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Gold

Gold yesterday settled down by -0.01% at 48055 as encouraging news regarding the omicron coronavirus variant boosted investors' risk appetite. Euro zone inflation will take longer to fall back to target than earlier thought but so far there is no evidence that high prices are becoming embedded in wages, ECB Vice President Luis de Guindos said. High inflation is challenging the ECB, which has little experience dealing with rapid price growth and complicates a crucial policy decision due on Dec. 16. While the ECB has maintained that inflation is temporary and will come back under target on its own, a growing number of policymakers are voicing their concern that a less benign outcome is also possible, so the bank should curb stimulus. Pfizer and BioNTech announced a 3rd dose of its coronavirus vaccine is effective in neutralizing the omicron variant and other studies suggested that although the new strain is more contagious it appears to be less severe than initially expected. Traders now await more economic data for the US to be released during the week including the inflation rate which could strengthen the case for the Fed to continue to tighten. Speculators' net long positioning on the U.S. dollar in the latest week soared to its highest level since mid-June 2019, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data. Technically market is under long liquidation as market has witnessed drop in open interest by -0.69% to settled at 8735 while prices down -5 rupees, now Gold is getting support at 47908 and below same could see a test of 47760 levels, and resistance is now likely to be seen at 48252, a move above could see prices testing 48448.

Trading Ideas:

* Gold trading range for the day is 47760-48448.

* Gold steadied as encouraging news regarding the omicron coronavirus variant boosted investors' risk appetite.

* Euro zone inflation will take longer to fall back to 2%, says ECB

* Pfizer and BioNTech announced a 3rd dose of its coronavirus vaccine is effective in neutralizing the omicron variant
 

Silver

Silver yesterday settled down by -0.33% at 61623 with markets more optimistic as worries over the Omicron coronavirus variant ease. The market remained focused on Friday's U.S. Consumer Price Index (CPI) report that may influence the timeline of the Fed's tapering of economic support before its next policy meeting on Dec. 14-15. There were concerns over rising tensions between the United States and Russia regarding Ukraine. After a tense two-hour summit, the U.S. said it is preparing "robust responses" over fears of a Russian invasion of Ukraine. Investors also monitored the latest developments in China's property sector after ailing Evergrande reportedly failed to make overseas debt payments within a grace period. In another development, trading in shares of embattled Chinese developer Kaisa Group Holdings was suspended in Hong Kong, prompting fresh concerns about potential defaults. Labor productivity in the U.S. plunged by even more than initially estimated in the third quarter, according to revised data released by the Labor Department. The Labor Department said labor productivity tumbled by 5.2 percent in the third quarter compared to the previously reported 5.0 percent nosedive. After reporting a record U.S. trade deficit in the previous month, the Commerce Department showing the trade deficit narrowed significantly in the month of October amid a spike in the value of exports. Technically market is under fresh selling as market has witnessed gain in open interest by 8.01% to settled at 13204 while prices down -205 rupees, now Silver is getting support at 61349 and below same could see a test of 61074 levels, and resistance is now likely to be seen at 61932, a move above could see prices testing 62240.

Trading Ideas:

* Silver trading range for the day is 61074-62240.

* Silver prices dropped with markets more optimistic as worries over the Omicron coronavirus variant ease.

* Labor productivity in the U.S. plunged by even more than initially estimated in the third quarter

* There were concerns over rising tensions between the United States and Russia regarding Ukraine.

Crude oil

Crude oil yesterday settled down by -0.04% at 5468 as investors tried to assess the full impact of the Omicron coronavirus variant on global fuel demand and the effectiveness of existing vaccines. U.S. crude stocks fell while gasoline and distillate inventories rose, the Energy Information Administration said. Crude inventories fell by 240,000 barrels in the week to Dec. 3 to 432.9 million barrels, compared with expectations for a 1.7 million-barrel drop. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2.4 million barrels in the last week, EIA said. Refinery crude runs rose by 154,000 barrels per day in the last week, EIA said. Refinery utilization rates rose by 1 percentage points, in the week. There are reports that British Prime Minister Boris Johnson was set to tighten COVID restrictions, including advice to work from home, revived fears of a slowdown in activity. Geopolitical tensions also remained on investors' radar amid rising tensions between the United States and Russia regarding Ukraine. The market was also focused on rising geopolitical tensions as talks between Washington and Tehran over Iran's nuclear programme were set to resume this week with Western officials voicing dismay at sweeping Iranian demands. An easing of U.S. sanctions is expected to lead to higher exports of Iranian oil, which could add downward pressure on oil prices. Technically market is under long liquidation as market has witnessed drop in open interest by -19.81% to settled at 4324 while prices down -2 rupees, now Crude oil is getting support at 5379 and below same could see a test of 5291 levels, and resistance is now likely to be seen at 5535, a move above could see prices testing 5603.

Trading Ideas:

* Crude oil trading range for the day is 5291-5603.

* Crude oil settled flat as investors tried to assess the full impact of the Omicron coronavirus variant on global fuel demand and the effectiveness of existing vaccines.

* U.S. crude stocks fell while gasoline and distillate inventories rose, the Energy Information Administration said.

* Oil inventories fall by 3.1m barrels last week: API



Nat.Gas

Nat.Gas yesterday settled up by 4.03% at 291.7 on forecasts for more heating demand this week than previously expected and as the U.S. market followed a 7% jump in European gas prices that should keep U.S. liquefied natural gas (LNG) exports at record highs. Traders said that increase in U.S. prices occurred despite forecasts for milder U.S. weather and lower heating demand next week than previously expected. Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 96.3 billion cubic feet per day (bcfd) so far in December, down from a monthly record of 96.5 bcfd in November. With an unusual warming of the weather expected later in December, Refinitiv projected average U.S. gas demand, including exports, would drop from 115.5 bcfd this week to 108.5 bcfd next week. The forecast for this week was higher than Refinitiv's outlook on Tuesday, while the forecast for next week was lower. The amount of gas flowing to U.S. LNG export plants has averaged 11.8 bcfd so far in December now that the sixth train at Cheniere Energy Inc's Sabine Pass plant in Louisiana is producing LNG. That compares to 11.4 bcfd in November and a monthly record of 11.5 bcfd in April. Technically market is under short covering as market has witnessed drop in open interest by -12.73% to settled at 7767 while prices up 11.3 rupees, now Natural gas is getting support at 284.8 and below same could see a test of 277.8 levels, and resistance is now likely to be seen at 298, a move above could see prices testing 304.2.

Trading Ideas:

* Natural gas trading range for the day is 277.8-304.2.

* Natural gas rose on forecasts for more heating demand this week than previously expected

* The U.S. market followed a 7% jump in European gas prices that should keep U.S. liquefied natural gas (LNG) exports at record highs.

* Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 96.3 billion cubic feet per day (bcfd) so far in December



Copper

Copper yesterday settled up by 0.86% at 741.6 as inventories in Shanghai Futures Exchange warehouses and Chinese bonded warehouses have fallen rapidly since the summer, pointing to a tight market. Support seen prices after a cut in reserve requirements for banks released 1.2 trillion yuan ($188 billion) in long-term liquidity to support the economy. However, upside seen limited as concern over the impact of the Omicron coronavirus variant blunted the effect of economic stimulus in top consumer China. Investors are wary that major central banks will signal tighter policy in meetings this month. Speculators slashed their net long position in copper on the Comex exchange to the lowest in more than a year. China's copper imports in November rose 24.3% from the October to their highest since March. Chile, the world's top copper producer, saw exports of the red metal soar over 35% to $4.92 billion in November, the Andean country's central bank said, bolstered by strong global prices of the metal. That helped the country post a trade surplus of $834 million in the month, despite the strong growth of imports. Overall exports rose some 30% year-on-year to $8.4 billion, while imports climbed 57% to $7.58 billion. The head of Chile's state mining firm Codelco, the world's largest producer of the metal, recently said that he expects the price to dip in 2022. Technically market is under fresh buying as market has witnessed gain in open interest by 12% to settled at 5825 while prices up 6.3 rupees, now Copper is getting support at 735.1 and below same could see a test of 728.6 levels, and resistance is now likely to be seen at 745.3, a move above could see prices testing 749.

Trading Ideas:

* Copper trading range for the day is 728.6-749.

* Copper gains as inventories in Shfe warehouses and Chinese bonded warehouses have fallen rapidly since the summer, pointing to a tight market.

* Chile copper exports soar to $4.9 bln in November on high global prices

* China's copper imports in November rose 24.3% from the October to their highest since March.

 

Zinc

Zinc yesterday settled up by 2% at 277.75 amid a positive macro front as the market worries over omicron COVID variant weakened after statistics showed that it is likely to be milder than Delta variant. The final reading of Q3 GDP in eurozone, was in line with expectation and boosted market confidence over economic recovery. In the spot market, the premiums in Shanghai rose as the demand in Ningbo was seeking supplies from other regions as well as due to logistics disruptions. The purchase in Guangdong and Tianjin was still made on rigid demand. The overall downstream sector was wait and see after zinc prices increased. China's refined zinc output stood at 519,500 mt in November, up 20,200 mt or 4.05% on the month but down 7.61% on the year. The combined output from January to November stood at 5.57 million mt, up 0.41% year on year. Alloy output at domestic refined zinc smelters in survey sample registered 77,000 mt in November, up 3,500 mt mt on the month. China's refined zinc output in November was basically on par with estimate. The increase in output was partly contributed by the expected production resumption from power rationing in Hunan, Guangxi, Henan, Gansu and Liaoning. Technically market is under fresh buying as market has witnessed gain in open interest by 23.21% to settled at 1688 while prices up 5.45 rupees, now Zinc is getting support at 273.7 and below same could see a test of 269.6 levels, and resistance is now likely to be seen at 280.2, a move above could see prices testing 282.6.

Trading Ideas:

* Zinc trading range for the day is 269.6-282.6.

* Zinc gains amid a positive macro front as the market worries over omicron COVID variant weakened

* The final reading of Q3 GDP in eurozone, was in line with expectation and boosted market confidence over economic recovery.

* Investors are wary that major central banks will signal tighter policy in meetings this month.

Nickel

Nickel yesterday settled up by 0.44% at 1574.2 as inventories in the city's exchange warehouses hovered near record lows, while the demand outlook remained robust. Refined nickel inventories in ShFE warehouses were at 5,563 tonnes last week, hovering near a record low of 4,455 tonnes hit in August. LME stocks of the metal fell 58% from April to 110,358 tonnes, their lowest since December 2019. LME cash nickel premium over the three-month contract was $150.80 a tonne, indicating tight nearby supplies. Japanese manufacturers' business confidence index rose to a four-month high in December as supply constraints began to ease, offering policymakers some hope the economy was headed for a moderate recovery. The Reuters Tankan index readings are derived by subtracting the percentage of respondents who say conditions are poor from those who say they are good. A negative reading means that pessimists outnumber optimists. The global nickel market deficit narrowed to 5,200 tonnes in September from a shortfall a month earlier of 14,600 tonnes, data from the International Nickel Study Group (INSG) showed. During the first nine months of the year, the nickel market saw a deficit of 174,900 tonnes compared with a surplus of 88,000 tonnes 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 5.88% to settled at 1980 while prices up 6.9 rupees, now Nickel is getting support at 1565.9 and below same could see a test of 1557.6 levels, and resistance is now likely to be seen at 1582.8, a move above could see prices testing 1591.4.

Trading Ideas:

* Nickel trading range for the day is 1557.6-1591.4.

* Nickel prices rose as inventories in the city's exchange warehouses hovered near record lows, while the demand outlook remained robust.

* Refined nickel inventories in ShFE warehouses were at 5,563 tonnes last week, hovering near a record low of 4,455 tonnes hit in August

* LME cash nickel premium over the three-month contract was $150.80 a tonne, indicating tight nearby supplies.

Aluminium

Aluminium yesterday settled up by 0.38% at 213.2 as the aluminium output in November dropped 3% year-on-year and stood at a low level in November. The exports of unwrought aluminium and aluminium semis rose by more than 20% YoY in the same month, supporting aluminium prices. The US Department of Commerce announced that the commodities and services trade deficit in October dropped 17.6% to $6,710 billion, the smallest deficit in six months since April ($6,620 billion). The revised reading for September stood at $8,140 billion. The market also became less worried about the omicron variant as statistics showed that it may be milder than Delta. The risk sentiment also improved after the central Bank of China signalled steady growth strategy. Data showed that China's aluminium output was 3.07 million mt in November (30 days), a year-on-year decrease of 3%. The daily average output was 102,000 mt, flat on the month. China produced 35.32 million mt of aluminium from January to November, a year-on-year increase of 4.35%. The operating capacity of aluminium rose slightly in November. Among them, the production in Guangxi and Chongqing reduced due to short power supply. Data showed that in November (30 days), China’s alumina output was 6.24 million mt, of which metallurgical-grade alumina was 6.1 million mt. Technically market is under fresh buying as market has witnessed gain in open interest by 5.42% to settled at 2160 while prices up 0.8 rupees, now Aluminium is getting support at 211.9 and below same could see a test of 210.6 levels, and resistance is now likely to be seen at 214.1, a move above could see prices testing 215.

Trading Ideas:

* Aluminium trading range for the day is 210.6-215.

* Aluminium gains as the aluminium output in November dropped 3% year-on-year and stood at a low level in November.

* The exports of unwrought aluminium and aluminium semis rose by more than 20% YoY in the same month, supporting aluminium prices.

* The risk sentiment also improved after the central Bank of China signalled steady growth strategy.

Mentha oil

Mentha oil yesterday settled up by 0.65% at 971 on low level buying after prices dropped as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil gained by 5.3 Rupees to end at 1103.4 Rupees per 360 kgs.Technically market is under short covering as market has witnessed drop in open interest by -0.56% to settled at 891 while prices up 6.3 rupees, now Mentha oil is getting support at 962.7 and below same could see a test of 954.4 levels, and resistance is now likely to be seen at 977.1, a move above could see prices testing 983.2.

Trading Ideas:

* Mentha oil trading range for the day is 954.4-983.2.

* In Sambhal spot market, Mentha oil gained  by 5.3 Rupees to end at 1103.4 Rupees per 360 kgs.

* Mentha oil gains on low level buying after prices dropped as demand from consumer side is extremely weak

* Prices got support in last few weeks as due to crop failure and low recovery of oil

* Availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season.

Soyabean

Soyabean yesterday settled up by 0.44% at 6551 on concerns about tight supplies amid dry weather in Brazil and strong demand for U.S. exports underpinned prices. Prices in overseas dropped as crop prospects brightened in South America, fuelling expectations for bumper global supplies. China's soybean imports rose sharply in November from the previous month, as more shipments from the United States arrived during the peak North American export season, customs data showed. China, the world's top buyer of soybeans, brought in 8.57 million tonnes of the oilseed in November, up 68% from 5.11 million tonnes in October, data from the General Administration of Customs showed. Hurricane Ida limited U.S. grains exports including soybeans in September by crippling terminals and delaying shipments. The planting of Brazil's 2021/22 soybean crop had reached 94% of the estimated area and is progressing well in most of the country, although a recent lack of rains put farmers on alert in some southern states. Private exporters sold 122,000 tonnes of U.S. soybeans to unknown destinations for the 2021-2022 marketing year, the U.S. Department of Agriculture (USDA) said last week. The USDA said weekly export inspections of wheat totalled 245,963 tonnes. It also upwardly revised its wheat inspections total for the prior week to 390,771 tonnes from 250,651 tonnes. At the Indore spot market in top producer MP, soybean gained 85 Rupees to 6672 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -26.08% to settled at while prices up 29 rupees, now Soyabean is getting support at 6465 and below same could see a test of 6378 levels, and resistance is now likely to be seen at 6681, a move above could see prices testing 6810.

Trading Ideas:

* Soyabean trading range for the day is 6378-6810.

* Soyabean gained on concerns about tight supplies amid dry weather in Brazil and strong demand for U.S. exports underpinned prices.

* China's November soybean imports rise on month as more U.S. cargoes kick in

* China imported 8.57 mln tonnes of soy in November

* At the Indore spot market in top producer MP, soybean gained  85 Rupees to 6672 Rupees per 100 kgs.

 

Soyaoil

Ref.Soyaoil yesterday settled down by -1.42% at 1212.2 after the U.S raised a proposal to scale back biofuel blending mandates. The Biden administration proposed scaling back the amount of biofuels that U.S. oil refiners were required to blend into their fuel mix since the onset of the COVID-19 pandemic. Pressure also seen as crop prospects brightened in South America, fuelling expectations for bumper global supplies. Prices came under pressure as forecasts for improving crop weather in Brazil and Argentina weighed on the market. The U.S. soybean crush in October likely jumped to a nine-month high of 5.868 million short tons, or 195.6 million bushels, ahead of a monthly U.S. Department of Agriculture (USDA) report. Crush estimates ranged from 194.5 million bushels to 196.3 million bushels, with a median of 195.7 million bushels. The National Oilseed Processors Association said its members, which account for about 95% of all U.S. soybean crushings, processed 183.993 million bushels in October. Soyoil stocks among NOPA members rose to 1.835 billion lbs at the end of the month. Rajasthan Govt imposed stocks limits on soyabean oil. Pressure seen amid broad-based selling in commodities over concerns about a new variant of the coronavirus. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1225.9 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.32% to settled at while prices down -17.4 rupees, now Ref.Soya oil is getting support at 1206 and below same could see a test of 1201 levels, and resistance is now likely to be seen at 1220, a move above could see prices testing 1229.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1201-1229.

* Ref soyoil prices dropped after the U.S raised a proposal to scale back biofuel blending mandates.

* Pressure also seen as crop prospects brightened in South America, fuelling expectations for bumper global supplies.

* The Maharashtra Government has decided not to put stock-limit on edible oil stocks

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1225.9 Rupees per 10 kgs.
 

Crude palm Oil

Crude palm Oil yesterday settled down by -1.03% at 1114.4 as rival soyoil fell after the U.S raised a proposal to scale back biofuel blending mandates. Malaysia's palm oil stockpile at the end of November likely slipped 3.5% from the previous month to a four-month low of 1.77 million tonnes. Production likely rose 1% from October to 1.74 million tonnes, while exports were forecast to expand 11.9% to 1.59 million tonnes. The likely month-on-month drop in November inventories contrasts with historical trends of an average 4% rise over the past 10 years. Concerns over the Omicron coronavirus variant hurting demand and stalling economic recovery globally have weighed on prices in recent days, as the spread of the new strain causes alarm worldwide. Palm oil production will likely remain soft until at least the first half of 2022, which would continue to provide cushion for prices in the coming months. The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated November production fell 6.8% from the month before. India is likely to buy more Malaysian palm oil after export levies imposed by top producer Indonesia hit record highs in the past year, B.V. Mehta, executive director of India's Solvent Extractors' Association, said. In spot market, Crude palm oil dropped by -11.1 Rupees to end at 1119.1 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.68% to settled at 4989 while prices down -11.6 rupees, now CPO is getting support at 1102.6 and below same could see a test of 1090.8 levels, and resistance is now likely to be seen at 1124.6, a move above could see prices testing 1134.8.

Trading Ideas:

* CPO trading range for the day is 1090.8-1134.8.

* Crude palm oil dropped as rival soyoil fell after the U.S raised a proposal to scale back biofuel blending mandates.

* Malaysia's November stocks seen down 3.5% m/m

* Production likely rose 1% from October to 1.74 million tonnes, while exports were forecast to expand 11.9% to 1.59 million tonnes.

* In spot market, Crude palm oil dropped  by -11.1 Rupees to end at 1119.1 Rupees.
 

Turmeric

Turmeric yesterday settled up by 0.76% at 7964 as incessant rains in the southern parts of the country are expected to damage the crop. However upside seen limited as export demand reported lower due to increased shipping cost and some travel restriction in South Asian countries added the bearish sentiment. Turmeric all India production for 2022 is estimated at 4.89 lakh MT. Last year’s production was 4.46 lakh MT, up by 9.64% from last year. Pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. Exports of jeera during Apr-Sep declined 14% on year to 139,295 tn, from 162,033 tn a year ago. There were also reports of export demand from Europe, Gulf countries and Bangladesh. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season. Besides, heavy carryover stocks and slack in bulk demand are keeping prices under pressure. In Nizamabad, a major spot market in AP, the price ended at 7818.75 Rupees gained 202.1 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -8.7% to settled at while prices up 60 rupees, now Turmeric is getting support at 7746 and below same could see a test of 7526 levels, and resistance is now likely to be seen at 8108, a move above could see prices testing 8250.

Trading Ideas:

* Turmeric trading range for the day is 7526-8250.

* Turmeric prices gained as incessant rains in the southern parts of the country are expected to damage the crop.

* Spices Board pegs Apr-Sep turmeric exports at 77,245 tn, down 26%

* Turmeric all India production for 2022 is estimated at 4.89 lakh MT up by 9.64% from last year.

* In Nizamabad, a major spot market in AP, the price ended at 7818.75 Rupees gained 202.1 Rupees.
 

Jeera

Jeera yesterday settled down by -0.71% at 16035 as cumin exports declined by 1.4% year-on-year to 1.39 lakh tonnes in April-September but are expected to improve in the coming months. However downside seen limited as domestic demand is now picking up also the export inquiries to support price. Pressure also seen as adequate stock with traders and farmers may keeping prices under pressure at higher levels. The area under cumin in Gujarat is only 1.71 lakh hectares as against 3 lakh hectares in the same period last year, while in Rajasthan, cumin was sown in 3.20 lakh hectares. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. India exported 77,245 tn of turmeric in Apr-Sep, down 26% on year. During last two months, the prices were higher compared to last year despite sufficient stocks with traders. Sowing can see drop as farmers preferred to have other crop against Jeera. Weather in key sowing area will be crucial in next few months. 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. In Unjha, a key spot market in Gujarat, jeera edged up by 76.75 Rupees to end at 16222.2 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -1.93% to settled at while prices down -115 rupees, now Jeera is getting support at 15935 and below same could see a test of 15840 levels, and resistance is now likely to be seen at 16160, a move above could see prices testing 16290.

Trading Ideas:

* Jeera trading range for the day is 15840-16290.

* Jeera dropped on profit booking as cumin exports declined by 1.4% year-on-year to 1.39 lakh tonnes in April-September.

* However downside seen limited as domestic demand is now picking up also the export inquiries to support price.

* The area under cumin in Gujarat is only 1.71 lakh hectares as against 3 lakh hectares in the same period last year

* In Unjha, a key spot market in Gujarat, jeera edged up by 76.75 Rupees to end at 16222.2 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled down by -0.29% at 31420 as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact. The slump in the prices of cotton crop is also being seen as the direct impact of this. Supply chain bottlenecks and the emergence of the Omicron variant may affect consumer buying. Cotton prices are expected to soften from their peak levels of around ₹8,000-8,800 a quintal (raw cotton) as the arrivals gain momentum said CAI. Acknowledging that the cotton arrivals in India have been delayed partly due to the unseasonal rains and other factors, Atul Ganatra, President, CAI, stated that "cotton prices in India will fall once the arrivals pick up." Cotton farmers hit hard in Andhra Pradesh as CCI yet to enter market, ensure MSP- Farmers in the state are being exploited heavily this year, as the CCI is yet to enter the market. The private players in the market are offering throwaway price to the farmers, denying minimum support price (MSP) offered by the state government. Mills are cautiously buying cotton for 10-day production needs and hoping that new arrivals will bring down the price in India. Countries like Vietnam and Bangladesh have also increased textile manufacturing and their demand for cotton. In spot market, Cotton dropped by -10 Rupees to end at 31620 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.06% to settled at 4558 while prices down -90 rupees, now Cotton is getting support at 31240 and below same could see a test of 31070 levels, and resistance is now likely to be seen at 31540, a move above could see prices testing 31670.

Trading Ideas:

* Cotton trading range for the day is 31070-31670.

* Cotton prices dropped as the chances of re-emergence of the Covid through the Omicron variant is said to be having a global impact.

* Cotton prices soften from their peak levels as the arrivals gain momentum said CAI.

* According to the Punjab Mandi Board data, 9.57 lakh quintal of cotton was purchased in the state till Saturday.

* In spot market, Cotton dropped  by -10 Rupees to end at 31620 Rupees.

 

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