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Gold

Gold yesterday settled up by 0.93% at 46388 as concerns over the economic impact of the Delta coronavirus variant spurred some safe haven buying, though gains were capped by bets on early tapering by the U.S. Federal Reserve and a firm dollar. The coronavirus pandemic exacerbated economic inequalities that existed before the crisis, leading to greater employment losses for women, Black workers and people in rural areas, Atlanta Federal Reserve Bank President Raphael Bostic said. “The virus exploited existing weaknesses in our economy just as it exploited preexisting conditions in individual human bodies,” Bostic said in remarks prepared for an event organized by the Chautauqua Institution. U.S. consumer prices increases slowed in July even as they remained at a 13-year high on an annual basis and there were tentative signs inflation has peaked as supply-chain disruptions caused by the pandemic work their way through the economy. Two Federal Reserve officials said that the U.S. economy is growing rapidly and that while the labor market still has room for improvement, inflation is already at a level that could satisfy one leg of a key test for the beginning of rate hikes. Technically market is under short covering as market has witnessed drop in open interest by -3.94% to settled at 13261 while prices up 426 rupees, now Gold is getting support at 46060 and below same could see a test of 45732 levels, and resistance is now likely to be seen at 46581, a move above could see prices testing 46774.

Trading Ideas:
* Gold trading range for the day is 45732-46774.
 * Gold rose as concerns over the economic impact of the Delta coronavirus variant spurred some safe haven buying
 * Though gains were capped by bets on early tapering by the U.S. Federal Reserve and a firm dollar.
* U.S. consumer prices increases slowed in July even as they remained at a 13-year high on an annual basis and there were tentative signs inflation has peaked

Silver

Silver yesterday settled up by 0.22% at 62771 as rising coronavirus cases across the United States and other countries spurred some safe-haven buying. The upside was capped by bets on early tapering by the U.S. Federal Reserve. Chicago Fed president Charles Evans said that the current surge in prices shouldn't push the Fed to tighten monetary policy prematurely. Still, concerns over the threats posed by the rapid spread of the Covid-19 delta variant on business activity boosted metals safe-haven appeal. A $1 trillion infrastructure package that is a top priority for U.S. President Joe Biden secured enough votes to pass in the Senate, a bipartisan victory for the White House as it aims to provide the nation's biggest investment in decades in roads, bridges, airports and waterways. Voting was continuing in the 100-seat chamber after the measure secured the 50 votes needed for passage. Polls show that the drive to upgrade America's infrastructure, hammered out by a bipartisan group of senators over months of negotiations, is broadly popular with the public. U.S. worker productivity growth slowed in the second quarter and labor costs were far weaker than previously estimated in the first quarter, the Labor Department said. Nonfarm productivity, which measures hourly output per worker, increased at a 2.3% annualized rate last quarter. Technically market is under short covering as market has witnessed drop in open interest by -1.36% to settled at 11885 while prices up 135 rupees, now Silver is getting support at 62436 and below same could see a test of 62100 levels, and resistance is now likely to be seen at 62985, a move above could see prices testing 63198.

Trading Ideas:

* Silver trading range for the day is 62100-63198.
* Silver prices steadied as rising coronavirus cases across the United States and other countries spurred some safe-haven buying.
* The upside was capped by bets on early tapering by the U.S. Federal Reserve.
* Chicago Fed president Charles Evans said that the current surge in prices shouldn't push the Fed to tighten monetary policy prematurely.

Crude oil

Crude oil yesterday settled up by 0.67% at 5146 recovering well after an early setback, after the Biden administration said it would not ask U.S. oil producers to hike output. Crude oil stockpiles fell modestly last week, while gasoline inventories dipped to their lowest level since November, the U.S. Energy Information Administration said. Crude inventories fell by 447,000 barrels in the week to Aug. 6 to 438.8 million barrels, compared with expectations for a 1.3 million-barrel drop. Overall crude inventories have been on the decline for several weeks due to increased demand. Fuel consumption, as measured by product supplied, fell in the most recent week, led by declines in gasoline and jet fuel supplied. A pipeline leak reduced oil output in Libya by 60,000-70,000 barrels per day, National Oil Corporation said. The Biden administration has urged OPEC and its oil-producing partners to boost production, saying current output is "simply not enough" and could threaten the current global economic recovery, the White House said in a statement. White House national security adviser Jake Sullivan, in a statement, also said the administration was engaging OPEC+ members on the importance of competitive markets. Technically market is under short covering as market has witnessed drop in open interest by -8.52% to settled at 5046 while prices up 34 rupees, now Crude oil is getting support at 5022 and below same could see a test of 4898 levels, and resistance is now likely to be seen at 5214, a move above could see prices testing 5282.

Trading Ideas:
* Crude oil trading range for the day is 4898-5282.
* Crude oil settled higher, after the Biden administration said it would not ask U.S. oil producers to hike output.
* White House: OPEC+ oil output 'not enough', could harm global recovery
* Crude oil stockpiles fell modestly last week, while gasoline inventories dipped to their lowest level since November

Natural gas

Nat.Gas yesterday settled down by -0.59% at 302.1 on forecasts for less hot weather and lower air conditioning demand next week than previously expected. That small price decline came even though gas prices in Europe rose to record highs for a second day in a row and as U.S. homes and businesses in Texas and the Pacific Northwest cranked up their air conditioners this week to escape another round of brutal heat waves. Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to an average of 92.0 billion cubic feet per day (bcfd) so far in August from 91.6 bcfd in July. With hot weather expected through late August, Refinitiv projected average U.S. gas demand, including exports, would hold around 92.9 bcfd this week and next as power generators keep burning lots of gas to produce electricity to keep air conditioners humming. The outlook for next week, however, was lower than Refinitiv projected on Tuesday due to less hot forecasts. The amount of gas flowing to U.S. liquefied natural gas (LNG) export plants slipped to an average of 10.2 bcfd so far in August due mostly to reductions at the Cameron and Sabine plants in Louisiana, down from 10.8 bcfd in July and a record 11.5 bcfd in April. Technically market is under long liquidation as market has witnessed drop in open interest by -21.09% to settled at 9083 while prices down -1.8 rupees, now Natural gas is getting support at 296.2 and below same could see a test of 290.4 levels, and resistance is now likely to be seen at 307.7, a move above could see prices testing 313.4.

Trading Ideas:
* Natural gas trading range for the day is 290.4-313.4.
* Natural gas eased on forecasts for less hot weather and lower air conditioning demand next week than previously expected.
* Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to an average of 92.0 bcfd so far in August from 91.6 bcfd in July.
* 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

Copper 

Copper yesterday settled up by 0.15% at 735.3 as prices retreated, weighed down by dwindling chances of a strike at the world’s biggest copper mine. Losses were modest, however, after U.S. lawmakers approved a $1 trillion infrastructure spending bill and the dollar weakened. Copper pared losses after the dollar reversed and went into negative territory after data showed U.S. consumer price increases slowed in July. BHP Group Ltd and the union at its Escondida copper mine, the world’s biggest, said they had reached a tentative deal for a new contract. Open interest in LME copper has declined to the lowest levels in 14 months, a reflection of lack of direction in the market. Yangshan copper premium rose to $60 a tonne, its highest since March 26, indicating improved demand for importing the metal into top consumer China. 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 buying as market has witnessed gain in open interest by 3.59% to settled at 4102 while prices up 1.1 rupees, now Copper is getting support at 730.8 and below same could see a test of 726.1 levels, and resistance is now likely to be seen at 738.1, a move above could see prices testing 740.7.
 

Trading Ideas:
* Copper trading range for the day is 726.1-740.7.
* Copper prices settled flat weighed down by dwindling chances of a strike at the world’s biggest copper mine.
* Losses were modest, however, after U.S. lawmakers approved a $1 trillion infrastructure spending bill and the dollar weakened.
* BHP Group Ltd and the union at its Escondida copper mine, the world’s biggest, said they had reached a tentative deal for a new contract.

Zinc

Zinc yesterday settled up by 1.21% at 251.55 as the zinc ingot output may fall below expectations. And the supply in August is unlikely to fulfill the overall demand in light of the high season. Zinc prices may remain high supported by low social inventories. On the macro front, US Senate passed the $3.5 trillion budget plan. China newly added social financing in July stood at 1.06 trillion yuan, and M2 rose 8.3% year on year, leading to an expanding M2-M1 scissors difference for three months in a row. Tonight, the market shall closely watch the speech of Mester, Chair of Cleveland Fed, on the subject of inflation risks. Power curtailment has been influencing supply from mines with intensified policies in Hunan and Guangxi. The pandemic has also resulted in a delayed transportation and increased delivery costs, lifting operation costs among downstream businesses. Clues to demand prospects for industrial metals will come from Chinese data over the next few days, including total social financing, loans, industrial production and investment. China's output of zinc in July rose more slowly than expected from the prior month due to restrictions on power use in key production hubs. Technically market is under fresh buying as market has witnessed gain in open interest by 37.02% to settled at 2232 while prices up 3 rupees, now Zinc is getting support at 249.1 and below same could see a test of 246.4 levels, and resistance is now likely to be seen at 253.2, a move above could see prices testing 254.6.

Trading Ideas:
* Zinc trading range for the day is 246.4-254.6.
* Zinc prices rose as the zinc ingot output may fall below expectations.
* And the supply in August is unlikely to fulfill the overall demand in light of the high season.
* Power curtailment has been influencing supply from mines with intensified policies in Hunan and Guangxi.

Nickel

Nickel yesterday settled up by 2.06% at 1473.7 due to strong demand for nickel from stainless steel and new energy sector, tightened supply. Domestic nickel output stood at around 12,335 mt in July, down 13.48% or 1,922 mt month on month. Operating rates of smelters stood at 56%. Peak production in June in Gansu lifted the overall June benchmark, and returned to normal entering July, resulting in a reduction on a month-on-month basis. China's refined nickel output in July fell 13.4% month on month as top smelter Jinchuan Group carried out an overhaul on a furnace. Nickel cathode output was 12,353 tonnes, down 16.4% year on year, with Jinchuan accounting for 11,000 tonnes of the total. January-July output fell 15.7% to 91,723 tonnes. As Gansu-based Jinchuan's production returns to normal this month, China's August refined nickel output is seen recovering to 14,000 tonnes. Meanwhile, July production of stainless steel raw material nickel pig iron (NPI) was 40,500 tonnes on a metal content basis, up 5.6% month on month but down 7.7% from a year earlier. On the fundamentals, output reduction plan in stainless steel was carried out accordingly, but the production schedule was still hectic. The strong demand of nickel from the new energy sector supported nickel prices. Technically market is under fresh buying as market has witnessed gain in open interest by 19.85% to settled at 1721 while prices up 29.8 rupees, now Nickel is getting support at 1442.5 and below same could see a test of 1411.4 levels, and resistance is now likely to be seen at 1491.8, a move above could see prices testing 1510.

Trading Ideas:
* Nickel trading range for the day is 1411.4-1510.
* Nickel rose due to strong demand for nickel from stainless steel and new energy sector, tightened supply.
* China's refined nickel output in July fell 13.4% month on month as top smelter Jinchuan Group carried out an overhaul on a furnace.
* Output reduction plan in stainless steel was carried out accordingly, but the production schedule was still hectic.

Aluminium

Aluminium yesterday settled up by 0.36% at 207.9 as intensified power restrictions have tightened further the aluminium supply. While the disrupted transportation due to flood and pandemic have brought continued de-stocking of social inventories, offering strong support to aluminium prices. The market shall also pay attention to the influences of imports and released government reserves. Social inventories kept de-stocking above expectation amid a weak supply & demand pattern, offering strong support to prices. Data showed U.S. job openings jumped to a record high in June and hiring increased. That came on the heels of Friday’s U.S. monthly jobs report that showed U.S. employers hired the most workers in nearly a year in July and continued to raise wages. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 0.1% to settled at 2029 while prices up 0.75 rupees, now Aluminium is getting support at 207.1 and below same could see a test of 206.3 levels, and resistance is now likely to be seen at 208.6, a move above could see prices testing 209.3.

Trading Ideas:
* Aluminium trading range for the day is 206.3-209.3.
* Aluminium gained as intensified power restrictions have tightened further the aluminium supply.
* While the disrupted transportation due to flood and pandemic have brought continued de-stocking of social inventories, offering strong support to aluminium prices.
* The market shall also pay attention to the influences of imports and released government reserves.

Mentha oil 

Mentha oil yesterday settled up by 0.23% at 929.2 on some low level buying 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 gained by 16.6 Rupees to end at 1068.9 Rupees per 360 kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.14% to settled at 1051 while prices up 2.1 rupees, now Mentha oil is getting support at 923.7 and below same could see a test of 918.1 levels, and resistance is now likely to be seen at 933.3, a move above could see prices testing 937.3.
 

Trading Ideas:
* Mentha oil trading range for the day is 918.1-937.3.
* In Sambhal spot market, Mentha oil gained  by 16.6 Rupees to end at 1068.9 Rupees per 360 kgs.
* Mentha oil gained on some low level buying 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 up by 6% at 8075 tracking rise in overseas prices supported by fresh U.S. soy export sales. The USDA confirmed private sales of 132,000 tonnes of new-crop U.S. soybeans to China and another 130,000 tonnes to unknown destinations. The USDA rated 60% of the U.S. soybean crop in good to excellent condition, unchanged from the previous week and in line with trade expectations. Brazil's crop supply agency, Conab, slightly raised its estimate of Brazil's 2020/21 soybean harvest to 135.978 tonnes, from 135.912 million seen in July. 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. At the Indore spot market in top producer MP, soybean gained 228 Rupees to 8850 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.32% to settled at 16835 while prices up 457 rupees, now Soyabean is getting support at 7631 and below same could see a test of 7188 levels, and resistance is now likely to be seen at 8296, a move above could see prices testing 8518.

Trading Ideas:
* Soyabean trading range for the day is 7188-8518.
* Soyabean prices gained tracking rise in overseas prices supported by fresh U.S. soy export sales.
* The USDA confirmed private sales of 132,000 tonnes of new-crop U.S. soybeans to China and another 130,000 tonnes to unknown destinations.
* Brazil's crop supply agency, Conab, slightly raised its estimate of Brazil's 2020/21 soybean harvest to 135.978 tonnes, from 135.912 million seen in July.
* At the Indore spot market in top producer MP, soybean gained  228 Rupees to 8850 Rupees per 100 kgs.

Soyaoil 

Ref.Soyaoil yesterday settled up by 1.78% at 1375.1 supported by lingering concerns over tight supply. However upside seen limited as 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1393.4 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.53% to settled at 25585 while prices up 24.1 rupees, now Ref.Soya oil is getting support at 1358 and below same could see a test of 1341 levels, and resistance is now likely to be seen at 1386, a move above could see prices testing 1397.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1341-1397.
* Ref soyoil ended with gains supported by lingering concerns over tight supply.
* However upside seen limited as update India's imports of sunflower oil could rise to a record in 2021/22
* 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.
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1393.4 Rupees per 10 kgs.

Crude palm Oil 

Crude palm Oil yesterday settled up by 2.9% at 1168 as importing nations stockpile the edible oil, with bullish Malaysian Palm Oil Board data expected to provide further support. The prices was supported by stockpiling activities in importing countries, such as key buyer China, as arriving shipments face quarantine measures due to COVID-19. Malaysia's end-July palm oil end-stocks fell 7.3% from June to 1.5 million tonnes, data from industry regulator the Malaysian Palm Oil Board (MPOB) showed. Crude palm oil production declined 5.17% from June to 1.52 million tonnes, while palm oil exports fell 0.75% to 1.41 million tonnes, the MPOB said. Exports of Malaysian palm oil products for Aug. 1-10 fell between 10% and 12.8% from the same period in July, cargo surveyors said. India will launch a 110 billion rupee ($1.48 billion) plan to boost domestic oilseed production to make the country self-sufficient in edible oil, Prime Minister Narendra Modi said, a move that will cut costly vegetable oil imports. India is the world's biggest vegetable oil importer and spends an average of $8.5-$10 billion annually on edible oil imports. Exports fell 0.75% to 1.41 million tonnes, better than cargo surveyors' estimates of July shipments declining between 5% and 8%. In spot market, Crude palm oil gained by 16.9 Rupees to end at 1189 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 3.37% to settled at 6224 while prices up 32.9 rupees, now CPO is getting support at 1150.5 and below same could see a test of 1133 levels, and resistance is now likely to be seen at 1178.9, a move above could see prices testing 1189.8.

Trading Ideas:
* CPO trading range for the day is 1133-1189.8.
* Crude palm oil gained as importing nations stockpile the edible oil, with bullish Malaysian Palm Oil Board data expected to provide further support.
* Malaysia's end-July palm oil end-stocks fell 7.3% from June to 1.5 million tonnes
* India to launch $1.48 bln plan to raise oilseed output, cut imports
* In spot market, Crude palm oil gained  by 16.9 Rupees to end at 1189 Rupees.

Mustard Seed

Mustard Seed yesterday settled up by 2.86% at 7773 as production in Canada in 2021 expected to drop by 1.7 million tons to 16.9 million tons. Mustard arrivals in its major producing states i.e. Rajasthan, Madhya Pradesh, Uttar Pradesh and Gujarat improved. 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 gained 103 Rupees to end at 7737 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 10.87% to settled at 36720 while prices up 216 rupees, now Rmseed is getting support at 7657 and below same could see a test of 7541 levels, and resistance is now likely to be seen at 7842, a move above could see prices testing 7911.

Trading Ideas:
* Rmseed trading range for the day is 7541-7911.
* Mustard seed gained as production in Canada in 2021 expected to drop by 1.7 million tons to 16.9 million tons.
* However upside seen limited as arrivals in its major producing states i.e. Rajasthan, Madhya Pradesh, Uttar Pradesh and Gujarat improved.
* 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 gained 103 Rupees to end at 7737 Rupees per 100 kg.

Turmeric 

Turmeric yesterday settled down by -0.05% at 7438 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. In Nizamabad, a major spot market in AP, the price ended at 7290 Rupees dropped -20 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 7.96% to settled at 10855 while prices down -4 rupees, now Turmeric is getting support at 7364 and below same could see a test of 7292 levels, and resistance is now likely to be seen at 7488, a move above could see prices testing 7540.
 

Trading Ideas:
* Turmeric trading range for the day is 7292-7540.
* 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 7290 Rupees dropped -20 Rupees

Jeera

Jeera yesterday settled down by -0.22% at 13395 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 up by 41.65 Rupees to end at 13550 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 10.93% to settled at 5085 while prices down -30 rupees, now Jeera is getting support at 13350 and below same could see a test of 13300 levels, and resistance is now likely to be seen at 13465, a move above could see prices testing 13530.

Trading Ideas:
* Jeera trading range for the day is 13300-13530.
* 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 up by 41.65 Rupees to end at 13550 Rupees per 100 kg.
 

.Cotton

Cotton yesterday settled down by -0.42% at 26110 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 160 Rupees to end at 27040 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -7.37% to settled at 3869 while prices down -110 rupees, now Cotton is getting support at 25950 and below same could see a test of 25780 levels, and resistance is now likely to be seen at 26370, a move above could see prices testing 26620.

Trading Ideas:
* Cotton trading range for the day is 25780-26620.
* Cotton prices dropped as all India, Cotton sowing reported about 116.17 lakh ha area i.e up by 1.71%
* The government said there is excess availability of local cotton, which the textile and apparel industry should tap into and support farmers hit by a surge in imports.
* The cotton Association of India has sought withdrawal of the 10% duty levied on imports saying the commodity has become costly
* In spot market, Cotton gained  by 160 Rupees to end at 27040 Rupees.

Chana

Chana yesterday settled up by 0.36% at 5048 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 24.25 Rupees to end at 4930.9 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 8.28% to settled at 97470 while prices up 18 rupees, now Chana is getting support at 5012 and below same could see a test of 4975 levels, and resistance is now likely to be seen at 5080, a move above could see prices testing 5111.

Trading Ideas:
* Chana trading range for the day is 4975-5111.
* 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 24.25 Rupees to end at 4930.9 Rupees per 100 kgs.

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