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Gold

Gold yesterday settled down by -0.24% at 47939 as investors held off making big bets ahead of U.S. inflation data this week, which is expected to set the tone for the Federal Reserve's strategy on interest rate hikes. U.S. job openings surged in October while hiring decreased, suggesting a worsening worker shortage, which could hamper employment growth and the overall economy. In focus were the tensions over Russia and its stance on Ukraine, the diplomatic boycott of the Beijing Olympics by some Western nations and U.S. sanctions on Iran. Global gold exchange-traded funds saw inflows of 13.6 tn, or $838 mln, in November, the World Gold Council said in a report. This was the first month of inflows since July. Global holdings in exchange-traded funds rebounded from year-to-date lows, rising to 3,578 tn in November, notching up year-to-date low levels, "as investment demand for larger gold ETFs returned amid decades-high inflation and heightened market volatility," WGC 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. Hallmarking of gold ornaments in India had been made mandatory from Jan 15, but the date was extended to Jun 1 in view of the pandemic situation in the country. Technically market is under fresh selling as market has witnessed gain in open interest by 0.97% to settled at 8820 while prices down -116 rupees, now Gold is getting support at 47818 and below same could see a test of 47698 levels, and resistance is now likely to be seen at 48109, a move above could see prices testing 48280.

Trading Ideas:

* Gold trading range for the day is 47698-48280.

* Gold dropped as investors held off making big bets ahead of U.S. inflation data this week, which is expected to set the tone for the Federal Reserve's strategy on interest rate hikes.

* U.S. job openings surged in October while hiring decreased, suggesting a worsening worker shortage, which could hamper employment growth.

* Global gold ETFs saw inflows of 13.6 tn in Nov, says WGC

Silver

Silver yesterday settled down by -1.34% at 60798 as the dollar held steady amid expectations that some Covid-19 vaccines might be able to neutralize new coronavirus variant Omicron. The number of Americans filing new claims for unemployment benefits dropped to the lowest level in more than 52 years last week as labor market conditions continued to tighten amid an acute shortage of workers. The plunge reported by the Labor Department in its weekly unemployment claims report was probably exaggerated by difficulties adjusting the data for seasonal fluctuations around this time of the year. The report followed on the heels of news last week that the unemployment rate fell to a 21-month low of 4.2% in November. Initial claims for state unemployment benefits tumbled 43,000 to a seasonally adjusted 184,000 for the week ended Dec. 4, the Labor Department said. Investors digested preliminary results suggesting that a third dose of the Covid-19 vaccine produced by Pfizer and BioNTech was able to neutralize the Omicron variant. Fed Chair Jerome Powell said that the central bank is considering to accelerate the tapering of bond purchases, which will be put into a discussion at the meeting next week. The focus now shifts to the U.S. inflation data for November due on Friday, which is likely to influence the Fed's interest rate trajectory. Technically market is under fresh selling as market has witnessed gain in open interest by 14.22% to settled at 15081 while prices down -825 rupees, now Silver is getting support at 60222 and below same could see a test of 59647 levels, and resistance is now likely to be seen at 61551, a move above could see prices testing 62305.

Trading Ideas:

* Silver trading range for the day is 59647-62305.

* Silver dropped as the dollar held steady amid expectations that some Covid-19 vaccines might be able to neutralize new coronavirus variant Omicron.

* U.S. weekly jobless claims lowest in more than 52 years

* Fed Chair Jerome Powell said that the central bank is considering to accelerate the tapering of bond purchases

Crude oil

Crude oil yesterday settled down by -1.13% at 5406 amid uncertainty over demand recovery after the British government became the latest European nation to tighten Covid-19 restrictions. U.S. crude stocks fell while gasoline and distillate inventories rose, the Energy Information Administration said. Crude inventories fell by 240,000 barrels in the week to Dec. 3 to 432.9 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2.4 million barrels in the last week, EIA said. Refinery crude runs rose by 154,000 barrels per day in the last week, EIA said. Refinery utilization rates rose by 1 percentage points, in the week.U.S. crude stockpiles in the Strategic Petroleum Reserve fell last week to 600.87 million barrels, their lowest since May 2003, U.S. Energy Information Administration data showed. Meanwhile, crude production rose last week to 11.7 million barrels per day, the highest since May 2020, the data showed. The gamble taken by OPEC and its allies, under pressure from top oil consumer the United States, to raise oil output in January despite its own forecasts of oversupply, appears to be paying off as prices stabilise. Technically market is under long liquidation as market has witnessed drop in open interest by -1.02% to settled at 4280 while prices down -62 rupees, now Crude oil is getting support at 5349 and below same could see a test of 5291 levels, and resistance is now likely to be seen at 5496, a move above could see prices testing 5585.

Trading Ideas:

* Crude oil trading range for the day is 5291-5585.

* Crude oil prices fell amid uncertainty over demand recovery after the British government became the latest European nation to tighten Covid-19 restrictions.

* US SPR crude falls to lowest since May 2003 – EIA

* Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2.4 million barrels in the last week, EIA said.
 

Nat.Gas

Nat.Gas yesterday settled up by 0.21% at 292.3 as a bigger than expected storage withdrawal and hiked forecasts for U.S. demand over the next two weeks offset a 3% decline in European gas prices. U.S. natural gas production will rise in 2021 as the economy recovers after falling last year due to coronavirus demand destruction, the U.S. Energy Information Administration (EIA) said in its Short Term Energy Outlook (STEO). The EIA projected dry gas production would rise to 93.37 billion cubic feet per day (bcfd) in 2021 and 95.97 bcfd in 2022 from 91.49 bcfd in 2020. The EIA's December projections for 2021 exceeded its November forecasts of 93.34 bcfd for supply and 83.03 bcfd for demand. The agency forecast U.S. liquefied natural gas exports would reach 9.80 bcfd in 2021 and 11.49 bcfd in 2022, up from a record 6.53 bcfd in 2020. That is similar to its November forecasts of 9.81 bcfd in 2021 and 11.49 bcfd in 2022. Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 96.3 billion cubic feet per day (bcfd) so far in December, down from a monthly record of 96.5 bcfd in November. With an unusual warming expected in mid-December, Refinitiv projected average U.S. gas demand, including exports, would drop from 117.0 bcfd this week to 110.3 bcfd next week. Technically market is under fresh buying as market has witnessed gain in open interest by 5.99% to settled at 8232 while prices up 0.6 rupees, now Natural gas is getting support at 283.8 and below same could see a test of 275.4 levels, and resistance is now likely to be seen at 299.1, a move above could see prices testing 306.

Trading Ideas:

* Natural gas trading range for the day is 275.4-306.

* Natural gas recovered losses after a bigger than expected storage withdrawal and hiked forecasts for U.S. demand over the next two weeks

* The EIA's December projections for 2021 exceeded its November forecasts of 93.34 bcfd for supply and 83.03 bcfd for demand.

* The agency forecast U.S. liquefied natural gas exports would reach 9.80 bcfd in 2021 and 11.49 bcfd in 2022



Copper

Copper yesterday settled down by -0.93% at 734.7 as the dollar ticked higher, while signs of easing tightness in nearby supplies of the metal also weighed on the market. China's factory gate prices rose 12.9% from a year earlier in November amid a government crackdown on runaway commodity prices and an easing power crunch, official data showed. The increase in the producer price index was slower than a 13.5% gain in October but faster than the 12.4% rise expected in a Reuters poll of analysts. The consumer price index (CPI) rose 2.3% year-on-year, the National Bureau of Statistics said in a separate statement, slower than expectations for a 2.5% rise and following a 1.5% uptick in October. China's central bank announced a cut to the amount of cash that banks must hold in reserve, its second such move this year, to bolster slowing economic growth. On-warrant LME-registered stocks rose to a one-month high of 76,250 tonnes. However, that is down 69% from an August high of 238,725 tonnes and down nearly a quarter this year. The premium for LME cash copper over the three-month contract was at $14 a tonne, compared with a record $1,103.50 in October, pointing to easing tightness in nearby supplies. Technically market is under long liquidation as market has witnessed drop in open interest by -13.3% to settled at 5050 while prices down -6.9 rupees, now Copper is getting support at 729.8 and below same could see a test of 724.8 levels, and resistance is now likely to be seen at 741.8, a move above could see prices testing 748.8.

Trading Ideas:

Copper trading range for the day is 724.8-748.8.

* Copper prices dropped as the dollar ticked higher, while signs of easing tightness in nearby supplies of the metal also weighed on the market.

* China's factory gate prices rose 12.9% from a year earlier in November amid a government crackdown on runaway commodity prices

* On-warrant LME-registered stocks rose to a one-month high of 76,250 tonnes.

Zinc

Zinc yesterday settled down by -0.2% at 277.2 as the dollar firmed, Omicron fears subsided and attention turned to the unwinding of U.S. monetary stimulus. China's factory gate prices rose 12.9% from a year earlier in November amid a government crackdown on runaway commodity prices and an easing power crunch, official data showed. The increase in the producer price index was slower than a 13.5% gain in October but faster than the 12.4% rise expected in a Reuters poll of analysts. The consumer price index (CPI) rose 2.3% year-on-year, the National Bureau of Statistics said in a separate statement, slower than expectations for a 2.5% rise and following a 1.5% uptick in October. China's central bank on Monday announced a cut to the amount of cash that banks must hold in reserve, its second such move this year, to bolster slowing economic growth. China's central bank will raise the foreign exchange reserve requirement ratio for financial institutions by 200 basis points (bps), effective on Dec. 15, it said. The reserve ratio will be raised to 9% from 7%, the People's Bank of China said. Developers China Evergrande Group and Kaisa Group were downgraded to "restricted default" by ratings agency Fitch because of non-payment of offshore bond dues, while a source said that Kaisa had started work on restructuring its $12 billion offshore debt. Technically market is under long liquidation as market has witnessed drop in open interest by -1.42% to settled at 1664 while prices down -0.55 rupees, now Zinc is getting support at 275.1 and below same could see a test of 272.8 levels, and resistance is now likely to be seen at 279.8, a move above could see prices testing 282.2.

Trading Ideas:

* Zinc trading range for the day is 272.8-282.2.

* Zinc prices dropped as the dollar firmed, Omicron fears subsided and attention turned to the unwinding of U.S. monetary stimulus

* China's Nov PPI +12.9% y/y, CPI +2.3% y/y

* China central bank raises forex reserve requirement ratio to 9%
 

Nickel

Nickel yesterday settled down by -0.96% at 1559.1 after reports China's Tsingshan Holding Group said it had officially started producing nickel matte – an intermediate nickel product that can be further processed into chemicals for electric vehicle (EV) batteries – in Indonesia. The company sent nickel prices nosediving in March when it announced plans to mass-produce matte and sell it to Huayou Cobalt and CNGR , both of which supply EV battery materials, from October. It had already achieved trial production in 2020. Tsingshan had said in March it planned to sell 60,000 tonnes of matte to Huayou and another 40,000 tonnes to CNGR within a year of first production. In the past two weeks, two other Chinese companies have both announced plans to produce 40,000 tonnes per year of matte in Indonesia. China's factory-gate inflation slowed in November, driven by a government crackdown on runaway commodity prices and an easing power crunch, amid Beijing's efforts to bolster the faltering economy. The domestic refined nickel output stood at 15,200 mt in November, up 4.86% or 706 mt month-on-month. The average monthly operating rate stood at 69%. The increase in refined nickel output in November was mainly contributed by the ramped up production in Gansu, which is likely to pull back to normal level in December. Technically market is under long liquidation as market has witnessed drop in open interest by -16.21% to settled at 1659 while prices down -15.1 rupees, now Nickel is getting support at 1548.6 and below same could see a test of 1538.1 levels, and resistance is now likely to be seen at 1570.1, a move above could see prices testing 1581.1.

Trading Ideas:

* Nickel trading range for the day is 1538.1-1581.1.

* Nickel prices dropped after reports China's Tsingshan starts producing EV battery raw material nickel matte in Indonesia

* China's factory-gate inflation slowed in November, driven by a government crackdown on runaway commodity prices

* The domestic refined nickel output stood at 15,200 mt in November, up 4.86% or 706 mt month-on-month.

Aluminium

Aluminium yesterday settled up by 0.59% at 214.45 as aluminium output remained at a low level. The China PPI and CPI readings for November were encouraging, indicating stable market moves in China. However, the repeating COVID still fills the US economic recovery with great uncertainties. As the supporting monetary and fiscal policies linger, the massive stimulus package is bound to heighten US debt level. China's central bank said it will raise the foreign exchange reserve requirement ratio for financial institutions by 200 basis points (bps), effective from Dec. 15. The reserve ratio will be increased to 9% from 7%, the People's Bank of China (PBOC) said on its website, to strengthen FX liquidity management at financial institutions. The move would force banks to set aside more of their FX deposits, which stood at $1.02 trillion at end-Nov, and markets widely believe the decision is intended to slow the yuan's recent rapid appreciation. The yuan has risen more than 2% against the dollar since late July. In trade-weighted terms it is at its strongest since late 2015. The PBOC previously raised the FX reserve requirement ratio for financial institutions to 7% from 5% in June to make it more expensive for banks to hold dollars. Technically market is under short covering as market has witnessed drop in open interest by -16.11% to settled at 1812 while prices up 1.25 rupees, now Aluminium is getting support at 212.8 and below same could see a test of 211 levels, and resistance is now likely to be seen at 215.7, a move above could see prices testing 216.8.

Trading Ideas:

* Aluminium trading range for the day is 211-216.8.

* Aluminium prices remained supported as aluminium output remained at a low level.

* China raises banks' FX reserve requirements for 2nd time this year

* China central bank raises forex reserve requirement ratio to 9%

 

Mentha oil

Mentha oil yesterday settled down by -0.19% at 969.2 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 dropped by -18.4 Rupees to end at 1085 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.59% to settled at 859 while prices down -1.8 rupees, now Mentha oil is getting support at 962.5 and below same could see a test of 955.7 levels, and resistance is now likely to be seen at 977, a move above could see prices testing 984.7.

Trading Ideas:

* Mentha oil trading range for the day is 955.7-984.7.

* In Sambhal spot market, Mentha oil dropped  by -18.4 Rupees to end at 1085 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 -2.23% at 6405 amid drop in overseas prices as crop prospects brightened in South America, fuelling expectations for bumper global supplies. Private exporters reported sales of 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year. China's soybean imports rose sharply in November from the previous month, as more shipments from the United States arrived during the peak North American export season, customs data showed. China, the world's top buyer of soybeans, brought in 8.57 million tonnes of the oilseed in November, up 68% from 5.11 million tonnes in October, data from the General Administration of Customs showed. Hurricane Ida limited U.S. grains exports including soybeans in September by crippling terminals and delaying shipments. The planting of Brazil's 2021/22 soybean crop had reached 94% of the estimated area and is progressing well in most of the country, although a recent lack of rains put farmers on alert in some southern states. Private exporters sold 122,000 tonnes of U.S. soybeans to unknown destinations for the 2021-2022 marketing year, the U.S. Department of Agriculture (USDA) said last week. The USDA said weekly export inspections of wheat totalled 245,963 tonnes. It also upwardly revised its wheat inspections total for the prior week to 390,771 tonnes from 250,651 tonnes. At the Indore spot market in top producer MP, soybean dropped -107 Rupees to 6565 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -21.31% to settled at while prices down -146 rupees, now Soyabean is getting support at 6316 and below same could see a test of 6226 levels, and resistance is now likely to be seen at 6556, a move above could see prices testing 6706.

Trading Ideas:

* Soyabean trading range for the day is 6226-6706.

* Soyabean dropped amid drop in overseas prices as crop prospects brightened in South America, fuelling expectations for bumper global supplies.

* Private exporters reported sales of 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.

* China imported 8.57 mln tonnes of soy in November

* At the Indore spot market in top producer MP, soybean dropped  -107 Rupees to 6565 Rupees per 100 kgs.


Soyaoil

Ref.Soyaoil yesterday settled down by -1.29% at 1196.6 after the U.S raised a proposal to scale back biofuel blending mandates. The Biden administration proposed scaling back the amount of biofuels that U.S. oil refiners were required to blend into their fuel mix since the onset of the COVID-19 pandemic. Pressure also seen as crop prospects brightened in South America, fuelling expectations for bumper global supplies. Prices came under pressure as forecasts for improving crop weather in Brazil and Argentina weighed on the market. The U.S. soybean crush in October likely jumped to a nine-month high of 5.868 million short tons, or 195.6 million bushels, ahead of a monthly U.S. Department of Agriculture (USDA) report. Crush estimates ranged from 194.5 million bushels to 196.3 million bushels, with a median of 195.7 million bushels. The National Oilseed Processors Association said its members, which account for about 95% of all U.S. soybean crushings, processed 183.993 million bushels in October. Soyoil stocks among NOPA members rose to 1.835 billion lbs at the end of the month. Rajasthan Govt imposed stocks limits on soyabean oil. Pressure seen amid broad-based selling in commodities over concerns about a new variant of the coronavirus. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1215.15 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.05% to settled at while prices down -15.6 rupees, now Ref.Soya oil is getting support at 1190 and below same could see a test of 1182 levels, and resistance is now likely to be seen at 1211, a move above could see prices testing 1224.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1182-1224.

* Ref soyoil prices dropped after the U.S raised a proposal to scale back biofuel blending mandates.

* Pressure also seen as crop prospects brightened in South America, fuelling expectations for bumper global supplies.

* The Maharashtra Government has decided not to put stock-limit on edible oil stocks

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1215.15 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled down by -1% at 1103.3 as rival soyoil fell after the U.S raised a proposal to scale back biofuel blending mandates. Malaysia's palm oil stockpile at the end of November likely slipped 3.5% from the previous month to a four-month low of 1.77 million tonnes. Production likely rose 1% from October to 1.74 million tonnes, while exports were forecast to expand 11.9% to 1.59 million tonnes. The likely month-on-month drop in November inventories contrasts with historical trends of an average 4% rise over the past 10 years. Concerns over the Omicron coronavirus variant hurting demand and stalling economic recovery globally have weighed on prices in recent days, as the spread of the new strain causes alarm worldwide. Palm oil production will likely remain soft until at least the first half of 2022, which would continue to provide cushion for prices in the coming months. The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated November production fell 6.8% from the month before. India is likely to buy more Malaysian palm oil after export levies imposed by top producer Indonesia hit record highs in the past year, B.V. Mehta, executive director of India's Solvent Extractors' Association, said. In spot market, Crude palm oil dropped by -6 Rupees to end at 1113.1 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -4.45% to settled at 4767 while prices down -11.1 rupees, now CPO is getting support at 1096.2 and below same could see a test of 1089.1 levels, and resistance is now likely to be seen at 1115.2, a move above could see prices testing 1127.1.

Trading Ideas:

* CPO trading range for the day is 1089.1-1127.1.

* Crude palm oil dropped as rival soyoil fell after the U.S raised a proposal to scale back biofuel blending mandates.

* Malaysia's November stocks seen down 3.5% m/m

* Production likely rose 1% from October to 1.74 million tonnes, while exports were forecast to expand 11.9% to 1.59 million tonnes.

* In spot market, Crude palm oil dropped  by -6 Rupees to end at 1113.1 Rupees.

 

Turmeric

Turmeric yesterday settled down by -2.64% at 7754 as export demand reported lower due to increased shipping cost and some travel restriction in South Asian countries added the bearish sentiment. 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. Pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric. 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. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season. In Nizamabad, a major spot market in AP, the price ended at 7836.9 Rupees gained 18.15 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -12.17% to settled at while prices down -210 rupees, now Turmeric is getting support at 7678 and below same could see a test of 7600 levels, and resistance is now likely to be seen at 7878, a move above could see prices testing 8000.

Trading Ideas:

* Turmeric trading range for the day is 7600-8000.

* Turmeric dropped as export demand reported lower due to increased shipping cost and some travel restriction in South Asian countries added the bearish sentiment.

* 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.

* In Nizamabad, a major spot market in AP, the price ended at 7836.9 Rupees gained 18.15 Rupees.

Jeera

Jeera yesterday settled up by 0.19% at 16065 as domestic demand is now picking up also the export inquiries to support price. 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. Pressure also seen as adequate stock with traders and farmers may keeping prices under pressure at higher levels. The 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 down by -43.65 Rupees to end at 16178.55 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -8.86% to settled at while prices up 30 rupees, now Jeera is getting support at 15950 and below same could see a test of 15830 levels, and resistance is now likely to be seen at 16165, a move above could see prices testing 16260.

Trading Ideas:

* Jeera trading range for the day is 15830-16260.

* Jeera gained as domestic demand is now picking up also the export inquiries to support price.

* 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

* 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 down by -43.65 Rupees to end at 16178.55 Rupees per 100 kg.

Cotton

Cotton yesterday settled down by -0.29% at 31330 as India's cotton exports in the ongoing 2021-22 (Oct-Sep) marketing year have slowed due to higher prices in the domestic market, making overseas sales economically unviable. In the ongoing marketing year, around 800,000 bales of cotton were exported till November, sharply lower than the previous year. In 2020-21, India had shipped 1.2-1.3 mln bales during Oct-Nov, trade officials said. In the current season, most of the consignments have been shipped to Bangladesh followed by China, Indonesia and Vietnam. Of the total quantity, 500,000-550,000 bales were shipped to Bangladesh, they said. Supply chain bottlenecks and the emergence of the Omicron variant may affect consumer buying. Cotton prices are expected to soften from their peak levels of around ₹8,000-8,800 a quintal (raw cotton) as the arrivals gain momentum said CAI. Acknowledging that the cotton arrivals in India have been delayed partly due to the unseasonal rains and other factors, Atul Ganatra, President, CAI, stated that "cotton prices in India will fall once the arrivals pick up." Countries like Vietnam and Bangladesh have also increased textile manufacturing and their demand for cotton. In spot market, Cotton gained by 60 Rupees to end at 31680 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -3.6% to settled at 4394 while prices down -90 rupees, now Cotton is getting support at 31100 and below same could see a test of 30870 levels, and resistance is now likely to be seen at 31570, a move above could see prices testing 31810.

Trading Ideas:

* Cotton trading range for the day is 30870-31810.

* Cotton prices dropped as Cotton exports dropped on high local prices, 800,000 bales shipped so far

* Cotton prices soften from their peak levels as the arrivals gain momentum said CAI.

* Domestic consumption for 2021-22 is estimated at 33.5 mln bales

* In spot market, Cotton gained  by 60 Rupees to end at 31680 Rupees.

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