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Gold

Gold yesterday settled up by 0.42% at 47923 supported by growing concerns that the Delta variant of COVID-19 could delay the global economic recovery, though a bounce in U.S. treasury yields capped gains. Governments in Southeast Asia are tightening measures, hoping targeted lockdowns will act as circuit-breakers in arresting record jumps in coronavirus cases and deaths that started rising in May.

Benchmark U.S. 10-year Treasury yields rose from a more than four-month low hit in the previous session, but were down on the week. Low rates of vaccination in some regions of the world pose a threat to the United States as well as global economic growth, Federal Reserve Bank of San Francisco President Mary Daly told. Daly also said it was important for the rest of the world to reach higher rates of vaccination, and the inability to achieve that would be a “headwind” on U.S. economic growth “I think one of the biggest risks to our global growth, going forward, is that we prematurely declare victory on COVID-19,” Daly added.

Dealers were charging a premium of up to $1.5 an ounce over official domestic prices inclusive of the 10.75% import and 3% sales levies, down from last week's premium of $3. In top consumer China, premiums were at about $1 an ounce over the global benchmark spot prices compared with last week's $3-$4 premium. Technically market is under short covering as market has witnessed drop in open interest by -4.02% to settled at 9023 while prices up 202 rupees, now Gold is getting support at 47714 and below same could see a test of 47504 levels, and resistance is now likely to be seen at 48041, a move above could see prices testing 48158.

Trading Ideas:
* Gold trading range for the day is 47504-48158.
* Gold gained supported by growing concerns that the Delta variant of COVID-19 could delay the global economic recovery
* Fed's Daly says low rates of vaccination a risk to global economy
* Governments in Southeast Asia are tightening measures, hoping targeted lockdowns will act as circuit-breakers in arresting record jumps in coronavirus cases.

Silver

Silver yesterday settled up by 0.49% at 69297 as fueled by concerns about global growth amid the spread of Covid-19 variants. Shortages of materials and "difficulties in hiring" are holding back the U.S. economic recovery from the coronavirus pandemic and have driven a "transitory" bout of inflation, the Federal Reserve said. "Progress on vaccinations has led to a reopening of the economy and strong economic growth," the U.S. central bank said in its semiannual report to Congress on the state of the economy.

However, "shortages of material inputs and difficulties in hiring have held down activity in a number of industries." German 10-year Bund yield and other major euro zone government bonds, such as those of France and the Netherlands, also saw yields tick up. Investors were also reacting to news that the Biden administration is planning to add 10 Chinese entities to its economic blacklist. On the economic front, China's consumer price inflation eased in June and factory gate prices rose at a slower pace after the government stepped up efforts to rein in rising commodity prices, official data showed.

Separate data showed the U.K. economy expanded at a slower pace in May despite an easing of COVID-19-related restrictions. Technically market is under short covering as market has witnessed drop in open interest by -6.02% to settled at 10627 while prices up 335 rupees, now Silver is getting support at 68667 and below same could see a test of 68036 levels, and resistance is now likely to be seen at 69687, a move above could see prices testing 70076.

Trading Ideas:
* Silver trading range for the day is 68036-70076.
* Silver prices gained as fueled by concerns about global growth amid the spread of Covid-19 variants.
* Prices remained supported amid worries that a spike in Delta variant infections could have a greater drag on the economy.
* Fed says shortages of materials, hiring problems holding back recovery.

Crude oil

Crude oil yesterday settled up by 2.42% at 5554 as data showed a draw in U.S. inventories but were heading for a weekly loss amid uncertainty over global supplies after an OPEC+ impasse. However upside seen limited amid the collapse of output talks between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+. U.S. crude and gasoline stocks fell and gasoline demand reached its highest since 2019, the U.S. Energy Information Administration said, signalling increasing strength in the economy.

Gains in oil prices were capped by worries that members of the OPEC+ group could be tempted to abandon output limits that they have followed during the COVID-19 pandemic, with talks breaking down because of an impasse between major producers Saudi Arabia and the United Arab Emirates. The two Gulf OPEC allies are at odds over a proposed deal that would have brought more oil to the market. Russia was trying to mediate in an effort to strike a deal to raise output, OPEC+ sources said on Wednesday. The United States had high level conversations with officials in Saudi Arabia and the UAE, the White House said.

The global spread of the Delta coronavirus variant and worries it could stall a worldwide economic recovery also weighed on oil prices. Technically market is under fresh buying as market has witnessed gain in open interest by 17.44% to settled at 6264 while prices up 131 rupees, now Crude oil is getting support at 5477 and below same could see a test of 5400 levels, and resistance is now likely to be seen at 5603, a move above could see prices testing 5652.

Trading Ideas:
* Crude oil trading range for the day is 5400-5652.
* Crude oil gained as data showed a draw in U.S. inventories but were heading for a weekly loss amid uncertainty over global supplies after an OPEC+ impasse.
* U.S. oil and gasoline stocks fall as fuel demand rises
* OPEC+ impasse fuels uncertainty over global supply.

Natural gas

Nat.Gas yesterday settled up by 0.11% at 275.8 as forecasts projected increased demand amid warmer than usual weather and reduced supply over the next two weeks. Prices also took support from weekly U.S. Energy Information Administration (EIA) storage report which showed a smaller-than expected build last week. Refinitiv said gas output in the Lower 48 U.S. states averaged about 91 billion cubic feet per day (bcfd) so far in July.

That compares with an average of 92.2 bcfd in June and an all-time high of 95.4 bcfd in November 2019. Data provider Refinitiv projected average gas demand, including exports, would rise from 92.2 bcfd this week to 94.8 bcfd next week, as milder weather curbs air conditioning use. The amount of gas flowing to U.S. liquefied natural gas (LNG) export plants averaged 11 bcfd so far in July, up from 10.1 bcfd in June, but still below April's record 11.5 bcfd.

With European and Asian gas both trading over $12 per mmBtu, expect LNG exports from the United States to remain high. U.S. pipeline exports to Mexico averaged 6.5 bcfd so far in July, down from a record 6.7 bcfd in June. Technically market is under short covering as market has witnessed drop in open interest by -2.83% to settled at 15332 while prices up 0.3 rupees, now Natural gas is getting support at 272.8 and below same could see a test of 269.9 levels, and resistance is now likely to be seen at 278.9, a move above could see prices testing 282.1.

Trading Ideas:
* Natural gas trading range for the day is 269.9-282.1.
* Natural gas edged up as forecasts projected increased demand amid warmer than usual weather and reduced supply over the next two weeks.
* Prices also took support from weekly U.S. Energy Information Administration (EIA) storage report which showed a smaller-than expected build last week.
* Refinitiv said gas output in the Lower 48 U.S. states averaged about 91 billion cubic feet per day (bcfd) so far in July.

Copper

Copper yesterday settled up by 1.55% at 731.75 as support seen after China’s central bank cut the amount of cash most banks must hold in reserve in order to boost lending in the economy as growth starts to wane. The People’s Bank of China will reduce the reserve requirement ratio by 0.5 percentage point for most banks, according to a statement published.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 9.2 percent from last Friday, the exchange said. CME Group Inc., parent company of the Chicago Board of Trade, on Thursday decreased margins for copper contracts by 9.1%, effective after the close of business on Friday. The group lowered maintenance margins for COMEX July copper futures (HG) to $6,000 from $6,600 per contract. Malaysia announced that the full lockdown would be indefinitely extended until the number of newly confirmed cases of Covid-19 fell below 4,000.

The extension of the lockdown will undoubtedly affect exports of secondary copper to China. Domestic secondary copper supply remained tight, and prices were resistant to declines, resulting in poor production efficiency for downstream scrap using companies.

Supplies increased at the end of the week when copper prices hovered at lows, which could meet short-term raw materials demand. Technically market is under short covering as market has witnessed drop in open interest by -18.98% to settled at 3552 while prices up 11.15 rupees, now Copper is getting support at 723.4 and below same could see a test of 714.8 levels, and resistance is now likely to be seen at 738.4, a move above could see prices testing 744.8.

Trading Ideas:
* Copper trading range for the day is 714.8-744.8.
* Copper prices gained after China’s central bank cut the amount of cash most banks must hold in reserve in order to boost lending in the economy
* Shanghai warehouse copper stocks down 9.2 %
* CME lowers margins for copper futures contracts by 9.1%

Zinc

Zinc yesterday settled up by 1.08% at 242.4 as support came after the PBoC cut the reserve requirement ratio (RRR) for all banks by 50 bps, saying it is a routine operation as monetary policy returns to normal. The weighed average RRR for all financial institutions stands at 8.9% after the cut, although banks that are subject to an RRR of 5% will be exempted.

Britain is still importing more goods from outside the European Union than from the bloc’s single market which it left in January, but the difference is narrowing, Britain’s statistics office said. China’s June consumer price index (CPI) rose 1.1 points on the year, the increase narrowing 0.2 point from May, shrinking for the first time on a monthly basis after turning positive. The producer price index (PPI) rose 8.8 points on the year in June, and the increase narrowed 0.2 percentage points on the month, shrinking for the first time since January 2021.

The initial jobless claims increased slightly last week, but still stood low. The consumer credit hit a record high in May, and the 30-year Mortgage Rates fell to the lowest level since February, affecting the market sentiments. In the minutes of the meeting in June, the Federal Reserve sent a signal of turning to a more hawkish position. Technically market is under fresh buying as market has witnessed gain in open interest by 11.37% to settled at 2223 while prices up 2.6 rupees, now Zinc is getting support at 240.4 and below same could see a test of 238.5 levels, and resistance is now likely to be seen at 243.9, a move above could see prices testing 245.5.

Trading Ideas:
* Zinc trading range for the day is 238.5-245.5.
* Zinc prices gained as support came after the PBoC cut the reserve requirement ratio (RRR) for all banks by 50 bps
* China’s June consumer price index (CPI) rose 1.1 points on the year, the increase narrowing 0.2 point from May
* The producer price index (PPI) rose 8.8 points on the year in June, and the increase narrowed 0.2 percentage points on the month.

Nickel 

Nickel yesterday settled up by 1.95% at 1404.3 on signs of a tightening nickel market. On the demand side, China’s import premiums for full plated nickel cathodes, which measures the arbitrage window between Shanghai and London, jumped more than 10% in the week. On the supply side, operations at Vale’s nickel mine in Sudbury, Canada, remained stalled after an unsuccessful 2nd round of negotiations with its unionized workers.

The national refined nickel output increased 1,833 mt or 14.75% month on month to 14,300 mt in June, and operating rates stood at 65%. Gansu smelter recovered from maintenance, and slightly increased production to complete the semi-annual output plan. Jilin smelter reached full production in June, and the output was also higher than the previous month. The output of Xinjiang smelter declined slightly, and the reduction is planned to be made up in July.

Output of refined nickel is expected to stand at 13,500 mt in July 2021, mainly because Gansu smelter will return the production to the normal level, and the output may drop by nearly 1,000 mt. Therefore, the national refined nickel output is expected to be lower on the month in July. Technically market is under fresh buying as market has witnessed gain in open interest by 11.59% to settled at 2686 while prices up 26.9 rupees, now Nickel is getting support at 1390.6 and below same could see a test of 1376.8 levels, and resistance is now likely to be seen at 1412.3, a move above could see prices testing 1420.2.

Trading Ideas:
* Nickel trading range for the day is 1376.8-1420.2.
* Nickel prices gained on signs of a tightening nickel market.
* China’s import premiums for full plated nickel cathodes, jumped more than 10% in the week.
* Operations at Vale’s nickel mine in Sudbury, Canada, remained stalled after an unsuccessful 2nd round of negotiations with its unionized workers.

Aluminium

Aluminium yesterday settled up by 0.94% at 198 as the People’s Bank of China will reduce the reserve requirement ratio by 0.5 percentage point for most banks, according to a statement. That will unleash about 1 trillion yuan ($154 billion) of long-term liquidity into the economy, the central bank said. Social inventories of aluminium ingots continued to decrease, but the consumption of profiles in construction and other sectors weakened, and aluminium billet stocks continued to pile up.

The PBoC cut the reserve requirement ratio (RRR) for all banks by 50 bps, saying it is a routine operation as monetary policy returns to normal. The weighed average RRR for all financial institutions stands at 8.9% after the cut, although banks that are subject to an RRR of 5% will be exempted. According to US economic data, the number of jobless claims came in at 373,000 last week, slightly higher than the previous value, and the recovery of the labor market was still slow.

In the minutes of the meeting in June, the Federal Reserve sent a signal of turning to a more hawkish position. The expectation of tightening liquidity strengthened investors' cautious mood, and the recent spread of COVID-19 mutant virus aggravated the worries about the economic prospects. Technically market is under fresh buying as market has witnessed gain in open interest by 5.32% to settled at 2417 while prices up 1.85 rupees, now Aluminium is getting support at 196.7 and below same could see a test of 195.2 levels, and resistance is now likely to be seen at 199.2, a move above could see prices testing 200.2.

Trading Ideas:
* Aluminium trading range for the day is 195.2-200.2.
* Aluminium gained as the People’s Bank of China will reduce the reserve requirement ratio by 0.5 percentage point for most banks
* Support also seen as social inventories of aluminium ingots continued to decrease
* Russian aluminium exports rose in the first five months of 2021.

Mentha oil

Mentha oil yesterday settled down by -2.2% at 993.2 as average yield in Barabanki is improved by 5-6 kgs per acre due to better weather. Support also 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.

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. 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. In Sambhal spot market, Mentha oil dropped by -7.7 Rupees to end at 1081.6 Rupees per 360 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 3.82% to settled at 924 while prices down -22.3 rupees, now Mentha oil is getting support at 981.6 and below same could see a test of 969.9 levels, and resistance is now likely to be seen at 1011.4, a move above could see prices testing 1029.5.

Trading Ideas:
* Mentha oil trading range for the day is 969.9-1029.5.
* In Sambhal spot market, Mentha oil dropped  by -7.7 Rupees to end at 1081.6 Rupees per 360 kgs.
* Mentha oil prices dropped in last some session as average yield in Barabanki is improved
* Prices gained in recent sessions 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.

Soyabean

Soyabean yesterday settled up by 2.44% at 7224 as a “break” in the monsoon has affected Kharif sowing in many parts of the country this year. However, area under soybean planting is likely to increase by 5-7% across the country this kharif season despite speculation in the market over the shortage of seeds.

Farmers, however, are keeping their fingers crossed due to the break in monsoon and hope for a revival of the monsoon to ensure a good crop. In the 2020 kharif season, soybean cultivation took place on 120 lakh hectares and the yield was about 105 lakh tonne. Record high prices for the oilseed could prompt some to switch from cultivating competing commodities such as cotton and pulses, industry officials said.

D N Pathak, executive director, Soybean Processors Association of India (SOPA) said that the area under cultivation could see an increase by 5-7% subject to the fact it rains in the next five to six days. Several soybean farmers in Madhya Pradesh have said that the sowing of the kharif crop has not even begun in 60% area even two months after the beginning of the season due to shortage of certified seeds, provided by the government. In Maharashtra, the government has claimed that there was no shortage of soybean seeds and sowing was in full swing.

At the Indore spot market in top producer MP, soybean gained 42 Rupees to 7544 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 11.32% to settled at 34710 while prices up 172 rupees, now Soyabean is getting support at 7086 and below same could see a test of 6948 levels, and resistance is now likely to be seen at 7306, a move above could see prices testing 7388.

Trading Ideas:
* Soyabean trading range for the day is 6948-7388.
* Soyabean prices gained as a “break” in the monsoon has affected Kharif sowing in many parts of the country this year.
* There has been shortage of certified seeds and they have been selling at high prices, but farmers have prepared their own seeds.
* In Maharashtra, the government has claimed that there was no shortage of soybean seeds and sowing was in full swing.
* At the Indore spot market in top producer MP, soybean gained  42 Rupees to 7544 Rupees per 100 kgs.

Soya oil 

Ref.Soyaoil yesterday settled up by 2.43% at 1285.4 as concerns over tightening edible oil supply underpinned prices. India has slashed the base import price of palm oil and soyoil, the government said in a statement, as prices fell in the overseas market. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1297.5 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.26% to settled at 35815 while prices up 30.5 rupees, now Ref.Soya oil is getting support at 1261 and below same could see a test of 1236 levels, and resistance is now likely to be seen at 1299, a move above could see prices testing 1312.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1236-1312.
* Ref soyoil ended with gains as concerns over tightening edible oil supply underpinned prices.
* India has slashed the base import price of palm oil and soyoil, the government said in a statement, as prices fell in the overseas market.
* 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
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1297.5 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled up by 2.29% at 1034.3 tracking rise in overseas prices amid expectations of tight production. India's demand for Malaysian crude palm oil and Indonesian palm olein has been strong, but it is likely to subside at current price levels and the market will reverse very quickly. Indian buyers have contracted up to 70,000 tonnes of refined bleached deodorized palm oil, mostly from Indonesia, to be shipped in July and August.

Malaysia's palm oil inventories at the end of June likely hit a nine-month high as production jumped, although a rebound in exports kept supply tight. India declared that the import of refined palm oil is amended from 'Restricted' to 'Free', allowing imports of the product for six months. India allowed imports of refined bleached deodorized palm oil for six months, the government said in a statement. India has slashed the base import price of palm oil and soyoil, the government said in a statement, as prices fell in the overseas market.

The country cut the import tax on refined palm oil to 41.25% from 49.5% for three months to bring down local edible oil prices. In spot market, Crude palm oil gained by 8.4 Rupees to end at 1040.2 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 0.23% to settled at 5196 while prices up 23.2 rupees, now CPO is getting support at 1018.6 and below same could see a test of 1002.8 levels, and resistance is now likely to be seen at 1044.1, a move above could see prices testing 1053.8.

Trading Ideas:
* CPO trading range for the day is 1002.8-1053.8.
* Crude palm oil prices gained tracking rise in overseas prices amid expectations of tight production.
* MPOA's output projections lower than expected
* India declared that the import of refined palm oil is amended from 'Restricted' to 'Free', allowing imports of the product for six months.
* In spot market, Crude palm oil gained  by 8.4 Rupees to end at 1040.2 Rupees.

Mustard Seed

Mustard Seed yesterday settled up by 1.31% at 6882 as the arrival of mustard in the mandis has decreased at all places in the country. 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. 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.

In Alwar spot market in Rajasthan the prices dropped -15.5 Rupees to end at 7119 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 9.51% to settled at 45820 while prices up 89 rupees, now Rmseed is getting support at 6774 and below same could see a test of 6667 levels, and resistance is now likely to be seen at 6954, a move above could see prices testing 7027.

Trading Ideas:
* Rmseed trading range for the day is 6667-7027.
* Mustard seed prices gained tracking firmness in overseas prices as drought continued across the Canadian Prairies, threatening crop yields.
* The arrival of mustard in the mandis has decreased at all places in the country.
* U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield.
* In Alwar spot market in Rajasthan the prices dropped -15.5 Rupees to end at 7119 Rupees per 100 kg.

Turmeric

Turmeric yesterday settled down by -1.36% at 7264 as sentiment is weak and sluggish demand from local stockists amid poor quality arrivals in the market has led to the fall in prices. However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh.

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.

In Nizamabad, a major spot market in AP, the price ended at 7301.9 Rupees gained 1.9 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 12.05% to settled at 9720 while prices down -100 rupees, now Turmeric is getting support at 7220 and below same could see a test of 7176 levels, and resistance is now likely to be seen at 7338, a move above could see prices testing 7412.

Trading Ideas:
* Turmeric trading range for the day is 7176-7412.
* Turmeric dropped as sentiment is weak and sluggish demand from local stockists amid poor quality arrivals in the market has led to the fall in prices.
* However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh.
* The curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading.
* In Nizamabad, a major spot market in AP, the price ended at 7301.9 Rupees gained 1.9 Rupees.

Jeera

Jeera yesterday settled down by -0.45% at 13250 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 -41.85 Rupees to end at 13513.15 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 18.12% to settled at 5379 while prices down -60 rupees, now Jeera is getting support at 13200 and below same could see a test of 13145 levels, and resistance is now likely to be seen at 13320, a move above could see prices testing 13385.

Trading Ideas:
* Jeera trading range for the day is 13145-13385.
* Jeera settled down amid excess supply and as demand is likely to remain subdued on weak buying
* 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 -41.85 Rupees to end at 13513.15 Rupees per 100 kg.

Cotton

Cotton yesterday settled up by 0.16% at 25210 tracking firmness in overseas prices as drought continued across the Canadian Prairies, threatening crop yields. The arrival of mustard in the mandis has decreased at all places in the country. 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. 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. In spot market, Cotton gained by 10 Rupees to end at 25240 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -4.01% to settled at 4812 while prices up 40 rupees, now Cotton is getting support at 24940 and below same could see a test of 24660 levels, and resistance is now likely to be seen at 25680, a move above could see prices testing 26140.

Trading Ideas:
* Cotton trading range for the day is 24660-26140.
* Cotton prices gained on slow sowing and higher demand from mills.
* The cotton crop in Punjab has been infected with a pest called pink bollworm for the second consecutive year.
* CAI demand for withdrawal of 10 per cent customs duty on cotton imports.
* In spot market, Cotton gained  by 10 Rupees to end at 25240 Rupees.
 

Chana

Chana yesterday settled up by 0.37% at 4922 on short covering as several market committees of Maharashtra have stopped purchase and sale of commodities in protest against the government imposing stock limits on pulses. Transactions at Latur, Amravati, Akola, Washim, Khamgaon and other major market committees in the Vidarbha and Marathwada regions have been hit as traders have stopped buying agricultural commodities indefinitely since Monday.

The Govt imposed stock limits on all pulses except moong for wholesalers, retailers, millers and importers, to bring down the prices of these items, which have risen in retail markets since March. According to the order issued by the food ministry, valid until October 31, wholesalers can keep with them maximum 200 tonne of all pulses, including not more than 100 tonne in one variety.

The stock limit for retailers has been fixed at 5 tonne. For millers, the limit is total production during last three months or 25% of annual installed capacity, whichever is higher. Importers are allowed to keep maximum 200 tonne of all pulses, including not more than 100 tonne in one variety (same as for wholesalers), for stocks held/imported before 15th May.

In Delhi spot market, chana gained by 2.5 Rupees to end at 4800 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 8.67% to settled at 105390 while prices up 18 rupees, now Chana is getting support at 4890 and below same could see a test of 4858 levels, and resistance is now likely to be seen at 4974, a move above could see prices testing 5026.

Trading Ideas:
* Chana trading range for the day is 4858-5026.
* Chana prices gained on short covering several market committees in Maharashtra shut in protest
* Wholesalers can keep with them maximum 200 tonne of all pulses, including not more than 100 tonne in one variety.
* Importers are allowed to keep maximum 200 tonne of all pulses, including not more than 100 tonne in one variety
* In Delhi spot market, chana gained  by 2.5 Rupees to end at 4800 Rupees per 100 kgs.
 

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