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Gold

Gold yesterday settled up by 1.24% at 46940 on concerns over rising cases of the Delta variant, although uncertainties over the U.S. Federal Reserve's tapering timeline kept bullion on course for a weekly drop. Fitch Solutions said in a note that demand for gold should remain robust amid elevated inflation rates and pandemic-related uncertainties, sustaining the appetite for safe-haven assets. President Joe Biden said that his administration is working to relieve bottlenecks threatening the economic recovery and trusts the Federal Reserve to take any steps that may be needed to rein in prices. Fed Chair Jerome Powell has repeatedly said the current burst in inflation is likely temporary. Biden faces a choice in the next few months over whether to appoint Powell to another four-year term when his current term ends in February. Physical gold demand in Asia got a fillip as consumers snapped up bargains after prices dipped across regions, with premiums in top consumers India and China rebounding to multi-month highs. Dealers in India were charging premiums of up to $5 an ounce, the highest in five months, over official domestic prices compared with last week’s $1 premiums. In China, premiums rose to their highest since early June at $5-$10 per ounce over global benchmark spot gold prices from the $1-$4 range last week. Technically market is under short covering as market has witnessed drop in open interest by -5.65% to settled at 12485 while prices up 577 rupees, now Gold is getting support at 46572 and below same could see a test of 46204 levels, and resistance is now likely to be seen at 47152, a move above could see prices testing 47364.

Trading Ideas:

* Gold trading range for the day is 46204-47364.
* Gold prices climbed on concerns over rising cases of the Delta variant.
* Inflation, pandemic to support safe-haven assets - Fitch
* Biden says he trusts Fed to take action on inflation if needed

Silver

Silver yesterday settled up by 2.23% at 63238 as dollar seen pressure after U.S. consumer sentiment dropped sharply in early August to its lowest level in a decade, in a worrying sign for the economy as Americans gave faltering outlooks on everything from personal finances to inflation and employment, a survey showed. The unexpected reading could give Federal Reserve policymakers pause if it translates in the months ahead to a dent in economic activity. The central bank has been getting closer to a decision on when to begin pulling back the extraordinary stimulus it put in place to shield the economy from the COVID-19 pandemic. U.S. jobs report boosted expectations the Federal Reserve could begin tapering its economic support sooner than previously anticipated. Investors fretted about the potential for new regulatory crackdowns in China and the fallout from the surging Delta variant of the new coronavirus in the United States and elsewhere. Fed's monetary tightening debate continues despite U.S. consumer inflation moderating for the first time in several months. U.S. wholesale prices jumped 1 percent last month, a government report showed. Prices for US exports rose 1.3 percent from a month earlier in July of 2021, accelerating from a 1.2 percent increase in June and above market expectations of 0.8 percent. Technically market is under short covering as market has witnessed drop in open interest by -17.36% to settled at 10235 while prices up 1378 rupees, now Silver is getting support at 62296 and below same could see a test of 61353 levels, and resistance is now likely to be seen at 63866, a move above could see prices testing 64493.

Trading Ideas:
* Silver trading range for the day is 61353-64493.
* Silver prices rallied as dollar seen pressure after U.S. consumer sentiment dropped sharply in early August to its lowest level in a decade
* U.S. jobs report boosted expectations the Fed could begin tapering its economic support sooner than previously anticipated
* U.S. wholesale prices jumped 1 percent last month, a government report showed.
 

Crude oil

Crude oil yesterday settled down by -1.11% at 5081 amid concerns that the spread of the COVID-19 Delta variant will curtail oil demand growth as the year progresses. Increasing demand for crude ground to a halt in July and is set to rise at a slower pace over the rest of 2021 because of the surge in infections from the Delta variant of the coronavirus, the International Energy Agency (IEA) said. A monthly report from OPEC suggested that the cartel was sticking to its recent forecast for a rebound in oil demand globally this year and further growth in 2022, despite surging COVID-19 infections worldwide. OPEC held to its forecasts for a rebound in oil demand globally this year and further growth in 2022, notwithstanding the rising concern about the surge in COVID-19 infections. In its monthly report, the Organization of the Petroleum Exporting Countries (OPEC) also raised its expectations for supplies next year from other producers, including U.S. shale drillers, which could potentially snarl efforts by the group and allies, known as OPEC+, to achieve a balance in the market. Goldman Sachs has reduced its estimate for the global oil deficit to 1 million bpd from 2.3 million bpd in the short-term given the threat to demand from Delta. Technically market is under fresh selling as market has witnessed gain in open interest by 3.31% to settled at 5402 while prices down -57 rupees, now Crude oil is getting support at 5049 and below same could see a test of 5016 levels, and resistance is now likely to be seen at 5129, a move above could see prices testing 5176.

Trading Ideas:

* Crude oil trading range for the day is 5016-5176.
* Crude oil dropped amid concerns that the spread of the COVID-19 Delta variant will curtail oil demand growth as the year progresses.
* Increasing demand for crude ground to a halt in July and is set to rise at a slower pace over the rest of 2021 because of the surge in infections, IEA said.
* OPEC held to its forecasts for a rebound in oil demand globally this year and further growth in 2022

Natural gas

Nat.Gas yesterday settled down by -1.4% at 288.4 on forecasts for slightly less hot weather and lower air conditioning demand this week than previously expected. That decline also came after federal data showed last week's storage build was bigger than usual due to mild weather and a decline in exports. The U.S. Energy Information Administration (EIA) said utilities added 49 billion cubic feet (bcf) of gas into storage during the week ended Aug. 6. Last week's injection boosted stockpiles to 2.776 trillion cubic feet (tcf), or 6.0% below the five-year average of 2.954 tcf for this time of year. 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. That compares with an all-time high of 95.4 bcfd in November 2019. But with European and Asian gas both trading over $15 per mmBtu, compared with just $4 for the U.S. fuel, analysts said buyers around the world would keep purchasing all the LNG the United States can produce. U.S. pipeline exports to Mexico have slipped to an average of 6.3 bcfd so far in August from 6.6 bcfd in July and a record 6.7 bcfd in June. Technically market is under long liquidation as market has witnessed drop in open interest by -20.95% to settled at 9440 while prices down -4.1 rupees, now Natural gas is getting support at 286.4 and below same could see a test of 284.3 levels, and resistance is now likely to be seen at 292.2, a move above could see prices testing 295.9.

Trading Ideas:

* Natural gas trading range for the day is 284.3-295.9.
* Natural gas fell on forecasts for slightly less hot weather and lower air conditioning demand this week than previously expected.
* That decline also came after federal data showed last week's storage build was bigger than usual due to mild weather and a decline in exports.
* EIA said utilities added 49 billion cubic feet (bcf) of gas into storage during the week ended Aug. 6.
 

Copper 

Copper yesterday settled up by 0.42% at 733.35 after workers at two mines in top producer Chile went on strikes, raising supply disruption risks. Two unions at Codelco's Andina copper mine walked off the job after rejecting the latest contract offer, while workers at JX Nippon Copper's Caserones mine also went on a strike after labour contract talks collapsed. However, capping further gains in copper prices was news that workers at Chile's sprawling Escondida copper mine, the world's biggest, approved a new contract with management, avoiding a strike. Yangshan copper premium rose to $65 a tonne, its highest since March 23, indicating improving demand to import the metal into China. The discount of LME cash copper on the three-month contract expanded to $31.75 a tonne, its biggest since July 20, indicating more nearby supply, as LME copper stocks surged 123% from end-2020 to 235,775 tonnes. 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 short covering as market has witnessed drop in open interest by -6.32% to settled at 4165 while prices up 3.1 rupees, now Copper is getting support at 728.6 and below same could see a test of 723.7 levels, and resistance is now likely to be seen at 739, a move above could see prices testing 744.5.

Trading Ideas:

* Copper trading range for the day is 723.7-744.5.
* Copper gains after workers at two mines in top producer Chile went on strikes, raising supply disruption risks.
* Yangshan copper premium rose to $65 a tonne, its highest since March 23, indicating improving demand to import the metal into China.
* The discount of LME cash copper on the three-month contract expanded to $31.75 a tonne, its biggest since July 20

Zinc

Zinc yesterday settled up by 0.62% at 250.1 on weaker dollar after a sharp drop in U.S. consumer sentiment fueled hopes for the Federal Reserve holding off on tapering stimulus in the world's largest economy. On the macro front, US producer price index (PPI) in July rose by the highest year-on-year growth rate since 2010 above expectation. And the first claims of unemployment benefits last week fell for three consecutive weeks. The market expectations for a tapering QE increased further amid continued recovery in both the labour and manufacturing markets, high inflation, job vacancies that exceed unemployed population, and subsidies due in September. The China government has removed export tariffs on some steel products twice, bringing considerate influences on galvanized products consumption in the long term. On the fundamentals, power restrictions in Guangxi escalated in early August, but later eased slightly after continuous rainfall. Enterprises reported the arrival of released government reserves, but pick-up of cargos was delayed in places with middle to high-risks of COVID-19 infection, which might influence the implementation of the third batch of government reserves release. Technically market is under fresh buying as market has witnessed gain in open interest by 3.21% to settled at 1608 while prices up 1.55 rupees, now Zinc is getting support at 248 and below same could see a test of 245.9 levels, and resistance is now likely to be seen at 251.9, a move above could see prices testing 253.7.

Trading Ideas:

* Zinc trading range for the day is 245.9-253.7.
* Zinc gains on weaker dollar after a sharp drop in U.S. consumer sentiment fueled hopes for Fed holding off on tapering stimulus.
* The China government has removed export tariffs on some steel products twice, bringing considerate influences on galvanized products consumption
* US producer price index (PPI) in July rose by the highest year-on-year growth rate since 2010 above expectation.
 

Nickel

Nickel yesterday settled down by -0.14% at 1489.2 on profit booking after prices rallied in last few sessions as falling Chinese output stoked supply worries, while easing fears over U.S. policy tightening also lent support. ShFE nickel inventories were last at 6,707 tonnes, down 80% from the same time last year. Meanwhile, the dollar eased slightly as a cooling in consumer inflation tempered bets for an earlier tightening of U.S. monetary policy. 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. Nickel premiums rose in the United States on continued higher sales, despite the end of a much-watched strike at Vale’s Sudbury mine in Canada, which greatly contributed to the increases in the US nickel premium in recent weeks. Technically market is under long liquidation as market has witnessed drop in open interest by -1.81% to settled at 1739 while prices down -2.1 rupees, now Nickel is getting support at 1482.8 and below same could see a test of 1476.4 levels, and resistance is now likely to be seen at 1494.8, a move above could see prices testing 1500.4.

Trading Ideas:
* Nickel trading range for the day is 1476.4-1500.4.
* Nickel dropped on profit booking after prices rallied in last few sessions as falling Chinese output stoked supply worries
* Demand for nickel from new energy sector stayed high, while refined nickel inventories kept falling.
* China's refined nickel output in January-July fell 15.7% year-on-year to 91,723 tonnes.
 

Aluminium

Aluminium yesterday settled up by 0.58% at 208.15 as the fundamental supply remained tight, as the expanding power curtailment limited the aluminium supply in Inner Mongolia, Yunnan, Guangxi, and Guizhou. Social inventories reversed its previous fall and added slightly as concentrated aluminium arrivals due to improved transportation, constraining the momentum in prices. While the market shall still watch the influences on fundamentals brought by power restriction, COVID-19 pandemic, aluminium ingots imports and released government releases. U.S. consumer sentiment dropped sharply in early August to its lowest level in a decade, in a worrying sign for the economy as Americans gave faltering outlooks on everything from personal finances to inflation and employment, a survey showed. The unexpected reading could give Federal Reserve policymakers pause if it translates in the months ahead to a dent in economic activity. The central bank has been getting closer to a decision on when to begin pulling back the extraordinary stimulus it put in place to shield the economy from the COVID-19 pandemic. The University of Michigan said its preliminary consumer sentiment index fell to 70.2 in the first half of this month from a final reading of 81.2 in July. Technically market is under fresh buying as market has witnessed gain in open interest by 7.23% to settled at 1942 while prices up 1.2 rupees, now Aluminium is getting support at 207.2 and below same could see a test of 206.2 levels, and resistance is now likely to be seen at 209, a move above could see prices testing 209.8.

Trading Ideas:
* Aluminium trading range for the day is 206.2-209.8.
* Aluminium rose as the fundamental supply remained tight, as the expanding power curtailment limited the aluminium supply.
* U.S. consumer sentiment dropped sharply in early August to its lowest level in a decade
* Social inventories reversed its previous fall and added slightly as concentrated aluminium arrivals due to improved transportation

Mentha oil 

Mentha oil yesterday settled up by 0.56% at 937.6 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 1.3 Rupees to end at 1052.3 Rupees per 360 kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.21% to settled at 1018 while prices up 5.2 rupees, now Mentha oil is getting support at 927.1 and below same could see a test of 916.7 levels, and resistance is now likely to be seen at 943.4, a move above could see prices testing 949.3.

Trading Ideas:
* Mentha oil trading range for the day is 916.7-949.3.
* In Sambhal spot market, Mentha oil gained  by 1.3 Rupees to end at 1052.3 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 0.55% at 7633 as the U.S. Department of Agriculture cut its U.S. production and yield estimates from last month. The USDA, in a monthly report, estimated U.S. soybean production at 4.339 billion bushels, with an average yield of 50.0 bushels per acre. That was down from 4.405 billion bushels and a yield of 50.8 bushels per acre in July. Exporters sold 132,000 tonnes of U.S. soybeans to China for the 2021/2022 marketing year, as well as 198,000 tonnes to unknown destinations, the USDA said separately. It was the latest in a string of recent soybean sales. China has lowered its estimates of soybean imports in the year 2020/21 following a decline in crush margins, the Ministry of Agriculture and Rural Affairs said in its monthly crop report. China's 2020/21 soybean imports were seen at 98.6 million tonnes, down 1.84 million tonnes from last month's estimates, as the crushing volume of soybeans has fallen since July because of declining margins, the report said. 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. At the Indore spot market in top producer MP, soybean dropped -1115 Rupees to 8622 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -16.32% to settled at 14890 while prices up 42 rupees, now Soyabean is getting support at 7274 and below same could see a test of 6915 levels, and resistance is now likely to be seen at 7856, a move above could see prices testing 8079.

Trading Ideas:

* Soyabean trading range for the day is 6915-8079.
* Soyabean gains as the U.S. Department of Agriculture cut its U.S. production and yield estimates from last month.
* The USDA, in a monthly report, estimated U.S. soybean production at 4.339 billion bushels, with an average yield of 50.0 bushels per acre.
* China has lowered its estimates of soybean imports in the year 2020/21 following a decline in crush margins
* At the Indore spot market in top producer MP, soybean dropped  -1115 Rupees to 8622 Rupees per 100 kgs.

Soyaoil 

Ref.Soyaoil yesterday settled up by 2.77% at 1412.3 supported by lingering concerns over tight supply. Edible oil prices are likely to remain elevated till the arrival of new crop in the October-November period, industry officials said. The rates are unlikely to come down anytime soon as India meets more than half of domestic demand through imports, BV Mehta, executive director, Solvent Extractors Association of India (SEA) said. The soybean oil price has surged due to efforts of making renewable bio-diesel fuel from it in the US, Brazil and other countries. Total oilseeds production in the country during 2020-21 is estimated at record 36.10 million tonnes which is higher by 2.88 million tonnes than the production during 2019-20. Further, the production of oilseeds during 2020-21 is higher by 5.56 million tonnes than the average oilseeds production of 30.55 million tonnes. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1380.1 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 9.52% to settled at 30785 while prices up 38 rupees, now Ref.Soya oil is getting support at 1383 and below same could see a test of 1354 levels, and resistance is now likely to be seen at 1428, a move above could see prices testing 1444.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1354-1444.
* Ref soyoil prices gained supported by lingering concerns over tight supply.
* Edible oil prices are likely to remain elevated till the arrival of new crop in the October-November period, industry officials said.
* The soybean oil price has surged due to efforts of making renewable bio-diesel fuel from it in the US, Brazil and other countries.
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1380.1 Rupees per 10 kgs.

Crude palm Oil 

Crude palm Oil yesterday settled up by 1.5% at 1182 amid lower stockpiles and tightening production. 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. In spot market, Crude palm oil dropped by -1.9 Rupees to end at 1172.1 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 1.3% to settled at 6020 while prices up 17.5 rupees, now CPO is getting support at 1160.4 and below same could see a test of 1138.8 levels, and resistance is now likely to be seen at 1193.3, a move above could see prices testing 1204.6.

Trading Ideas:
* CPO trading range for the day is 1138.8-1204.6.
*  Crude palm oil rose as prices seen supported amid lower stockpiles and tightening production.
*  Malaysia's end-July palm oil end-stocks fell 7.3% from June to 1.5 million tonnes
* Exports of Malaysian palm oil products for Aug. 1-10 fell between 10% and 12.8% from the same period in July
* In spot market, Crude palm oil dropped  by -1.9 Rupees to end at 1172.1 Rupees.

Mustard Seed

Mustard Seed yesterday settled up by 3.6% at 7913 as USDA estimates Canada rapeseed production for marketing year 2021/22 at 16.0 million metric tons (mmt), down 4.2 mmt (21 percent) from last month, 3.0 mmt (16 percent) from last year, and 20 percent below the 5-year average. Harvested area is estimated at 8.7 million hectares, down 3 percent from last month, but 4 percent above last year, and roughly equivalent to the 5-year average. The month-to-month decrease in area is due to the expectation of weather-related abandonment with prospects for hay being the best use. Yield is estimated at 1.84 metric tons per hectare, down 18 percent from last month and 20 percent below the 5-year average. A European Union Oilseeds and Protein Crops market situation report estimates that the EU will import 6 million metric tons of canola/rapeseed from third countries in 2021-22, 200,000 mt higher than the previous crop year. However, mustard arrivals in its major producing states i.e. Rajasthan, Madhya Pradesh, Uttar Pradesh and Gujarat improved. Production in Canada in 2021 expected to drop by 1.7 million tons to 16.9 million tons. In Alwar spot market in Rajasthan the prices dropped -154.5 Rupees to end at 7634 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 4.48% to settled at 38710 while prices up 275 rupees, now Rmseed is getting support at 7692 and below same could see a test of 7470 levels, and resistance is now likely to be seen at 8039, a move above could see prices testing 8164.

Trading Ideas:
* Rmseed trading range for the day is 7470-8164.
* Mustard seed prices gained as USDA estimates Canada rapeseed production down as drought in the Prairies intensifies.
* EU weekly rapeseed imports jumped by 70% to 127k mt, total at 414k mt
* EU Oilseeds situation report estimates that the EU will import 6 million metric tons of rapeseed from third countries in 2021-22.
* In Alwar spot market in Rajasthan the prices dropped -154.5 Rupees to end at 7634 Rupees per 100 kg.

Turmeric 

Turmeric yesterday settled up by 4.32% at 8016 as support seen on following export demand from Europe, Gulf countries and Bangladesh. Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains. 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. 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 7310 Rupees dropped -77.5 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 8.91% to settled at 12470 while prices up 332 rupees, now Turmeric is getting support at 7768 and below same could see a test of 7522 levels, and resistance is now likely to be seen at 8202, a move above could see prices testing 8390.

Trading Ideas:
* Turmeric trading range for the day is 7522-8390.
* Turmeric prices seen supported on following export demand from Europe, Gulf countries and Bangladesh.
* Turmeric crops were severely damaged due to heavy rains.
* Further there is expectation of increase in Turmeric sowings in some areas
* In Nizamabad, a major spot market in AP, the price ended at 7310 Rupees dropped -77.5 Rupees.
 

Jeera

Jeera yesterday settled up by 0.15% at 13585 as major markets reopened after lockdown, bringing good arrivals across markets but prices are getting support as the upcoming festival season is expected to increase domestic demand. Only 45-50 percent of the total production has come to the market. There is also 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 (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 -52.75 Rupees to end at 13508.35 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 13.55% to settled at 6258 while prices up 20 rupees, now Jeera is getting support at 13510 and below same could see a test of 13440 levels, and resistance is now likely to be seen at 13690, a move above could see prices testing 13800.

Trading Ideas:
* Jeera trading range for the day is 13440-13800.
* Jeera prices settled firm as major markets reopened after lockdown
* Only 45-50 percent of the total production has come to the market.
* As per preliminary estimates suggested that carryover stocks of Jeera are likely to be around of about 20-25 Lakh
* In Unjha, a key spot market in Gujarat, jeera edged down by -52.75 Rupees to end at 13508.35 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled up by 2.08% at 26550 after the U.S. Department of Agriculture forecast lower production and also cut ending stocks estimates for the 2021/22 marketing year in a monthly report. In its World Agricultural Supply and Demand Estimates (WASDE) report, the USDA projected lower U.S. production, exports and ending stocks compared with July, as well as lower world 2021/22 ending stocks. FAS Mumbai forecasts market year (MY) 2021/2022 cotton production at 29 million (480 lb.) bales on an area of 12.9 million hectares. Kharif cotton planting is now underway in central and southern India as the two-week monsoon delay has been followed by intense rains across the major cotton producing states. With market arrivals slowing, seed cotton prices are rising. Mill consumption is good at 25.5 million bales buoyed by strong export orders, and the recent government announcement of a three-year extension of the Rebate of State and Central taxes and Levies (ROSCTL) scheme for the export of apparel/garments and made-ups." Production of Cotton is estimated at 35.38 million bales (of 170 kg each) is higher by 3.49 million bales than the average cotton production. In spot market, Cotton dropped by -220 Rupees to end at 27050 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -5.79% to settled at 3414 while prices up 540 rupees, now Cotton is getting support at 26170 and below same could see a test of 25790 levels, and resistance is now likely to be seen at 26780, a move above could see prices testing 27010.

Trading Ideas:
* Cotton trading range for the day is 25790-27010.
* Cotton jumped after the USDA forecast lower production and also cut ending stocks estimates for the 2021/22 marketing year in a monthly report.
* The USDA projected lower U.S. production, exports and ending stocks compared with July, as well as lower world 2021/22 ending stocks.
* India's 2021/22 cotton production seen at 29 mln bales – USDA
* In spot market, Cotton dropped  by -220 Rupees to end at 27050 Rupees.

Chana

Chana yesterday settled remain unchangeby 0% at 5006 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 4.15 Rupees to end at 4906.65 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 9.24% to settled at 119170 while prices remain unchanged 0 rupees, now Chana is getting support at 4974 and below same could see a test of 4942 levels, and resistance is now likely to be seen at 5035, a move above could see prices testing 5064.

Trading Ideas:
* Chana trading range for the day is 4942-5064.
* Chana recovered from lows 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 4.15 Rupees to end at 4906.65 Rupees per 100 kgs.

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