IGI Logo

Gold

Gold yesterday settled up by 0.01% at 47438 as robust U.S. economic data lifted the dollar and Treasury yields ahead of minutes from the Federal Reserve's November meeting that could provide cues on interest rate hikes. Pressure seen as the re-nomination of Fed Chair Jerome Powell bolstered bets of faster monetary policy tightening, boosting the dollar. Piling pressure on Wednesday was a drop in U.S. initial jobless claims to their lowest since 1969 and a separate report showing economic growth increased at a 2.1% annualized rate. Gold investors also seem to be discounting for the possibility of moderating inflation, given a recent retreat in energy prices. The number of Americans filing new claims for unemployment benefits dropped to their lowest level since 1969 last week, pointing to sustained strength in the economy as a year marked by shortages and an unending pandemic winds down. The plunge in claims reported by the Labor Department was exaggerated by the model the government uses to strip out seasonal fluctuations from the data. Still, the labor market recovery is gathering momentum, with the number of people on unemployment rolls hitting the lowest level since mid-March 2020 when the economy was in the grips of the first wave of COVID-19 infections. Technically market is under short covering as market has witnessed drop in open interest by -15.72% to settled at 4033 while prices up 4 rupees, now Gold is getting support at 47236 and below same could see a test of 47034 levels, and resistance is now likely to be seen at 47657, a move above could see prices testing 47876.

Trading Ideas:

* Gold trading range for the day is 47034-47876.

* Gold settled flat as robust U.S. economic data lifted the dollar and Treasury yields

* Initial jobless claims drop to 52-yr low

* U.S. dollar at highest since July 10, 2020

Silver

Silver yesterday settled up by 0.2% at 62635 despite investors continue to bet the Fed will have to tighten monetary policy faster than initially anticipated as inflation remains elevated and the US economic recovery remains more robust than others in Europe or Japan. The latest data showed the US economy slowed to 2.1% in Q3, slightly better than earlier estimates and weekly jobless claims tumbled to the lowest since 1969. The greenback is also benefiting from its safe-haven status amid surging COVID-19 cases and the reimposition of lockdowns in Europe. Jerome Powell has been nominated for a second term as chair of the US Federal Reserve by President Joe Biden, signaling a continuation to the current withdraw of extraordinary stimulus and raising expectations of a sooner increase in the feds fund rate. The Federal Reserve began reducing its monthly asset purchases this month at a pace of $15 billion per month with plans to end them in 2022. The US economy expanded an annualized 2.1% on quarter in Q3 2021, slightly higher than 2% in the advance estimate, but below forecasts of 2.2%. Personal consumption increased more than initially expected (1.7% vs 1.6% in the advance estimate), mainly boosted by international travel, transportation services, and healthcare while spending on motor vehicles and parts declined. Technically market is under short covering as market has witnessed drop in open interest by -13.23% to settled at 6043 while prices up 126 rupees, now Silver is getting support at 62329 and below same could see a test of 62024 levels, and resistance is now likely to be seen at 62984, a move above could see prices testing 63334.

Trading Ideas:

* Silver trading range for the day is 62024-63334.

* Silver gains despite investors continue to bet the Fed will have to tighten monetary policy faster than initially anticipated as inflation remains elevated

* Weekly jobless claims fall 71,000 to 199,000

* Continuing claims drop 60,000 to 2.049 million

Crude oil

Crude oil yesterday settled down by -0.37% at 5861 as U.S. crude stocks rose as refineries hiked output, while gasoline stocks decreased and distillate inventories fell. Crude inventories rose by 1 million barrels in the week to November 19, compared with expectations for a decrease of 481,000 barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 787,000 barrels, EIA said. China will release its oil reserves according to its needs, adding that the country was in close communication with oil-producing and oil-consuming countries. The United States said that it will release millions of barrels of oil from strategic reserves in coordination with China and other Asian nations. U.S. crude and gasoline stocks rose last week while distillate inventories fell. Crude stocks rose by 2.3 million barrels for the week ended Nov. 19. Gasoline inventories rose by about 600,000 barrels and distillate stocks fell by 1.5 million barrels, the data showed. A coordinated oil stocks release by major consuming countries was not a response by the International Energy Agency, its chief Fatih Birol said. The head of the Paris-based agency said it recognises the strain higher prices have had on consumers but only acts to tap energy stocks in response to major supply disruptions. Technically market is under long liquidation as market has witnessed drop in open interest by -1.34% to settled at 3743 while prices down -22 rupees, now Crude oil is getting support at 5819 and below same could see a test of 5777 levels, and resistance is now likely to be seen at 5908, a move above could see prices testing 5955.

Trading Ideas:

* Crude oil trading range for the day is 5777-5955.

* Crude oil dropped as U.S. crude stocks rose as refineries hiked output, while gasoline stocks decreased and distillate inventories fell

* China says it will release oil reserves according to its needs

* API shows crude, gasoline stocks rise; distillates down
 

Nat.Gas

Nat.Gas yesterday settled up by 1.52% at 387.4 as soaring global gas prices keep demand for U.S. liquefied natural gas (LNG) exports near record highs. Gas prices in Europe soared about 6% on Tuesday as colder weather increased demand and the market remained nervous about winter supplies from Russia. High temperatures in Boston, the biggest city in New England, were only expected to reach about 43 degrees Fahrenheit (6 Celsius) on Tuesday and Wednesday, according to meteorologists at AccuWeather. Data provider Refinitiv said output in the U.S. Lower 48 states averaged 96.1 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 rise from 111.2 bcfd this week to 112.6 bcfd next week as the weather turns seasonally colder and homes and businesses crank up their heaters. The forecast for next week, however, was lower than Refinitiv's forecast on Monday. The amount of gas flowing to U.S. LNG export plants has averaged 11.2 bcfd so far in November, up from 10.5 bcfd in October as the sixth train at Cheniere Energy Inc's Sabine Pass plant in Louisiana started producing LNG in test mode. Technically market is under fresh buying as market has witnessed gain in open interest by 23.84% to settled at 3911 while prices up 5.8 rupees, now Natural gas is getting support at 374.8 and below same could see a test of 362.3 levels, and resistance is now likely to be seen at 394.2, a move above could see prices testing 401.1.

Trading Ideas:

* Natural gas trading range for the day is 362.3-401.1.

* Natural gas jumped as soaring global gas prices keep demand for U.S. liquefied natural gas (LNG) exports near record highs.

* Gas prices in Europe soared about 6% as colder weather increased demand and the market remained nervous about winter supplies from Russia.

* EIA said utilities added 26 billion cubic feet (bcf) of gas into storage during the week ended Nov. 12. U.S.



Copper

Copper yesterday settled up by 1.05% at 748.55 after top consumer China announced measures to shore up its property sector. Further price support came from signs of tight supply, with stocks of most metals in London Metal Exchange (LME) warehouses falling and contracts for quickly deliverable material trading at a premium. China will keep liquidity reasonably ample and reduce funding costs, especially for small firms, in a bid to support the slowing economy, while some Chinese banks have been told to issue more loans to property firms for project development. Regulators in China have told some banks to issue more loans to property companies, sources said. Officials this week said they would increase funding support for businesses to support the slowing economy. Copper stocks in ShFE-registered warehouses were at 34,918 tonnes, the lowest since June 2009. The global world refined copper market showed a 52,000 tonnes surplus in August, compared with a 39,000 tonnes deficit in July, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 8 months of the year, the market was in a 107,000 tonnes deficit compared with a 97,000 tonnes deficit in the same period a year earlier, the ICSG said. Technically market is under fresh buying as market has witnessed gain in open interest by 31.27% to settled at 5898 while prices up 7.75 rupees, now Copper is getting support at 740.2 and below same could see a test of 731.7 levels, and resistance is now likely to be seen at 754.2, a move above could see prices testing 759.7.

Trading Ideas:

* Copper trading range for the day is 731.7-759.7.

* Copper prices rose after top consumer China announced measures to shore up its property sector.

* Further price support came from signs of tight supply, with stocks of most metals in London Metal Exchange (LME) warehouses falling

* Copper stocks in ShFE-registered warehouses were at 34,918 tonnes, the lowest since June 2009.
 

Zinc

Zinc yesterday settled up by 0.58% at 275.8 amid global supply concerns after miner and commodity trader Glencore floated plans to put its zinc sulphide operations in Italy on hold for maintenance. Glencore said the zinc plant in Portovesme, with a capacity of 100,000 tonnes a year, will be put on care and maintenance until there is "a meaningful change in power market prices". The premium of LME cash zinc over the three-month contract rose to $52.80 a tonne, its highest since Oct. 29, indicating tightening nearby supplies as LME inventories of the metal fell to the lowest since July 2020 to 175,025 tonnes. Indonesian President expressed that the country will ban the export of tin and bauxite in 2024 and 2022, respectively, which pushed up the prices of SHFE tin and aluminium. Meanwhile, the mining activities Tara Mine has been suspended due to large water inflows for the protection of relative facilities and equipment. And it remains unclear as when it will resume normal operation. In terms of zinc market, LME inventory in euro zone has been at historical low, and zinc ingot supply was tight. At the same time, the market also saw issues like high electricity costs across smelters, and relative low TCs of zinc concentrate. Hence, the zinc prices carried strong support in the short term. Technically market is under fresh buying as market has witnessed gain in open interest by 17.68% to settled at 1564 while prices up 1.6 rupees, now Zinc is getting support at 273.7 and below same could see a test of 271.4 levels, and resistance is now likely to be seen at 278.6, a move above could see prices testing 281.2.

Trading Ideas:

* Zinc trading range for the day is 271.4-281.2.

* Zinc rose amid global supply concerns after miner and Glencore floated plans to put its zinc sulphide operations in Italy on hold for maintenance.

* Glencore said the zinc plant in Portovesme, with a capacity of 100,000 tonnes a year, will be put on care and maintenance

* The premium of LME cash zinc over the three-month contract rose to $52.80 a tonne, its highest since Oct. 29, indicating tightening nearby supplies

Nickel

Nickel yesterday settled up by 2.01% at 1585.8 as tight supplies and easing concerns about Chinese demand lent the metal some support. On-warrant inventories in LME-registered warehouses have fallen to 65,922 tonnes, down from more than 200,000 tonnes in April, with one entity holding more than half the warrants, LME data shows. On the macro front, the real estate sales readings warmed up, and overseas demand was also positive, boosting non-ferrous prices. 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. Customs data showed that China imported 4.476 million mt (denotes both dmt and wmt) of nickel ore in October, down 21.3% month on month and 12.2% year on year. The imports from the Philippines stood at 4.01 million mt, a decrease of 22.8% on the month and 12.63% on the year. The total import volume of laterite nickel ore decreased significantly in October, mainly because the main mining area in southern Philippines entered the rainy season. Technically market is under fresh buying as market has witnessed gain in open interest by 64.77% to settled at 2348 while prices up 31.3 rupees, now Nickel is getting support at 1558.3 and below same could see a test of 1530.8 levels, and resistance is now likely to be seen at 1610.1, a move above could see prices testing 1634.4.

Trading Ideas:

* Nickel trading range for the day is 1530.8-1634.4.

* Nickel gained as tight supplies and easing concerns about Chinese demand lent the metal some support

* LME nickel was up 3.2% at $21,000 a tonne, climbing towards last month's seven-year high of $21,425.

* On-warrant inventories in LME-registered warehouses have fallen to 65,922 tonnes, down from more than 200,000 tonnes in April

Aluminium

Aluminium yesterday settled up by 1.03% at 216.15 amid supply disruption concerns. The aluminum plant in China's Yunnan province with an annual capacity of 300,000 tonnes stopped production after an explosion evening and it is still unknown when production will resume. Several alumina refiners and aluminium smelters in the north were expected to reduce their output in the heating season and ahead of the Beijing Winter Olympics. Global primary aluminium output rose to 5.689 million tonnes in October, up 1.2% year on year, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production was 3.270 million tonnes in October, up from 3,250 million tonnes in the same month last year, the IAI said. According to survey, the inventory of aluminium ingot in Shanghai bonded area has been increasing for 4 consecutive weeks, and is likely to keep rising this week, which will widen the import losses. The premiums of Yangshan aluminium in the bonded area have dropped to a low level. The holders put the spots into bonded areas due to the losses. Although the current MJP aluminium prices are relatively hight, the traders have not increased the re-exports intensively. Technically market is under fresh buying as market has witnessed gain in open interest by 31.22% to settled at 1887 while prices up 2.2 rupees, now Aluminium is getting support at 214.1 and below same could see a test of 212 levels, and resistance is now likely to be seen at 217.6, a move above could see prices testing 219.

Trading Ideas:

* Aluminium trading range for the day is 212-219.

* Aluminium rose amid supply disruption concerns.

* Several alumina refiners and aluminium smelters in the north were expected to reduce their output in the heating season

* The aluminum plant in China's Yunnan province with an annual capacity of 300,000 tonnes stopped production after an explosion

Mentha oil

Mentha oil yesterday settled up by 0.03% at 939.3 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 28 Rupees to end at 1065.8 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 19.21% to settled at 906 while prices up 0.3 rupees, now Mentha oil is getting support at 936.4 and below same could see a test of 933.6 levels, and resistance is now likely to be seen at 942.8, a move above could see prices testing 946.4.

Trading Ideas:

* Mentha oil trading range for the day is 933.6-946.4.

* In Sambhal spot market, Mentha oil gained  by 28 Rupees to end at 1065.8 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 0.29% at 6587 amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages. USDA's November monthly report showed soyabean production in India has grown 8% month-on-month to 11.9 million tonnes. The U.S. Department of Agriculture confirmed private sales of 256,930 tonnes of U.S. soybeans to unknown destinations. The announcement followed rumors this week that China was buying U.S. soybeans. The USDA also reported export sales of U.S. soybeans in the week ended Nov. 4 at 1.289 million tonnes, in line with trade expectations for 950,000 to 1.8 million tonnes. China's October soybean imports from the United States fell sharply from the previous year, customs data showed Sunday, hit by poor demand and limited exports. China brought in 775,331 tonnes of U.S. soybeans in October, down 77% from 3.4 million tonnes a year earlier, according to data released from the General Administration of Customs. Soybean shipments from the United States usually pick up in the fourth quarter of the year when the U.S. harvest gets underway and American beans dominate the market. Poor crush margins and price competitive Brazilian beans, however, have curbed Chinese crushers' appetite for American cargoes. At the Indore spot market in top producer MP, soybean dropped -59 Rupees to 6625 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.22% to settled at 62315 while prices up 19 rupees, now Soyabean is getting support at 6494 and below same could see a test of 6401 levels, and resistance is now likely to be seen at 6663, a move above could see prices testing 6739.

Trading Ideas:

* Soyabean trading range for the day is 6401-6739.

* Soyabean gained amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages.

* USDA's November monthly report showed soyabean production in India has grown 8% month-on-month to 11.9 million tonnes.

* China's Oct. soy imports from U.S. slump due to weak demand, hurricane

* At the Indore spot market in top producer MP, soybean dropped  -59 Rupees to 6625 Rupees per 100 kgs.
 

Soyaoil

Ref.Soyaoil yesterday settled up by 0.67% at 1245.6 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. Global production of the top four vegetable oils – palm, sunflower, soy and rapeseed oils – is likely to rise the highest in four years. The production of the four oils is estimated to rise by 6.3-6.8 mln tonnes in the 2021/2022 crop year altogether, after two years of a global production deficit. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1260.05 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -5.01% to settled at 43985 while prices up 8.3 rupees, now Ref.Soya oil is getting support at 1238 and below same could see a test of 1232 levels, and resistance is now likely to be seen at 1249, a move above could see prices testing 1254.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1232-1254.

* Ref soyoil gained as the vegetable oil market faces a significant squeeze due to lower output.

* Global production of the top four vegetable oils – palm, sunflower, soy and rapeseed oils – is likely to rise the highest in four years.

* The production of the four oils is estimated to rise by 6.3-6.8 mln tonnes in the 2021/2022 crop year altogether, after two years of a global production deficit.

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1260.05 Rupees per 10 kgs.
 

Crude palm Oil

Crude palm Oil yesterday settled up by 0.31% at 1134.9 as Southern Peninsula Palm Oil Millers' Association's (SPPOMA) production data had cushioned the fall in CPO prices. SPPOMA revealed the Nov 1-20 production data was lower by 2.4%, compared to the same period last month. However, upside seen limited following an outlook of better vegetable oil production next year. Indonesia's total palm oil exports are expected to fall for a second year by 0.34% in 2021 from a year earlier, the vice chairman of the country's palm oil association said. Indonesia's crude palm oil exports, meanwhile, are expected to plummet by 60.5% this year compared to 2020, vice chairman Togar Sitanggang told. Global production of the top four vegetable oils – palm, sunflower, soy and rapeseed oils – is likely to rise the highest in four years, up by 6.3 million to 6.8 tonnes in the 2021/2022 crop year altogether. India's palm oil imports in 2020/21 rose 15.2% from a year ago to 8.32 million tonnes, while soyoil imports fell 15% to 2.87 million tonnes, a leading trade body said. The country's vegetable oil imports for the 2020/21 marketing year ended on Oct. 31 stood at 13.53 million tonnes, a tad higher than 13.52 million tonnes a year ago, the Solvent Extractors' Association of India (SEA) said. In spot market, Crude palm oil gained by 3.1 Rupees to end at 1148.4 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 4.47% to settled at 4652 while prices up 3.5 rupees, now CPO is getting support at 1126.3 and below same could see a test of 1117.7 levels, and resistance is now likely to be seen at 1140.2, a move above could see prices testing 1145.5.

Trading Ideas:

* CPO trading range for the day is 1117.7-1145.5.

* Crude palm oil gained as SPPOMA revealed the Nov 1-20 production data was lower by 2.4%, compared to the same period last month.

* Indonesia 2021 total palm oil exports seen down 0.34%

* India's palm oil imports in 2020/21 rose 15.2% from a year ago to 8.32 million tonnes, while soyoil imports fell 15% to 2.87 million tonnes

* In spot market, Crude palm oil gained  by 3.1 Rupees to end at 1148.4 Rupees.

 

Turmeric

Turmeric yesterday settled down by -2.76% at 7622 amid poor demand for old stocks as traders wait for the new season of turmeric. However downside seen limited amid less area in Telangana due to unseasonal rains, also expectations of better export demand supporting the prices. Turmeric exports in the first 5 months (April-August) of FY 2021-22 declined by 25% to 64,600 tonnes as compared to the same period last year, but almost at the same level as the 5-year average. 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 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. In Nizamabad, a major spot market in AP, the price ended at 7400 Rupees dropped -90 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -4.32% to settled at 9075 while prices down -216 rupees, now Turmeric is getting support at 7472 and below same could see a test of 7322 levels, and resistance is now likely to be seen at 7826, a move above could see prices testing 8030.

Trading Ideas:

* Turmeric trading range for the day is 7322-8030.

* Turmeric dropped amid poor demand for old stocks as traders wait for the new season of turmeric.

* However downside seen limited amid less area in Telangana due to unseasonal rains, also expectations of better export demand.

* Turmeric exports in the first 5 months (April-August) of FY 2021-22 declined by 25% to 64,600 tonnes as compared to the same period last year.

* In Nizamabad, a major spot market in AP, the price ended at 7400 Rupees dropped -90 Rupees.

Jeera

Jeera yesterday settled down by -0.7% at 16360 as adequate stock with traders and farmers may keeping prices under pressure at higher levels. However downside seen limited as domestic 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 14.4 Rupees to end at 16087.5 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -1.45% to settled at 9810 while prices down -115 rupees, now Jeera is getting support at 16235 and below same could see a test of 16105 levels, and resistance is now likely to be seen at 16585, a move above could see prices testing 16805.

Trading Ideas:

* Jeera trading range for the day is 16105-16805.

* Jeera dropped as adequate stock with traders and farmers may keeping prices under pressure at higher levels.

* However downside seen limited as domestic 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 14.4 Rupees to end at 16087.5 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled up by 0.78% at 32320 in anticipation of a possible fall in production, and the remaining cotton stock is also low, while import demand from China remains high. 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. 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. 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 dropped by -170 Rupees to end at 31760 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 15.19% to settled at 4641 while prices up 250 rupees, now Cotton is getting support at 32110 and below same could see a test of 31910 levels, and resistance is now likely to be seen at 32470, a move above could see prices testing 32630.

Trading Ideas:

* Cotton trading range for the day is 31910-32630.

* Cotton gained in anticipation of a possible fall in production.

* However upside seen limited as selling pressure intensified after demand from China eased.

* 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

* In spot market, Cotton dropped  by -170 Rupees to end at 31760 Rupees.

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer