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Gold

Gold yesterday settled up by 0.47% at 47910 driven by a dip in U.S. Treasury yields ahead of minutes from the Federal Reserve's June meeting that could provide more clues on the policy stance. Support also seen amid weaker than expected data in the US boosted appetite for the precious metal. Market participants are closely monitoring worsening coronavirus infection rates throughout Asia, amid fears of highly contagious variants. On the bond markets, US 10-year rates fell to 20-week lows of 1.353% as investors react to the potential of slower economic growth.

The International Monetary Fund said further fiscal support in the United States could fuel inflationary pressures and warned that the risk of a sustained rise in prices could require raising interest rates earlier-than-expected. Higher U.S. interest rates, in turn, could lead to a sharp tightening of global financial conditions and significant capital outflows from emerging and developing economies, IMF Managing Director Kristalina Georgieva said in a blog published Wednesday with the IMF's surveillance note for G20 countries. The IMF said the global economic outlook remained uncertain given questions about the evolution of the pandemic and progress on vaccinations, as well as the possibility that the pickup in inflation would prove "more persistent" than expected. Technically market is under short covering as market has witnessed drop in open interest by -1.81% to settled at 10095 while prices up 226 rupees, now Gold is getting support at 47711 and below same could see a test of 47511 levels, and resistance is now likely to be seen at 48055, a move above could see prices testing 48199.

Trading Ideas:
* Gold trading range for the day is 47511-48199.
* Gold prices gained driven by a dip in U.S. Treasury yields ahead of minutes from the Federal Reserve's June meeting.
* Support also seen amid weaker than expected data in the US boosted appetite for the precious metal.
* Market participants are closely monitoring worsening coronavirus infection rates throughout Asia, amid fears of highly contagious variants.

 

Silver

Silver yesterday settled down by -0.21% at 69365 amid falling Treasury yields ahead of minutes from the Federal Reserve's June meeting that could provide more clues on the policy stance. Benchmark 10-year Treasury yields dropped to a new 4-1/2-month low as investors assessed risks to growth stemming from the infectious new COVID-19 delta variant in Asia, Latin America and parts of Europe.

U.S. job openings rose slightly to a new record high in May and hiring dipped, a sign that the economy could still be struggling with labor shortages as coronavirus restrictions eased across the country. Job openings, a measure of labor demand, rose by 16,000 to 9.2 million on the last day of May, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report. Hiring also dipped to 5.9 million in May from 6.0 million in the prior month.

The government reported last Friday that job growth accelerated in June as U.S. companies hired the most workers in 10 months. Data showed U.S. companies hired the most workers in 10 months in June. However, unemployment ticked higher, the labor force participation remained unchanged and the pace of hourly earnings growth slowed, helping ease fears about the timing of U.S. interest rate hikes.

Technically market is under fresh selling as market has witnessed gain in open interest by 4.57% to settled at 10635 while prices down -147 rupees, now Silver is getting support at 68935 and below same could see a test of 68505 levels, and resistance is now likely to be seen at 69980, a move above could see prices testing 70595.

Trading Ideas:
* Silver trading range for the day is 68505-70595.
* Silver prices traded in range amid falling Treasury yields ahead of minutes from the Federal Reserve's June meeting
* Benchmark 10-year Treasury yields dropped to a new 4-1/2-month low
* U.S. job openings edge higher in May, hiring slips.

 

Crude oil

Crude oil yesterday settled down by -1.91% at 5392 as investors feared this week's collapse in OPEC+ talks could mean more supply, not less, is on the way. Crude markets have been volatile over the last two days following the breakdown of discussions between major oil producers Saudi Arabia and United Arab Emirates. The market has alternated rallies and selloffs, a signal investors are unclear what the OPEC+ standoff means for worldwide production. T

he Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, have restrained supply for more than a year since demand crashed during the pandemic. Goldman Sachs said the collapse of OPEC+'s oil output talks had introduced uncertainty into the prospects for output, but maintained its view that Brent crude would be around $80 a barrel this summer, and that output would increase gradually early next year.

Ministers of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, called off talks on Monday and set no new date to resume them, after clashing last week when the United Arab Emirates rejected a proposed eight-month extension to output curbs.

Technically market is under fresh selling as market has witnessed gain in open interest by 9.51% to settled at 5976 while prices down -105 rupees, now Crude oil is getting support at 5278 and below same could see a test of 5165 levels, and resistance is now likely to be seen at 5549, a move above could see prices testing 5707.

Trading Ideas:
* Crude oil trading range for the day is 5165-5707.
* Crude oil dropped as investors feared this week's collapse in OPEC+ talks could mean more supply, not less, is on the way.
* U.S. crude inventories expected to fall in weekly reports
* U.S. closely monitoring OPEC+ talks, White House says

 

Natural gas

Nat.Gas yesterday settled down by -2.16% at 267.2 as forecasts projected cooler weather over the next two weeks, while output is expected to rise. Data provider Refinitiv projected average gas demand, including exports, would dip from 89.7 bcfd this week to 88.6 bcfd next week as milder weather curbs air conditioning use.

Refinitiv said gas output in the Lower 48 U.S. states fell to an average of 90.7 billion cubic feet per day (bcfd) so far in July due mostly to pipeline problems in West Virginia. That compares with an average of 92.2 bcfd in June and an all-time high of 95.4 bcfd in November 2019. But total gas supply is expected to rise from last week's 98.2 bcfd to 98.6 bcfd this week and to 99.1 bcfd the following week, Refinitiv said.

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 $11 per mmBtu, analysts expect LNG exports from the United States to remain high. The Title Transfer Facility (TTF) in the Netherlands, the European gas benchmark, was near its highest since October 2008.

Technically market is under long liquidation as market has witnessed drop in open interest by -7.59% to settled at 14262 while prices down -5.9 rupees, now Natural gas is getting support at 261.6 and below same could see a test of 256.1 levels, and resistance is now likely to be seen at 274.9, a move above could see prices testing 282.7.

Trading Ideas:
* Natural gas trading range for the day is 256.1-282.7.
* Natural gas fell as forecasts projected cooler weather over the next two weeks, while output is expected to rise.
* Forecast show a broader area of normal to below normal temperatures, especially in the gas consuming areas, weighing on the market
* As for storage, the Energy Information Administration reported a 55 Bcf injection into inventories for the week ending June 11.
 

Copper

Copper yesterday settled up by 1.57% at 731.45 as the U.S. dollar steadied and investors waited for the release of minutes from the latest Federal Reserve meeting. Prices remained supported amid increasing demand for the metal for electrification and infrastructure should keep prices supported. Meanwhile, an acceleration in U.S. hiring boosted hopes of stronger demand for metals and a sustained recovery in the world's biggest economy.

Minutes from the U.S. Federal Reserve's latest policy meeting due out on Wednesday might determine the near-term direction of the dollar as investors look for insight into the thinking behind last month's hawkish shift in which Fed members projected a start to rate hikes in 2023. China's National Food and Strategic Reserves Administration said it would continue to release stocks in the near future after completing the auction of 100,000 tonnes of copper, aluminium and zinc on July 5.

The first round of metal auctions, which needed only one of two allotted days to conclude, was carried out to ease raw material cost pressure on businesses, the administration said. China aims to churn out 20 million tonnes of recycled non-ferrous metals, including copper, aluminium and lead, the state planner said.

Technically market is under short covering as market has witnessed drop in open interest by -14.55% to settled at 3583 while prices up 11.3 rupees, now Copper is getting support at 724.3 and below same could see a test of 717.2 levels, and resistance is now likely to be seen at 737.2, a move above could see prices testing 743.

Trading Ideas:
* Copper trading range for the day is 717.2-743.
* Copper prices rose as the U.S. dollar steadied and investors waited for the release of minutes from the latest Federal Reserve meeting.
* Prices remained supported amid increasing demand for the metal for electrification and infrastructure should keep prices supported.
* China reserves agency says it will release more metal stocks in near future

 

Zinc

Zinc yesterday settled up by 0.9% at 240.2 amid hopes of an economic recovery in 2021 continued to support overall sentiment, after the European Commission revised upwards its Eurozone GDP and inflation forecasts for 2021 and 2022. At the same time, investors worried that the spread of the Delta variant would prompt another round of restrictions and digested signs that global growth may have reached a peak and could start to moderate going forward.

Sentiment has been supported by hopes of an economic recovery as Britain continues its re-opening efforts, while concerns about the spread of the Delta variant and signs that global growth may have reached a peak continued to weigh. On the economic data front, house prices in the UK dropped 0.5% in June, the first monthly fall since January, as the stamp duty holiday is being phased out now until September.

The Chinese government sold its 30,000 tonnes of zinc ingots reserve at the first-ever public tender of metals on Monday and Tuesday this week. Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 2,900 mt from last Friday July 2 to 115,800 mt as of Monday July 5.

Technically market is under fresh buying as market has witnessed gain in open interest by 21.01% to settled at 1993 while prices up 2.15 rupees, now Zinc is getting support at 238.6 and below same could see a test of 236.9 levels, and resistance is now likely to be seen at 241.5, a move above could see prices testing 242.7.

Trading Ideas:
* Zinc trading range for the day is 236.9-242.7.
* Zinc prices gained amid hopes of an economic recovery in 2021 continued to support overall sentiment
* The European Commission revised upwards its Eurozone GDP and inflation forecasts for 2021 and 2022.
* Sentiment has been supported by hopes of an economic recovery as Britain continues its re-opening efforts
 

Nickel

Nickel yesterday settled up by 1.77% at 1377.5 as support seen as a strike at Vale SA’s Sudbury operations in Canada is taxing a nickel market that’s key to powering electric vehicles. Sudbury is one of the world’s few producers of nickel pellet, a form used to produce alloys for aerospace, electronic and nuclear industries.

Production at Vale’s northeast Ontario operation halted when unionized workers went on strike on June 1. The disruption is driving consumers to tap battery-grade nickel briquette as an alternative. The expansion rate of service industry in the US in June was lower than expected, and the employment index of service industry fell to the lowest level in the year. The Institute for Supply Management said its non-manufacturing activity index fell to 60.1 last month from 64.0 in May, which was the highest reading in the series’ history.

The economy has been hit by shortages of labor and raw materials as it reopens after more than a year of disruptions caused by the COVID-19 pandemic. The Fed has suggested that it will decide the policy direction based on economic recovery. In this scenario, investors bet on the Dollar rising due to upbeat non-farm payrolls last week.

Technically market is under short covering as market has witnessed drop in open interest by -5.38% to settled at 2074 while prices up 23.9 rupees, now Nickel is getting support at 1359.9 and below same could see a test of 1342.3 levels, and resistance is now likely to be seen at 1388.3, a move above could see prices testing 1399.1.

Trading Ideas:
* Nickel trading range for the day is 1342.3-1399.1.
* Nickel prices gained as support seen after Vale strike at Canadian mine strains battery nickel supply.
* The expansion rate of service industry in the US in June was lower than expected.
* The Fed has suggested that it will decide the policy direction based on economic recovery.

 

Aluminium

Aluminium yesterday settled down by -0.8% at 198.1 amid the opinions on cracking down on illegal securities activities issued by Chinese government. However downside seen limited as Russia decided to impose additional tariffs on aluminium products. Social inventory is expected to extend slight increase due to the off-season and inflows of SRB aluminium ingots into downstream producers.

Concerns of tighter liquidity overseas have faded, but may reappear if US non-farm payrolls and European and US PMI data exceed expectations. The expansion rate of US service industry in June was lower than expected and hit a new low in the year.

Goldman Sachs expected very little possibility for the overheated economy. US Fed announced that it would not reduce the debt purchase before December. US treasury yields fell sharply last night, and US dollar index rose to 92.54, forcing down the prices of bulk commodities.

International oil prices all declined. Social inventory is expected to extend slight increase due to the off-season and inflows of SRB aluminium ingots into downstream producers. Concerns of tighter liquidity overseas have faded, but may reappear if US non-farm payrolls and European and US PMI data exceed expectations.

Technically market is under long liquidation as market has witnessed drop in open interest by -7.33% to settled at 2654 while prices down -1.6 rupees, now Aluminium is getting support at 197.1 and below same could see a test of 195.9 levels, and resistance is now likely to be seen at 200, a move above could see prices testing 201.7.

Trading Ideas:
* Aluminium trading range for the day is 195.9-201.7.
* Aluminium pared gains amid the opinions on cracking down on illegal securities activities issued by Chinese government.
* However downside seen limited as Russia decided to impose additional tariffs on aluminium products.
* Social inventory is expected to extend slight increase due to the off-season and inflows of SRB aluminium ingots into downstream producers.

 

Mentha oil

Mentha oil yesterday settled up by 1.26% at 1019.8 on some low level buying after prices dropped in last some session 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 -25.4 Rupees to end at 1071.8 Rupees per 360 kgs.

Technically market is under fresh buying as market has witnessed gain in open interest by 3.27% to settled at 885 while prices up 12.7 rupees, now Mentha oil is getting support at 1009.1 and below same could see a test of 998.5 levels, and resistance is now likely to be seen at 1026.4, a move above could see prices testing 1033.1.

Trading Ideas:
* Mentha oil trading range for the day is 998.5-1033.1.
* In Sambhal spot market, Mentha oil dropped  by -25.4 Rupees to end at 1071.8 Rupees per 360 kgs.
* Mentha oil gained on some low level buying after 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 down by -0.82% at 7488 as 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 dropped -76 Rupees to 7493 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -8.78% to settled at 17460 while prices down -62 rupees, now Soyabean is getting support at 7388 and below same could see a test of 7287 levels, and resistance is now likely to be seen at 7614, a move above could see prices testing 7739.

Trading Ideas:
* Soyabean trading range for the day is 7287-7739.
* Soyabean prices dropped as area under soybean planting is likely to increase by 5-7% across the country this kharif season
* 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 dropped  -76 Rupees to 7493 Rupees per 100 kgs.

 

Soyaoil 

Ref.Soyaoil yesterday settled up by 1% 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 1309.05 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -15.85% to settled at 15315 while prices up 12.7 rupees, now Ref.Soya oil is getting support at 1272 and below same could see a test of 1260 levels, and resistance is now likely to be seen at 1295, a move above could see prices testing 1306.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1260-1306.
* Ref soyoil prices gained 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 1309.05 Rupees per 10 kgs.

 

Crude palm Oil

Crude palm Oil yesterday settled up by 1.27% at 1016 as support seen as MPOA's output projections lower than expected. However upside seen limited as export demand from top buyer India eased during the day and expectations of an increasing stockpile weighed on sentiment.

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 dropped by -4.2 Rupees to end at 1041 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 3.73% to settled at 5038 while prices up 12.7 rupees, now CPO is getting support at 1006.6 and below same could see a test of 997.1 levels, and resistance is now likely to be seen at 1024.8, a move above could see prices testing 1033.5.

Trading Ideas:
* CPO trading range for the day is 997.1-1033.5.
* Crude palm oil gained as support seen as 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.
* Malaysia's palm oil inventories at the end of June likely hit a nine-month high as production jumped
* In spot market, Crude palm oil dropped  by -4.2 Rupees to end at 1041 Rupees.

 

Mustard Seed

Mustard Seed yesterday settled down by -1.17% at 7037 tracking weakness in soyabean prices and overseas prices as forecasts showed favorable rains moving into the Midwest. U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield.

Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. However downside seen limited 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. 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 gained 206 Rupees to end at 7376.5 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -13.49% to settled at 29960 while prices down -83 rupees, now Rmseed is getting support at 6982 and below same could see a test of 6927 levels, and resistance is now likely to be seen at 7115, a move above could see prices testing 7193.

Trading Ideas:
* Rmseed trading range for the day is 6927-7193.
* Mustard seed prices dropped tracking weakness in soyabean prices and overseas prices as forecasts showed favorable rains moving into the Midwest.
* U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield.
* Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area.
* In Alwar spot market in Rajasthan the prices gained 206 Rupees to end at 7376.5 Rupees per 100 kg.

 

Turmeric 

Turmeric yesterday settled down by -0.36% at 7272 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 7300 Rupees dropped -25 Rupees

.Technically market is under long liquidation as market has witnessed drop in open interest by -9.34% to settled at 5340 while prices down -26 rupees, now Turmeric is getting support at 7226 and below same could see a test of 7180 levels, and resistance is now likely to be seen at 7328, a move above could see prices testing 7384.

Trading Ideas:
* Turmeric trading range for the day is 7180-7384.
* Turmeric prices dropped as sentiment is weak and sluggish demand from local stockists amid poor quality arrivals in the market
* 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 7300 Rupees dropped -25 Rupees.


Jeera

Jeera yesterday settled up by 0.04% at 13180 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 -19.45 Rupees to end at 13560.55 Rupees per 100 kg.

Technically market is under short covering as market has witnessed drop in open interest by -13.19% to settled at 3633 while prices up 5 rupees, now Jeera is getting support at 13140 and below same could see a test of 13105 levels, and resistance is now likely to be seen at 13220, a move above could see prices testing 13265.

Trading Ideas:
* Jeera trading range for the day is 13105-13265.
* Jeera settled flat 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 -19.45 Rupees to end at 13560.55 Rupees per 100 kg.

 

Cotton

Cotton yesterday settled up by 0.16% at 25160 on slow sowing and higher demand from mills. The cotton crop in Bathinda and Mansa districts of 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.

Trade body Cotton Association of India (CAI) has expressed concerns of India losing its competitiveness to China, Pakistan and Bangladesh in the international market. With 10 per cent customs duty on cotton varieties including extra-long staple (ELS), the export-oriented garments and cotton-madeups become costlier thereby giving an edge to the close competitors.

The 10 per cent customs duty was imposed on cotton imports on February 2, 2021. The CAI has written a letter to the Union Finance Minister Nirmala Sitharaman seeking the withdrawal of duty. In the letter, Atul Ganatra, President, CAI, said that India produced merely 5-6 lakh bales (each of 170 kg) of ELS variety of cotton as against the local requirement of about 12 to 15 lakh bales of ELS and about 5-7 lakh bales of non ELS contamination-free sustainable cotton. The daily arrivals have stopped, as farmers and stockists have less stock. In spot market, Cotton gained by 40 Rupees to end at 25080 Rupees.

Technically market is under short covering as market has witnessed drop in open interest by -15.22% to settled at 5468 while prices up 40 rupees, now Cotton is getting support at 25040 and below same could see a test of 24910 levels, and resistance is now likely to be seen at 25340, a move above could see prices testing 25510.

Trading Ideas:
* Cotton trading range for the day is 24910-25510.
* 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 40 Rupees to end at 25080 Rupees.

 

Chana

Chana yesterday settled down by -0.63% at 4858 as 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. However, this same stock limit will be applicable on importers after 45 days from date of customs clearance for stocks imported after May 15. Besides, in order to enhance domestic availability, ban on import of tur, urad and moong was lifted for the period between May 15 and October 31.

The government also signed a 5-year agreement with Myanmar for annual import of 2.5 lakh tonne of urad and 1 lakh tonne of tur. In Delhi spot market, chana dropped by -191.4 Rupees to end at 4754.6 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -4.85% to settled at 78330 while prices down -31 rupees, now Chana is getting support at 4834 and below same could see a test of 4811 levels, and resistance is now likely to be seen at 4895, a move above could see prices testing 4933.

Trading Ideas:
* Chana trading range for the day is 4811-4933.
* Chana prices dropped as Govt imposes stock limits for pulses to cool rising prices
* 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 dropped  by -191.4 Rupees to end at 4754.6 Rupees per 100 kgs.

 

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