IGI Logo

Gold

Gold yesterday settled up by 0.13% at 47072 amid a dollar retreat and soothing words from Fed chair Jerome Powell, allowing them to move further away from the seven-week lows hit at the end of last week. Powell said that inflation would not be the only determinant of interest rate decisions, calming investors worried about policy tightening following last week’s hawkish turn by the U.S. Federal Reserve. Markets broadly shrugged off U.S. PMI data that showed factory activity at a record high in June. A period of high inflation in the United States may last longer than anticipated but should still ease over time as the economy settles back to normal, two U.S. Federal Reserve officials said. The comments from Fed Governor Michelle Bowman and Atlanta Federal Reserve bank president Raphael Bostic are the latest to try to reset public expectations around a price surge U.S. central bankers have largely characterized as transitory. Existing home sales dropped 0.9% to a seasonally adjusted annual rate of 5.80 million units last month, back to their pre-pandemic level, the National Association of Realtors said. Climate change poses a “significant risk” to the global economy and the financial system, San Francisco Federal Reserve President Mary Daly said, adding that large swaths of the United States could be disrupted. Technically market is under short covering as market has witnessed drop in open interest by -2.56% to settled at 10628 while prices up 61 rupees, now Gold is getting support at 46916 and below same could see a test of 46761 levels, and resistance is now likely to be seen at 47272, a move above could see prices testing 47473.

Trading Ideas: 

* Gold trading range for the day is 46761-47473.

* Gold gains amid a dollar retreat and soothing words from Fed chair Jerome Powell

* Fed won’t raise rates on fear of inflation - Powell

* Markets broadly shrugged off U.S. PMI data that showed factory activity at a record high in June.

Silver

Silver yesterday settled up by 0.62% at 67932 as the dollar eased amid Fed Chair Jerome Powell's dovish comments. The U.S. dollar fell following comments from Fed Chair Jerome Powell that an interest rate hike would not happen any time soon. The currency fell along with yields after Powell said that the Fed would be patient in waiting to tighten monetary policy. "We will not raise interest rates pre-emptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances," Powell said in a hearing before the House Select Subcommittee. Powell's comments calmed markets after the Fed's shift in tone kept traders on the edge last week. The U.S. current account deficit increased to a 14-year high in the first quarter as an acceleration in economic growth drew in imports, and the gap could remain wide, with the United States leading the global economic recovery from the COVID-19 pandemic. Sales of new U.S. single-family homes fell to a one-year low in May, likely hindered by expensive raw materials such as lumber, which are boosting the prices of newly constructed homes. New home sales dropped 5.9% to a seasonally adjusted annual rate of 769,000 units last month, the lowest level since May 2020, the Commerce Department said. Technically market is under short covering as market has witnessed drop in open interest by -10.99% to settled at 8689 while prices up 417 rupees, now Silver is getting support at 67446 and below same could see a test of 66961 levels, and resistance is now likely to be seen at 68471, a move above could see prices testing 69011.

Trading Ideas: 

* Silver trading range for the day is 66961-69011.

* Silver prices inched higher as the dollar eased amid Fed Chair Jerome Powell's dovish comments.

* The U.S. dollar fell following comments from Fed Chair Jerome Powell that an interest rate hike would not happen any time soon.

* The currency fell along with yields after Powell said that the Fed would be patient in waiting to tighten monetary policy.

Crude oil

Crude oil yesterday settled up by 0.41% at 5440 after industry data showed U.S. crude inventories fell more than expected, highlighting the tightening supply-demand dynamic as travel picks up in in Europe and North America. U.S. crude oil stockpiles fell last week to just over 459 million barrels, their lowest since March 2020, U.S. Energy Information Administration data showed. Total product supplied, a proxy for demand, rose to 20.75 million barrels per day, its highest since March 2020, according to the government data. U.S. crude and gasoline stocks fell sharply in the most recent week, while distillate inventories rose, the U.S. Energy Information Administration said. Crude inventories fell by 7.6 million barrels in the week to June 18 to 459.1 million barrels, compared with expectations for a 3.9 million-barrel drop. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.8 million barrels in the last week, EIA said. Refinery crude runs fell by 225,000 barrels per day in the last week, EIA said. Refinery utilization rates fell by 0.4 percentage points, in the week. U.S. gasoline stocks fell by 2.9 million barrels in the week to 240.1 million barrels, the EIA said, compared with expectations for an 833,000-barrel rise.Distillate stockpiles , which include diesel and heating oil, rose by 1.8 million barrels in the week to 138 million barrels, versus expectations for a 1.1 million-barrel rise, the EIA data showed. Technically market is under short covering as market has witnessed drop in open interest by -2.7% to settled at 7885 while prices up 22 rupees, now Crude oil is getting support at 5411 and below same could see a test of 5382 levels, and resistance is now likely to be seen at 5490, a move above could see prices testing 5540.

Trading Ideas: 

* Crude oil trading range for the day is 5382-5540.

* Crude oil prices rose after industry data showed U.S. crude inventories fell more than expected

* U.S. crude stockpiles fall to lowest since March 2020 – EIA

* U.S. crude and gasoline stocks fell sharply in the most recent week, while distillate inventories rose

Nat.Gas

Nat.Gas yesterday settled up by 2.1% at 247.4 on expectations the increase in global gas prices to their highest in years would boost U.S. liquefied natural gas (LNG) exports to fresh record highs this summer. U.S. speculators boosted their long futures and options positions on the NYMEX last week by the most since June 2020 to their highest since November 2018 as soaring global gas prices prompt buyers around the world to keep purchasing all the LNG the United States can produce. Gas prices in Europe and Asia both traded over $10 per mmBtu, with the Title Transfer Facility (TTF) in the Netherlands reaching its highest since January 2014. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 91.6 billion cubic feet per day (bcfd) so far in June, up from 91.0 bcfd in May but still well below the monthly record high of 95.4 bcfd in November 2019. With the coming of seasonally hotter summer weather, Refinitiv projected average gas demand, including exports, would rise from 87.3 bcfd this week to 91.9 bcfd next week. The amount of gas flowing to U.S. LNG export plants averaged 9.8 bcfd so far in June, down from 10.8 bcfd in May and an all-time high of 11.5 bcfd in April. Technically market is under short covering as market has witnessed drop in open interest by -45.83% to settled at 3315 while prices up 5.1 rupees, now Natural gas is getting support at 242.2 and below same could see a test of 237.1 levels, and resistance is now likely to be seen at 251.5, a move above could see prices testing 255.7.

Trading Ideas: 

* Natural gas trading range for the day is 237.1-255.7.

* Natural gas rose on expectations the increase in global gas prices to their highest in years would boost US LNG exports to fresh records this summer.

* U.S. speculators boosted their long futures and options positions on the NYMEX last week by the most since June 2020 to their highest since November 2018

* U.S. natgas output to rise, demand to fall in 2021 – EIA

Copper

Copper yesterday settled up by 1.89% at 726.4 as a measure of U.S. factory activity climbed to a record high in June, but manufacturers are still struggling to secure raw materials and qualified workers, substantially raising prices for both businesses and consumers. The global world refined copper market showed a 19,000 tonnes deficit in March, compared with a 108,000 tonnes surplus in February, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 3 months of the year, the market was in a 129,000 tonnes surplus compared with a 154,000 tonnes surplus in the same period a year earlier, the ICSG said. World refined copper output in March was 2.10 million tonnes, while consumption was 2.12 million tonnes. Federal Reserve Chairman Powell reiterated that the recent price increase was larger than expected due to the economic restart, but inflation may fall in the future. The Fed will be patient in raising interest rates, and will not preemptively raise interest rates because employment is too high or it is worried about inflation. The Fed has just started to debate on reducing its debt purchase, but it is still far away from the discussion on raising interest rates. San Francisco Fed President said that the US economy has not yet reached the conditions to support debt reduction. Technically market is under fresh buying as market has witnessed gain in open interest by 38.5% to settled at 3277 while prices up 13.45 rupees, now Copper is getting support at 718.8 and below same could see a test of 711 levels, and resistance is now likely to be seen at 731.8, a move above could see prices testing 737.

Trading Ideas: 

* Copper trading range for the day is 711-737.

* Copper prices gained as support seen after U.S. factory activity index rises to record high in June

* Copper market in 19,000 tonnes deficit in Mar 2021 – ICSG

* China May copper exports hit 14-month peak as traders cash in on LME price jump

Zinc

Zinc yesterday settled up by 1.38% at 234.55 as Euro zone business growth accelerated at its fastest pace in 15 years this month as the easing of more lockdown measures and the unleashing of pent-up demand drove a boom in the bloc’s dominant services industry. When the coronavirus was spreading rapidly, governments imposed strict restrictions, encouraging citizens to stay home and forcing much of the service industry to close. Most smelters in Yunnan have resumed production and the raw material stocks have reached a high level with the arrivals of imported goods. China has announced to release 30,000 mt of national zinc reverse, but the implementation time is yet to be determined. The global zinc market moved into a deficit of 26,900 tonnes in April from a revised surplus of 700 tonnes the previous month, data from the International Lead and Zinc Study Group (ILZSG) showed. Previously, the ILZSG had reported a surplus of 2,100 tonnes in March. During the first four months of 2021, the ILZSG data showed a surplus of 31,000 tonnes, down from a surplus of 256,000 tonnes in the same period of 2020. Around 13.5 million tonnes of zinc are produced and consumed each year. Technically market is under fresh buying as market has witnessed gain in open interest by 63.47% to settled at 1347 while prices up 3.2 rupees, now Zinc is getting support at 232.1 and below same could see a test of 229.5 levels, and resistance is now likely to be seen at 236.6, a move above could see prices testing 238.5.

Trading Ideas: 

* Zinc trading range for the day is 229.5-238.5.

* Zinc prices gained as Euro zone business growth at 15-year high as demand unleashed

* Global zinc market swings to deficit of 26,900 T in April – ILZSG

* China May zinc output +1.2% y/y at 527,000 tonnes - stats bureau

Nickel

Nickel yesterday settled up by 1.41% at 1347 amid strong Chinese demand and near record-low inventories in warehouses tracked by ShFE. The market sentiment was perturbed by the news calling on Indonesian government to limit the smelting plant construction and exports of the NPI and FeNi with low added value. However, Indonesian government has not carried out clear policy. The news is still worth attention as exporting nickel products with higher added value has been Indonesia’s policy orientation in recent years. The global nickel market deficit narrowed to 15,600 tonnes in April from a shortfall of 17,100 tonnes in March, data from the International Nickel Study Group (INSG) showed. During the first four months of the year, the nickel market saw a deficit of 34,900 tonnes compared with a 48,000 tonnes surplus in the same period last year, Lisbon-based INSG added. The U.S. current account deficit increased to a 14-year high in the first quarter as an acceleration in economic growth drew in imports, and the gap could remain wide, with the United States leading the global economic recovery from the COVID-19 pandemic. The Commerce Department said the current account deficit, which measures the flow of goods, services and investments into and out of the country, rose 11.8% to $195.7 billion last quarter. Technically market is under fresh buying as market has witnessed gain in open interest by 72.84% to settled at 1483 while prices up 18.7 rupees, now Nickel is getting support at 1334.8 and below same could see a test of 1322.6 levels, and resistance is now likely to be seen at 1353.9, a move above could see prices testing 1360.8.

Trading Ideas: 

* Nickel trading range for the day is 1322.6-1360.8.

* Nickel rose amid strong Chinese demand and near record-low inventories in warehouses tracked by ShFE.

* Global nickel deficit narrows slightly in April

* The market sentiment was perturbed by the news calling on Indonesian government to limit the smelting plant construction and exports of the NPI

Aluminium

Aluminium yesterday settled down by -0.13% at 193.15 paring gains on profit booking after seen supported as the IHS Markit US Manufacturing PMI jumped to 62.6 in June of 2021 from 62.1 in May. The reading pointed to another record growth in factory activity amid further easings of COVID-19 restrictions. Still, supplier delays and difficulties finding suitable workers weighed on production and price pressures remain elevated due to broad-based raw material price hikes. Global primary aluminium output rose to 5.744 million tonnes in May from revised 5.543 million tonnes in April, data from the International Aluminium Institute (IAI) showed. China's alumina output rose 11.2% from a year earlier to 6.6 million tonnes in May, the highest on record, data from the National Bureau of Statistics showed. Aluminium stocks at three major Japanese ports rose 4.4% to 285,600 tonnes at the end of May, from 273,600 tonnes at the end of April, Marubeni Corp said. Euro zone business growth accelerated at its fastest pace in 15 years this month as the easing of more lockdown measures and the unleashing of pent-up demand drove a boom in the bloc’s dominant services industry, a survey showed. When the coronavirus was spreading rapidly, governments imposed strict restrictions, encouraging citizens to stay home and forcing much of the service industry to close. Technically market is under fresh selling as market has witnessed gain in open interest by 45.54% to settled at 2186 while prices down -0.25 rupees, now Aluminium is getting support at 192.5 and below same could see a test of 191.7 levels, and resistance is now likely to be seen at 194.3, a move above could see prices testing 195.3.

Trading Ideas: 

* Aluminium trading range for the day is 191.7-195.3.

* Aluminium pared gains on profit booking after prices gained as US Manufacturing PMI jumped to 62.6 in June of 2021 from 62.1 in May

* Global aluminium output rises to 5.744 mln T in May – IAI

* China May alumina output rose 11.2% year-on-year to 6.6 million tonnes - stats bureau

Mentha oil

Mentha oil yesterday settled up by 3.97% at 1085.3 due to rain harvesting of menthe crop will be affected and also production get affected. 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. However upside seen limited as arrivals likely to increase due to favourable weather conditions. Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days. Overall post-lock-down demand will be likely to improve as demand from the health industry will likely continue also as per CIMAP. Due to favourable weather condition,the production of mentha in the states has improved and is at much better terms compare to last year. Mentha exhibits important biological activities. For that reason, it has been used through the years as a remedy for respiratory diseases like bronchitis, sinusitis, tuberculosis, and the common cold. In Sambhal spot market, Mentha oil dropped by -27 Rupees to end at 1103.5 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 25.09% to settled at 344 while prices up 41.4 rupees, now Mentha oil is getting support at 1050.8 and below same could see a test of 1016.4 levels, and resistance is now likely to be seen at 1109.8, a move above could see prices testing 1134.4.

Trading Ideas: 

* Mentha oil trading range for the day is 1016.4-1134.4.

* In Sambhal spot market, Mentha oil dropped  by -27 Rupees to end at 1103.5 Rupees per 360 kgs.

* Mentha oil gained due to rain harvesting of menthe crop will be affected and also production get affected. 

* Fresh season arrival started as the lock-down started to ease.

* Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days.

Soyabean

Soyabean yesterday settled down by -0.64% at 7034 as Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021 as record high prices for the oilseed could prompt some to switch from cultivating competing commodities such as cotton and pulses, industry officials said. Increased production of India's main summer-sown oilseed could help the world's biggest vegetable oil importer trim costly purchases of palm oil, soyoil and sunflower oil from Indonesia, Malaysia, Argentina and Ukraine. The U.S. Department of Agriculture (USDA) confirmed exporters sold 336,000 tonnes of U.S. soybeans for delivery to China during the 2021/2022 marketing year, on the largest sale to the country in 4-1/2 months. Exporters also sold 120,000 tonnes of U.S. soybeans to unknown destinations for delivery during the 2021/2022 marketing year, according to the USDA. European Union soybean imports in the 2020/21 season that started last July had reached 14.87 million tonnes by June 20, data published by the European Commission showed. The Soy Food Promotion and Welfare Association (SFPWA), which represents soybean food processing industries in India has urged Prime Minister Narendra Modi to allow the processing industry to import 50,000 tonnes of food specialty soybeans from the US duty-free as prices of domestic soybeans have increased 50% during the past six months. At the Indore spot market in top producer MP, soybean dropped -18 Rupees to 7319 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -2.67% to settled at 36120 while prices down -45 rupees, now Soyabean is getting support at 6954 and below same could see a test of 6875 levels, and resistance is now likely to be seen at 7143, a move above could see prices testing 7253.

Trading Ideas: 

* Soyabean trading range for the day is 6875-7253.

* Soyabean prices dropped as Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021. 

* USDA confirmed exporters sold 336,000 tonnes of U.S. soybeans for delivery to China during the 2021/2022 marketing year

* European Union soybean imports in the 2020/21 season that started last July had reached 14.87 million tonnes by June 20.

* At the Indore spot market in top producer MP, soybean dropped  -18 Rupees to 7319 Rupees per 100 kgs.

Ref.Soyaoil

Ref.Soyaoil yesterday settled down by -0.92% at 1257.7 on profit booking after prices remained supported lifted by strength in rival Chicago soyoil on solid demand from China. India exported 5.31 lakh tonnes of oilmeals in the first two months of the fiscal 2021-22 against 3.50 lakh tonnes in the same period a year ago, recording a growth of 52 per cent. BV Mehta, Executive Director of Solvent Extractors’ Association of India (SEA), said the export of oilmeals increased sharply on the back of shipments of rapeseed meal during the period. India has put on hold a proposal to reduce import taxes on edible oils as cooking oil prices started to fall in the world market after hitting record highs, two government and one industry officials told. India slashed the base import prices of palm oil and soybean oil for a fortnight, the government said in a statement, as prices of the cooking oils fell sharply in the global market. Imports would remain elevated even in June as many states are easing lockdowns and allowing restaurants to reopen. A coalition of nine Argentine port worker unions went on a nationwide 24-hour strike to press for vaccinations against the coronavirus. Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1300 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 0.01% to settled at 36365 while prices down -11.7 rupees, now Ref.Soya oil is getting support at 1248 and below same could see a test of 1238 levels, and resistance is now likely to be seen at 1273, a move above could see prices testing 1288.

Trading Ideas: 

* Ref.Soya oil trading range for the day is 1238-1288.

* Ref soyoil dropped on profit booking after prices remained supported lifted by strength in rival Chicago soyoil on solid demand from China.

* India exported 5.31 lakh tonnes of oilmeals in the first two months of the fiscal 2021-22

* A coalition of nine Argentine port worker unions went on a nationwide 24-hour strike to press for vaccinations against the coronavirus.

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1300 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled down by -1.4% at 1035.7 on profit booking after Indonesia's plan to revise its palm oil export levy. Malaysia has surpassed Indonesia to become the biggest crude palm oil (CPO) exporter to top consumer India in 2020/21, after Indonesia imposed heavy taxes on exports of the edible oil last year, industry officials told. Malaysia's palm oil exports to India surged 238% to 2.42 million tonnes in the first seven months of 2020/21 marketing year started on Nov. 1, according to data compiled by The Solvent Extractors' Association of India (SEA). During the period, Indonesia's palm oil shipments to India fell 32% to 2 million tonnes. It comes after Indonesia imposed higher levies on crude palm oil exports in December to raise funds for its ambitious palm-based biodiesel programme, aimed at maximising domestic use of the edible oil. Indonesia announced that it would reduce the ceiling rate for its crude palm oil levies from $255 to $175 per tonne, stoking concerns that it would take market share away from rival Malaysia. Exports of Malaysian palm oil products for Jun. 1-20 rose 11.2 percent to 962,184 tonnes from 865,236 tonnes shipped during May. 1-20, cargo surveyor Societe Generale de Surveillance said. In spot market, Crude palm oil gained by 2.5 Rupees to end at 1060.5 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 1.29% to settled at 2126 while prices down -14.7 rupees, now CPO is getting support at 1022 and below same could see a test of 1008.4 levels, and resistance is now likely to be seen at 1058.1, a move above could see prices testing 1080.6.

Trading Ideas: 

* CPO trading range for the day is 1008.4-1080.6.

* Crude palm oil dropped on profit booking after Indonesia's plan to revise its palm oil export levy.

* Indonesia imposed higher export taxes in December

* Malaysia offered palm oil at a discount to entice buyers

* In spot market, Crude palm oil gained  by 2.5 Rupees to end at 1060.5 Rupees.

Mustard Seed

Mustard Seed yesterday settled down by -0.12% at 6869 as U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield. Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. The arrival of mustard in the mandis has decreased at all places in the country. However upside seen limited pushed lower by flagging global overseas prices amid forecasts for beneficial rains across the Canadian Prairie. U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield. Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. COOIT was against any reduction in import duties on edible oils but wanted the Centre to remove the GST of 5 per cent on mustard seed and oil as it will help farmers and consumers both. European Union rapeseed production is projected to show a modest gain in 2021/22 on increased planted area and improved yield but will remain below the levels observed from 2016 to 2018. However, the Central Organisation for Oil Industry and Trade (COOIT) and the Mustard Oil Producers' Association (MOPA) have estimated the production at 89.50 lakh tonnes. In Alwar spot market in Rajasthan the prices dropped -125 Rupees to end at 7200 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 0.27% to settled at 48120 while prices down -8 rupees, now Rmseed is getting support at 6808 and below same could see a test of 6746 levels, and resistance is now likely to be seen at 6939, a move above could see prices testing 7008.

Trading Ideas: 

* Rmseed trading range for the day is 6746-7008.

* Mustard seed dropped as U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield.

* Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area.

* However upside seen limited pushed lower by flagging global overseas prices amid forecasts for beneficial rains across the Canadian Prairie.

* In Alwar spot market in Rajasthan the prices dropped -125 Rupees to end at 7200 Rupees per 100 kg.

Turmeric

Turmeric yesterday settled up by 0.61% at 7626 on following export demand from Europe, Gulf countries and Bangladesh. However upside seen limited as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading. In Nizamabad APMC in Telangana, the modal price of the finger variety turmeric was quoted at ₹6,950 a quintal. Prices are up about ₹400 since the beginning of this month. At Bangalore in Karnataka, turmeric is quoted at ₹11,500 at the APMC yard with most markets closed in the State to control the Covid-19 pandemic. In Tamil Nadu, too, the agricultural markets are closed as part of the lockdown to tackle the pandemic. Demand for exports to Bangladesh and Europe are helping turmeric prices to gain. Exporters are looking to pick up stocks from Nanded in view of its quality. Turmeric has been in demand over the last two years as it is reported to be effective in medical use, particularly in combating Covid-19. According to Spices Board data, turmeric exports during the April-December period of the last fiscal increased 34 per cent to 1.39 lakh tonnes valued at ₹1,251 crore compared with 1.03 lakh tonnes valued at ₹1,047 crore. In Nizamabad, a major spot market in AP, the price ended at 7515.2 Rupees gained 13.95 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -2.04% to settled at 10825 while prices up 46 rupees, now Turmeric is getting support at 7556 and below same could see a test of 7488 levels, and resistance is now likely to be seen at 7716, a move above could see prices testing 7808.

Trading Ideas: 

* Turmeric trading range for the day is 7488-7808.

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

* However upside seen limited as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading.

* Turmeric has been in demand over the last two years as it is reported to be effective in medical use, particularly in combating Covid-19. 

* In Nizamabad, a major spot market in AP, the price ended at 7515.2 Rupees gained 13.95 Rupees.

Jeera

Jeera yesterday settled down by -0.19% at 13455 amid excess supply and as demand is likely to remain subdued on weak buying from local and overseas markets. Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions. In the benchmark market Unjha, 7,000 bags (1 bag = 55 kg) arrived yesterday as against 10,000 bags. As India struggles against curbing the Corona pandemic, exports markets have turned subdued. The importers prefer to wait for the situation to normalize before negotiating for fresh deals. They rather prefer to clear their older stocks first and presently they feel that the older inventory may be sufficient to balance the existing demand for next few weeks easily. The new season arrivals shall continue with good numbers hence there will be ample availability in the market. However from a broader perspective, India’s exports outlook has brightened while crop is expected to be lower versus year on year. Also, the nearest export competitors i.e. Turkey and Syria may not supply much to the world due to lower exportable surplus. In Unjha, a key spot market in Gujarat, jeera edged down by -25.55 Rupees to end at 13694.45 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -1.33% to settled at 6666 while prices down -25 rupees, now Jeera is getting support at 13415 and below same could see a test of 13380 levels, and resistance is now likely to be seen at 13490, a move above could see prices testing 13530.

Trading Ideas: 

* Jeera trading range for the day is 13380-13530.

* Jeera dropped amid excess supply and as demand is likely to remain subdued on weak buying from local and overseas markets.

* Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions.

* As India struggles against curbing the Corona pandemic, exports markets have turned subdued.

* In Unjha, a key spot market in Gujarat, jeera edged down by -25.55 Rupees to end at 13694.45 Rupees per 100 kg.

Cotton

Cotton yesterday settled up by 1.29% at 24350 as some support seen tracking overseas prices amid concerns over the weather in top growing regions. Meanwhile, heavy rains over the weekend from Tropical Storm Claudette threatened the natural fiber crop in the U.S. Delta region. There are concerns that remain about the size of the U.S. crop in 2021, with how many acres have been planted and on the flip side demand is still good overseas. Falling arrival numbers of raw cotton due to the lean supply season and thin stocks lying with ginners and farmers has resulted in supply crunch in the market. For the first time in six years, Punjab’s area under cotton cultivation this kharif season has crossed the 3 lakh hectare mark. This is an increase of 17% over 2020, when cotton was sown on 2.5 lakh hectare. The state, however, is still 41% short of the golden phase in 2011-12 when the area under the traditional cash crop was 5.2 lakh hectare. In 2015, cotton was sown on 3.25 lakh hectares in southern districts. After a devastating period of the worst whitefly attack on cotton that year, farmers turned away from sowing the crop. Before 2014, over 4 lakh hectare was under cotton. In spot market, Cotton gained by 180 Rupees to end at 24380 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 13.81% to settled at 6371 while prices up 310 rupees, now Cotton is getting support at 24110 and below same could see a test of 23880 levels, and resistance is now likely to be seen at 24480, a move above could see prices testing 24620.

Trading Ideas: 

* Cotton trading range for the day is 23880-24620.

* Cotton gained as some support seen tracking overseas prices amid concerns over the weather in top growing regions.

* Meanwhile, heavy rains over the weekend from Tropical Storm Claudette threatened the natural fiber crop in the U.S. Delta region.

* In Punjab, for first time in six years, area under cotton crosses 3 lakh hectare

* In spot market, Cotton gained  by 180 Rupees to end at 24380 Rupees.

Chana

Chana yesterday settled down by -0.64% at 5138 on profit booking ahead of sowing report which can report higher sowing under Pulses area compare with last year. However there is a strong possibility of shortage in pulses production, especially due to uncertainty over sowing this crop year due to the pandemic. The country is most likely to face scarcity of pulses this year including masoor, chana and other pulses. There could be a shortage of around 10 lakh tonne in the production of tur this year. As the apex body for the trade, IPGA is bringing it to the notice of the government well in advance to augment the supply side. However, as per trade estimates, the production for tur has been around 2.90 million tonne, urad approximately 2.06 million tonne, moong around 2 million tonne, Chana around 9 million tonne and masoor around 0.95 million tonne. India’s supply of Kabuli chickpea is expected to plunge 32 percent to 396,000 tonnes due to low carryout and very poor production prospects for all of India’s rabi (winter) season crops. Exports will fall to an estimated 50,000 tonnes, down from 115,000 tonnes each of the previous two years. The situation is so dire that India is expected to import 50,000 tonnes from Canada, Argentina and Turkey. In Delhi spot market, chana dropped by -6.5 Rupees to end at 5093.5 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -1.09% to settled at 118700 while prices down -33 rupees, now Chana is getting support at 5119 and below same could see a test of 5099 levels, and resistance is now likely to be seen at 5171, a move above could see prices testing 5203.

Trading Ideas: 

* Chana trading range for the day is 5099-5203.

* Chana dropped on profit booking ahead of sowing report which can report higher sowing under Pulses area compare with last year.

* However there is a strong possibility of shortage in pulses production, especially due to uncertainty over sowing this crop year due to the pandemic.

* The country is most likely to face scarcity of pulses this year including masoor, chana and other pulses.

* In Delhi spot market, chana dropped  by -6.5 Rupees to end at 5093.5 Rupees per 100 kgs.

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