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Gold

Gold yesterday settled up by 0.74% at 49216 after data showing U.S. consumer prices surged last month triggered a rush for the precious metal seen as a hedge against inflation. Data showed U.S. consumer prices rose at their fastest pace in 31 years, more signs inflation could stay uncomfortably high well into 2022. Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of gold, which pays no interest. Gold has scaled new peaks over the past few sessions after major central banks indicated last week interest rates would remain low in the near term, with the Federal Reserve maintaining its stance that inflation was “transitory”. However, since then, Fed officials have raised concerns about longer-lasting inflation. Investor appetite for gold continued to diminish led by sustained fall in prices in August and September, with gold-backed exchange-traded funds (ETFs) witnessing net outflows of 25.5 tonne, or worth $1.4 billion, in October, according to report by the World Gold Council (WGC). Gold ETFs have experienced outflows in six of the first 10 months of the current calendar year as ETF investors have generally followed gold price trends. Technically market is under short covering as market has witnessed drop in open interest by -0.43% to settled at 7422 while prices up 362 rupees, now Gold is getting support at 48958 and below same could see a test of 48700 levels, and resistance is now likely to be seen at 49427, a move above could see prices testing 49638.

Trading Ideas:

* Gold trading range for the day is 48700-49638.

* Gold prices rose after data showing U.S. consumer prices surged last month triggered a rush for the precious metal seen as a hedge against inflation.

* U.S. CPI rises at fastest pace in 31 years

* Fed officials have raised concerns about longer-lasting inflation.
 

Silver

Silver yesterday settled up by 1.65% at 66965 fueled by a surge in U.S. consumer prices last month. Silver is rising because of higher inflation expectations after data showed the largest annual increase in prices in three decades. Expectations of a slowdown in both the U.S. and Chinese economies also helped spark interest in gold as an inflation hedge. After the worrisome report on U.S. inflation that slammed into the bond market, traders in the fed funds futures market now see the first Federal Reserve interest rate hike to be much more likely in July. Elsewhere, the British pound eased after official data showed the U.K. economy expanded at a slower pace in the third quarter. Inflation pushed more broadly through the economy in October again challenging the Federal Reserve's outlook for only "transitory" price increases, offsetting recent wage hikes in a blow to consumers, and prompting investors to boost bets the central bank will raise interest rates sooner than expected. The euro zone economy will grow faster than previously expected this year as it recovers from the pandemic-induced recession and continue to expand strongly in 2022 with deficits and public debt falling, the European Commission forecast. The Commission said gross domestic product in the 19 countries sharing the euro would grow 5.0% this year after a 6.4% recession in 2020. Technically market is under fresh buying as market has witnessed gain in open interest by 7.62% to settled at 9321 while prices up 1087 rupees, now Silver is getting support at 66198 and below same could see a test of 65432 levels, and resistance is now likely to be seen at 67384, a move above could see prices testing 67804.

Trading Ideas:

* Silver trading range for the day is 65432-67804.

* Silver prices rose fueled by a surge in U.S. consumer prices last month.

* Fed's 'transitory' inflation plot thickens again with rate at 30-year high

* Expectations of a slowdown in both the U.S. and Chinese economies also helped spark interest as an inflation hedge.



Crude oil

Crude oil yesterday settled down by -0.77% at 6025 triggered by concerns over increasing U.S. inflation as OPEC cut its 2021 oil demand forecast due to high energy prices. The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report it expects oil demand to average 99.49 million barrels per day (bpd) in the fourth quarter of 2021, down 330,000 bpd from last month's forecast. "A slowdown in the pace of recovery in the fourth quarter of 2021 is now assumed due to elevated energy prices," OPEC said in the report, also citing slower-than-expected demand in China and India for the downward revision. OPEC sees world consumption surpassing the 100 million bpd mark in the third quarter of 2022, three months later than forecast last month. OPEC said it expects oil demand to average 99.49 million barrels per day (bpd) in the fourth quarter of 2021, down 330,000 bpd from last month's forecast. The year's demand growth forecast was trimmed by 160,000 bpd to 5.65 million bpd. The producer group stuck to its forecast that demand will rise by 4.15 million bpd next year. This will take consumption to an average of 100.6 million bpd, above the 2019 level. Technically market is under fresh selling as market has witnessed gain in open interest by 0.45% to settled at 5540 while prices down -47 rupees, now Crude oil is getting support at 5954 and below same could see a test of 5883 levels, and resistance is now likely to be seen at 6110, a move above could see prices testing 6195.

Trading Ideas:

* Crude oil trading range for the day is 5883-6195.

* Crude oil dropped triggered by concerns over increasing U.S. inflation as OPEC cut its 2021 oil demand forecast due to high energy prices.

* OPEC lowers oil demand forecast for end of 2021

* OPEC sees world consumption surpassing the 100 million bpd mark in the third quarter of 2022

Nat.Gas

Nat.Gas yesterday settled up by 4.87% at 378.9 helped by forecasts for higher demand and a smaller-than-usual addition to inventories. U.S. gas stocks increased last week, the U.S. Energy Information Administration (EIA) said, but the build was smaller than usual for this time of year and was less than forecast. The U.S. Energy Information Administration (EIA) said utilities added 7 billion cubic feet (bcf) of gas into storage during the week ended Nov. 5. 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. 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. Technically market is under short covering as market has witnessed drop in open interest by -18.31% to settled at 6808 while prices up 17.6 rupees, now Natural gas is getting support at 368.3 and below same could see a test of 357.7 levels, and resistance is now likely to be seen at 385.4, a move above could see prices testing 391.9.

Trading Ideas:

* Natural gas trading range for the day is 357.7-391.9.

* Natural gas ticked up helped by forecasts for higher demand and a smaller-than-usual addition to inventories.

* U.S. gas stocks increased but the build was smaller than usual for this time of year and was less than forecast.

* EIA said utilities added 7 billion cubic feet (bcf) of gas into storage during the week ended Nov. 5.



Copper

Copper yesterday settled up by 1.21% at 737.65 after debt-burdened China Evergrande Group again dodged a default, raising hopes of government support for a property sector that can drive significant demand for metals. Several of developer Evergrande’s bondholders had received interest payments on three bond tranches worth more than $148 million. Tight supplies of copper also continued to keep prices on the boil, with LME inventories having tumbled by more than half since August. Codelco's Chinese customers are reluctant to sign up for copper supply in 2022 at the highest premium in seven years because of strong backwardation in the copper market. Backwardation is a structure where prices for immediate delivery are higher than for future delivery, indicating strong near-term demand, and Chinese buyers are afraid they may lose money on the copper further down the line. Chile's Codelco, the world's biggest producer of mined copper, on Nov. 1 offered Chinese clients physical delivery of copper at a premium of $105 a tonne over London Metal Exchange (LME) prices next year, the highest level since 2015. Copper production by China's major smelters in October fell by 2.2% from September though it predicted higher output in November. Technically market is under short covering as market has witnessed drop in open interest by -7.45% to settled at 4581 while prices up 8.85 rupees, now Copper is getting support at 732.2 and below same could see a test of 726.7 levels, and resistance is now likely to be seen at 742.2, a move above could see prices testing 746.7.

Trading Ideas:

* Copper trading range for the day is 726.7-746.7.

* Copper prices rebounded after debt-burdened China Evergrande Group again dodged a default

* Tight supplies of copper also continued to keep prices on the boil, with LME inventories having tumbled by more than half since August.

* Codelco offered Chinese buyers 2022 supply at $105 per tonne

Zinc

Zinc yesterday settled up by 0.18% at 277.75 as the zinc concentrate supply in Inner Mongolia tightened further due to power rationing. And the time and money required to transport zinc concentrate from one province to another increased significantly on the combined influences of COVID and transportation disruptions. Hence, TCs trended lower again. While the production of smelters are unlikely to return to the peak level either amid shrinking profits. The operating rates of smelters in November are likely to decline amid extreme weather, COVID and transport disruptions. The rising electricity prices have squeezed the profits of smelters, also pushing down the operating rates. Thus, the supply of zinc ingot may tighten. The current low social inventory of zinc ingots will underpin zinc prices in the short term. Zinc smelters in China made 441,000 tonnes of the metal in October, down 14,000 tonnes from September but up 9.2% year-on-year. Zinc output was also hit by electricity curbs and energy consumption controls in regions such as Inner Mongolia, Hunan, Guangxi, Henan and Shaanxi. China's Jan-Oct zinc production at the surveyed companies rose 3.2% from same period a year earlier to 4.47 million tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 5.72% to settled at 1405 while prices up 0.5 rupees, now Zinc is getting support at 276.1 and below same could see a test of 274.3 levels, and resistance is now likely to be seen at 280.2, a move above could see prices testing 282.5.

Trading Ideas:

* Zinc trading range for the day is 274.3-282.5.

* Zinc prices gained as the zinc concentrate supply in Inner Mongolia tightened further due to power rationing.

* The operating rates of smelters in November are likely to decline amid extreme weather, COVID and transport disruptions.

* The current low social inventory of zinc ingots will underpin zinc prices in the short term.

 

Nickel

Nickel yesterday settled up by 0.74% at 1525.1 as support seen after PT Vale Indonesia said its nickel matte production is expected to fall as much as 13% next year compared to normal levels, as furnace rebuilding delays brought about by the COVID-19 pandemic continue to impact output. Nickel output from the Philippines, the second-largest producer, is expected to be 10% lower than the annual average due to frequent rainfalls and fewer vessels coming in. Also, the latest data showed nickel production at Russian miner Nornickel fell 23% from a year earlier to 129,858 tons in the first three quarters of the year; and Vale SA cut its production guidance for this year to 165,000-170,000 tonnes from 200,000 previously projected amid a strike at its Canadian mine while its Brazilian mine at Onca Puma is suspended by the court. Elsewhere, recent data showed China's imports of nickel pig iron, a cheap substitute of refined nickel, fell in September. 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. The output of refined nickel is expected to stand at around 14,500 mt in November. Technically market is under fresh buying as market has witnessed gain in open interest by 4.2% to settled at 1290 while prices up 11.2 rupees, now Nickel is getting support at 1517.6 and below same could see a test of 1510 levels, and resistance is now likely to be seen at 1533.4, a move above could see prices testing 1541.6.

Trading Ideas:

* Nickel trading range for the day is 1510-1541.6.

* Nickel gains as support seen after PT Vale Indonesia said its nickel matte production is expected to fall as much as 13% next year

* Data showed nickel production at Russian miner Nornickel fell 23% from a year earlier to 129,858 tons in the first three quarters of the year

* China’s refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month.

Aluminium

Aluminium yesterday settled up by 2.82% at 211.8 coupled of falling social inventory of aluminium ingots. The market warmed up amid eye-catching M2 money supply and real estate financing data in China, which led to a rally among ferrous products and real estate-related sectors in the commodity market. The euro zone economy will grow faster than previously expected this year as it recovers from the pandemic-induced recession and continue to expand strongly in 2022 with deficits and public debt falling, the European Commission forecast. The Commission said gross domestic product in the 19 countries sharing the euro would grow 5.0% this year after a 6.4% recession in 2020. It forecast growth of 4.3% in 2022 and 2.4% in 2023. Its forecast in May for 2021 growth was only 4.3%. 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. Technically market is under short covering as market has witnessed drop in open interest by -13.19% to settled at 2744 while prices up 5.8 rupees, now Aluminium is getting support at 208.6 and below same could see a test of 205.5 levels, and resistance is now likely to be seen at 213.9, a move above could see prices testing 216.1.

Trading Ideas:

* Aluminium trading range for the day is 205.5-216.1.

* Aluminium prices gained coupled of falling social inventory of aluminium ingots.

* The euro zone economy will grow faster than previously expected this year as it recovers from the pandemic-induced recession

* China produced 3.16 million mt of aluminium in October, down 2.55% on the year.
 

Mentha oil

Mentha oil yesterday settled down by -0.26% at 933.4 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 2 Rupees to end at 1039 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -1.11% to settled at 977 while prices down -2.4 rupees, now Mentha oil is getting support at 931.4 and below same could see a test of 929.3 levels, and resistance is now likely to be seen at 937.3, a move above could see prices testing 941.1.

Trading Ideas:

* Mentha oil trading range for the day is 929.3-941.1.

* In Sambhal spot market, Mentha oil gained  by 2 Rupees to end at 1039 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 0.27% at 5546 as support seen after smaller-than-expected soybean harvests in the major production states of Indiana, Iowa, Kansas and Ohio sparked a surprise cut to the U.S. harvest outlook. Despite the cut to the soybean harvest view, the domestic ending stocks projection grew because of weakening export demand for U.S. supplies. Expectations for a massive crop in Brazil have raised concerns that top buyer China will source more of its purchases from South America. Soybean production was pegged at 4.425 billion bushels on a yield of 51.2 bushels per acre. Soybean ending stocks for the 2021/22 marketing year were pegged at 340 million bushels. European Union soybean imports in the 2021/22 season that started in July had reached 4.26 million tonnes by Nov. 7, data published by the European Commission showed. 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. 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. At the Indore spot market in top producer MP, soybean gained 49 Rupees to 5654 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 5.7% to settled at 78130 while prices up 15 rupees, now Soyabean is getting support at 5508 and below same could see a test of 5469 levels, and resistance is now likely to be seen at 5609, a move above could see prices testing 5671.

Trading Ideas:

* Soyabean trading range for the day is 5469-5671.

* Soyabean prices gains as support seen after U.S. soybean production to fall below expectations

* Soybean production was pegged at 4.425 billion bushels on a yield of 51.2 bushels per acre.

* Soybean ending stocks for the 2021/22 marketing year were pegged at 340 million bushels.

* At the Indore spot market in top producer MP, soybean gained  49 Rupees to 5654 Rupees per 100 kgs.

Soyaoil

Ref.Soyaoil yesterday settled down by -0.2% at 1198 on profit booking after prices seen supported 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 1252.7 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 7.71% to settled at 29980 while prices down -2.4 rupees, now Ref.Soya oil is getting support at 1190 and below same could see a test of 1183 levels, and resistance is now likely to be seen at 1204, a move above could see prices testing 1211.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1183-1211.

* Ref soyoil dropped on profit booking after prices seen supported as the vegetable oil market faces a significant squeeze due to lower output.

* 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 1252.7 Rupees per 10 kgs.

 

Palm Oil

Crude palm Oil yesterday settled down by -0.03% at 1104 on profit booking after prices seen supported underpinned by cargo surveyor data showing an increase in early November exports, and concerns over a slowdown in production. Exports of Malaysian palm oil products for Nov. 1-10 rose 13.4% to 563,093 tonnes from the same period in October, cargo surveyor Societe Generale de Surveillance said. 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. 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 -0.1 Rupees to end at 1116.7 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 1.48% to settled at 4815 while prices down -0.3 rupees, now CPO is getting support at 1098.6 and below same could see a test of 1093.3 levels, and resistance is now likely to be seen at 1110.6, a move above could see prices testing 1117.3.

Trading Ideas:

* CPO trading range for the day is 1093.3-1117.3.

* Crude palm oil dropped on profit booking after prices seen supported underpinned by cargo surveyor data showing an increase in early November exports

* Exports of Malaysian palm oil products for Nov. 1-10 rose 13.4% to 563,093 tonnes from the same period in October.

* In spot market, Crude palm oil dropped  by -0.1 Rupees to end at 1116.7 Rupees.

 

Turmeric

Turmeric yesterday settled up by 0.16% at 7420 following export demand from Europe, Gulf countries and Bangladesh. However upside seen limited amid prospects of better crop this kharif season along with tepid demand. 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 7127.25 Rupees gained 102.25 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 11.9% to settled at 9545 while prices up 12 rupees, now Turmeric is getting support at 7352 and below same could see a test of 7286 levels, and resistance is now likely to be seen at 7492, a move above could see prices testing 7566.

Trading Ideas:

* Turmeric trading range for the day is 7286-7566.

* Turmeric prices gained following export demand from Europe, Gulf countries and Bangladesh.

* However upside seen limited amid prospects of better crop this kharif season along with tepid demand.

* 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 7127.25 Rupees gained 102.25 Rupees.
 

Jeera

Jeera yesterday settled up by 1.82% at 15690 as domestic festive demand is now picking up also the export inquiries to support price. However upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels. 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 61.55 Rupees to end at 15100 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 7.55% to settled at 9186 while prices up 280 rupees, now Jeera is getting support at 15460 and below same could see a test of 15230 levels, and resistance is now likely to be seen at 15870, a move above could see prices testing 16050.

Trading Ideas:

* Jeera trading range for the day is 15230-16050.

* Jeera gains as domestic festive demand is now picking up also the export inquiries to support price.

* 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 61.55 Rupees to end at 15100 Rupees per 100 kg.

 

Cotton

Cotton yesterday settled down by -1.31% at 32480 as China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions, according to an official notice. It is the second batch of cotton to be released from reserves this year and is designed to better meet demand for the fibre from spinning companies. However downside seen limited bolstered by strong demand from both the domestic textile sector and export markets over the last year, and high global prices. Both production estimates for the 2021/22 crop year and ending stocks in the U.S. were largely unchanged at 18.20 million bales and 3.40 million bales respectively, the USDA said in its November World Agricultural Supply and Demand Estimates (WASDE) report. "The global cotton balance sheet for 2021/22 includes higher production and consumption, and slightly lower ending stocks," the USDA said. 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. In spot market, Cotton gained by 90 Rupees to end at 32510 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -9.62% to settled at 2940 while prices down -430 rupees, now Cotton is getting support at 32150 and below same could see a test of 31820 levels, and resistance is now likely to be seen at 32850, a move above could see prices testing 33220.

Trading Ideas:

* Cotton trading range for the day is 31820-33220.

* Cotton dropped China starts new round of cotton sales to boost supply

* However downside seen limited amid strong demand from both the domestic textile sector and export markets, and high global prices.

* Both production estimates for the 2021/22 crop year and ending stocks were largely unchanged at 18.20 million bales and 3.40 million bales respectively

* In spot market, Cotton gained  by 90 Rupees to end at 32510 Rupees.

 

 

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