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Gold

Gold yesterday settled down by -0.53% at 49038 as U.S. retail sales increased more than expected in October, likely as Americans started their holiday shopping early to avoid empty shelves amid shortages of some goods because of the ongoing pandemic, giving the economy a lift at the start of the fourth quarter. Retail sales surged 1.7% last month, the Commerce Department said. Data for September was revised higher to show retail sales increasing 0.8% instead of 0.7% as previously reported. Sales have now risen for three straight months. Richmond Federal Reserve President Thomas Barkin said that while the Fed will not hesitate to raise interest rates, the central bank should wait to gauge if inflation and labor shortages prove to be more long-lasting. U.S. import prices surged in October as the costs of petroleum products and food increased, adding to signs that inflation could remain high for a while. Import prices accelerated 1.2% last month after gaining 0.4% in September, the Labor Department said. The government reported last week a broad-based surge in both consumer and producer prices in October. Inflation is being fueled by fiscal stimulus and strained global supply chains related to the nearly two-year long COVID-19 pandemic. Technically market is under long liquidation as market has witnessed drop in open interest by -6.83% to settled at 6400 while prices down -260 rupees, now Gold is getting support at 48828 and below same could see a test of 48619 levels, and resistance is now likely to be seen at 49428, a move above could see prices testing 49819.

Trading Ideas:

* Gold trading range for the day is 48619-49819.

* Gold dropped gains as U.S. retail sales increased more than expected in October.

* Retail sales surged 1.7% last month, the Commerce Department said.

* Fed’s Barkin said that while the Fed will not hesitate to raise interest rates.
 

Silver

Silver yesterday settled down by -0.49% at 66234 as the dollar surged on upbeat industrial production and retail sales data. The precious metal also took advantage of US Fed Chairman Powell’s remarks, saying the central bank will be patient on the rate hike program. Earlier, US household inflation expectations accelerated to a record high of 5.7%, as consumers continued to suffer from rising household expenses, a New York Fed Survey showed. U.S. import prices surged in October as the costs of petroleum products and food increased, adding to signs that inflation could remain high for a while. Import prices accelerated 1.2% last month after gaining 0.4% in September, the Labor Department said. In the 12 months through October, prices jumped 10.7% after rising 9.3% in September. The Japanese economy shrank 0.8 percent Q-o-Q in 3Q 2021, compared to market expectations of a 0.2 percent fall amid a resurgence of COVID-19 cases and persistent global supply chain disruptions putting additional pressure on the currency. Moreover, Bank of Japan governor Haruhiko Kuroda pledged on Monday to retain pandemic-era stimulus despite central bank projection for the Japanese economy to recover to pre-COVID levels by the first half of next year, as he reaffirmed central bank commitment to achieve the 2% price stability target. Technically market is under long liquidation as market has witnessed drop in open interest by -0.96% to settled at 8397 while prices down -329 rupees, now Silver is getting support at 65760 and below same could see a test of 65285 levels, and resistance is now likely to be seen at 67078, a move above could see prices testing 67921.

Trading Ideas:

* Silver trading range for the day is 65285-67921.

* Silver dropped as the dollar surged on upbeat industrial production and retail sales data.

* The precious metal also took advantage of US Fed Chairman Powell’s remarks, saying the central bank will be patient on the rate hike program.

* US household inflation expectations accelerated to a record high of 5.7%, as consumers continued to suffer from rising household expenses

Crude oil

Crude oil yesterday settled up by 1.24% at 6037 as supply from producer countries remained tight. The upside remained capped by fears over demand as Covid-19 cases rise across Europe. An oil market rally may ease off as prices that hit a three-year high last month help push up global production, particularly in the United States, the International Energy Agency (IEA) said. "The world oil market remains tight by all measures, but a reprieve from the price rally could be on the horizon ... due to rising oil supplies," the Paris-based agency said in its monthly oil report. Crude oil production from the Permian Basin, the largest U.S. oil field, is set to surpass its pre-pandemic record in December, a swift turnaround that has not been replicated in the country's other oil regions. Money managers raised their net long U.S. crude futures and options positions in the week to Nov. 9, the U.S. Commodity Futures Trading Commission (CFTC) said. The speculator group raised its futures and options position in New York and London by 11,328 contracts to 353,807 during the period. Speculators in four New York Mercantile Exchange and Intercontinental Exchange markets trimmed their net long position on natural gas in the week ended Nov. 9 to 123,550 from 135,541. Technically market is under short covering as market has witnessed drop in open interest by -19.27% to settled at 3690 while prices up 74 rupees, now Crude oil is getting support at 5969 and below same could see a test of 5901 levels, and resistance is now likely to be seen at 6098, a move above could see prices testing 6159.

Trading Ideas:

* Crude oil trading range for the day is 5901-6159.

* Crude oil edged higher as supply from producer countries remained tight.

* Oil price rally set to ease off as supply rebounds, IEA says

* Crude oil production at biggest U.S. shale field set to hit new record

Nat.Gas

Nat.Gas yesterday settled up by 7.37% at 394.7 on forecasts for colder weather and higher heating demand next week than previously expected and expectations that soaring prices in Europe will keep demand for U.S. liquefied natural gas exports strong. Gas prices in Europe jumped over 8% for a second day in a row on worries Russian gas giant Gazprom PAO will not deliver enough fuel this winter after Germany's energy regulator suspended the approval process for Gazprom's Nord Stream 2 gas pipe from Russia to Germany. Global gas prices hit record highs in October as utilities around the world scrambled for LNG cargoes to replenish extremely low stockpiles in Europe and meet insatiable demand in Asia, where energy shortfalls have caused power blackouts in China. Speculators cut their net long positions on the New York Mercantile and Intercontinental Exchanges last week for a sixth week to their lowest since June 2020, according to data from the Commodity Futures Trading Commission (CFTC). Data provider Refinitiv said output in the U.S. Lower 48 states averaged 96.0 billion cubic feet per day (bcfd) so far in November, up from 94.1 bcfd in October and a monthly record of 95.4 bcfd in November 2019. Technically market is under short covering as market has witnessed drop in open interest by -33.99% to settled at 4072 while prices up 27.1 rupees, now Natural gas is getting support at 379.4 and below same could see a test of 364.1 levels, and resistance is now likely to be seen at 405.3, a move above could see prices testing 415.9.

Trading Ideas:

* Natural gas trading range for the day is 364.1-415.9.

* Natural gas rose on forecasts for colder weather and higher heating demand next week than previously expected.

* Gas prices in Europe jumped over 8% for a second day in a row on worries Russian gas giant Gazprom PAO will not deliver enough fuel this winter

* Speculators cut their net long positions for a sixth week to their lowest since June 2020



Copper

Copper yesterday settled down by -0.79% at 733.15 as the dollar seen on positive sentiment from a virtual meeting between the leaders of the world’s largest economies. The closely watched conversation between Chinese President Xi Jinping and U.S. President Joe Biden yielded no immediate outcomes but struck a positive tone and was seen as a chance to improve relations. However downside seen limited on positive developments from a meeting between U.S. President Joe Biden and his Chinese counterpart Xi Jinping. Biden and Xi stressed their responsibility to the rest of the world to avoid conflict. Xi called Biden an "old friend" and said the two sides must increase communication and cooperation. The premium of LME cash copper over the three-month contract fell to $32.50 a tonne, the lowest level since Oct. 8, indicating that the tightness in nearby supplies has eased. On-warrant copper inventories in LME-registered warehouses are at their highest in nearly a month at 53,175 tonnes. U.S. retail sales rose more than expected in October, giving the economy a lift at the start of the fourth quarter and raising the likelihood of a tightening in monetary policy. China said it would continue raising coal supply as part of attempts to cool prices and increase power generation capacity. Technically market is under fresh selling as market has witnessed gain in open interest by 5.81% to settled at 4792 while prices down -5.85 rupees, now Copper is getting support at 727 and below same could see a test of 720.7 levels, and resistance is now likely to be seen at 741.8, a move above could see prices testing 750.3.

Trading Ideas:

* Copper trading range for the day is 720.7-750.3.

* Copper dropped as the dollar seen on positive sentiment from a virtual meeting between the leaders of the world’s largest economies.

* However downside seen limited on positive developments from a meeting between U.S. President Joe Biden and his Chinese counterpart Xi Jinping.

* The premium of LME cash copper over the three-month contract fell to $32.50 a tonne, the lowest level since Oct. 8


Zinc

Zinc yesterday settled up by 0.15% at 272.15 with nominal gains as falling zinc prices have revived the downstream sector, who started restocking. However upside seen limited as a mid-size zinc smelter will commence production as planned in November, potentially pushing up zinc supply. The closely watched conversation between Chinese President Xi Jinping and U.S. President Joe Biden yielded no immediate outcomes but struck a positive tone and was seen as a chance to improve relations. In the Eurozone, the president of European Central Bank Lagarde reiterated dovish stance that a tight monetary policy will throttle the economic recovery in Europe, supporting US dollar index. Persistent supply chain bottlenecks and soaring energy costs are slowing euro zone growth and will keep inflation high for even longer than had been thought, European Central Bank President Christine Lagarde said. The ECB has banked on a rapid decline in inflation next year but policymakers are now openly admitting that their forecasts, already revised up several times, are still too low, as stress in the global economy takes a toll. But Lagarde continued to push back on calls and market bets for tighter policy, repeating the ECB’s message that conditions for higher interest rates are unlikely to be met next year as inflation is still seen back below the bank’s 2% target farther out. Technically market is under short covering as market has witnessed drop in open interest by -3.76% to settled at 1613 while prices up 0.4 rupees, now Zinc is getting support at 269.8 and below same could see a test of 267.4 levels, and resistance is now likely to be seen at 273.9, a move above could see prices testing 275.6.

Trading Ideas:

* Zinc trading range for the day is 267.4-275.6.

* Zinc ended with nominal gains as falling zinc prices have revived the downstream sector, who started restocking.

* However upside seen limited as a mid-size zinc smelter will commence production as planned in November, potentially pushing up zinc supply.

* The total zinc ingot inventories across seven major markets in China totalled 135,200 mt, up 3,900 mt


Nickel

Nickel yesterday settled down by -0.52% at 1505.6 as supply of nickel sulphate was in surplus as a matter of choice. The new energy market kept creating demand for nickel even in the context of sluggish transaction; the continuously falling stainless steel prices pressured NPI prices, but as the market was in tight balance, nickel prices still carried support. Pressure also seen on weak industrial demand from China due to curbs on steel production. After enforced constraints on steel production in 2021, China ordered steel mills to lower output ahead of the Winter Olympics in Beijing, while tightened credit lines in the debt-ridden property sector slowed demand from steel builders. As of mid-November, iron ore inventories in Chinese ports increased by 1.01 million metric tonnes to 146.12 million, as the daily average shipments dropped by 113 thousand from the prior week to 2.63 million. Capacity utilization rates of 163 blast furnaces at mills across China plunged to 62.39% in the first week of November from 66.17% in the previous week. Meanwhile, inventories at LME warehouses depleted by 130,000 tonnes this year and combined exchange warehouse stocks declined to 143,888 tonnes, down from 266,091 tonnes at the start of the year. Technically market is under fresh selling as market has witnessed gain in open interest by 7.19% to settled at 1252 while prices down -7.8 rupees, now Nickel is getting support at 1496.4 and below same could see a test of 1487.3 levels, and resistance is now likely to be seen at 1517.7, a move above could see prices testing 1529.9.

Trading Ideas:

* Nickel trading range for the day is 1487.3-1529.9.

* Nickel prices dropped as supply of nickel sulphate was in surplus as a matter of choice.

* Production has been hit badly in the Philippines, the top producer of the metal due to the rainy eason.

* Inventories at LME warehouses depleted by 130,000 tonnes this year and combined exchange warehouse stocks declined to 143,888 tonnes

 

Aluminium

Aluminium yesterday settled down by -2.52% at 204.75 amid a strong US dollar and weaker demand in China amid a sluggish real estate market. New home prices in China fell for a second consecutive month in October and sales and property investments also declined. Meanwhile, Japan and the US agreed to start discussions on removing additional tariffs on Japanese steel and aluminum imports. The US already agreed to remove tariffs on certain quantities of steel and aluminum from the European Union, imposed by President Trump in 2018. The market was still concerned about aluminium consumption amid weakening real estate-related futures prices. The supply side saw no significant changes recently, while the demand side lacked resilience. U.S. import prices surged in October as the costs of petroleum products and food increased, adding to signs that inflation could remain high for a while. Import prices accelerated 1.2% last month after gaining 0.4% in September, the Labor Department said. In the 12 months through October, prices jumped 10.7% after rising 9.3% in September. U.S. retail sales increased more than expected in October, likely as Americans started their holiday shopping early to avoid empty shelves amid shortages of some goods because of the ongoing pandemic, giving the economy a lift at the start of the fourth quarter. Technically market is under fresh selling as market has witnessed gain in open interest by 23.05% to settled at 3406 while prices down -5.3 rupees, now Aluminium is getting support at 202.1 and below same could see a test of 199.4 levels, and resistance is now likely to be seen at 209.5, a move above could see prices testing 214.2.

Trading Ideas:

* Aluminium trading range for the day is 199.4-214.2.

* Aluminum prices dropped amid a strong US dollar and weaker demand in China amid a sluggish real estate market.

* New home prices in China fell for a second consecutive month in October and sales and property investments also declined.

* Japan and the US agreed to start discussions on removing additional tariffs on Japanese steel and aluminum imports.

 

Mentha oil

Mentha oil yesterday settled flat at 940.4 as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil dropped by -22.2 Rupees to end at 1063.1 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -5.54% to settled at 886 while prices remain unchanged 0 rupees, now Mentha oil is getting support at 936.3 and below same could see a test of 932.2 levels, and resistance is now likely to be seen at 944.2, a move above could see prices testing 948.

Trading Ideas:

* Mentha oil trading range for the day is 932.2-948.

* In Sambhal spot market, Mentha oil dropped  by -22.2 Rupees to end at 1063.1 Rupees per 360 kgs.

* Mentha oil prices settled flat 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 up by 0.63% at 5928 due to rise in overseas prices amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages. The U.S. Department of Agriculture confirmed private sales of 256,930 tonnes of U.S. soybeans to unknown destinations. The announcement followed rumors this week that China was buying U.S. soybeans. The USDA also reported export sales of U.S. soybeans in the week ended Nov. 4 at 1.289 million tonnes, in line with trade expectations for 950,000 to 1.8 million tonnes. China booked 939,300 tonnes and shipped 2.34 million tonnes. There was higher demand from oil mills amid low arrivals. The government is very cautious about reviewing the implementation of stock limits on oilseeds and edible oils, which keep prices in check in the country. According to SEA, soymeal exports declined sharply to 5,831 tonnes in September this year from 68,576 tonnes in the same period a year ago. Support seen after smaller-than-expected soybean harvests in the major production states of Indiana, Iowa, Kansas and Ohio sparked a surprise cut to the U.S. harvest outlook. Despite the cut to the soybean harvest view, the domestic ending stocks projection grew because of weakening export demand for U.S. supplies. At the Indore spot market in top producer MP, soybean gained 71 Rupees to 5946 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 0.43% to settled at 76945 while prices up 37 rupees, now Soyabean is getting support at 5823 and below same could see a test of 5717 levels, and resistance is now likely to be seen at 6045, a move above could see prices testing 6161.

Trading Ideas:

* Soyabean trading range for the day is 5717-6161.

* Soyabean prices gained due to rise in overseas prices amid soaring demand for soymeal

* USDA confirmed private sales of 256,930 tonnes of U.S. soybeans to unknown destinations.

* Weekly U.S. soymeal export sales, at 278,000 tonnes, topped a range of trade expectations for 100,000 to 250,000 tonnes.

* At the Indore spot market in top producer MP, soybean gained  71 Rupees to 5946 Rupees per 100 kgs.

Soyaoil

Ref.Soyaoil yesterday settled up by 0.97% at 1215.3 as the vegetable oil market faces a significant squeeze due to lower output. India slashed its base import tax on crude palm oil, crude soyoil and crude sunflower oil to zero from 2.5%, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022. This decision has been taken to soften the prices of edible oils in the country and provide relief to consumers. The Ministry said that the stock limits will be decided by the respective state governments depending on local conditions. It has however decided to give exemption to importers and exporters subject to conditions. Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively. Favorable weather over the weekend boosted U.S. harvest, while exports remain capped by terminals on the U.S. Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1240.6 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 5.82% to settled at 38835 while prices up 11.7 rupees, now Ref.Soya oil is getting support at 1208 and below same could see a test of 1201 levels, and resistance is now likely to be seen at 1219, a move above could see prices testing 1223.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1201-1223.

* Ref soyoil prices seen supported as the vegetable oil market faces a significant squeeze due to lower output.

* Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected.

* India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1240.6 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled up by 2% at 1127.3 as investors weighed worries of slowing November production against weaker demand. India's palm oil imports in 2020/21 rose 15.2% from a year ago to 8.32 million tonnes, while soyoil imports fell 15% to 2.87 million tonnes, a leading trade body said. The country's vegetable oil imports for the 2020/21 marketing year ended on Oct. 31 stood at 13.53 million tonnes, a tad higher than 13.52 million tonnes a year ago, the Solvent Extractors' Association of India (SEA) said. Output in the world's second-largest palm oil producer is also expected to slow as the peak production season has ended, while the monsoon brings heavy rainfall. Indonesia, the world's biggest palm oil maker, exported 2.89 million tonnes of the vegetable oil in September, including refined products, data from Indonesia Palm Oil Association (GAPKI) showed. Exports were 4.7% higher than a year earlier, but slipped from 4.27 million tonnes in August. Indonesia produced 4.57 million tonnes of palm oil in September and the domestic stock stood at 3.65 million tonnes by the end of the month, the data showed. October export data improved amid tight supply worries. In spot market, Crude palm oil gained by 9.1 Rupees to end at 1123.2 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -4.99% to settled at 4511 while prices up 22.1 rupees, now CPO is getting support at 1115.2 and below same could see a test of 1103.1 levels, and resistance is now likely to be seen at 1134.2, a move above could see prices testing 1141.1.

Trading Ideas:

* CPO trading range for the day is 1103.1-1141.1.

* Crude palm oil gained as investors weighed worries of slowing November production against weaker demand.

* India's palm oil imports in 2020/21 rose 15.2% from a year ago to 8.32 million tonnes

* Malaysia's Nov 1 – 15 palm oil exports rise 26.6 pct – ITS

* In spot market, Crude palm oil gained  by 9.1 Rupees to end at 1123.2 Rupees.


Turmeric

Turmeric yesterday settled down by -0.82% at 7470 amid poor demand for old stocks as traders wait for the new season of turmeric. However downside seen limited amid less area in Telangana and unseasonal rains, also expectations of better export demand supporting the prices. Turmeric exports in the first 5 months (April-August) of FY 2021-22 declined by 25% to 64,600 tonnes as compared to the same period last year, but almost at the same level as the 5-year average. There were also reports of export demand from Europe, Gulf countries and Bangladesh. However upside seen limited amid prospects of better crop this kharif season along with tepid demand. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season. Besides, heavy carryover stocks and slack in bulk demand are keeping prices under pressure. In the first 4 months of FY 2021-22, turmeric exports declined by 26% to 53,000 tonnes as compared to the same period last year, but almost at the same level as the 5-year average. In Nizamabad, a major spot market in AP, the price ended at 7154.45 Rupees dropped -35.3 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -0.15% to settled at 9850 while prices down -62 rupees, now Turmeric is getting support at 7404 and below same could see a test of 7336 levels, and resistance is now likely to be seen at 7566, a move above could see prices testing 7660.

Trading Ideas:

* Turmeric trading range for the day is 7336-7660.

* Turmeric dropped amid poor demand for old stocks as traders wait for the new season of turmeric.

* However downside seen limited amid less area in Telangana and unseasonal rains, expectations of better export demand.

* Turmeric exports in the first 5 months (April-August) of FY 2021-22 declined by 25% to 64,600 tonnes as compared to the same period last year.

* In Nizamabad, a major spot market in AP, the price ended at 7154.45 Rupees dropped -35.3 Rupees.

Jeera

Jeera yesterday settled down by -0.98% at 16105 as adequate stock with traders and farmers may keeping prices under pressure at higher levels. However downside seen limited as domestic demand is now picking up also the export inquiries to support price. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. As of now Exports of Jeera for Apr-Aug was down by 12% Y/Y at 1.24 lakh tonnes but expected improve in coming months as Rupee weakness will support exports. 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. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. In Unjha, a key spot market in Gujarat, jeera edged down by -1.25 Rupees to end at 15918.75 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -1.02% to settled at 9933 while prices down -160 rupees, now Jeera is getting support at 15995 and below same could see a test of 15890 levels, and resistance is now likely to be seen at 16250, a move above could see prices testing 16400.

Trading Ideas:

* Jeera trading range for the day is 15890-16400.

* Jeera dropped as adequate stock with traders and farmers may keeping prices under pressure at higher levels.

* However downside seen limited as domestic demand is now picking up also the export inquiries to support price.

* India's cumin exports will increase due to less supply from Afghanistan-Syrian

* In Unjha, a key spot market in Gujarat, jeera edged down by -1.25 Rupees to end at 15918.75 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled down by -0.47% at 31610 as China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions, according to an official notice. It is the second batch of cotton to be released from reserves this year and is designed to better meet demand for the fibre from spinning companies. However downside seen limited bolstered by strong demand from both the domestic textile sector and export markets over the last year, and high global prices. Both production estimates for the 2021/22 crop year and ending stocks in the U.S. were largely unchanged at 18.20 million bales and 3.40 million bales respectively, the USDA said in its November World Agricultural Supply and Demand Estimates (WASDE) report. India’s cotton production in 2021-22 season is likely to be 360.13 lakh bales of 170 kg each (equivalent to 382.64 lakh running bales of 160 kg each), which is more by 7.13 lakh bales than the previous season’s crop of 353 lakh bales, the Cotton Association of India (CAI) has said in its first estimate for the new season beginning October 1, 2021. In spot market, Cotton dropped by -80 Rupees to end at 32100 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -8.29% to settled at 2279 while prices down -150 rupees, now Cotton is getting support at 31420 and below same could see a test of 31230 levels, and resistance is now likely to be seen at 31970, a move above could see prices testing 32330.

Trading Ideas:

* Cotton trading range for the day is 31230-32330.

* Cotton dropped as China will start a new round of sales from its cotton reserves

* However downside seen limited amid strong demand from both the domestic textile sector and export markets

* China starts new round of cotton sales to boost supply

* In spot market, Cotton dropped  by -80 Rupees to end at 32100 Rupees.

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