said they expected cigarette volume declines to accelerate in 2021. In Sambhal spot market, Mentha oil gained by 28.6 Rupees to end at 1042.2 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 20.94% to settled at 1034 while prices up 3.3 rupees, now Mentha oil is getting support at 931.5 and below same could see a test of 925.8 levels, and resistance is now likely to be seen at 942.9, a move above could see prices testing 948.6.
 

Trading Ideas:

Mentha oil trading range for the day is 925.8-948.6.
In Sambhal spot market, Mentha oil gained  by 28.6 Rupees to end at 1042.2 Rupees per 360 kgs.
Mentha oil gained on short covering after prices droppedafter the news that US House Democrats have proposed a tax hike on tobacco and nicotine.
The measure may increase current levies on cigarettes, cigars and roll-your-own and smokeless tobacco, according to a plan summary.
Goldman Sachs covering the beverage and tobacco sectors, pointed to the potential federal menthol ban as another area of concern for retailers.


Soyabean

Soyabean yesterday settled up by 1.95% at 6117 as India's soybean production may decline sharply in the marketing year 2021-22 (October-September) as erratic rainfall during the sowing season affected yields. A poor soybean crop could increase India's reliance on edible oil imports and endanger its exports of soybean meal in the coming months. India's soybean production in MY 2021-22 is expected to be around 10.8 million mt, nearly 16.6% lower on the year. India harvested 12.9 million mt of soybean in MY 2020-21, according to ministry of agriculture. Exports of soyameal dropped by 58.93 per cent in August in view of high prices that made the commodity lose its competitive edge in the global market. According to India's ministry of agriculture, planted area under soybean was at 12.2 million hectares in 2021-22, slightly higher than 12.1 million hectares in 2020-21. Argentine farmers have sold a total 30 million tonnes of soybeans from the 2020/21 crop, after registering sales over a seven-day period of 650,200 tonnes, the Ministry of Agriculture said. The sales volume of one of Argentina's main crops lagged that of the previous season, when by the equivalent point some 31.6 million tonnes of the oilseed had been traded, the ministry said in report with data through Sept. 15. At the Indore spot market in top producer MP, soybean gained 132 Rupees to 6791 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.77% to settled at 35960 while prices up 117 rupees, now Soyabean is getting support at 6036 and below same could see a test of 5955 levels, and resistance is now likely to be seen at 6199, a move above could see prices testing 6281.

Trading Ideas:
Soyabean trading range for the day is 5955-6281.
Soyabean gained as India's soybean production may decline sharply in the marketing year 2021-22
India’s Aug’2021 soymeal exports declined by 81%, Oil meal export down by 4%.
U.S. September 2020/21 Soybean end stocks estimate at 185 million bushels: USDA
At the Indore spot market in top producer MP, soybean gained  132 Rupees to 6791 Rupees per 100 kgs.


Ref.Soyaoil

Ref.Soyaoil yesterday settled up by 1.92% at 1319.3 as oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively. Favorable weather over the weekend boosted U.S. harvest, while exports remain capped by terminals on the U.S. Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season. India's vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors' Association of India (SEA) said. Imports in 2020/21 marketing year ending Oct. 31 could fall to 13.1 million tonnes, the lowest in six years, from last year's 13.2 million, B.V. Mehta, SEA executive director, said in a virtual conference. Palm oil imports, however, could rise 8% from a year ago to 7.8 million tonnes, he said, as India allowed imports of refined palm oil and cut the import tax on crude palm oil. India's export of oilmeal, used as animal feed, declined 4 percent to 1,64,831 tonne in August from the year-ago period, in view of domestic shortage of the key oilmeal products. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1337.9 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -0.08% to settled at 26555 while prices up 24.8 rupees, now Ref.Soya oil is getting support at 1306 and below same could see a test of 1292 levels, and resistance is now likely to be seen at 1327, a move above could see prices testing 1334.

Trading Ideas:
Ref.Soya oil trading range for the day is 1292-1334.
Ref soyoil prices gained as oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected
India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA
U.S. August soybean oil stock seen at 1.668 billion pounds: NOPA
At the Indore spot market in Madhya Pradesh, soyoil was steady at 1337.9 Rupees per 10 kgs.


Crude palm Oil

Crude palm Oil yesterday settled up by 0.88% at 1127.8 underpinned by signs of slowing production and a recovery in rival soyoil prices. Southern Peninsula Palm Oil Millers' Association estimated Malaysia's production during Sept. 1-20 fell 4.5% from the same period in August. Exports of Malaysian palm oil products for Sep. 1-20 rose 36.7 percent to 1,070,096 tonnes from 783,027 tonnes shipped during Aug. 1-20. Malaysia's palm oil exports during Sept. 1-20 rose 38% to 1,089,071 tonnes from the same week in August, cargo surveyor Amspec Agri said. However, this was slower than a 54% monthly rise in Sept. 1-15. Malaysia maintained its October export tax for crude palm oil at 8%, a circular on the Malaysian Palm Oil Board website showed. The world's second-largest palm exporter calculated a reference price of 4,472.46 ringgit ($1,068.18) per tonne for October, up from 4,255.52 ringgit in September. India has cut base import taxes on palm oil, soyoil and sunflower oil, a government order showed, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The reduction in taxes could bring down prices of the edible oils in India and boost consumption, effectively increasing overseas buying by the south Asian country. In spot market, Crude palm oil gained by 0.6 Rupees to end at 1145 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 1.46% to settled at 4740 while prices up 9.8 rupees, now CPO is getting support at 1123.7 and below same could see a test of 1119.6 levels, and resistance is now likely to be seen at 1130.7, a move above could see prices testing 1133.6.

Trading Ideas:
CPO trading range for the day is 1119.6-1133.6.
Crude palm oil gains underpinned by signs of slowing production and a recovery in rival soyoil prices.
Southern Peninsula Palm Oil Millers' Association estimated Malaysia's production during Sept. 1-20 fell 4.5% from the same period in August.
Malaysia’s September 1-20 palm oil exports shoots up
In spot market, Crude palm oil gained  by 0.6 Rupees to end at 1145 Rupees.


Mustard Seed

Mustard Seed yesterday settled up by 0.78% at 8674 due to deficient stocks and peak consumption season. According to market sources, mustards stocks dwindle to 30Lakh tonnes with about 5-6 months remaining for new arrival season. Statistics Canada cut its canola production estimate to a 13-year low, due to drought. Prices seen supported as Government has increased the Mustard seed MSP from 4650.00 to 5050 i.e Rs.400 per quintal for RMS 2022-23. Support also seen amid regular demand from the stockists and lowering all India arrivals. In their August report, the IGC lowered their forecast for the world rapeseed production to 70.9 million tons (-2.2 compared to July and 72.1 compared to 2020/21). The rapeseed production in Canada will be 16 million tons (-2.8 and 18.7), 4.5 million tons in Australia (4.2 and 4.1), 2.8 million tons in Ukraine (2.7 and 2.7). USDA estimates Canada rapeseed production for marketing year 2021/22 at 16.0 million metric tons (mmt), down 4.2 mmt (21 percent) from last month, 3.0 mmt (16 percent) from last year, and 20 percent below the 5-year average. Harvested area is estimated at 8.7 million hectares, down 3 percent from last month, but 4 percent above last year, and roughly equivalent to the 5-year average. In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8835 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 0.44% to settled at 43790 while prices up 67 rupees, now Rmseed is getting support at 8614 and below same could see a test of 8555 levels, and resistance is now likely to be seen at 8726, a move above could see prices testing 8779.

Trading Ideas:
Rmseed trading range for the day is 8555-8779.
Mustard seed gained due to deficient stocks and peak consumption season.
Statistics Canada cut its canola production estimate to a 13-year low, due to drought.
Government has increased the Mustard seed MSP from 4650.00 to 5050 i.e Rs.400 per quintal for RMS 2022-23.
In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8835 Rupees per 100 kg.



Turmeric

Turmeric yesterday settled down by -2.87% at 7100 amid prospects of better crop this kharif season along with tepid demand. Pressure seen as the areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. However downside seen limited on short covering following export demand from Europe, Gulf countries and Bangladesh. Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains. India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough, and ensure that the most important crops for the kharif season have normal sowing. This is good news for agricultural production and food prices. Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices. According to the statistics of the Department of Commerce, Government of India, the highest number of 1.84 lakh tonnes of turmeric was exported during the last financial year 2020-21. In the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year, but could be higher in the coming months. In Nizamabad, a major spot market in AP, the price ended at 7208.95 Rupees dropped -6.2 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 0.4% to settled at 12435 while prices down -210 rupees, now Turmeric is getting support at 7026 and below same could see a test of 6950 levels, and resistance is now likely to be seen at 7226, a move above could see prices testing 7350.

Trading Ideas:
Turmeric trading range for the day is 6950-7350.
Turmeric dropped amid prospects of better crop this kharif season along with tepid demand.
Pressure seen as the areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season.
However downside seen limited on short covering following export demand from Europe, Gulf countries and Bangladesh.
In Nizamabad, a major spot market in AP, the price ended at 7208.95 Rupees dropped -6.2 Rupees.


Jeera

Jeera yesterday settled up by 0.14% at 14210 as the export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. However upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels. With the forecast of normal rains in the western region during September to November, the sowing of cumin seeds in Gujarat and Rajasthan may increase. In 2021 (January-June), the country has exported more than 1.50 lakh tonnes of cumin as compared to 1.3 lakh tonnes in the same period last year. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. With Gujarat and Rajasthan being the only producers of cumin in the country, the most impact of Skymet's forecast is visible on the cumin market. The export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. However, the freight of container-vessels has increased and the shortage of containers is increasing continuously. In Unjha, a key spot market in Gujarat, jeera edged up by 52.6 Rupees to end at 14333.35 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -1.37% to settled at 4980 while prices up 20 rupees, now Jeera is getting support at 14120 and below same could see a test of 14030 levels, and resistance is now likely to be seen at 14275, a move above could see prices testing 14340.

Trading Ideas:
Jeera trading range for the day is 14030-14340.
Jeera gains as the export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin
However upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels.
India's cumin exports will increase due to less supply from Afghanistan-Syrian
In Unjha, a key spot market in Gujarat, jeera edged up by 52.6 Rupees to end at 14333.35 Rupees per 100 kg.


Cotton

Cotton yesterday settled up by 1.53% at 25810 as the pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated. Over one fourth area in biggest cotton growing districts of Bathinda and Mansa are disturbed on the count though earlier the attack was felt in around 10-15% area in these districts. Cotton procurement for 2021-22 kharif season should commence from the first week of November, Minister for Cooperation and Marketing Balasaheb Patil said. At a meeting, Patil took the stock of cotton cultivation in Maharashtra. He directed the department to start early cotton procurement from November first week to facilitate timely sale and income for farmers. The directives come in the wake of a delay in the last kharif season due to Covid-19 pandemic and lockdown, for which procurement centres did not open on time. “Cotton sowing in the current kharif season was done on 39.37 lack hectares. Last year, it was sown on 42.08 lakh hectares. The area under cotton sowing has declined by 6.44 per cent,” Patil said. Amid high demand and better prices being offered by private players, Punjab has witnessed a 50-fold increase in the arrival of cotton crop at mandis as compared to the figures till September 21 last year. In spot market, Cotton dropped by -70 Rupees to end at 26390 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.21% to settled at 1858 while prices up 390 rupees, now Cotton is getting support at 25480 and below same could see a test of 25160 levels, and resistance is now likely to be seen at 26010, a move above could see prices testing 26220.

Trading Ideas:
Cotton trading range for the day is 25160-26220.
Cotton prices remained supported as the pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated.
Kharif cotton procurement should begin in November: Maharashtra minister
Amid high demand and better prices being offered by private players, Punjab has witnessed a 50-fold increase in the arrival of cotton crop
In spot market, Cotton dropped  by -70 Rupees to end at 26390 Rupees.

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