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Gold

Gold yesterday settled up by 0.03% at 48087 as investors await the U.S. Federal Reserve's decision on the pace at which the central bank plans to taper its pandemic stimulus measures. The Fed is expected to announce that it is speeding up the end of its pandemic-era bond purchases and signal a turn to interest rate increases next year as a guard against surging inflation. U.S. retail sales increased less than expected in November, likely payback after surging in the prior month as Americans started their holiday shopping early to avoid empty shelves. A rotation in spending from goods back to services as well as shortages and the resulting higher prices also appear to have held back retail sales last month, with the report from the Commerce Department on Wednesday showing a sharp drop in receipts at electronics and appliance stores. India continued to heavily rely on imports to meet its domestic requirements for gold with imports making up 86% of its total supply during 2016-2020, the World Gold Council said. Since the implementation of mandatory hallmarking for gold ornaments, around 42.9 mln pieces of jewellery have been hallmarked during Jul-Nov, Ashwini Kumar Choubey, minister of consumer affairs, food and public distribution said in the Lok Sabha. Technically market is under short covering as market has witnessed drop in open interest by -1.21% to settled at 8414 while prices up 15 rupees, now Gold is getting support at 47944 and below same could see a test of 47802 levels, and resistance is now likely to be seen at 48234, a move above could see prices testing 48382.

Trading Ideas:
# Gold trading range for the day is 47802-48382.
# Gold prices stabilised as investors await Fed’s decision on the pace at which the central bank plans to taper its pandemic stimulus measures.
# U.S. retail sales increased less than expected in November, likely payback after surging in the prior month
# India’s Gold imports at $4.2 billion were 40% higher than a year ago, but 17% lower than last month


Silver

Silver yesterday settled down by -1% at 60208 amid worries the new omicron variant would drag demand down, adding to already reduced demand from the industrial sector. A strong dollar and bets the Fed will continue its tightening plans also weighed on the silver market. US consumer prices accelerated to the highest level since 1982 at 6.8% in November, while producer prices grew at the fastest pace in over 13 years at 9.6%. Markets have been pricing for the Fed to wrap up asset purchases around March and then proceed with one or two rate hikes in 2022. Meanwhile, the greenback remained vulnerable to the fast-spreading omicron variant, as a potential hit to the global economy could cloud the outlook and delay stimulus and rate lift off. The U.S. Senate approved raising the federal government's debt limit by $2.5 trillion, to about $31.4 trillion, and sent it to the House of Representatives to pass and avert an unprecedented default. The 50-49 party-line vote follows a months-long standoff between Democrats and Republicans, with the latter seeking to force President Joe Biden's party to raise the debt limit on its own from the current $28.9 trillion level, generating fodder for attack ads during the 2022 congressional elections. Technically market is under fresh selling as market has witnessed gain in open interest by 11.79% to settled at 16156 while prices down -610 rupees, now Silver is getting support at 59844 and below same could see a test of 59480 levels, and resistance is now likely to be seen at 60778, a move above could see prices testing 61348.

Trading Ideas:
# Silver trading range for the day is 59480-61348.
# Silver dropped amid worries the new omicron variant would drag demand down, adding to already reduced demand from the industrial sector.
# U.S. Senate approves boosting debt limit to $31.4 trillion, sends to House
# Pfizer says COVID – 19 pill near 90% effective in final analysis


Crude oil

Crude oil yesterday settled up by 0.86% at 5394 as U.S. crude stocks, gasoline and distillate inventories fell last week, the Energy Information Administration said. Crude inventories fell by 4.6 million barrels in the week to Dec. 10 to 428.3 million barrels, compared with expectations for a 2.1 million-barrel drop. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.3 million barrels in the last week, EIA said. Refinery crude runs fell by 115,000 barrels per day in the last week, EIA said. Refinery utilization rates was unchanged in the week. U.S. gasoline stocks fell by 719,000 barrels in the week to 218.6 million barrels, the EIA said, compared with expectations poll for a 1.6 million-barrel rise. Distillate stockpiles , which include diesel and heating oil, fell by 2.9 million barrels in the week to 123.8 million barrels, versus expectations for a 688,000-barrel rise, the EIA data showed. A surge in COVID-19 cases and the emergence of the Omicron variant will dent global demand for oil, the International Energy Agency (IEA) said, but the broader picture is one of increasing output set to top demand this month and soar next year. "The surge in new COVID-19 cases is expected to temporarily slow, but not upend, the recovery in oil demand that is underway," the Paris-based IEA said in its monthly oil report. Technically market is under short covering as market has witnessed drop in open interest by -0.31% to settled at 2919 while prices up 46 rupees, now Crude oil is getting support at 5326 and below same could see a test of 5257 levels, and resistance is now likely to be seen at 5434, a move above could see prices testing 5473.
Trading Ideas:
# Crude oil trading range for the day is 5257-5473.
# Crude oil prices gained as U.S. crude stocks, gasoline and distillate inventories fell last week
# Crude inventories fell by 4.6 million barrels in the week to Dec. 10 to 428.3 million barrels
# Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.3 million barrels in the last week, EIA said.


Nat.Gas

Nat.Gas yesterday settled up by 3.62% at 295 on forecasts for colder weather over the next two weeks than previously expected. That price gain came despite near record U.S. output, a decline in U.S. liquefied natural gas (LNG) exports this week, a 4% slide in European gas prices and forecasts for less U.S. demand next week than previously expected. Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 96.53 billion cubic feet per day (bcfd) so far in December, just shy of November's monthly record of 96.54 bcfd. Refinitiv projected average U.S. gas demand, including exports, would jump from 109.4 bcfd this week to 118.2 bcfd next week as the weather turns seasonally colder. Those forecasts, however, were lower than Refinitiv's outlook on Tuesday. The amount of gas flowing to U.S. LNG export plants has averaged 11.8 bcfd so far in December now that the sixth train at Cheniere Energy Inc's Sabine Pass plant in Louisiana is producing LNG. That compares to 11.4 bcfd in November and a monthly record of 11.5 bcfd in April. This month's record-setting LNG feed gas came despite reductions this week at Sabine Pass and Freeport LNG's export plant in Texas. Technically market is under short covering as market has witnessed drop in open interest by -18.64% to settled at 6532 while prices up 10.3 rupees, now Natural gas is getting support at 287.1 and below same could see a test of 279.2 levels, and resistance is now likely to be seen at 301.8, a move above could see prices testing 308.6.

Trading Ideas:
# Natural gas trading range for the day is 279.2-308.6.
# Natural gas climbed on forecasts for colder weather over the next two weeks than previously expected.
# That price gain came despite near record U.S. output, a decline in U.S. liquefied natural gas (LNG) exports this week
# U.S. natural gas storage is expected to end the November-March withdrawal season at 1.635 tcf on March 31


Copper

Copper yesterday settled down by -0.01% at 730.4 as data from China, the biggest consumer, pointed to slowing economic growth and therefore weaker demand for metals. Factory output in China grew faster than expected in November, but investment growth slowed and a downturn in the property market persisted. Meanwhile, more than a dozen companies said they had suspended production in coronavirus-hit parts of Zhejiang province in response to new COVID-19 curbs. China's government has said it will focus on stabilising the economy, and the central bank injected funds into the financial system. Peru's government failed to host a planned meeting between the Las Bambas copper mine and a local community blocking the road from the mine. December is the fiscal year-end for most enterprises, and market liquidity tightened. A meeting held by the Political Bureau of the Central Committee at the beginning of December set the tone of easing monetary policies next year. The People’s Bank of China decided to reduce the RRR by 0.5 percentage point, which will release about 1.2 trillion yuan of funds to the market. After taking into account the MLF due on December 15, the RRR cuts will bring a net liquidity injection of 250 billion yuan. Technically market is under long liquidation as market has witnessed drop in open interest by -1.53% to settled at 4249 while prices down -0.1 rupees, now Copper is getting support at 723 and below same could see a test of 715.4 levels, and resistance is now likely to be seen at 735.3, a move above could see prices testing 740.

Trading Ideas:
# Copper trading range for the day is 715.4-740.
# Copper fell as data from China, pointed to slowing economic growth and therefore weaker demand for metals.
# Factory output in China grew faster than expected in November, but investment growth slowed and a downturn in the property market persisted.
# China's government has said it will focus on stabilising the economy, and the central bank injected funds into the financial system.


Zinc

Zinc yesterday settled up by 0.47% at 277.3 due to low inventories in Europe after prices dropped earlier as LME inventory has been rising for three days with a combined accumulation of 58,800 mt, mainly contributed by the warehouses in Singapore. The LME inventory in Asia continued to rise, but the low inventory in eurozone and the US sustained, and the spot supply was also tight. In the spot market, the consumption in Shanghai, Guangdong and Tianjin was sluggish. Meanwhile, the demand from the downstream galvanising and die-casting alloy sectors also weakened. China's factory output grew faster than expected in November, supported by stronger energy production and a moderation in sky-high materials costs, but new curbs to fight rising COVID-19 cases hit retailers in the world's second-largest economy. The data, along with a slowdown in investment growth, underlines the persistent headwinds facing the economy, which have already prompted policymakers this month to ratchet up support. Factory production rose 3.8% in November from a year earlier, official data showed, beating expectations for a 3.6% rise and accelerating from a 3.5% increase in October. China's central bank partially rolled over maturing medium-term loans on Wednesday as it sought to boost liquidity, while market participants expected the central bank to implement more easing measures to help arrest the economic slowdown. Technically market is under short covering as market has witnessed drop in open interest by -13.93% to settled at 1551 while prices up 1.3 rupees, now Zinc is getting support at 272.9 and below same could see a test of 268.5 levels, and resistance is now likely to be seen at 279.8, a move above could see prices testing 282.3.

Trading Ideas:
# Zinc trading range for the day is 268.5-282.3.
# Zinc gained due to low inventories in Europe after prices dropped earlier as LME inventory has been rising for three days
# The LME inventory in Asia continued to rise, but the low inventory in eurozone and the US sustained
# Meanwhile, the demand from the downstream galvanising and die-casting alloy sectors also weakened.

 

Nickel

Nickel yesterday settled down by -1.17% at 1523.2 as the global nickel market saw a small surplus of 5,000 tonnes in October compared with a shortfall of 3,100 tonnes a month earlier, data from the International Nickel Study Group (INSG) showed. During the first 10 months of the year, there was a deficit in the nickel market of 165,500 tonnes compared with a surplus of 88,500 tonnes in the same period last year, Lisbon-based INSG added. The market risk exposure reduced as the PBoC cut the RRR, coupled with the to-be-held Fed meeting. On the fundamentals, the nickel demand from the stainless steel and new energy sectors was still muted, resulting in thin market transactions. The market of NPI and nickel sulphate was also quiet. Currently, the low pure nickel inventory may offer some support, which, however, is unable to support nickel prices strongly in the short term. China will step up support for small businesses, unveiling new financial incentives for local banks to lend to those companies, according to a State Council meeting chaired by Premier Li Keqiang. Since early last year, Chinese authorities have introduced a raft of measures to support small businesses, which are vital for growth and jobs but have been hit harder by the COVID-19 pandemic. Technically market is under fresh selling as market has witnessed gain in open interest by 7.75% to settled at 1626 while prices down -18.1 rupees, now Nickel is getting support at 1512.8 and below same could see a test of 1502.3 levels, and resistance is now likely to be seen at 1537.4, a move above could see prices testing 1551.5.

Trading Ideas:
# Nickel trading range for the day is 1502.3-1551.5.
# Nickel prices dropped as the global nickel market saw a small surplus of 5,000 tonnes in October.
# During the first 10 months of the year, there was a deficit in the nickel market of 165,500 tonnes compared with a surplus of 88,500 tonnes
# The market risk exposure reduced as the PBoC cut the RRR, coupled with the to-be-held Fed meeting

Aluminium

Aluminium yesterday settled down by -0.09% at 215.4 as the market exposure reduced amid higher-than-expected US PPI in November and still sluggish China consumer market. China's aluminium output in November fell slightly from the previous month, official data showed, hit by an explosion at a smelter in Yunnan and lingering curbs on energy consumption. The world's top producer of the metal churned out 3.10 million tonnes of primary aluminium last month, the National Bureau of Statistics (NBS) said, down from 3.132 million tonnes in October and 1.8% lower year-on-year. Several Chinese regions have curtailed energy-intensive aluminium production this year as they come under pressure to reduce power consumption to meet climate goals and alleviate electricity shortages. China's factory output grew faster than expected in November, supported by stronger energy production and a moderation in sky-high materials costs, but new curbs to fight rising COVID-19 cases hit retailers in the world's second-largest economy. The data, along with a slowdown in investment growth, underlines the persistent headwinds facing the economy, which have already prompted policymakers this month to ratchet up support. China will step up support for small businesses, unveiling new financial incentives for local banks to lend to those companies, according to a State Council meeting chaired by Premier Li Keqiang. Technically market is under long liquidation as market has witnessed drop in open interest by -10.41% to settled at 1360 while prices down -0.2 rupees, now Aluminium is getting support at 213.6 and below same could see a test of 211.6 levels, and resistance is now likely to be seen at 216.7, a move above could see prices testing 217.8.

Trading Ideas:
# Aluminium trading range for the day is 211.6-217.8.
# Aluminium dropped as the market exposure reduced amid higher-than-expected US PPI in November and still sluggish China consumer market.
# China's aluminium output in November fell slightly from the previous month, official data showed
# On a daily basis, November output worked out at around 103,300 tonnes per day, versus about 101,000 tonnes in October.


Mentha oil

Mentha oil yesterday settled down by -0.52% at 943.2 as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil gained by 18.6 Rupees to end at 1076.5 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -2.16% to settled at 816 while prices down -4.9 rupees, now Mentha oil is getting support at 941.1 and below same could see a test of 939 levels, and resistance is now likely to be seen at 946.9, a move above could see prices testing 950.6.

Trading Ideas:
# Mentha oil trading range for the day is 939-950.6.
# In Sambhal spot market, Mentha oil gained  by 18.6 Rupees to end at 1076.5 Rupees per 360 kgs.
# Mentha oil prices dropped as demand from consumer side is extremely weak
# Prices got support in last few weeks as due to crop failure and low recovery of oil
# Availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season.


Soyabean

Soyabean yesterday settled down by -0.92% at 6219 on profit booking tracking weakness in overseas prices as wetter weather in South America raised prospects of higher production. The U.S. Department of Agriculture (USDA) trimmed its global supply outlook despite market expectations for an increase. In a monthly report, the USDA projected 2021/22 marketing year U.S. ending stocks at 340 million bushels, unchanged from a month earlier but below the average trade forecast for 352 million. Global ending stocks were seen at 102 million tonnes, below the average trade estimate for 104.13 million. Private exporters reported sales of 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year. China's Ag Min lowered 21/22 soybean production to 16.4MMT down from November forecast at 18.65MMT, & -16.3% lower than yr earlier crop of 19.6MMT. Brazil's CONAB projected the country's 2021/22 soybean crop at 142.789 million tonnes, up from the prior estimate for 142.009 million and 137.321 million tonnes in the 2020/21 season. In a weekly report, the USDA said net U.S. soybean exports in the week ended Dec. 2 rose to a five-week high of 1,637,888 tonnes, near the high end of a range of analyst estimates. China, Egypt and Spain were top buyers. At the Indore spot market in top producer MP, soybean dropped -46 Rupees to 6317 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 0.17% to settled at 72195 while prices down -58 rupees, now Soyabean is getting support at 6147 and below same could see a test of 6075 levels, and resistance is now likely to be seen at 6295, a move above could see prices testing 6371.

Trading Ideas:
# Soyabean trading range for the day is 6075-6371.
# Soyabean dropped on profit booking tracking weakness in overseas prices as wetter weather in South America raised prospects of higher production.
# In a monthly report, the USDA projected 2021/22 marketing year U.S. ending stocks at 340 million bushels, unchanged from a month earlier.
# Private exporters reported sales of 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.
# At the Indore spot market in top producer MP, soybean dropped  -46 Rupees to 6317 Rupees per 100 kgs.


Ref.Soyaoil

Ref.Soyaoil yesterday settled down by -1.22% at 1151.7 on expectations that U.S. oil stocks were rising and global vegetable oil markets cooled. Soyoil imports more than doubled and India's vegetable oil imports in November rose 11% from a year earlier to 1.17 million tonnes. According to the Solvent Extractors’ Association of India (SEA) data, the country imported 4.74 lakh tonnes (lt) of crude soyabean oil in November against 2.16 lt in October — up 118.58 per cent. Argentina and Brazil contributed a major share of the total soyabean oil imports to the country. India imported 3.19 lt of soyabean oil from Argentina in November 2021 against 2.35 lt in November 2020; and 1 lt (nil) from Brazil. Some quantities of soyabean oil were also imported from Egypt, Turkey and Ukraine during the period. As on December 1, the stock of edible oils at various ports was estimated at 7.04 lt and pipeline stock at 9.50 lt with a total stock of 16.54 lt. Mehta said the total stock has decreased by 51,000 tonnes to 16.54 lt as on December 1 from 17.05 lakh tonnes as on November 1. Overall import of vegetable oils (which includes edible oil and non-edible oil) 11.73 lt in November when compared to 10.60 lt in October, and 11.02 lt in November 2020. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1177.9 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 4.08% to settled at 34415 while prices down -14.2 rupees, now Ref.Soya oil is getting support at 1141 and below same could see a test of 1130 levels, and resistance is now likely to be seen at 1159, a move above could see prices testing 1166.

Trading Ideas:
# Ref.Soya oil trading range for the day is 1130-1166.
# Ref soyoil dropped on expectations that U.S. oil stocks were rising and global vegetable oil markets cooled.
# Soyoil imports more than doubled and India's vegetable oil imports in November rose 11% from a year earlier to 1.17 million tonnes.
# Overall import of vegetable oils 11.73 lt in November when compared to 10.60 lt in October, and 11.02 lt in November 2020.
# At the Indore spot market in Madhya Pradesh, soyoil was steady at 1177.9 Rupees per 10 kgs.


Crude palm Oil

Crude palm Oil yesterday settled down by -2.38% at 1061.5 dragged down by cargo surveyor data showing lower exports for the first half of this month, and tracking weakness in rival soyoil. Malaysia's exports during Dec. 1-15 fell 9% from the same period in November to 725,600 tonnes, cargo surveyor Amspec Agri said. Rapeseed output in India is likely to rise as much as 29.4% this year as farmers plant more area with the winter-sown oilseed, which will help the world's biggest importer of vegetable oils to reduce expensive imports. India's vegetable oil imports in November rose 11% from a year earlier to 1.17 million tonnes. Import of crude palm oil (CPO) came down during November compared with October as rising palm oil prices reduced the discount it had been enjoying in the global market. The country’s palm oil import came down to 4.77 lt in November against 6.26 lt in October. The CIF import price of CPO increased to $1,432 a tonne ($1,369). However, the import of RBD palmolein marginally increased from 58,212 tonnes in October to 58,267 tonnes in November. The CIF import price of RBD palmolein was at $1,395 a tonne ($1,349). In spot market, Crude palm oil dropped by -27.9 Rupees to end at 1072.9 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -10.82% to settled at 3701 while prices down -25.9 rupees, now CPO is getting support at 1046.4 and below same could see a test of 1031.2 levels, and resistance is now likely to be seen at 1074.4, a move above could see prices testing 1087.2.

Trading Ideas:
# CPO trading range for the day is 1031.2-1087.2.
# Crude palm oil dropped dragged down by cargo surveyor data showing lower exports for the first half of this month, and tracking weakness in rival soyoil.
# India's vegetable oil imports in November rose 11% from a year earlier to 1.17 million tonnes.
# Import of CPO came down during November compared with October as rising palm oil prices reduced the discount.
# In spot market, Crude palm oil dropped  by -27.9 Rupees to end at 1072.9 Rupees.


Turmeric

Turmeric yesterday settled up by 2.34% at 8912 due to heavy rainfall, the minimum crop damage has gone to 40% to 50% in producing parts of Maharashtra, Telangana and Andhra. Support also as the demand from exporters is good. However, upside seen limited as pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric. Spices Board has set a target of 33 per cent increase in turmeric exports to 183000 tonnes on a year-on-year basis in the financial year 2020-21. At the same time, the government estimates that turmeric production may be 1.11 million tonnes in 2020-21, which was 1.15 million tonnes a year ago. Turmeric all India production for 2022 is estimated at 4.89 lakh MT. Last year’s production was 4.46 lakh MT, up by 9.64% from last year. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. Exports of jeera during Apr-Sep declined 14% on year to 139,295 tn, from 162,033 tn a year ago. There were also reports of export demand from Europe, Gulf countries and Bangladesh. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. In Nizamabad, a major spot market in AP, the price ended at 7911.35 Rupees gained 11.35 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 4.16% to settled at 5505 while prices up 204 rupees, now Turmeric is getting support at 8724 and below same could see a test of 8538 levels, and resistance is now likely to be seen at 9036, a move above could see prices testing 9162.

Trading Ideas:
# Turmeric trading range for the day is 8538-9162.
# Turmeric gained due to heavy rainfall, the minimum crop damage has gone to 40% to 50% in producing parts of Maharashtra, Telangana and Andhra.
# Support also as the demand from exporters is good.
# At the same time, the government estimates that turmeric production may be 1.11 million tonnes in 2020-21, which was 1.15 million tonnes a year ago.
# In Nizamabad, a major spot market in AP, the price ended at 7911.35 Rupees gained 11.35 Rupees.



Jeera

Jeera yesterday settled down by -0.09% at 16190 as Cumin exports declined by 1.4% year-on-year to 1.39 lakh tonnes in April-September but are expected to improve in the coming months. However downside seen limited as domestic demand is now picking up also the export inquiries to support price. Pressure also seen as adequate stock with traders and farmers may keeping prices under pressure at higher levelsThe area under cumin in Gujarat is only 1.71 lakh hectares as against 3 lakh hectares in the same period last year, while in Rajasthan, cumin was sown in 3.20 lakh hectares. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. India exported 77,245 tn of turmeric in Apr-Sep, down 26% on year. During last two months, the prices were higher compared to last year despite sufficient stocks with traders. Sowing can see drop as farmers preferred to have other crop against Jeera. Weather in key sowing area will be crucial in next few months. The export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. In Unjha, a key spot market in Gujarat, jeera edged up by 121.65 Rupees to end at 16030 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -0.73% to settled at 9405 while prices down -15 rupees, now Jeera is getting support at 16120 and below same could see a test of 16055 levels, and resistance is now likely to be seen at 16275, a move above could see prices testing 16365.

Trading Ideas:
# Jeera trading range for the day is 16055-16365.
# Jeera dropped as Cumin exports declined by 1.4% year-on-year to 1.39 lakh tonnes in April-September
# However downside seen limited as domestic demand is now picking up also the export inquiries to support price.
# The area under cumin in Gujarat is only 1.71 lakh hectares as against 3 lakh hectares in the same period last year
# In Unjha, a key spot market in Gujarat, jeera edged up by 121.65 Rupees to end at 16030 Rupees per 100 kg.

Cotton

Cotton yesterday settled up by 0.35% at 31580 amid tight supplies owing to higher input costs and logistics snarls coupled with rising global demand. China's 2021 cotton output fell 3% to 5.73 million tonnes, said the National Bureau of Statistics. Planted acreage for the fibre fell by 4.4% to 3.03 million hectares but yields increased slightly during the period. Arrivals of cotton in spot markets were at 166,500 bales, higher by 21.97% than 136,500 bales. Of the total quantity, around 12,000 bales arrived in Haryana, 3,500 in Punjab, and 19,000 bales in Rajasthan. Arrivals were pegged at 40,000 bales in Gujarat, around 15,000 bales in Madhya Pradesh, and 35,000 bales in Maharashtra. Nearly 15,000 bales arrived in Karnataka, 2,000 in Odisha, and 25,000 bales in Telangana and Andhra Pradesh combined. The USDA also lowered cotton global production and ending stocks estimates for the 2021/22 crop year in its monthly supply-demand report. The December World Agricultural Supply and Demand Estimates (WASDE) report, which forecast global ending stocks at 85.73 million bales for the 2021/22 crop year, about 1.2 million bales lower than the previous month, citing lower output and slightly higher consumption. But the report also slightly raised its U.S. production estimate to 18.28 million bales, while ending stocks estimates were unchanged at 3.40 million bales. In spot market, Cotton dropped by -10 Rupees to end at 31630 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -3.29% to settled at 3674 while prices up 110 rupees, now Cotton is getting support at 31370 and below same could see a test of 31150 levels, and resistance is now likely to be seen at 31710, a move above could see prices testing 31830.

Trading Ideas:
# Cotton trading range for the day is 31150-31830.
# Cotton prices remained supported amid tight supplies owing to higher input costs and logistics snarls coupled with rising global demand.
# China's 2021 cotton output fell 3% to 5.73 million tonnes
# India's 2021/22 cotton production seen at 28 mln bales – USDA
# In spot market, Cotton dropped  by -10 Rupees to end at 31630 Rupees.

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