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Gold

Gold yesterday settled up by 0.56% at 48287 drawing support from lower U.S. yields in the run-up to data could shed more light on the U.S. inflation picture. The U.S. Federal Reserve looks at a wide range of indicators in gauging how close the economy is to reaching full employment, Fed Chair Jerome Powell said, as he reiterated the benefits of targeting workers who often remain on the sidelines. "When we assess whether we are at maximum employment, we purposely look at a wide range of indicators," Powell told a virtual conference on diversity and inclusion in economics, finance, and central banking, co-hosted by the Fed alongside other major central banks. In doing so the Fed is attentive to labor market disparities, "rather than just the headline numbers," Powell said as he noted an economy is healthier and stronger when as many people as possible are able to work. Key central banks last week indicated interest rates would remain low in the near term, boosting the appeal of non-yielding gold and helping the metal post its best week since late August. However, a tight U.S. labour market and the dislocation in global supply chains could result in a high reading for U.S. consumer prices due on Wednesday. Technically market is under short covering as market has witnessed drop in open interest by -0.22% to settled at 7625 while prices up 269 rupees, now Gold is getting support at 48071 and below same could see a test of 47856 levels, and resistance is now likely to be seen at 48406, a move above could see prices testing 48526.

Trading Ideas:
# Gold trading range for the day is 47856-48526.
# Gold prices remained supported drawing support from lower U.S. yields in the run-up to data could shed more light on the U.S. inflation picture.
# Fed’s looks at a wide range of indicators in gauging how close the economy is to reaching full employment, Fed Chair Jerome Powell said
# A tight U.S. labour market and the dislocation in global supply chains could result in a high reading for U.S. consumer prices due on Wednesday.

 

Silver

Silver yesterday settled down by -0.48% at 64570 amid a slightly firmer dollar, as investors awaited U.S. inflation data scheduled for later in the week. However, the dollar hovered close to the previous session's lows and the yield on benchmark 10-year Treasury notes ticked down following reports that Fed Governor Lael Brainard, widely viewed as the most dovish member of the Federal Open Market Committee, was interviewed for the top job at the U.S. central bank. Chicago Federal Reserve Bank President Charles Evans repeated his view that the current surge in inflation is largely "temporary" and he still believes the Fed will not need to raise interest rates until 2023. The U.S. Federal Reserve looks at a wide range of indicators in gauging how close the economy is to reaching full employment, Fed Chair Jerome Powell said, as he reiterated the benefits of targeting workers who often remain on the sidelines. "When we assess whether we are at maximum employment, we purposely look at a wide range of indicators," Powell told a virtual conference on diversity and inclusion in economics, finance, and central banking, co-hosted by the Fed alongside other major central banks. Technically market is under long liquidation as market has witnessed drop in open interest by -2.67% to settled at 9298 while prices down -311 rupees, now Silver is getting support at 64116 and below same could see a test of 63662 levels, and resistance is now likely to be seen at 65055, a move above could see prices testing 65540.

Trading Ideas:
# Silver trading range for the day is 63662-65540.
# Silver prices retreated amid a slightly firmer dollar, as investors awaited U.S. inflation data scheduled for later in the week.
# U.S. producer prices increase solidly in October
# Fed’s Brainard, widely viewed as the most dovish member of the Federal Open Market Committee, was interviewed for the top job at the U.S. central bank.


Crude oil

Crude oil yesterday settled up by 2.44% at 6206 as the U.S. lifting of travel restrictions and more signs of a global post-pandemic recovery boosted the demand outlook, while supply remained tight. Travellers took off for the United States again, while the passing of U.S. President Joe Biden's infrastructure bill and better-than-expected Chinese exports helped paint a picture of a recovering global economy. Support also seen supported by supply restraint by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, and recovering demand. JPMorgan Chase said global demand for oil in November was already nearly back to pre-pandemic levels of 100 million barrels per day (bpd), following last year's collapse. Despite a tight global market, U.S. crude inventories are expected to have risen for a third straight week, possibly helping to cap further gains in prices. Oil demand is expected to exceed 100 million barrels per day in 2022, Al-Arabiya TV cited Saudi Aramco's chief executive as saying. The passing of the $1 trillion U.S. infrastructure bill in Congress and better-than-expected Chinese exports data also helped lift the outlook for fuel demand. As supply remains tight, U.S. President Biden is expected to take measures as early as this week to address soaring gasoline prices. Technically market is under short covering as market has witnessed drop in open interest by -13.97% to settled at 5667 while prices up 148 rupees, now Crude oil is getting support at 6097 and below same could see a test of 5988 levels, and resistance is now likely to be seen at 6271, a move above could see prices testing 6336.

Trading Ideas:
# Crude oil trading range for the day is 5988-6336.
# Crude oil gained as the U.S. lifting of travel restrictions and more signs of a global post-pandemic recovery boosted the demand outlook
# Support also seen supported by supply restraint by the OPEC+, and recovering demand.
# Oil demand to exceed 100 mln bpd in 2022, Saudi Aramco says
 

Nat.Gas

Nat.Gas yesterday settled down by -9.76% at 370.6 on rising output and expected lower demand over the next two weeks because of increased nuclear and wind power generation. Traders also noted that U.S. prices were following global gas prices lower – European gas was down about 4% – after Russian gas flows resumed to Germany, raising hopes that Moscow is acting on a pledge to increase supplies and ease concerns about shortages and high prices as winter approaches. The U.S. price drop came despite rising U.S. liquefied natural gas (LNG) exports now that the sixth train at Cheniere Energy Inc's Sabine Pass plant in Louisiana is producing LNG in test mode. Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 95.8 billion cubic feet per day (bcfd) so far in November, up from 94.1 bcfd in October and a monthly record of 95.4 bcfd in November 2019. Refinitiv projected average U.S. gas demand, including exports, would jump from 95.8 bcfd this week to 105.1 bcfd next week as the weather turns colder and homes and businesses crank up their heaters. The amount of gas flowing to U.S. LNG export plants has averaged 11.0 bcfd so far in November, up from 10.5 bcfd in October. Technically market is under fresh selling as market has witnessed gain in open interest by 82.76% to settled at 7853 while prices down -40.1 rupees, now Natural gas is getting support at 355.6 and below same could see a test of 340.6 levels, and resistance is now likely to be seen at 395.5, a move above could see prices testing 420.4.

Trading Ideas:
# Natural gas trading range for the day is 340.6-420.4.
# Natural gas fell on rising output and expected lower demand over the next two weeks because of increased nuclear and wind power generation.
# That price decline came despite forecasts for seasonally colder weather expected to boost heating demand in mid November.
# EIA said U.S. utilities added 63 billion cubic feet (bcf) of gas into storage during the week ended Oct. 29.


Copper

Copper yesterday settled down by -0.53% at 735.5 as demand concerns fuelled by the liquidity crisis in China's property sector weighed on the market. Investors have been worried about a broadening liquidity crisis in China's property sector, with a string of offshore debt defaults, credit rating downgrades and sell-offs in some developers' shares and bonds in recent weeks. The real estate sector accounts for a large share of copper consumption and China is the world's biggest user of the metal. Copper prices, which have been supported by low exchange warehouse inventories, jumped on Monday on solid U.S. and China economic data, as well as a $1-trillion U.S. infrastructure bill that could boost metals demand and economic growth. Investor sentiment in Germany rose unexpectedly in November on expectations that price pressures will ease at the start of next year and growth will pick up in Europe’s largest economy, a survey showed. The ZEW economic research institute said its economic sentiment index increased to 31.7 from 22.3 points in October. Supply bottlenecks for raw and preliminary materials have weighed down industrial production in Germany. Exports fell for a second consecutive month in September. Technically market is under long liquidation as market has witnessed drop in open interest by -0.96% to settled at 4721 while prices down -3.9 rupees, now Copper is getting support at 729 and below same could see a test of 722.5 levels, and resistance is now likely to be seen at 744, a move above could see prices testing 752.5.

Trading Ideas:

# Copper trading range for the day is 722.5-752.5.
# Copper prices fell as demand concerns fuelled by the liquidity crisis in China's property sector weighed on the market.
# Investors have been worried about a broadening liquidity crisis in China's property sector, with a string of offshore debt defaults and credit rating downgrades
# Investor sentiment in Germany rose unexpectedly in November on expectations that price pressures will ease at the start of next year

Zinc

Zinc yesterday settled down by -0.16% at 277.55 as overall social demand signalled recovery, and some orders that were suppressed in October are currently being delivered. However, the smelting sector was still disrupted by power rationing, leading to continuous decline in social inventory. U.S. producer prices increased solidly in October, driven by surging costs for gasoline and motor vehicle retailing, suggesting that high inflation could persist for a while amid tight supply chains related to the pandemic. The producer price index for final demand rose 0.6% last month after climbing 0.5% in September, the Labor Department said. Data showed that China's refined zinc output stood at 499,300 mt in October, down 12,600 mt or 2.46% on the month and 12.29% on the year. The output from January to October was 5.05 million mt, a year-on-year increase of 1.31%.The alloy output at domestic refined zinc smelters in survey sample registered 73,700 mt in October, up 741 mt on the month. Survey showed that the decrease in domestic refined zinc supply in October was more significant than expected, mainly because the smelters in Inner Mongolia, Henan, and Gansu lowered their operating rates temporarily due to the power rationing. Technically market is under fresh selling as market has witnessed gain in open interest by 9.35% to settled at 1240 while prices down -0.45 rupees, now Zinc is getting support at 274.8 and below same could see a test of 271.9 levels, and resistance is now likely to be seen at 280.8, a move above could see prices testing 283.9.

Trading Ideas:
# Zinc trading range for the day is 271.9-283.9.
# Zinc dropped as overall social demand signalled recovery, and some orders that were suppressed in October are currently being delivered.
# However, the smelting sector was still disrupted by power rationing, leading to continuous decline in social inventory.
# Data showed that China's refined zinc output stood at 499,300 mt in October, down 12,600 mt or 2.46% on the month

Nickel

Nickel yesterday settled down by -0.42% at 1502.6 as the national nickel pig iron (NPI) output picked up slightly in October 2021, rising by 0.12% year-on-year to 30,720 mt in nickel content. The month-on-month growth rate is still declining compared with the previous years. The output of high-grade NPI stood at 25,700 mt (Ni content) in October, up 2% on the year; and the output of low-grade NPI was 5,100 mt (Ni content), dropping again on the month. China’s refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month. The average operating rate stood at 66%. The actual output in October did not decrease, and the output of major refineries in Gansu was relatively stable. Nickel prices in 2022 are seen falling from this year's multi-year highs, with the global market expected to swing into a surplus as production recovers from pandemic disruptions. A forecast 45,000-tonne global supply glut next year is pressuring price expectations, with 12% growth in output likely to outpace that of demand, estimated at 10%. NPI production requires a lot of power and China has been curbing output of highly energy-intensive sectors to reduce its carbon emissions and reserve electricity for residents ahead of the winter. Technically market is under fresh selling as market has witnessed gain in open interest by 10.63% to settled at 1374 while prices down -6.3 rupees, now Nickel is getting support at 1492 and below same could see a test of 1481.5 levels, and resistance is now likely to be seen at 1516.4, a move above could see prices testing 1530.3.

Trading Ideas:
# Nickel trading range for the day is 1481.5-1530.3.
# Nickel prices dropped as NPI output picked up slightly in October 2021, rising by 0.12% year-on-year to 30,720 mt in nickel content.
# Nickel prices seen falling in 2022 due to surplus
# China’s refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month. The average operating rate stood at 66%.

 

Aluminium

Aluminium yesterday settled down by -1.04% at 205.4 as new bank lending in China is expected to have plunged in October from the prior month, but the yuan loans are likely to be higher than a year earlier, as the central bank treads warily on policy easing amid stagflation concerns. Chinese banks are estimated to have issued 800 billion yuan ($125.04 billion) in net new yuan loans last month, down from 1.66 trillion yuan in September. The market shall still watch the consumer market recovery as the power rationing eased. While the blizzard in north China may reduce the arrivals of aluminium ingot. China produced 3.16 million mt of aluminium in October, down 2.55% on the year. The daily output averaged 102,000 mt, down 1,600 mt/day on the month. The output totalled 32.24 million mt from January to October, an increase of 5.1% on the year. The operating capacities in Shanxi, Henan, and Guizhou declined further due to the power rationing and production restriction in the heating season. No existing capacity was resumed, nor were there new capacities put into production in October. China's operating aluminium capacity stood at 37.32 million mt/year in early October, while the installed capacity stood at 43.75 million mt/year. Technically market is under fresh selling as market has witnessed gain in open interest by 5.15% to settled at 3473 while prices down -2.15 rupees, now Aluminium is getting support at 203.1 and below same could see a test of 200.6 levels, and resistance is now likely to be seen at 208.5, a move above could see prices testing 211.4.

Trading Ideas:
# Aluminium trading range for the day is 200.6-211.4.
# Aluminium prices dropped as new bank lending in China is expected to have plunged in October from the prior month
# The market shall still watch the consumer market recovery as the power rationing eased.
# While the blizzard in north China may reduce the arrivals of aluminium ingot.

Mentha oil


Mentha oil yesterday settled down by -0.01% at 932.3 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 dropped by -17.5 Rupees to end at 1040.8 Rupees per 360 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 0.39% to settled at 1024 while prices down -0.1 rupees, now Mentha oil is getting support at 926.9 and below same could see a test of 921.6 levels, and resistance is now likely to be seen at 936.4, a move above could see prices testing 940.6.

Trading Ideas:
# Mentha oil trading range for the day is 921.6-940.6.
# In Sambhal spot market, Mentha oil dropped  by -17.5 Rupees to end at 1040.8 Rupees per 360 kgs.
# Mentha oil 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 0.31% at 5442 on low level buying after prices seen pressured by strong planting progress in South America and expectations for the U.S. Department of Agriculture to raise its upcoming U.S harvest forecasts. Soyabean production is estimated to rise by 14 per cent to nearly 119 lakh tonnes this year on higher sowing area and likely improvement in productivity, according to industry body SOPA. In its estimate, Soyabean Processors Association of India (SOPA) said that the total area under soybean for the year 2021 is 119.984 lakh hectares. The government's area estimate is 123.677 lakh hectares. In last year's Kharif (summer sow) season, total soyabean acreage stood at 118.383 lakh hectare. China's soybean imports from Brazil in September fell 18% from a year earlier, customs data showed, as poor crush margins limited demand. The world's top buyer of soybeans brought in 5.936 million tonnes of the oilseed from Brazil last month, versus 7.25 million tonnes in the corresponding year-ago period, data from the General Administration of Customs showed. Private exporters reported the sale of 132,000 tonnes of soybeans to unknown destinations for delivery in the 2021/22 marketing year, the U.S. Agriculture Department said. Separate sales of 222,350 tonnes of soybeans for delivery during unknown time periods also were reported. At the Indore spot market in top producer MP, soybean dropped -5 Rupees to 5512 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 0.56% to settled at 67290 while prices up 17 rupees, now Soyabean is getting support at 5384 and below same could see a test of 5327 levels, and resistance is now likely to be seen at 5474, a move above could see prices testing 5507.

Trading Ideas:
# Soyabean trading range for the day is 5327-5507.
# Soyabean gained on low level buying after prices seen pressured by bumper global stockpiles
# Soyabean production is estimated to rise by 14 per cent to nearly 119 lakh tonnes
# India's edible oil producers' body urges members to cut prices to help consumers
# At the Indore spot market in top producer MP, soybean dropped  -5 Rupees to 5512 Rupees per 100 kgs.

Ref.Soyaoil


Ref.Soyaoil yesterday settled down by -1.1% at 1187.9 on profit booking in anticipation of higher global edible oil supplies. However downside seen limited as the vegetable oil market faces a significant squeeze due to lower output. India slashed its base import tax on crude palm oil, crude soyoil and crude sunflower oil to zero from 2.5%, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022. This decision has been taken to soften the prices of edible oils in the country and provide relief to consumers. The Ministry said that the stock limits will be decided by the respective state governments depending on local conditions. It has however decided to give exemption to importers and exporters subject to conditions. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1250 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 14.21% to settled at 22790 while prices down -13.2 rupees, now Ref.Soya oil is getting support at 1182 and below same could see a test of 1175 levels, and resistance is now likely to be seen at 1197, a move above could see prices testing 1205.

Trading Ideas:
# Ref.Soya oil trading range for the day is 1175-1205.
# Ref soyoil dropped on profit booking in anticipation of higher global edible oil supplies.
# 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
# At the Indore spot market in Madhya Pradesh, soyoil was steady at 1250 Rupees per 10 kgs.
 

Crude palm Oil

Crude palm Oil yesterday settled down by -1.47% at 1092.3 as expectations of a larger rise in October stockpile also weighed on sentiment. A higher-than-expected forecast of 1.7% rise in October production by the Malaysian Palm Oil Association have stoked concerns that inventories may rise faster than previously estimated. However, the market's downside could be limited by adverse weather patterns amid the monsoon season across Malaysia and Indonesia, potentially curbing palm oil production. Malaysia's palm oil inventories at end-October is pegged to rise 3.4% to 1.81 million tonnes, lifted by a plunge in exports amid shrinking output. However downside seen limited as supply constraints due to the rainy season and strength in rival oils supported the market. October export data improved amid tight supply worries. The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated Oct. 1-15 production declined 0.2% from the month before in some parts of Malaysia. The Indian Vegetable Oils Producers Association says it is seeing early signs of demand shifting from palm oil to soft oils after India's duty cut made soft oil more attractive. Malaysia's crude palm oil production in 2021 is forecast to decline by 700,000 tonnes to 18.4 million tonnes due to a labour shortage and erratic weather conditions, state agency the Malaysian Palm Oil Council (MPOC) said. In spot market, Crude palm oil dropped by -10.9 Rupees to end at 1116.1 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -3.21% to settled at 4464 while prices down -16.3 rupees, now CPO is getting support at 1080.7 and below same could see a test of 1069.2 levels, and resistance is now likely to be seen at 1105.1, a move above could see prices testing 1118.

Trading Ideas:
# CPO trading range for the day is 1069.2-1118.
# Crude palm oil dropped as expectations of a larger rise in October stockpile also weighed on sentiment.
# Malaysia's palm oil inventories at end-October is pegged to rise 3.4% to 1.81 million tonnes, lifted by a plunge in exports amid shrinking output.
# However downside seen limited as supply constraints due to the rainy season and strength in rival oils supported the market.
# In spot market, Crude palm oil dropped  by -10.9 Rupees to end at 1116.1 Rupees.
 

Turmeric

Turmeric yesterday settled down by -3.46% at 7474 amid prospects of better crop this kharif season along with tepid demand. However downside seen limited following 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 the first 4 months of FY 2021-22, turmeric exports declined by 26% to 53,000 tonnes as compared to the same period last year, but almost at the same level as the 5-year average. Support is expected on the news that due to June and July floods almost 10% crop washed away so we can see 10-15 % less sowing also farmers had shown interested in other crops as prices where more. 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. 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 7164.3 Rupees dropped -36.15 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 14.96% to settled at 8340 while prices down -268 rupees, now Turmeric is getting support at 7368 and below same could see a test of 7264 levels, and resistance is now likely to be seen at 7642, a move above could see prices testing 7812.

Trading Ideas:
# Turmeric trading range for the day is 7264-7812.
# Turmeric dropped amid prospects of better crop this kharif season along with tepid demand.
# However downside seen limited following 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.
# In Nizamabad, a major spot market in AP, the price ended at 7164.3 Rupees dropped -36.15 Rupees.
 

Jeera

Jeera yesterday settled down by -0.63% at 15720 as adequate stock with traders and farmers may keeping prices under pressure at higher levels. However downside seen limited as domestic festive demand is now picking up also the export inquiries to support price. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. As of now Exports of Jeera for Apr-Aug was down by 12% Y/Y at 1.24 lakh tonnes but expected improve in coming months as Rupee weakness will support exports. 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. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. In Unjha, a key spot market in Gujarat, jeera edged up by 420 Rupees to end at 15120 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 10.58% to settled at 8337 while prices down -100 rupees, now Jeera is getting support at 15670 and below same could see a test of 15615 levels, and resistance is now likely to be seen at 15810, a move above could see prices testing 15895.

Trading Ideas:
# Jeera trading range for the day is 15615-15895.
# Jeera dropped as adequate stock with traders and farmers may keeping prices under pressure at higher levels.
# However downside seen limited as domestic festive demand is now picking up also the export inquiries to support price.
# 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 420 Rupees to end at 15120 Rupees per 100 kg.

Cotton

Cotton yesterday settled down by -1.23% at 32250 on profit booking as India’s cotton production in 2021-22 season is likely to be 360.13 lakh bales of 170 kg each (equivalent to 382.64 lakh running bales of 160 kg each), which is more by 7.13 lakh bales than the previous season’s crop of 353 lakh bales, the Cotton Association of India (CAI) has said in its first estimate for the new season beginning October 1, 2021. As per report, the loose cotton production figures for the 2020-21 crop year were less by 25 per cent at 5.45 lakh bales of 170 kg each, since the said crop year was a pandemic year. The preliminary yearly Balance Sheet projected by the CAI Crop Committee estimates total cotton supply till end of the 2021-22 Season i.e. upto September 30, 2022 at 445.13 lakh bales of 170 kg each, which consists of the opening stock of 75.00 lakh bales at the beginning of the season, crop for the season estimated at 360.13 lakh bales, and imports for the season estimated at the same level as in the last year i.e. at 10 lakh bales. Cotton exports could be lower at 50 lakh bales this season (October 2021-September 2022) compared with 75-80 lakh bales last season. In spot market, Cotton dropped by -590 Rupees to end at 32260 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -6% to settled at 3227 while prices down -400 rupees, now Cotton is getting support at 31770 and below same could see a test of 31290 levels, and resistance is now likely to be seen at 32670, a move above could see prices testing 33090.

Trading Ideas:
# Cotton trading range for the day is 31290-33090.
# Cotton prices dropped on profit booking as India's cotton output to increase by 7.13 lakh bales this season
# Cotton exports could be lower at 50 lakh bales this season compared with 75-80 lakh bales last season.
# SIMA said cotton production this year is estimated to be 360 lakh bales
# In spot market, Cotton dropped  by -590 Rupees to end at 32260 Rupees.