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Gold

Gold yesterday settled down by -0.91% at 47179 as the dollar ticked higher and investors hoped for a timeline for the tapering of economic support from the U.S. Federal Reserve at this week's Jackson Hole symposium. Jerome Powell is to speak on Friday at the Fed's annual economic symposium at Jackson Hole, Wyoming, which had to be moved online because of a U.S. COVID-19 surge. Investors remain divided over whether they will get a roadmap on when the U.S. central bank may start trimming its bond-buying program and if Powell would tone down the Fed's hawkish tone, in turn helping gold. Data showed U.S. business activity growth slowed in August, while Asia’s robust economic recovery from last year lost steam. Gold’s latest uptick also came despite outflows from exchange-traded funds, such as the SPDR Gold Trust. But physical demand from retail customers seems to be offsetting the gold ETF outflows. Physical gold demand moderated in top hubs as a rebound in domestic prices and a seasonal lull slowed market activity. Dallas Federal Reserve President Robert Kaplan said he could see the U.S. central bank eventually issuing its own digital currency, calling it the "last mile" in a digitalization of the payment system that is already in train. Technically market is under long liquidation as market has witnessed drop in open interest by -2.52% to settled at 11590 while prices down -433 rupees, now Gold is getting support at 47012 and below same could see a test of 46845 levels, and resistance is now likely to be seen at 47414, a move above could see prices testing 47649.

Trading Ideas:

* Gold trading range for the day is 46845-47649.
* Gold retreated as the dollar ticked higher and investors hoped for a timeline for the tapering of economic support from the Fed at Jackson Hole symposium.
* Investors remain divided over whether they will get a roadmap on when the U.S. central bank may start trimming its bond-buying program
* Jerome Powell is to speak on Friday at the Fed's annual economic symposium at Jackson Hole, which had to be moved online because of a U.S. COVID-19 surge.

Silver

Silver yesterday settled down by -0.32% at 63272 as the dollar is moving up, recovering from recent losses ahead of the upcoming Jackson Hole Symposium where the Fed policymakers are expected to spell out their plans about tapering the bank's bond-buying program. The dollar moved in a very tight range amid improved risk appetite after U.S. authorities gave full approval for the Pfizer-BioNTech COVID vaccine. New orders for key U.S.-made capital goods were unexpectedly flat in July amid supply constraints, suggesting a moderation in business spending on equipment at the start of the third quarter after robust growth over the past year. Still, business investment in equipment remains strong, with the report from the Commerce Department showing shipments of these capital goods accelerating last month. Investment in equipment is expected to help to offset cooling consumer spending and keep the economy on a solid growth path this quarter. On the economic front, the Commerce Department released a report showed a rebound in U.S. new home sales in the month of July. The report showed new home sales increased by 1.0 percent to an annual rate of 708,000 in July after slumping by 2.6 percent to an upwardly revised rate of 701,000 in June. Technically market is under long liquidation as market has witnessed drop in open interest by -9.88% to settled at 5699 while prices down -202 rupees, now Silver is getting support at 62865 and below same could see a test of 62457 levels, and resistance is now likely to be seen at 63566, a move above could see prices testing 63859.

Trading Ideas:
* Silver trading range for the day is 62457-63859.
* Silver prices are edging lower as the dollar is moving up, recovering from recent losses ahead of the upcoming Jackson Hole Symposium
* The Fed policymakers are expected to spell out their plans about tapering the bank's bond-buying program.
* New orders for key U.S.-made capital goods were unexpectedly flat in July amid supply constraints

Crude oil

Crude oil yesterday settled up by 0.72% at 5057 after U.S. government data showed that fuel demand has climbed to its highest since the start of the COVID-19 pandemic. Crude inventories fell by 3 million barrels in the last week to 432.6 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 70,000 barrels in the last week, EIA said. U.S. gasoline stocks fell by 2.2 million barrels in the week to 225.92 million barrels, the EIA said, compared with expectations for a 1.6 million-barrel drop.Distillate stockpiles, which include diesel and heating oil, rose by 0.6 million barrels in the week to 138.46 million barrels, versus expectations for a 0.3 million-barrel drop, the EIA data showed. U.S. total product supplied rose last week to the highest since March 2020, Energy Information Administration data showed. Product supplied, a proxy for fuel demand, rose to 21.8 million barrels per day, the data showed. Meanwhile, crude inventories fell to about 432.6 million barrels, their lowest since January 2020. Stocks of crude oil in the United States fell by 1.622 million barrels in the week ended August 20th of 2021, following a 1.163 million barrels drop in the previous week, and marking the fifth straight weekly decline, data from the American Petroleum Institute showed. Technically market is under fresh buying as market has witnessed gain in open interest by 6.92% to settled at 5127 while prices up 36 rupees, now Crude oil is getting support at 5000 and below same could see a test of 4944 levels, and resistance is now likely to be seen at 5092, a move above could see prices testing 5128.

Trading Ideas:

* Crude oil trading range for the day is 4944-5128.
* Crude oil rose prices after U.S. government data showed that fuel demand has climbed to its highest since the start of the COVID-19 pandemic.
* Crude inventories fell by 3 million barrels in the last week to 432.6 million barrels.
* U.S. oil product supplied hits highest since March 2020 – EIA

Natural gas

Nat.Gas yesterday settled up by 0.1% at 289.2 on forecasts for hot weather and high air conditioning demand to continue into early September. Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to an average of 92.1 billion cubic feet per day (bcfd) so far in August from 91.6 bcfd in July. That compares with an all-time monthly high of 95.4 bcfd in November 2019. Refinitiv projected average U.S. gas demand, including exports, would hold near 93.7 bcfd this week and next. The forecast for this week, however, was lower than Refinitiv projected on Monday due to lower liquefied natural gas (LNG) exports and lower power generator demand. U.S. natural gas storage is expected to end the April-October injection season at 3.558 trillion cubic feet (tcf) on Oct. 31, the lowest since 2018. That compares with a four-year high of 3.929 tcf at the end of the summer injection season in 2020 and a five-year (2016-2020) average of 3.751 tcf. There was 3.326 tcf in storage at the end of October 2018, a 13-year low. U.S. pipeline exports to Mexico slipped to an average of 6.1 bcfd so far in August from 6.6 bcfd in July and a record 6.8 bcfd in June. Technically market is under short covering as market has witnessed drop in open interest by -57.8% to settled at 790 while prices up 0.3 rupees, now Natural gas is getting support at 285.2 and below same could see a test of 281.3 levels, and resistance is now likely to be seen at 294.5, a move above could see prices testing 299.9.

Trading Ideas:

* Natural gas trading range for the day is 281.3-299.9.
* Natural gas rose on forecasts for hot weather and high air conditioning demand to continue into early September.
* Last week, gas speculators boosted their short positions in natural gas futures and options on NYMEX to the highest since June 2020.
* Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to an average of 92.1 bcfd so far in August from 91.6 bcfd in July.

Copper 

Copper yesterday settled down by -0.01% at 716.55 as prices pared gains seen earlier helped by signs of strong demand in top consumer China and a steep decline in inventories available in the London Metal Exchange (LME) warehouse system. Chinese Yangshan copper import premiums have risen above $100 a tonne from as low as $21 in June, suggesting stronger demand for overseas metal. Cash copper on the LME has flipped to a premium against the three-month contract from a roughly $30 discount in mid-August. A premium indicates tighter supply of quickly deliverable metal. On-warrant copper inventories in LME-registered warehouses fell to 178,125 tonnes from almost 240,000 tonnes a week ago. The U.S. House of Representatives voted to advance key parts of President Joe Biden's agenda including an infrastructure plan. Chilean state-owned miner Codelco, the world's largest copper producer, said it reached agreement on a new contract with supervisors at its Andina mine. China’s central bank increased its short-term fund injection through open market operations to meet higher cash demand towards the month-end. The People’s Bank of China (PBOC) said it offered 50 billion yuan ($7.72 billion) through seven-day reverse repos into the banking system, whereas it mostly only injected 10 billion yuan each day during the month. Technically market is under fresh selling as market has witnessed gain in open interest by 15.24% to settled at 4052 while prices down -0.05 rupees, now Copper is getting support at 713.9 and below same could see a test of 711.1 levels, and resistance is now likely to be seen at 720.5, a move above could see prices testing 724.3.

Trading Ideas:

* Copper trading range for the day is 711.1-724.3.
* Copper steadied helped by signs of strong demand in China and a steep decline in inventories available in the LME warehouse system.
* Chinese Yangshan copper import premiums have risen above $100 a tonne from as low as $21 in June, suggesting stronger demand for overseas metal.
* Cash copper on the LME has flipped to a premium against the three-month contract from a roughly $30 discount in mid-August.
 

Zinc

Zinc yesterday settled down by -0.14% at 246.75 paring gains on profit booking after seen supported as the US House of Representatives approved the $3.5 trillion budget blueprint supported by Biden, which boosted market sentiments. The global zinc market was undersupplied by 20,200 tonnes in June following a revised deficit of 23,500 tonnes in May, data from the International Lead and Zinc Study Group (ILZSG) showed. Previously, the ILZSG had reported a deficit of 17,900 tonnes in May. During the first six months of 2021, the ILZSG data showed the market saw a surplus of 36,000 tonnes, down from a surplus of 385,000 tonnes in the same period of 2020. China imported 32,700 mt of refined zinc in July, down 12.69% on the month and 25.64% on the year, according to customs data. Total exports of refined zinc stood at 740 mt, with net imports of 32,000 mt in July. Imports totalled 301,900 mt in January-July, a year-on-year increase of 13.14%.The top 5 supply countries in July include Kazakhstan (48.4%), Australia (21.4%), India (8.5%), South Korea (8.2%) and UAE (6.2%). Imports from Kazakhstan rose sharply while those from South Korea fell significantly on a monthly basis. The market is still waiting for this week’s annual Jackson Hole Meeting to learn more about when the Fed will begin to reduce bond purchases. Technically market is under fresh selling as market has witnessed gain in open interest by 1.25% to settled at 1131 while prices down -0.35 rupees, now Zinc is getting support at 245.9 and below same could see a test of 245 levels, and resistance is now likely to be seen at 248.3, a move above could see prices testing 249.8.

Trading Ideas:

* Zinc trading range for the day is 245-249.8.
* Zinc pared gains on profit booking after seen supported as the US House of Representatives approved the $3.5 trillion budget blueprint
* The global zinc market was undersupplied by 20,200 tonnes in June following a revised deficit of 23,500 tonnes in May.
* China imported 32,700 mt of refined zinc in July, down 12.69% on the month and 25.64% on the year

Nickel

Nickel yesterday settled up by 0.5% at 1439.9 after a smelter in north China has suspended refined nickel production recently due to high production costs. Demand and supply gap still exists on the fundamentals, and the market shall pay attention to the demand scenario of stainless steel and new energy sectors. The global nickel market deficit narrowed to 20,100 tonnes in June compared a shortfall of 23,600 tonnes in May, data from the International Nickel Study Group (INSG) showed. During the first six months of the year, the nickel market saw a deficit of 86,700 tonnes compared with a surplus of 74,200 tonnes in the same period last year, the Lisbon-based INSG added. Jilin Jien Nickel, a nickel producer in northeast China, has halted output of nickel cathodes because they are no longer profitable. China, the world's biggest metals consumer, has very few companies still making nickel cathodes as smelters instead choose to produce nickel sulphate, a chemical used in the burgeoning electric vehicle battery sector. China’s central bank injected billions of yuan through medium-term loans into the financial system, which many market participants interpreted as an effort to prop up the economy, although the cost of such borrowing was left unchanged. Technically market is under fresh buying as market has witnessed gain in open interest by 28% to settled at 1225 while prices up 7.2 rupees, now Nickel is getting support at 1434 and below same could see a test of 1428 levels, and resistance is now likely to be seen at 1446.6, a move above could see prices testing 1453.2.

Trading Ideas:
* Nickel trading range for the day is 1428-1453.2.
* Nickel prices rose after a smelter in north China has suspended refined nickel production recently due to high production costs.
* Chinese nickel producer Jien halts cathode output
* China cbank offers more medium-term loan than expected to cushion economic slowdown

Aluminium

Aluminium yesterday settled up by 0.51% at 208.4 as LME cash aluminium has been trading at a premium over the three-month contract for eight straight sessions, as inventories in both LME and ShFE warehouses fell. The U.S. House of Representatives voted to advance key parts of President Joe Biden's agenda including an infrastructure plan. Global primary aluminium output rose to 5.747 million tonnes in July from an upwardly revised 5.558 million tonnes in June, data from the International Aluminium Institute (IAI) showed. Estimated primary Chinese production rose to 3.343 million tonnes in June from 3.235 million tonnes in June, it added. One global aluminium producer has offered Japanese buyers premiums of $230 per tonne for October-December primary metal shipments, up 24% from the current quarter, three sources directly involved in quarterly pricing talks said. Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price set the benchmark for the region. For the July-September quarter, Japanese buyers agreed to pay a premium of $185 per tonne , up 24-25% from the prior quarter and the highest in more than six years as global demand picks up after a pandemic-induced slump. Technically market is under fresh buying as market has witnessed gain in open interest by 14.6% to settled at 1821 while prices up 1.05 rupees, now Aluminium is getting support at 207.9 and below same could see a test of 207.3 levels, and resistance is now likely to be seen at 209.1, a move above could see prices testing 209.7.

Trading Ideas:
* Aluminium trading range for the day is 207.3-209.7.
* Aluminium gained as LME cash aluminium has been trading at a premium over the three-month contract, as inventories in both LME and ShFE warehouses fell.
* The U.S. House of Representatives voted to advance key parts of President Joe Biden's agenda including an infrastructure plan.
* German business morale fell for the second month running in August.

Mentha oil 

Mentha oil yesterday settled up by 0.49% at 928.7 on 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 3.7 Rupees to end at 1023 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 14.95% to settled at 1207 while prices up 4.5 rupees, now Mentha oil is getting support at 924.1 and below same could see a test of 919.6 levels, and resistance is now likely to be seen at 931.8, a move above could see prices testing 935.

Trading Ideas:
* Mentha oil trading range for the day is 919.6-935.
* In Sambhal spot market, Mentha oil gained  by 3.7 Rupees to end at 1023 Rupees per 360 kgs.
* Mentha oil gained on 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 down by -5.99% at 8191 as India has relaxed import rules to allow shipments of 1.2 million tonnes of genetically modified (GMD) soymeal, the government said, a move that could help the poultry industry after animal feed prices tripled in a year. In Marathwada, there were concerns about mosaic virus, as well as infestation of pink and American bollworm. Soybean growers from Amravati, Latur and Osmanabad districts have reported the attack of mosaic virus. Meanwhile, soybean has now overtaken cotton to become the number one crop in the state and has been sown on 44.73 lakh hectares. Last year, soybean was sown on some 42 lakh hectares. However upside seen limited amid weakness in overseas prices as forecasts of rains in parts of the U.S. Midwest boosted hopes for better yields. China's soybean imports from top supplier Brazil fell in July from the previous year, customs data showed, as poor crush margins weighed on demand. China, the world's top buyer of soybeans, brought in 7.88 million tonnes of the oilseed from Brazil in July, down 3.7% from 8.18 million tonnes a year earlier, according to data from the General Administration of Customs. For July, China's soybean shipments from all origins totalled 8.67 million tonnes, down 14.1% from the previous year. At the Indore spot market in top producer MP, soybean dropped -873 Rupees to 9101 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -1.92% to settled at 20380 while prices down -522 rupees, now Soyabean is getting support at 8054 and below same could see a test of 7918 levels, and resistance is now likely to be seen at 8463, a move above could see prices testing 8736.

Trading Ideas:

* Soyabean trading range for the day is 7918-8736.
* Soyabean prices dropped as India allows imports of 1.2 mln T of genetically modified soymeal
* In Marathwada, there were concerns about mosaic virus, as well as infestation of pink and American bollworm.
* Soybean growers from Amravati, Latur and Osmanabad districts have reported the attack of mosaic virus.
* At the Indore spot market in top producer MP, soybean dropped  -873 Rupees to 9101 Rupees per 100 kgs.

Soyaoil 

Ref.Soyaoil yesterday settled up by 0.67% at 1420.1 supported by lingering concerns over tight supply. The Government has reduced the import duty of Soyadegum oil to 7.50 percent from 15 percent earlier. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1423.35 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -0.29% to settled at 29665 while prices up 9.4 rupees, now Ref.Soya oil is getting support at 1406 and below same could see a test of 1393 levels, and resistance is now likely to be seen at 1427, a move above could see prices testing 1435.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1393-1435.
* Ref soyoil gained supported by lingering concerns over tight supply.
* The Government has reduced the import duty of Soyadegum oil to 7.50 percent from 15 percent earlier.
* Edible oil prices are likely to remain elevated till the arrival of new crop in the October-November period, industry officials said.
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1423.35 Rupees per 10 kgs.
 

Crude palm Oil 

Crude palm Oil yesterday settled up by 0.41% at 1151.1 tight supply in global edible oils due to hot weather in soybean producers South America and the U.S. The Southern Peninsula Palm Oil Millers' Association forecast an 11.5% month-on-month rise in Aug. 1-20 production. Malaysia's exports during Aug. 1-20 fell 9.9% from the same period in July, cargo surveyor Societe Generale de Surveillance said. Export shipments during the first half of August had plunged between 15% and 24% from the previous month, cargo surveyors data showed. Indonesia's palm oil exports fell 26.8% in June from the same month a year earlier to 2.03 million tonnes due to volatile prices, the country's palm oil association GAPKI said in a statement. Demand from buyers in the European Union, Middle East, India and Pakistan also dropped, GAPKI said. Crude palm oil output rose 9.4% in June from a year earlier to 4.48 million tonnes, according to the data. Indonesia, the world's largest palm exporter, had enjoyed greater demand than Malaysia over July and August, partly due to lower export taxes and higher discounts for its crude and refined palm oil. Top buyer India is also expected to raise their import tax structure for crude and refined palm oil from end-September as subscriptions for the Diwali festival are finalized. In spot market, Crude palm oil gained by 6.2 Rupees to end at 1204 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 10.89% to settled at 3839 while prices up 4.7 rupees, now CPO is getting support at 1143.4 and below same could see a test of 1135.6 levels, and resistance is now likely to be seen at 1155.8, a move above could see prices testing 1160.4.

Trading Ideas:
* CPO trading range for the day is 1135.6-1160.4.
* Crude palm oil gained tight supply in global edible oils due to hot weather in soybean producers South America and the U.S.
* The Southern Peninsula Palm Oil Millers' Association forecast an 11.5% month-on-month rise in Aug. 1-20 production.
* Malaysia's exports during Aug. 1-20 fell 9.9% from the same period in July, cargo surveyor Societe Generale de Surveillance said.
* In spot market, Crude palm oil gained  by 6.2 Rupees to end at 1204 Rupees.

Mustard Seed

Mustard Seed yesterday settled up by 0.01% at 8157 as pared gains on profit booking and weakness in overseas prices after reports that the U.S. Environmental Protection Agency (EPA) will recommend lowering the nation's biofuel blending mandates. In recent session, prices seen supported 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 -25.75 Rupees to end at 8097.5 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -8.85% to settled at 28930 while prices up 1 rupees, now Rmseed is getting support at 8051 and below same could see a test of 7946 levels, and resistance is now likely to be seen at 8227, a move above could see prices testing 8298.

Trading Ideas:
* Rmseed trading range for the day is 7946-8298.
* Mustard seed pared gains amid weakness in overseas prices after reports that the U.S. EPA will recommend lowering biofuel blending mandates.
* In recent session, prices seen supported 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
* In Alwar spot market in Rajasthan the prices dropped -25.75 Rupees to end at 8097.5 Rupees per 100 kg.

Turmeric

Turmeric yesterday settled up by 5.13% at 8686 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. However upside seen limited 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. 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 7672.5 Rupees gained 80 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.15% to settled at 12940 while prices up 424 rupees, now Turmeric is getting support at 8422 and below same could see a test of 8156 levels, and resistance is now likely to be seen at 8852, a move above could see prices testing 9016.

Trading Ideas:
* Turmeric trading range for the day is 8156-9016.
* Turmeric rose 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.
* However upside seen limited as the lockdown restrictions were eased reported noticeable increase in mandi arrivals.
* In Nizamabad, a major spot market in AP, the price ended at 7672.5 Rupees gained 80 Rupees.

Jeera

Jeera yesterday settled up by 0.94% at 15540 amid fears of a deficient monsoon. Support also seen as a geo-political crisis in the Afghanistan could turn the heat as supply of spices has been halted suddenly. With lower customs duty on products from Afghanistan and long-term supply arrangements in place, traders have refrained from reaching out to alternate destinations, but fear domestic prices might soar. Gujarat, has reported 59 per cent deficient rainfall till August 24. The key growing region of North Gujarat has 62 per cent rainfall deficiency. Similarly, major jeera growing districts, including Jaisalmer and Barmer, face a rainfall deficit, triggering drought-like situation in western Rajasthan. According to the first advance estimates, cumin seed production was pegged at 8.56 lakh tonnes during 2020-21, lower than the previous year’s 9.12 lakh tonnes. The area had declined marginally during 2020-21 to 12.41 lakh hectares (lh) compared with the previous year’s 12.76 lh. Gujarat is the largest producer of cumin, where production stood at 4.29 lakh tonnes during 2020-21, while in Rajasthan, the output of the spices seed crop was estimated at 4.25 lakh tonnes. There is also uncertainty of the lockdown over a possible third wave of Covid and low demand from the hotel industry. In Unjha, a key spot market in Gujarat, jeera edged up by 334.9 Rupees to end at 15089.45 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -0.24% to settled at 6129 while prices up 145 rupees, now Jeera is getting support at 15355 and below same could see a test of 15170 levels, and resistance is now likely to be seen at 15820, a move above could see prices testing 16100.

Trading Ideas:
* Jeera trading range for the day is 15170-16100.
* Jeera prices rallied amid fears of a deficient monsoon.
* Cumin seed production was pegged at 8.56 lakh tonnes during 2020-21, lower than the previous year’s 9.12 lakh tonnes.
* The area had declined marginally during 2020-21 to 12.41 lakh hectares (lh) compared with the previous year’s 12.76 lh.
* In Unjha, a key spot market in Gujarat, jeera edged up by 334.9 Rupees to end at 15089.45 Rupees per 100 kg.

Cotton

Cotton yesterday settled down by -1.02% at 26150 as cotton production will still be high because of good rains and may touch 350-360 lakh bales despite the area under coverage has gone down by 6-8%, from 133 lakh hectares last year to 125 lakh hectares in the current season. In the domestic market prices are capped as higher supplies in the Gujarat & Maharashtra spot markets due to easing lockdown. Weather may impact soyabean, cotton, sugarcane and paddy crops. High-value and sensitive crops such as soyabean, cotton, sugarcane, and paddy have been affected, he said. In Madhya Pradesh, soyabean crop could be 20 percent in some areas. Cotton sowing is progressing across India for the coming 2021-22 season. Cotton sowing across India has reached 116.17 lakh hectares compared to previous season sowing at 116.38 lakh hectares during the same time. Global Cotton stock for the 2021-22, has been revised lower by 50,000 bales. In the other estimates for 2021-22, as largely offsetting changes in production and consumption do little to offset lower estimated beginning stocks. Exports are 200,000 bales lower than in July, and ending stocks are 300,000 bales lower, equating to 17% of expected use, the same as in 2020/21. Lower production is reducing this month's 2021-22 global ending stocks forecast slightly. In spot market, Cotton dropped by -20 Rupees to end at 26950 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 19.12% to settled at 1346 while prices down -270 rupees, now Cotton is getting support at 26000 and below same could see a test of 25850 levels, and resistance is now likely to be seen at 26350, a move above could see prices testing 26550.

Trading Ideas:
* Cotton trading range for the day is 25850-26550.
* Cotton dropped as cotton production will still be high because of good rains and may touch 350-360 lakh bales
* Cotton sowing across India has reached 116.17 lakh hectares compared to previous season sowing at 116.38 lakh hectares during the same time.
* Exports are 200,000 bales lower than in July, and ending stocks are 300,000 bales lower, equating to 17% of expected use, the same as in 2020/21.
* In spot market, Cotton dropped  by -20 Rupees to end at 26950 Rupees.

Chana

Chana yesterday settled up by 1.47% at 5382 as demand is likely to recover in the second half of 2021, as festivals and weddings are likely to boost retail purchases in the fourth quarter. Also from 15th August many states in India are facing long-awaited relaxations from Independence Day on Sunday. Malls can now reopen, while restaurants, gyms, salons and spas are permitted to function at 50% capacity till 10pm, helping ease livelihoods. Meanwhile support also seen after the release of all India pulses sowing data on Friday, revealed that all India, about 126.98 lakh ha area coverage has been reported compared to corresponding week’s 127.40 lakh ha. Thus 0.42 lakh ha less i.e 0.33% area has been covered compared to last year. Last week PM Narendra Modi released the ninth installment of financial benefit under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), enabling the transfer of more than Rs 19,500 crore to more than 9.75 crore beneficiaries which will raise the sentiments among the Farmers. In Delhi spot market, chana gained by 82.1 Rupees to end at 5400 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -5.56% to settled at 73510 while prices up 78 rupees, now Chana is getting support at 5332 and below same could see a test of 5281 levels, and resistance is now likely to be seen at 5412, a move above could see prices testing 5441.

Trading Ideas:
* Chana trading range for the day is 5281-5441.
* Chana gained as demand is likely to recover in the second half of 2021, as festivals and weddings are likely to boost retail purchases
* 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 82.1 Rupees to end at 5400 Rupees per 100 kgs.

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