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Gold

Gold yesterday settled up by 1.52% at 47916 boosted by concerns of an economic hit from soaring energy prices and a slight retreat in the dollar. Fed policymakers said the economy has healed enough for the central bank to begin withdrawing its crisis-era support, cementing expectations for tapering as soon as next month. Two U.S. Federal Reserve policymakers said that the central bank has kept pace with a planned move to reduce its bond buying program, cementing expectations the Fed will start withdrawing its crisis-era stimulus as soon as next month. "I myself believe that the 'substantial further progress' standard has more than been met with regard to our price-stability mandate and has all but been met with regard to our employment mandate," Clarida said in prepared remarks to the Institute of International Finance virtual annual meeting, as he repeated that the Fed at its last meeting agreed tapering "may soon be warranted" and would likely conclude in the middle of next year. Clarida's upbeat assessment likely echoes the sentiments of his boss, Fed Chair Jerome Powell, who had previously said that he only needed to see a "decent" September U.S. jobs report to be ready to begin to taper bond buys in November. Technically market is under fresh buying as market has witnessed gain in open interest by 4.8% to settled at 13780 while prices up 718 rupees, now Gold is getting support at 47365 and below same could see a test of 46814 levels, and resistance is now likely to be seen at 48233, a move above could see prices testing 48550.

Trading Ideas:
Gold trading range for the day is 46814-48550.
Gold prices rose boosted by concerns of an economic hit from soaring energy prices and a slight retreat in the dollar.
The benchmark U.S. 10-year Treasury yields eased from their June highs
Fed policymakers said the economy has healed enough for the central bank to begin withdrawing its crisis-era support.


Silver

Silver yesterday settled up by 2.11% at 62887 as bond yields receded and the dollar eased off more than one-year high. U.S. consumer prices increased solidly in September and are poised to rise further in the months ahead amid a surge in the costs of energy products, which would cast doubts on the Federal Reserve’s view that high inflation is transitory. The consumer price index rose 0.4% last month after climbing 0.3% in August, the Labor Department said. In the 12 months through September, the CPI increased 5.4% after advancing 5.3% year-on-year in August. Three Fed officials including Vice Chair Richard Clarida said that the U.S. economy has healed enough to begin to scale back the central bank's asset-purchase program. U.S. job openings fell in August, but remained significantly high amid labor shortages that are crimping employment growth. Job openings, a measure of labor demand, dropped 659,000 to 10.4 million on the last day of August, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report. Persistent supply chain disruptions and pricing pressures are constraining the global economy's recovery from the COVID-19 pandemic, the International Monetary Fund said as it cut growth outlooks for the United States and other major industrial powers. Technically market is under short covering as market has witnessed drop in open interest by -6.84% to settled at 10031 while prices up 1301 rupees, now Silver is getting support at 62030 and below same could see a test of 61172 levels, and resistance is now likely to be seen at 63473, a move above could see prices testing 64058.

Trading Ideas:
Silver trading range for the day is 61172-64058.
Silver prices rose as bond yields receded and the dollar eased off more than one-year high.
U.S. consumer prices increased solidly in September and are poised to rise further in the months ahead
The consumer price index rose 0.4% last month after climbing 0.3% in August, the Labor Department said.


Crude oil

Crude oil yesterday settled down by -0.53% at 6062 as expectations grew that demand growth will fall as inflation and supply chain issues strain major economies, though surging prices for power generation fuel limited losses. OPEC has trimmed its world oil demand forecast for 2021 while maintaining its 2022 view, its monthly report showed, but it said surging natural gas prices could boost demand for oil products as end users switch. The Organization of the Petroleum Exporting Countries (OPEC) now expects oil demand to grow by 5.82 million barrels per day, down from 5.96 million bpd in its previous forecast, saying that the downward revision was mainly driven by data for the first three quarters of the year. It maintained a growth forecast of 4.2 million bpd for next year. The group of oil-producing countries said, however, that natural gas prices at record highs could provide a potential headwind to oil demand growth as industrial users switch to oil products instead. China’s September crude oil imports fell 15.3% from a year earlier, data showed, as companies drew on inventories amid rising global prices and as tightened import quotas continued to constrain purchases. Oil prices, which hit their highest in more than three years this week, are unlikely to rise further, Iraqi Oil Minister Ihsan Abdul Jabbar said. Technically market is under long liquidation as market has witnessed drop in open interest by -22.49% to settled at 6390 while prices down -32 rupees, now Crude oil is getting support at 5997 and below same could see a test of 5932 levels, and resistance is now likely to be seen at 6115, a move above could see prices testing 6168.

Trading Ideas:
Crude oil trading range for the day is 5932-6168.
Crude oil prices edged down as expectations grew that demand growth will fall as inflation and supply chain issues strain major economies
Oil prices unlikely to rise further, says Iraqi oil minister
OPEC trims 2021 demand forecast but says gas price surge could help


Natural gas

Nat.Gas yesterday settled up by 0.77% at 417.5 with a decline in output over the past couple of days, forecasts for higher heating use during the next two weeks and a near 8% increase in gas prices in Europe. Demand for U.S. liquefied natural gas (LNG) exports will remain strong so long as gas prices in Europe and Asia stay much higher than in the United States. China’s total natural gas imports in September - including both piped and liquefied natural gas - rose to the highest since January this year to 10.62 million tonnes, customs data showed on Wednesday, as companies stocked up ahead of winter. Germany does not currently see any gas supply shortages, a ministry spokesperson said when asked if the government will take action to fill the country's storage tanks in response to global price increases. The country's gas stores are currently 75% full and filling slowly, the energy ministry spokesperson said, adding that the capacity of German gas storage is higher than that of other countries such as Britain. "For this reason, the amount of gas available in Germany is higher than in some countries that have the tanks filled at 100%," she said. Technically market is under short covering as market has witnessed drop in open interest by -9.64% to settled at 3599 while prices up 3.2 rupees, now Natural gas is getting support at 407.9 and below same could see a test of 398.2 levels, and resistance is now likely to be seen at 423.4, a move above could see prices testing 429.2.

Trading Ideas:
Natural gas trading range for the day is 398.2-429.2.
Natural gas edged up with a decline in output over the past couple of days, forecasts for higher heating use during the next two weeks
China Sept natural gas imports highest since Jan - customs
Germany sees no gas supply shortages – energy ministry



Copper

Copper yesterday settled up by 3.28% at 759.05 as inventories in ShFE warehouses have dropped nearly 80% since May to 50,062 tonnes, and LME stocks were at a near eight-month low of 65,500 tonnes. The premium of LME cash over the three-month contract jumped to above $50 a tonne this week, indicating tight nearby supplies. The Yangshan copper premium hit $140 a tonne, its highest since 2014, indicating strong demand to import the metal into China. China’s copper imports in September rose from the previous month, customs data showed, snapping a run of five straight monthly declines as shipments previously held up by coronavirus pandemic curbs belatedly arrived in the country. Arrivals of unwrought copper and products into top copper consumer China were 406,016 tonnes in September, the General Administration of Customs said. Fed’s Bullard says the bond purchases should be tapered quickly in case rate hikes are needed when inflation becomes a larger problem, heightening market expectations of tapering in November. The Fed Vice Chairman Richard Clarida said that the conditions required for the reduction of debt purchase were basically met, which further consolidated the market expectations of the Fed’s purchase tapering in November. Technically market is under fresh buying as market has witnessed gain in open interest by 26.26% to settled at 4573 while prices up 24.1 rupees, now Copper is getting support at 741.8 and below same could see a test of 724.4 levels, and resistance is now likely to be seen at 769.3, a move above could see prices testing 779.4.
 

Trading Ideas:
Copper trading range for the day is 724.4-779.4.
Copper prices rose as inventories in ShFE warehouses have dropped nearly 80% since May, and LME stocks were at a near eight-month low
China Sept unwrought copper imports at 406,016 tonnes – customs
The premium of LME cash over the three-month contract jumped to above $50 a tonne this week, indicating tight nearby supplies.


Zinc

Zinc yesterday settled up by 5.1% at 282.35 as Nyrstar will cut production by up to 50% at its three European zinc smelters from Wednesday due to the soaring price of electricity, the Belgium-based company said. "The cost burden of carbon emitted by the electricity sector which is passed on to industrial and domestic customers, mean it is no longer economically feasible to operate the plants at full capacity," Nyrstar said. "Indirect cost compensation for energy-intensive producers to protect their competitiveness versus non-EU producers varies by European country and this puts Nyrstar’s Budel, Balen and Auby plants at a competitive disadvantage, compounding the impact of extreme energy prices." Nyrstar did not say how much zinc production would be lost or provide the production capacity of the three smelters. Electricity prices have surged to record highs in recent weeks, driven by power shortages in Asia and Europe, with China’s crisis expected to last through the end of the year and crimp growth in the world’s second-largest economy. The global zinc market will be slightly over-supplied this year and next, the International Lead and Zinc Study Group said. U.S. consumer prices increased solidly in September and are poised to rise further in the months ahead amid a surge in the costs of energy products. Technically market is under fresh buying as market has witnessed gain in open interest by 47.89% to settled at 2279 while prices up 13.7 rupees, now Zinc is getting support at 273.4 and below same could see a test of 264.3 levels, and resistance is now likely to be seen at 287.5, a move above could see prices testing 292.5.

Trading Ideas:
Zinc trading range for the day is 264.3-292.5.
Zinc prices rose as Nyrstar to cut output by up to half at Europe zinc smelters
Zinc prices touched a near 14-year high in Shanghai while in London they jumped to the strongest in over 3-1/2 years
The global zinc market will be slightly over-supplied this year and next, the International Lead and Zinc Study Group said


Nickel

Nickel yesterday settled up by 0.41% at 1478.7 as the supply of raw materials was still tight as the inventory of nickel ore grew slowly. The domestic ferronickel plants were still under the influence of power rationing, pushing up the demand for nickel plate as an alternative for ferronickel. The output of stainless steel is expected to stabilise in October, though the production restrictions remained. The demand from the new energy sector was still robust. The downstream sector also showed greater restocking demand on dips. China’s trade surplus with the United States stood at $42 billion in September, Chinese customs data showed, up from $37.68 billion in August. For the first nine months of the year, the surplus was $280 billion, up from $237.99 billion during the first eight months of 2021. Last week, top trade officials from the United States and China reviewed the implementation of the U.S.-China Economic and Trade Agreement. The United States has been pressing China to hold its commitments under a ‘Phase 1’ trade deal which has eased a long running tariff war between the world’s two largest economies. U.S. consumer prices increased solidly in September and are poised to rise further in the months ahead amid a surge in the costs of energy products, which would cast doubts on the Federal Reserve’s view that high inflation is transitory. Technically market is under fresh buying as market has witnessed gain in open interest by 5.63% to settled at 1483 while prices up 6 rupees, now Nickel is getting support at 1469.3 and below same could see a test of 1459.9 levels, and resistance is now likely to be seen at 1489.3, a move above could see prices testing 1499.9.
 

Trading Ideas:
Nickel trading range for the day is 1459.9-1499.9.
Nickel prices rose as the supply of raw materials was still tight as the inventory of nickel ore grew slowly.
China Sept trade surplus with the United States at $42 billion
The domestic ferronickel plants were still under the influence of power rationing, pushing up the demand for nickel plate


Aluminium

Aluminium yesterday settled up by 0.43% at 245.95 amid supply shortage worries due to the power curb. China Hongqiao Group, the world's top non-state aluminium maker, is postponing a plan to relocate aluminium capacity to Yunnan province due to energy restrictions imposed by the provincial government, its chairman said. Hongqiao planned to move 2 million tonnes of capacity to Wenshan prefecture and 1 million tonnes to Honghe prefecture in Yunnan province – nearly half of its 6.46-million-tonne licensed annual primary aluminium capacity – for easier access to hydropower, a cleaner power source than coal. Yunnan told aluminium smelters using its hydropower to keep average monthly output for September-December at August volumes or lower, as the province struggled from power shortages that have also spiralled across China and disrupted several sectors. Aldel is halting production of primary aluminium due to the current high electricity prices, the Dutch firm's chief executive said. China's alumina market will likely see an oversupply of 1.01 million tonnes next year on a slew of new investments and record prices, research house Antaike and industry experts said. Chinese supply, including imports, will likely rise 2.6% year on year in 2022 to 80.3 million tonnes, while demand for alumina, used to make aluminium, is seen at 79.29 million tonnes. Technically market is under short covering as market has witnessed drop in open interest by -9.93% to settled at 1995 while prices up 1.05 rupees, now Aluminium is getting support at 244.1 and below same could see a test of 242.1 levels, and resistance is now likely to be seen at 248.4, a move above could see prices testing 250.7.
 

Trading Ideas:
Aluminium trading range for the day is 242.1-250.7.
Aluminium prices rose amid supply shortage worries due to the power curb
Hongqiao to postpone aluminium capacity move to Yunnan due to power curbs
Dutch aluminium maker Aldel to halt output due to power prices


Mentha oil
Mentha oil yesterday settled down by -0.38% at 917.6 as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil dropped by -20.7 Rupees to end at 1041.9 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.44% to settled at 1179 while prices down -3.5 rupees, now Mentha oil is getting support at 911.9 and below same could see a test of 906.2 levels, and resistance is now likely to be seen at 923.8, a move above could see prices testing 930.

Trading Ideas:
Mentha oil trading range for the day is 906.2-930.
In Sambhal spot market, Mentha oil dropped  by -20.7 Rupees to end at 1041.9 Rupees per 360 kgs.
Mentha oil prices dropped as demand from consumer side is extremely weak and industrial demand is also not picking up.
Prices got support in last few weeks as due to crop failure and low recovery of oil
Availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season.


Soyabean
Soyabean yesterday settled down by -2.29% at 5286 as Soyabean production is estimated to rise by 14 per cent to nearly 119 lakh tonnes this year on higher sowing area and likely improvement in productivity, according to industry body SOPA. In its estimate, Soyabean Processors Association of India (SOPA) said that the total area under soybean for the year 2021 is 119.984 lakh hectares. The government's area estimate is 123.677 lakh hectares. In last year's Kharif (summer sow) season, total soyabean acreage stood at 118.383 lakh hectare. "Estimated total production of soybean crop for all India for the year 2021 is 118.889 lakh tons, which is higher by 14.337 lakh tons (13.71 per cent) as compared to last year," SOPA said. The production stood at 104.55 lakh tonnes last year. China's soybean imports in September fell 30% from the same month the previous year, customs data showed, as poor crush margins curbed demand. China, the world's top buyer of soybeans, brought in 6.88 million tonnes of the oilseed in September, down from 9.79 million tonnes last year, General Administration of Customs data showed. Chinese crushers stepped up purchases of soybeans earlier in the year in anticipation of strong demand from a fast-recovering pig herd. At the Indore spot market in top producer MP, soybean gained 57 Rupees to 5458 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 1.41% to settled at 75205 while prices down -124 rupees, now Soyabean is getting support at 5175 and below same could see a test of 5065 levels, and resistance is now likely to be seen at 5435, a move above could see prices testing 5585.

Trading Ideas:
Soyabean trading range for the day is 5065-5585.
Soyabean prices dropped as Soyabean output may rise 14% to 11.9 mn tn this year
SOPA said that the total area under soybean for the year 2021 is 119.984 lakh hectares.
China Sept soybean imports fall 30% y/y on slowing demand
At the Indore spot market in top producer MP, soybean gained  57 Rupees to 5458 Rupees per 100 kgs.


Ref.Soyaoil

Ref.Soyaoil yesterday settled down by -5.91% at 1241.1 as India slashed its base import tax on crude palm oil, crude soyoil and crude sunflower oil to zero from 2.5%, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022. This decision has been taken to soften the prices of edible oils in the country and provide relief to consumers. The Ministry said that the stock limits will be decided by the respective state governments depending on local conditions. It has however decided to give exemption to importers and exporters subject to conditions. Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively. Favorable weather over the weekend boosted U.S. harvest, while exports remain capped by terminals on the U.S. Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season. India's vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors' Association of India (SEA) said. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1364.4 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 6.49% to settled at 30095 while prices down -78 rupees, now Ref.Soya oil is getting support at 1211 and below same could see a test of 1180 levels, and resistance is now likely to be seen at 1302, a move above could see prices testing 1362.

Trading Ideas:
Ref.Soya oil trading range for the day is 1180-1362.
Ref soyoil prices ended lower as India cuts base import tax on crude vegetable oil imports to zero %
Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected.
India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA
At the Indore spot market in Madhya Pradesh, soyoil was steady at 1364.4 Rupees per 10 kgs.


Crude palm Oil

Crude palm Oil yesterday settled down by -3.55% at 1116.3 as India slashed its base import tax on crude palm oil, crude soyoil and crude sunflower oil to zero from 2.5%, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The south Asian country also reduced Agriculture Infrastructure and Development Cess (AIDC) on crude palm oil imports to 7.5% from 20%, while AIDC on crude soyoil and crude sunflower oil reduced to 5% from 20%, the government said. Pressure also seen as a slump in early October exports outweighed support from tightening inventories. Exports of Malaysian palm oil products for Oct. 1-10 fell 7.5% to 500,381 tonnes from the same period in September, according to AmSpec Agri Malaysia. Exports in October and November are unlikely to sustain the surge seen last month as key buyer India enters the winter season. Importers usually switch to other edible oils during winter as palm oil solidifies at lower temperature. Malaysia's end-September palm oil stocks fell more sharply than expected, down nearly 7% from the month before, as export demand surged while production stayed flat, Malaysian Palm Oil Board data showed. Post is adjusting its MY 2021/22 crude palm oil (CPO) production forecast down 1.5 million metric tons (MT) from the USDA Official estimate to 18.2 million MT. In spot market, Crude palm oil dropped by -5 Rupees to end at 1207 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -27.21% to settled at 3541 while prices down -41.1 rupees, now CPO is getting support at 1091.4 and below same could see a test of 1066.6 levels, and resistance is now likely to be seen at 1155.6, a move above could see prices testing 1195.

Trading Ideas:
CPO trading range for the day is 1066.6-1195.
Crude palm oil dropped as India slashed its base import tax on crude palm oil, to zero from 2.5%
Exports of Malaysian palm oil products for Oct. 1-10 fell 7.5% to 500,381 tonnes from the same period in September
Importers usually switch to other edible oils during winter as palm oil solidifies at lower temperature.
In spot market, Crude palm oil dropped  by -5 Rupees to end at 1207 Rupees.


Turmeric

Turmeric yesterday settled down by -1.82% at 7220 amid prospects of better crop this kharif season along with tepid demand. However downside seen limited following export demand from Europe, Gulf countries and Bangladesh. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains. India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough, and ensure that the most important crops for the kharif season have normal sowing. This is good news for agricultural production and food prices. Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices. 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. In the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year, but could be higher in the coming months. In Nizamabad, a major spot market in AP, the price ended at 7046.45 Rupees dropped -65.4 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 4.23% to settled at 9985 while prices down -134 rupees, now Turmeric is getting support at 7138 and below same could see a test of 7054 levels, and resistance is now likely to be seen at 7358, a move above could see prices testing 7494.

Trading Ideas:
Turmeric trading range for the day is 7054-7494.
Turmeric dropped amid prospects of better crop this kharif season along with tepid demand.
However downside seen limited following export demand from Europe, Gulf countries and Bangladesh.
The areas where turmeric has been sown have received adequate rainfall and are expected to produce well.
In Nizamabad, a major spot market in AP, the price ended at 7046.45 Rupees dropped -65.4 Rupees.


Jeera

Jeera yesterday settled down by -1.52% at 14570 as adequate stock with traders and farmers may keeping prices under pressure at higher levels. However downside seen limited as the export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. With the forecast of normal rains in the western region during September to November, the sowing of cumin seeds in Gujarat and Rajasthan may increase. In 2021 (January-June), the country has exported more than 1.50 lakh tonnes of cumin as compared to 1.3 lakh tonnes in the same period last year. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. Recent estimates state that cumin production has slumped by 60% in Iran’s Razavi Khorasan Province due to severe drought and unusually cold weather coupled with an early spring. Rainfall ranges 63% lower than last year this season so far. Temperatures ranged 3.1-0.4C (37.58-32.72F) lower between October 2020 and April 2021 than in the same period in 2019/2020 according to official statistics. Extensive crop losses seen, the early onset of spring in February also caused serious damage to production. In Unjha, a key spot market in Gujarat, jeera edged up by 173.35 Rupees to end at 14440 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 4.62% to settled at 6450 while prices down -225 rupees, now Jeera is getting support at 14425 and below same could see a test of 14275 levels, and resistance is now likely to be seen at 14825, a move above could see prices testing 15075.

Trading Ideas:
Jeera trading range for the day is 14275-15075.
Jeera dropped as adequate stock with traders and farmers may keeping prices under pressure at higher levels.
However downside seen limited as the export of cumin is increasing continuously and in the coming days there are signs of increasing the export
India's cumin exports will increase due to less supply from Afghanistan-Syrian
In Unjha, a key spot market in Gujarat, jeera edged up by 173.35 Rupees to end at 14440 Rupees per 100 kg.


Cotton

Cotton yesterday settled down by -2.55% at 29770 as projections for higher global output and ending stocks outweighed reduction in U.S. production in a federal monthly supply and demand report. The USDA also raised global ending stock estimate by 450,000 bales to 87.13 million bales. Meanwhile, the agency lowered China consumption by 1 million bales, citing high prices and energy crisis denting industrial activity. U.S. production in 2021/22 is now forecast at 18 million bales versus 18.51 million bales predicted last month, the USDA said, citing a decline in Texas. The outlook for U.S. ending stocks is now for 3.2 million bales compared with 3.7 million bales last month, the WASDE report showed. The Southern India Mills Association (SIMA) appealed to Prime Minister Narendra Modi to introduce an innovative Cotton Procurement and Trading Scheme for Cotton Corporation of India for price stability. It can be done by providing government funding to procure 10 to 15 per cent of the cotton that arrive in the market during the season and by creating a strategic stock for price stability, selling cotton only to actual users in a staggered manner till the end of the season and maintaining some buffer stock for the next season, SIMA Chairman Ravi Sam said in a statement. In spot market, Cotton gained by 300 Rupees to end at 28860 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.48% to settled at 2061 while prices down -780 rupees, now Cotton is getting support at 29420 and below same could see a test of 29070 levels, and resistance is now likely to be seen at 30150, a move above could see prices testing 30530.

Trading Ideas:
Cotton trading range for the day is 29070-30530.
Cotton dropped as projections for higher global output and ending stocks outweighed reduction in U.S. production.
USDA lowers China consumption by 1 mln bales
The USDA also raised global ending stock estimate by 450,000 bales to 87.13 million bales.
In spot market, Cotton gained  by 300 Rupees to end at 28860 Rupees.