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Gold

Gold yesterday settled down by -1.62% at 45886 as robust U.S. jobs data stoked fears that the Federal Reserve would raises rates quicker than expected, increasing the opportunity cost of holding non-interest bearing bullion. U.S. employers hired the most workers in nearly a year in July and continued to raise wages, giving the economy a powerful boost as it started the second half of what many economists believe will be the best year for growth in almost four decades. The data underscored remarks by Fed officials suggesting a sooner than anticipated roll-back of pandemic-era stimulus on the back of a solid labour market recovery. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to 1,025.28 tonnes on Friday, from 1,027.61 tonnes on Thursday. India's physical gold market flipped into a small premium last week for the first time in a month as prices eased although activity was still subdued. Russia produced 102.36 tonnes of gold in the first five months of 2021, down from the 104.31 tonnes it produced in the same period in 2020, the finance ministry said. The country also produced 375.94 tonnes of silver during that same period, up from 355.30 tonnes in January-May, 2020, the ministry added. Technically market is under long liquidation as market has witnessed drop in open interest by -0.49% to settled at 13673 while prices down -754 rupees, now Gold is getting support at 45672 and below same could see a test of 45458 levels, and resistance is now likely to be seen at 46243, a move above could see prices testing 46600.

Trading Ideas:

* Gold trading range for the day is 45458-46600.
* Gold skidded as robust U.S. jobs data stoked fears that the Federal Reserve would raises rates quicker than expected
* U.S. employers hired the most workers in nearly a year in July and continued to raise wages, giving the economy a powerful boost
* India's physical gold market flipped into a small premium last week for the first time in a month as prices eased although activity was still subdued.

Silver

Silver yesterday settled down by -3.64% at 62637 as the dollar rallied after the release of strong U.S. labor data. The dollar hit a four-month high against the euro as strong U.S. jobs data bolstered expectations for early tapering of economic support. The Labor Department released a report showing non-farm payroll employment spiked by 943,000 jobs in July after surging by an upwardly revised 938,000 jobs in June. The stronger than expected job growth was partly due to sharp increases in employment in leisure and hospitality and local government education, which shot up by 380,000 jobs and 221,000 jobs, respectively. Reflecting the strong job growth, the unemployment rate slid to 5.4 percent in July from 5.9 percent in June, falling to its lowest level since March of 2020. Last week, Federal Reserve Chair Jerome Powell indicated further progress was needed in labor market recovery before the central would consider scaling back stimulus. The dollar's spike makes gold more expensive for holders of other currencies. The outlook for U.S. monetary policy might be affected by the latest U.S. inflation data and six speeches from Federal Reserve officials scheduled for this week. Technically market is under fresh selling as market has witnessed gain in open interest by 0.14% to settled at 12091 while prices down -2363 rupees, now Silver is getting support at 61734 and below same could see a test of 60830 levels, and resistance is now likely to be seen at 64126, a move above could see prices testing 65614.

Trading Ideas:
 

 * Silver trading range for the day is 60830-65614.
* Silver prices fell as the dollar rallied after the release of strong U.S. labor data.
* The dollar hit a four-month high against the euro as strong U.S. jobs data bolstered expectations for early tapering of economic support.
* The Labor Department released a report showing non-farm payroll employment spiked by 943,000 jobs in July after surging by an upwardly revised 938,000 jobs in June.
 

Crude oil

Crude oil yesterday settled down by -2.79% at 4954 on the back of a rising U.S. dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand. A United Nations panel's dire warning on climate change also added to the gloomy mood after fires in Greece have razed homes and forests and parts of Europe suffered deadly floods last month. China's export growth slowed more than expected in July after outbreaks of COVID-19 cases and floods, while import growth was also weaker than expected. China's crude oil imports rebounded in July from a six-month low as state-backed refiners ramped up output after returning from maintenance, though independent refineries slowed restocking amid probes by Beijing into trading and taxes. China brought in 41.24 million tonnes of crude oil last month, equivalent to 9.71 million barrels per day (bpd), data from the General Administration of Customs showed. That compares with 40.14 million tonnes in June and 51.29 million tonnes in July 2020. China in June cut 35% of crude oil import quotas to non-state refiners in a second batch of allowances for 2021, in which several small refiners did not receive any quotas. Technically market is under fresh selling as market has witnessed gain in open interest by 0.26% to settled at 6516 while prices down -142 rupees, now Crude oil is getting support at 4856 and below same could see a test of 4759 levels, and resistance is now likely to be seen at 5040, a move above could see prices testing 5127.

Trading Ideas:
 

* Crude oil trading range for the day is 4759-5127.
* Crude oil dropped on the back of a rising U.S. dollar and concerns that new coronavirus-related restrictions could slow a global recovery in fuel demand.
* China's crude oil imports fell in July and were down sharply from the record levels of June 2020.
* U.S. crude stocks at Cushing, OK, fall to lowest since Jan 2020 – EIA

Natural gas

Nat.Gas yesterday settled down by -2.87% at 301 due to a drop in oil prices despite mostly steady forecasts for hotter-than-normal weather to continue over the next two weeks. Last week, gas speculators cut their net long futures and options positions on the New York Mercantile and Intercontinental Exchanges for a fourth week in a row for the first time since April as some buyers cashed in their gains after the front-month soared to a 31-month high. The U.S. Energy Information Administration (EIA) said utilities added 13 billion cubic feet (bcf) of gas into storage during the week ended July 30. Last week's injection boosted stockpiles to 2.727 trillion cubic feet (tcf), or 6.4% below the five-year average of 2.912 tcf for this time of year. Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to 91.7 billion cubic feet per day (bcfd) so far in August from 91.6 bcfd in July. That was still well below the all-time high of 95.4 bcfd in November 2019. Refinitiv projected average gas demand, including exports, would rise from 90.9 bcfd this week to 94.3 bcfd next week as power generators burn more fuel to meet rising air conditioning use. U.S. pipeline exports to Mexico fell from an average of 6.5 bcfd in July to 6.0 bcfd so far in August. Technically market is under long liquidation as market has witnessed drop in open interest by -20.6% to settled at 11445 while prices down -8.9 rupees, now Natural gas is getting support at 296 and below same could see a test of 291 levels, and resistance is now likely to be seen at 308.4, a move above could see prices testing 315.8.

Trading Ideas:

* Natural gas trading range for the day is 291-315.8.
* Natural gas slipped due to a drop in oil prices despite mostly steady forecasts for hotter-than-normal weather to continue over the next two weeks.
* Last week, gas speculators cut their net long futures and options positions for a fourth week in a row for the first time since April
* The U.S. EIA said utilities added 13 billion cubic feet (bcf) of gas into storage during the week ended July 30.

Copper 

Copper yesterday settled down by -0.91% at 725.8 as concerns linger over the slowdown in economic recovery due to the delta variant. China’s central bank said it would keep prudent monetary policy flexible and appropriate while prioritising stability. In its second-quarter monetary policy implementation report, the People’s Bank of China said it would keep liquidity reasonably ample and step up support for technology innovation, small firms and the manufacturing sector. U.S. employment data showing strong job gains, a sharp drop in the unemployment rate and a rise in wages last month is likely to push the Fed closer to paring its massive support for the economy. The U.S. Senate moved a step closer on Sunday to passing a $1 trillion bipartisan infrastructure bill by giving its blessing to the details of the largest U.S. investment in roads and bridges in decades. China's copper imports in July fell 1.0% from June, declining for a fourth straight month, customs data showed, as high prices, the release of state reserves and increased scrap metal inflows kept buying interest at bay. Imports of unwrought copper and copper products into China, the world's biggest copper consumer, were 424,280.3 tonnes last month, the General Administration of Customs said. Technically market is under fresh selling as market has witnessed gain in open interest by 3.19% to settled at 4301 while prices down -6.7 rupees, now Copper is getting support at 718.2 and below same could see a test of 710.5 levels, and resistance is now likely to be seen at 732.5, a move above could see prices testing 739.1.

Trading Ideas:
 

* Copper trading range for the day is 710.5-739.1.
* Copper prices dropped as concerns linger over the slowdown in economic recovery due to the delta variant.
* China’s central bank said it would keep prudent monetary policy flexible and appropriate while prioritising stability.
* China's copper imports in July fell 1.0% from June, declining for a fourth straight month, customs data showed

Zinc

Zinc yesterday settled down by -0.85% at 244.95 as the US dollar index climbed amid better-than-expected US nonfarm payroll report. On the fundamentals, the overall inventories remained low in spite of mild re-stocking. The market shall pay attention to re-stocking magnitude this week as some downstream entities have started to receive release government reserves. China's factory gate prices in July rose at a faster clip from the previous month, adding to pressure on businesses struggling with high raw material costs, while consumer inflation eased slightly. The producer price index (PPI) grew 9.0% from a year earlier, matching the high seen in May, the National Bureau of Statistics (NBS) said in a statement. China's economy has largely recovered from disruptions caused by the COVID-19 pandemic, but the expansion is losing steam as businesses face intensifying strains from higher commodity prices and global supply chain bottlenecks. The global spread of the more-infectious Delta variant of the virus and new outbreaks of cases at home, on top of recent heavy rainfall and floods in some Chinese provinces have also disrupted economic activity. The PPI, a benchmark gauge of a country's industrial profitability, inched up 0.5% on a monthly basis, accelerating from a 0.3% uptick in June. Technically market is under long liquidation as market has witnessed drop in open interest by -9.57% to settled at 1465 while prices down -2.1 rupees, now Zinc is getting support at 243.6 and below same could see a test of 242.1 levels, and resistance is now likely to be seen at 246.9, a move above could see prices testing 248.7.

Trading Ideas:
 

 * Zinc trading range for the day is 242.1-248.7.
* Zinc prices dropped as the US dollar index climbed amid better-than-expected US nonfarm payroll report.
* On the fundamentals, the overall inventories remained low in spite of mild re-stocking.
* China's factory gate prices in July rose at a faster clip from the previous month

Nickel

Nickel yesterday settled down by -2.44% at 1423.6 as US dollar index remained supported as investors bet that a reduction in asset purchases could start this year and higher interest rates could follow as soon as 2022 following strong US jobs report. On the macro front, US nonfarm payroll report in July increased greatly, pushing up US dollar index. However, the worries over Fed’s policies have kept the commodities market sentiment on edge. On the fundamentals, nickel supply and demand were both tight, with transportation of raw materials being affected by the pandemic. China’s central bank said it would keep prudent monetary policy flexible and appropriate while prioritising stability. In its second-quarter monetary policy implementation report, the People’s Bank of China said it would keep liquidity reasonably ample and step up support for technology innovation, small firms and the manufacturing sector. China will promote the healthy development of capital markets and better protect the interests of investors, the central bank said. Investor morale in the euro zone fell in August to a three-month low on a sharp drop in expectations due to concerns that new lockdown restrictions could loom in the autumn and beyond, a survey showed. Technically market is under long liquidation as market has witnessed drop in open interest by -8.22% to settled at 1508 while prices down -35.6 rupees, now Nickel is getting support at 1412.3 and below same could see a test of 1401.1 levels, and resistance is now likely to be seen at 1439.7, a move above could see prices testing 1455.9.
Trading Ideas:

Trading Ideas:
 

* Nickel trading range for the day is 1401.1-1455.9.
* Nickel prices dropped as US dollar index remained supported as investors bet that a reduction in asset purchases could start this year
* On the macro front, US nonfarm payroll report in July increased greatly, pushing up US dollar index.
* Nickel supply and demand were both tight, with transportation of raw materials being affected by the pandemic.

Aluminium

Aluminium yesterday settled down by -0.41% at 205 as China released its CPI in July on an annual basis, which is slightly less than expected. New power consumption restrictions imposed by southern China's Guangxi region on aluminium producers at the weekend could temporarily shut down about half a million tonnes of annual smelting capacity. The curbs are set to exacerbate tight aluminium supply in China, the world's biggest producer and consumer of the metal, following similar restrictions in neighbouring Yunnan, a major aluminium hub. A notice sent by Guangxi Power Grid Corp told aluminium smelters to reduce their average electricity loads by more than 30% by Aug. 15 as part of efforts to cut electricity usage during peak times. US nonfarm payrolls data in July increased 943000, a record high in growth rate within the year; and the unemployment rate fell to 5.4%, one step closer to Fed’s target of tapering bond purchases. Kaplan, Chair of Dallas Federal Reserve, suggested the Fed shall proceed to a phased cut-back on bond purchases as soon as possible, while a large-scale debt purchase may cause excessive risks. Technically market is under long liquidation as market has witnessed drop in open interest by -6.24% to settled at 1847 while prices down -0.85 rupees, now Aluminium is getting support at 202.6 and below same could see a test of 200.3 levels, and resistance is now likely to be seen at 207.5, a move above could see prices testing 210.1.
 

Trading Ideas:
 

* Aluminium trading range for the day is 200.3-210.1.
* Aluminium prices dropped as China released its CPI in July on an annual basis, which is slightly less than expected.
* Power curbs in China's Guangxi seen shutting more aluminium capacity
* US nonfarm payrolls data in July increased 943000, a record high in growth rate within the year; and the unemployment rate fell to 5.4%

Mentha oil 

Mentha oil yesterday settled up by 0.62% at 944 on short covering after prices dropped as average yield in Barabanki is improved by 5-6 kgs per acre due to better weather. Pressure seen arrivals likely to increase due to favourable weather conditions. Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days. Last week, prices rallied. The Lucknow-based Central Institute of Medicinal and Aromatic Plants estimates that this adverse effect of rains on the crop is expected to reduce production by 30% in the last two weeks. The crop is prone to rain because the leaves of the crop start falling due to waterlogging in the field. Most of the farmers have planted Mentha crops and this rain is not less than acid for 50 percent of Mentha crop. Last month, support seen due to the rotting of the crop due to stagnant water in the field. The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting. Due to drowning in the water, the rows have started to wither. With the harvesting of the crop, oil extraction work has also started. In Sambhal spot market, Mentha oil dropped by -15.3 Rupees to end at 1051 Rupees per 360 kgs.Technically market is under short covering as market has witnessed remain unchanged in open interest by 0% to settled at 1119 while prices up 5.8 rupees, now Mentha oil is getting support at 940.7 and below same could see a test of 937.4 levels, and resistance is now likely to be seen at 946.6, a move above could see prices testing 949.2.
 

Trading Ideas:
 

* Mentha oil trading range for the day is 937.4-949.2.
* In Sambhal spot market, Mentha oil dropped  by -15.3 Rupees to end at 1051 Rupees per 360 kgs.
* Mentha oil gained on short covering after prices dropped as average yield in Barabanki improved
* Pressure seen arrivals likely to increase due to favourable weather conditions.
* The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting.

Soyabean

Soyabean yesterday settled down by -6% at 8104 after update that soybean registered the highest growth in their acreage as overall Kharif sowing in Gujarat has touched 76.67 lakh hectare (lh) or 82.61 per cent of last three years’ average, latest data of the state government shows. Farmers have completed sowing soybean in 2.19 lakh hectare (lh), a growth of around 71 per cent over and above the last year’s average acreage of 1.28 lh. It is around 67 per cent higher as compared to last Kharif season’s 1.47 lh cultivation area for this oilseed. The increase in soybean sowing area comes in the backdrop of a rally in prices of all edible oils in domestic market and de-oiled cake (DOC) of soybean in international market. Overall, farmers so far have sown oilseed crops in total 22.96 lh, the highest for any group of crops in the state so far and more than one-fourth of the total area sown so far this season. U.S. exporters sold 436,200 tonnes of soybeans during the week ended July 29, in line with trade expectations, according to the U.S. Department of Agriculture. The USDA also announced a daily sale of 300,000 tonnes of soybeans for delivery to unknown destinations during the 2021/2022 marketing year. At the Indore spot market in top producer MP, soybean dropped -490 Rupees to 9763 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.82% to settled at 16755 while prices down -517 rupees, now Soyabean is getting support at 7972 and below same could see a test of 7840 levels, and resistance is now likely to be seen at 8368, a move above could see prices testing 8632.
 

Trading Ideas:

* Soyabean trading range for the day is 7840-8632.
* Soyabean prices dropped after update that soybean registered the highest growth in their acreage in Gujarat.
* Farmers have completed sowing soybean in 2.19 lakh hectare (lh), above the last year’s average acreage of 1.28 lh.
* The increase in soybean sowing area comes in the backdrop of a rally in prices of all edible oils in domestic market
* At the Indore spot market in top producer MP, soybean dropped  -490 Rupees to 9763 Rupees per 100 kgs.

Soyaoil 

Ref.Soyaoil yesterday settled down by -2.91% at 1327.9 as pressure seen after update India's imports of sunflower oil could rise to a record in 2021/22 as potential bumper crops in Russia and Ukraine pull prices below rival soyoil, making it lucrative for price-sensitive buyers from the subcontinent, industry officials said. India is the world's biggest importer of edible oils and higher purchases of sunflower oil could help exporters such as Argentina, Russia and Ukraine to dispose of surplus output. All India, oilseed sowing area has been reported about 173.50 lakh ha compared to normal of corresponding week (164.88 lakh ha). Thus 8.62 lakh ha more area has been covered compared to normal of corresponding week. China raised its forecast on imports of edible oils in 2020/21 marketing year, on increase of palm oil and sunflower oil shipments, the country's agriculture ministry said. China's 2020/21 edible oils imports were seen at 10.23 million tonnes, up 900,000 tonnes from last month's forecast, the Ministry of Agriculture and Rural Affairs said in its monthly crop report. Estimates on output, planting acreage and imports of corn, soybeans and cotton in the 2021/22 year remain unchanged from a month ago, according to the ministry. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1397.85 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 12.65% to settled at 25905 while prices down -39.8 rupees, now Ref.Soya oil is getting support at 1305 and below same could see a test of 1283 levels, and resistance is now likely to be seen at 1359, a move above could see prices testing 1391.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1283-1391.
* Ref soyoil prices dropped as pressure seen after update India's sunflower oil imports could jump to record as prices dip below soyoil.
* India is the world's biggest importer of edible oils and higher purchases of sunflower oil could help exporters such to dispose of surplus output.
* All India, oilseed sowing area has been reported about 173.50 lakh ha compared to normal of corresponding week’s 164.88 lakh ha.
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1397.85 Rupees per 10 kgs

Crude palm Oil 

Crude palm Oil yesterday settled down by -1.45% at 1119.5 pressured by a drop in crude oil and as investor’s awaited August export data and Malaysian Palm Oil Board data due this week. Quarantine measures at Chinese ports are reportedly delaying shipments and increasing freight charges, which could cause some short covering at destination markets including India, Bangladesh, Europe and Pakistan. The Malaysian Palm Oil Board (MPOB) is scheduled to announce July supply and demand data on Wednesday, while cargo surveyors are expected to release data on Aug. 1-10 export shipments. Malaysia's palm oil stockpile at the end of July likely expanded to its highest in 10 months, even as production is seen shrinking by 4%. Inventories in the world's second-largest palm oil producer are seen rising for a fifth month, up 1.6% to 1.64 million tonnes from June. Production is pegged to fall for the first time in five months, defying hopes for stronger output amid the peak production months. The government has set the ambitious target for more than three-fold increase in domestic palm oil production, from the current 3 lakh tonnes to 11 lakh tonnes by 2025-26, to reduce India's high dependence on import of edible oil. In spot market, Crude palm oil dropped by -4.7 Rupees to end at 1174 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -5.01% to settled at 5518 while prices down -16.5 rupees, now CPO is getting support at 1110.5 and below same could see a test of 1101.4 levels, and resistance is now likely to be seen at 1136.3, a move above could see prices testing 1153.

Trading Ideas:
* CPO trading range for the day is 1101.4-1153.
* Crude palm oil dropped pressured by a drop in crude oil and as investor’s awaited August export data and Malaysian Palm Oil Board data due this week.
* Malaysia's palm oil stockpile at the end of July likely expanded to its highest in 10 months
* The Malaysian Palm Oil Board (MPOB) is scheduled to announce July supply and demand data on Wednesday.
* In spot market, Crude palm oil dropped  by -4.7 Rupees to end at 1174 Rupees.
 

.

Mustard Seed

Mustard Seed yesterday settled down by -1.5% at 7701 as mustard arrivals in its major producing states i.e. Rajasthan, Madhya Pradesh, Uttar Pradesh and Gujarat improved. However upside seen limited as production in Canada in 2021 expected to drop by 1.7 million tons to 16.9 million tons. As per sources, estimated mustard crushing during June 2021 stood at 6 lakh tonnes, lower by 33% compared to 9 lakh tonnes last month it is also lower by 25% against 8 lakh tonnes in June 2020. Further negative crush margin for mustard seed also discouraged crushing activity and further reduced buying interest for mustard seed. India’s Rapeseed meal exports fell by 46% to 0.97 lakh tonnes on M-o-M basis during May-2021. However mustard meal exports were higher by 66% as compared to same period last year. In 2022-22 marketing year (Mar-Feb), total arrivals reported were up by 309% as compared to the arrivals during the corresponding period last year. As per USDA in its June-21 update, World Mustard seed production for 2021-22 is estimated to increase by 4% at 741 lakh tonnes. The beginning stock estimated to fall by 25% to 57 lakh tonnes. Total consumption estimated to remain same around last year and ending stocks are also estimated to be lower by 1% at 57 lakh tonnes. In Alwar spot market in Rajasthan the prices dropped -158 Rupees to end at 7788.5 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -1.13% to settled at 29630 while prices down -117 rupees, now Rmseed is getting support at 7608 and below same could see a test of 7516 levels, and resistance is now likely to be seen at 7808, a move above could see prices testing 7916.

Trading Ideas:
* Rmseed trading range for the day is 7516-7916.
* Mustard seed dropped as arrivals in its major producing states i.e. Rajasthan, Madhya Pradesh, Uttar Pradesh and Gujarat improved.
* However upside seen limited as production in Canada in 2021 expected to drop by 1.7 million tons to 16.9 million tons.
* In 2022-22 marketing year (Mar-Feb), total arrivals reported were up by 309% as compared to the arrivals during the corresponding period last year.
* In Alwar spot market in Rajasthan the prices dropped -158 Rupees to end at 7788.5 Rupees per 100 kg.
 

Turmeric 

Turmeric yesterday settled down by -1.42% at 7508 amid comfortable supplies of Turmeric with pick-up in mandi arrivals along with sufficient availability of stocks with traders. Further there is expectation of increase in Turmeric sowings in some areas were the key factors that dented market sentiments in the month of June. As the lockdown restrictions were eased in the month of June, the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices. Mandi arrivals of Turmeric, at all-India level, more than doubled in June 2021 compared to the previous month supported by substantial increase in arrivals in Maharashtra and Telangana. Mandi arrivals had remained sluggish in April and May due to closure of mandis in many regions on account of festival season and Covid related lockdown restrictions. The demand remained subdued from bulk buyers from major consumption centres in the country. According to the statistics of the Department of Commerce, Government of India, the highest number of 1.84 lakh tonnes of turmeric was exported during the last financial year 2020-21. The export of turmeric is highest in the months of May, June and July. After the relaxation of the lockdown in some states, spot prices have started increasing in Erode and Nanded mandis last week. In Nizamabad, a major spot market in AP, the price ended at 7387.5 Rupees dropped -40.9 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 15.61% to settled at 9035 while prices down -108 rupees, now Turmeric is getting support at 7444 and below same could see a test of 7382 levels, and resistance is now likely to be seen at 7600, a move above could see prices testing 7694.

Trading Ideas:
* Turmeric trading range for the day is 7382-7694.
* Turmeric dropped amid comfortable supplies of Turmeric with pick-up in mandi arrivals along with sufficient availability of stocks with traders.
* Further there is expectation of increase in Turmeric sowings in some areas were the key factors that dented market sentiments
* The demand remained subdued from bulk buyers from major consumption centres in the country.
* In Nizamabad, a major spot market in AP, the price ended at 7387.5 Rupees dropped -40.9 Rupees.

Jeera

Jeera yesterday settled down by -1.03% at 13505 due to higher availability with farmers and general demand from stockists. Pressure also seen due to the uncertainty of the lockdown over a possible third wave of Covid and low demand from the hotel industry. Mandi arrivals of Jeera, at all-India level more than doubled in June 2021 compared to the previous month following increased arrivals in Gujarat as well as Rajasthan. As per preliminary estimates suggested that carryover stocks of Jeera are likely to be around of about 20-25 Lakh bags (of 55 Kg each), i.e., 1.10 to 1.30 lakh tonnes which are higher than usual range of 7-12 Lakh bags. However, after accounting for wastage, and increased exports, market participants are expecting carryover stocks to be around 0.65-0.70 lakh tonnes. It may be noted that during the FY 2020-21 Jeera exports stood at 2.98 lakh tonnes, 39% higher over the previous year. As per sources, export demand for Jeera is expected to recover as close competitors of India in terms of exporting Jeera, viz., Turkey and Syria may not supply much to the world due to lower exportable surplus. It has been reported that production in Syria is likely to be lower because of political instability and in Turkey is also likely to be lower compared to previous year. In Unjha, a key spot market in Gujarat, jeera edged down by -128.4 Rupees to end at 13561.1 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 10.23% to settled at 3945 while prices down -140 rupees, now Jeera is getting support at 13380 and below same could see a test of 13260 levels, and resistance is now likely to be seen at 13665, a move above could see prices testing 13830.

Trading Ideas:
 

* Jeera trading range for the day is 13260-13830.
* Jeera dropped due to higher availability with farmers and general demand from stockists.
* Pressure also seen due to the uncertainty of the lockdown over a possible third wave of Covid and low demand from the hotel industry.
* As per preliminary estimates suggested that carryover stocks of Jeera are likely to be around of about 20-25 Lakh bags
* In Unjha, a key spot market in Gujarat, jeera edged down by -128.4 Rupees to end at 13561.1 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled down by -2.26% at 26420 as all India, Cotton sowing reported about 116.17 lakh ha area compared to normal of corresponding week (114.22 lakh ha). Thus 1.95 lakh ha more area has been covered compared to normal of corresponding week. The U.S. Department of Agriculture's weekly export sales report showed net sales of 149,300 running bales (RB) for the 2021/2022 marketing year and exports of 229,500 RB, down 4% from the previous week and 5% from the prior 4-week average. Cotton sowing across the country has picked up with the revival of monsoon in several states, after seeing a lull in the month of July due to a dry spell. Sowing in the north is almost complete with Punjab reporting a slight dip. The sowing has been normal in Haryana while Rajasthan and Gujarat had reported dry spells. There has been a dip in Maharashtra since farmers shifted to other crops like soybean and groundnut, but some pick up is likely in Andhra Pradesh and Tamil Nadu. The lower acreage is largely attributed to delayed rains. But with kapas prices ruling at Rs 8000 per quintal, sowing is expected to continue till August-end across various states including Andhra, Telangana, Gujarat, Karnataka and Tamil Nadu. In spot market, Cotton gained by 70 Rupees to end at 27270 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -7.07% to settled at 4707 while prices down -610 rupees, now Cotton is getting support at 25850 and below same could see a test of 25270 levels, and resistance is now likely to be seen at 27110, a move above could see prices testing 27790.

Trading Ideas:
 

* Cotton trading range for the day is 25270-27790.
* Cotton prices dropped as all India, Cotton sowing reported about 116.17 lakh ha area i.e up by 1.71%
* Cotton sowing across the country has picked up with the revival of monsoon in several states, after seeing a lull in the month of July due to a dry spell.
* USDA’s weekly export sales report showed net sales of 149,300 running bales (RB) for the 2021/2022 marketing year.
* In spot market, Cotton gained  by 70 Rupees to end at 27270 Rupees.

Chana
Chana yesterday settled up by 1.4% at 5080 as all India, pulses sowing area coverage has been reported to about 119.54 lakh ha area compared to normal of corresponding week (121.69 lakh ha). Thus 2.15 lakh ha less area has been covered compared to normal of corresponding week. The production of pulses has been increasing during the last three years (2018-19 to 2020-21) and the target for 2021-2022 has been set at 23 LMT (lakh million tonnes) from the 19.5 LMT for 2020-2021, the Parliament was informed. Data from the government showed that all India production of pulses during 2016-17 to 2020-21 -- all numbers in '000 tonnes -- was 23,130.94 for 2016-17, 25,415.92 for 2017-18, 22,075.96 for 2018-19, 23,025.25 for 2019-20, and for 2020-21, it is projected at 25,575.69, as per the 3rd advance estimates. India is likely to receive an average amount of rainfall in August and September, the state-run weather office said, raising expectations of higher crop yields in Asia's third-biggest economy, which relies heavily on the vast farm sector. "As per most parameters, we expect monsoon rains to be normal in August and September this year," Mrutyunjay Mohapatra, Director General of the state-run India Meteorological Department (IMD), told a news conference. In Delhi spot market, chana gained by 52.5 Rupees to end at 4902.5 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 9.99% to settled at 85570 while prices up 70 rupees, now Chana is getting support at 5044 and below same could see a test of 5009 levels, and resistance is now likely to be seen at 5102, a move above could see prices testing 5125.

Trading Ideas:
* Chana trading range for the day is 5009-5125.
* Chana prices gained as all India, pulses sowing area coverage has been reported to about 119.54 lakh ha, down by 2.15 lakh ha less area
* The production of pulses has been increasing during the last three years and the target for 2021-2022 has been set at 23 LMT
* India is likely to receive an average amount of rainfall in August and September, the state-run weather office said
* In Delhi spot market, chana gained  by 52.5 Rupees to end at 4902.5 Rupees per 100 kgs.

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