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Gold

Gold yesterday settled down by -1.85% at 47923 as dollar gained on growing anxiety over the impact of surging COVID-19 infections in Europe, with Austria reimposing a full lockdown and Germany considering following suit. Vice Chair of the FOMC Richard Clarida said that it "may very well be appropriate" to discuss accelerating the pace at which the Fed is winding down its bond-buying programme at the December policy meeting. Speaking at the San Francisco Fed's 2021 Asia Economic Policy Conference, he added that there are upside risks to inflation, that the economy is in a very strong position at that it looks as though Q4 is going to be very good. Federal Reserve Board of Governors member Christopher Waller suggested that if the bank was to double the pace of its QE taper (to $30B per month), then the taper could conclude by the start of April. That, he added, would give the Fed more policy space for rate hikes as early as Q2. St Louis Fed President James Bullard has recently also suggested doubling the pace of QE taper to $30B per month, though Bullard said this could make way for hikes as soon as Q1, earlier than what Waller said. Dealers were offering a discount of up to $2.5 an ounce over official domestic prices up from the prior week's discount of $2. Technically market is under long liquidation as market has witnessed drop in open interest by -9.39% to settled at 5172 while prices down -905 rupees, now Gold is getting support at 47579 and below same could see a test of 47234 levels, and resistance is now likely to be seen at 48572, a move above could see prices testing 49220.

Trading Ideas:

* Gold trading range for the day is 47234-49220.

* Gold dropped as dollar gained on growing anxiety over the impact of surging COVID-19 infections in Europe, with Austria reimposing a full lockdown

* Fed's Clarida: May be appropriate in December to discuss speeding QE taper

* Fed's Waller suggests doubling pace of QE taper in January

 

Silver

Silver yesterday settled down by -1.5% at 64571 weighed down by a firmer dollar and expectations that rising inflation might push the Federal Reserve to accelerate its monetary policy tightening. The dollar got additional support from bullish comments by Federal Reserve officials Richard Clarida and Christopher Waller on Friday who suggested a faster pace of stimulus tapering may be appropriate amid a quickening recovery and heated inflation. A more rapid end to tapering raises the possibility of earlier interest-rate increases too. Currently the market is priced for the Federal Open Market Committee (FOMC) to start hiking rates by the middle of next year. Fed policymakers are debating whether to withdraw support more quickly to deal with inflation, with one of its most influential officials signalling that the idea will be on the table at their December meeting. The U.S. economy's resilience has also benefited the dollar and fuelled speculation the Fed might go faster with tapering. Global silver demand will rise to 1.029 billion ounces this year, up 15% from 2020 and exceeding a billion ounces for the first time since 2015, the Silver Institute said in a report. The prediction is a slight downgrade from April, when the institute forecast demand for 2021 at 1.033 billion ounces. Technically market is under long liquidation as market has witnessed drop in open interest by -7.05% to settled at 7154 while prices down -985 rupees, now Silver is getting support at 63980 and below same could see a test of 63390 levels, and resistance is now likely to be seen at 65608, a move above could see prices testing 66646.

Trading Ideas:

* Silver trading range for the day is 63390-66646.

* Silver dropped pressured by stronger dollar, faster Fed taper bets

* Fed vice-chair says debate on faster tapering likely in Dec

* Fed policymakers are debating whether to withdraw support more quickly to deal with inflation
 

Crude oil

Crude oil yesterday settled up by 0.72% at 5710 despite rising concerns about the outlook for energy demand due to a surge in coronavirus cases in several countries, and likely oversupply in the market. OPEC+ compliance with oil production cuts stood at 116% in October, up from 115% the previous month, indicating the group continues to produce less than its agreed targets. Compliance for participating OPEC members in the group rose from 115% in September to 121% in October, the highest since May, the data showed. Compliance for non-OPEC participating producers stood at 106% in October, down from 114% in September. Japan's government is considering releasing oil from its reserves in response to rising crude oil prices, Kyodo news agency reported. It would be the first time for Japan to release oil reserves for the sake of lowering prices, although the country in the past has tapped such reserves when it faced natural disasters and geopolitical risks overseas, Kyodo said. Money managers cut their net long U.S. crude futures and options positions in the week to November 16, the U.S. Commodity Futures Trading Commission (CFTC) said. The speculator group cut its combined futures and options position in New York and London by 33,527 contracts to 320,280 during the period. Technically market is under short covering as market has witnessed drop in open interest by -20.92% to settled at 5470 while prices up 41 rupees, now Crude oil is getting support at 5629 and below same could see a test of 5548 levels, and resistance is now likely to be seen at 5774, a move above could see prices testing 5838.

Trading Ideas:

* Crude oil trading range for the day is 5548-5838.

* Crude oil prices gains despite rising COVID-19 cases in Europe and a potential release of Japanese oil reserves raised concerns about oversupply

* OPEC+ oil output below target again in Oct as members cut more than agreed

* Speculators cut U.S. crude oil net longs – CFTC

Nat.Gas

Nat.Gas yesterday settled down by -4.74% at 357.6 on forecasts for milder than normal weather and lower demand over the next two weeks than previously expected. Prices also slumped on near record U.S. output, healthy U.S. stockpiles and a decline in European gas futures. Global gas prices hit record highs over the past couple of months as utilities around the world scramble 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. Following those global gas prices, U.S. futures jumped to a 12-year high in early October, but have pulled back since because the United States has plenty of gas in storage and ample production for the winter. Overseas prices continue to trade about six times higher than U.S. futures. Data provider Refinitiv said output in the U.S. Lower 48 states averaged 96.1 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. Refinitiv projected average U.S. gas demand, including exports, would rise to 114.1 bcfd next week from 111.4 bcfd this week as the weather turns seasonally colder and homes and businesses crank up their heaters. Technically market is under long liquidation as market has witnessed drop in open interest by -30.32% to settled at 1809 while prices down -17.8 rupees, now Natural gas is getting support at 346.8 and below same could see a test of 336.1 levels, and resistance is now likely to be seen at 368.9, a move above could see prices testing 380.3.

Trading Ideas:

* Natural gas trading range for the day is 336.1-380.3.

* Natural gas dropped on forecasts for milder than normal weather and lower demand over the next two weeks than previously expected.

* Prices also slumped on near record U.S. output, healthy U.S. stockpiles and a decline in European gas futures.

* EIA said utilities added 26 billion cubic feet (bcf) of gas into storage during the week ended Nov. 12. U.S.
 

Copper

Copper yesterday settled flat at 734.95 amid renewed worries about demand in top consumer China, expectations of a more balanced market over the coming months and a stronger dollar. Pressure also seen weighed down by a robust dollar and higher warehouse inventories and as U.S. policymakers debated whether to withdraw economic support faster than expected. An early rate hike by the U.S. Federal Reserve could reduce liquidity in financial markets and slow recovery in the world's biggest economy. On-warrant inventories in LME warehouses stood at 62,575 tonnes, their highest since Oct. 11. Meanwhile, fresh coronavirus-led restrictions in Europe weighed on market sentiment. China's central bank said it would keep its prudent monetary policy "flexible and targeted" and strike a balance between economic growth and risk controls. Copper premiums in China have spiked to a record high as an administrative issue over value-added tax (VAT) on imports exacerbates tight supply amid decade-low inventories in the world's biggest consumer of the metal. The premium for physical copper over Shanghai Futures Exchange (ShFE) prices surged to 2,200 yuan ($344) a tonne, data showed. China's property market, accounting for a quarter of gross domestic product by some metrics, has slowed sharply since May, with sentiment shaken by a growing liquidity crisis. Technically market is under short covering as market has witnessed drop in open interest by -23.26% to settled at 3141 while prices up 0.5 rupees, now Copper is getting support at 728.6 and below same could see a test of 722.3 levels, and resistance is now likely to be seen at 739.6, a move above could see prices testing 744.3.

Trading Ideas:

* Copper trading range for the day is 722.3-744.3.

* Copper settled flat amid renewed worries about demand in top consumer China, expectations of a more balanced market over the coming months.

* Copper stocks in LME warehouses at a third of August levels

* China copper premiums hit record high on tight stocks

 

Zinc

Zinc yesterday settled up by 3.81% at 276.45 as the zinc ingot output estimate for December has been revised down by 10,000 mt due to production reduction in Hanzhong, maintenance of Hunan Sanli, and output cuts of Yongchang in December. Support also seen as the quarterly report released by the People's Bank of China signalled loosening monetary policy. On the macro front, the House passed the $2 trillion tax and expenses bill strongly advocated by President Biden, partly boosting market sentiment and pushing up prices. Meanwhile, US dollar stayed high amid falling Euro caused by deeper concerns about COVID in Eurozone, which constrained the upside momentum. The total social inventory of zinc ingot across seven major markets in China stood at 130,800 mt, up 2,100 mt from last Friday amid more arrivals over the weekend. In terms of the demand side, the downstream purchase weakened due to volatile zinc prices, and most of the transactions were made on dips. China stood pat on its benchmark lending rates for corporate and household loans for a 19th month at its November fixing, in line with market expectations. The one-year loan prime rate (LPR) was kept at 3.85%. The five-year LPR remained at 4.65%. Technically market is under short covering as market has witnessed drop in open interest by -14.78% to settled at 951 while prices up 10.15 rupees, now Zinc is getting support at 268.3 and below same could see a test of 260 levels, and resistance is now likely to be seen at 281.1, a move above could see prices testing 285.6.

Trading Ideas:

* Zinc trading range for the day is 260-285.6.

* Zinc prices rallied as the zinc ingot output estimate for December has been revised down by 10,000 mt due to production reduction

* The total social inventory of zinc ingot across seven major markets in China stood at 130,800 mt, up 2,100 mt from last Friday

* China stands pat on lending benchmark LPR in November

 

Nickel

Nickel yesterday settled up by 1.13% at 1545.7 as China’s and LME nickel inventories were both at a low level, supporting nickel prices. On the fundamentals, the stainless steel and NPI markets have been quiet, and NPI prices have shown signs of pulling back. In China, the monetary policy implementation report for Q3 disclosed by People's Bank of China removed the representation of “the ultra-loose measures are never a choice” and “it will strictly control the master valve of currency flows”. Instead, it emphasised that it will tackle external policy changes by enhancing exchange rate flexibility, and may loosen the monetary policy slowly and steadily, which boosted prices. The global nickel market deficit narrowed to 5,200 tonnes in September from a shortfall a month earlier of 14,600 tonnes, data from the International Nickel Study Group (INSG) showed. During the first nine months of the year, the nickel market saw a deficit of 174,900 tonnes compared with a surplus of 88,000 tonnes in the same period last year, Lisbon-based INSG added. The global markets will need four times the nickel and double the copper in the next 30 years to facilitate a decarbonised world. Both nickel and copper are poised for strong consumption as a result of the transition away from fossil fuels. Technically market is under short covering as market has witnessed drop in open interest by -6.21% to settled at 831 while prices up 17.2 rupees, now Nickel is getting support at 1527.1 and below same could see a test of 1508.4 levels, and resistance is now likely to be seen at 1559, a move above could see prices testing 1572.2.

Trading Ideas:

* Nickel trading range for the day is 1508.4-1572.2.

* Nickel prices gained as China’s and LME nickel inventories were both at a low level, supporting nickel prices.

* The stainless steel and NPI markets have been quiet, and NPI prices have shown signs of pulling back.

* Global nickel market deficit shrinks in Sept to 5,200 tonnes – INSG

 

Aluminium

Aluminium settled at 212.35 after prices remained in range as market’s worries over possible reductions in supply were eased after Yunnan Aluminium announced that it has resumed its capacity which was suspended unexpectedly last week. However, the supply is still unlikely to see any significant increases, hence the market was dominated by the consumption side. China's aluminium imports in October rose by 17.4% from the previous month to their highest since July, data from the General Administration of Customs showed. Arrivals of unwrought aluminium and products - which include primary metal and unwrought, alloyed aluminium - totalled 297,043 tonnes last month, up from 252,921 tonnes in September and up 15.8% year-on-year Imports in the first 10 months of 2021 were up 14.4% from a year earlier at 2.57 million tonnes, on course to set an annual record as restrictions on power usage by domestic smelters keep demand for overseas metal strong. Global primary aluminium output rose to 5.689 million tonnes in October, up 1.2% year on year, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production was 3.270 million tonnes in October, up from 3,250 million tonnes in the same month last year, the IAI said. Technically market is under short covering as market has witnessed drop in open interest by -24.27% to settled at 1763 while prices up 0.3 rupees, now Aluminium is getting support at 209.4 and below same could see a test of 206.3 levels, and resistance is now likely to be seen at 214.6, a move above could see prices testing 216.7.

Trading Ideas:

* Aluminium trading range for the day is 206.3-216.7.

* Aluminium remained in range as market’s worries over possible reductions in supply were eased after Yunnan Aluminium has resumed its capacity

* China October aluminium imports rise 17.4% from prior month

* Global primary aluminium output rises to 5.689 mln T in Oct – IAI

 

Mentha oil

Mentha oil yesterday settled down by -0.29% at 933.2 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 22.6 Rupees to end at 1083.5 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -27.47% to settled at 565 while prices down -2.7 rupees, now Mentha oil is getting support at 930.3 and below same could see a test of 927.4 levels, and resistance is now likely to be seen at 938, a move above could see prices testing 942.8.

Trading Ideas:

* Mentha oil trading range for the day is 927.4-942.8.

* In Sambhal spot market, Mentha oil gained  by 22.6 Rupees to end at 1083.5 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 up by 5.98% at 6429 amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages. USDA's November monthly report showed soyabean production in India has grown 8% month-on-month to 11.9 million tonnes. 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's October soybean imports from the United States fell sharply from the previous year, customs data showed Sunday, hit by poor demand and limited exports. China brought in 775,331 tonnes of U.S. soybeans in October, down 77% from 3.4 million tonnes a year earlier, according to data released from the General Administration of Customs. Soybean shipments from the United States usually pick up in the fourth quarter of the year when the U.S. harvest gets underway and American beans dominate the market. Poor crush margins and price competitive Brazilian beans, however, have curbed Chinese crushers' appetite for American cargoes. At the Indore spot market in top producer MP, soybean gained 424 Rupees to 6570 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -0.91% to settled at 75815 while prices up 363 rupees, now Soyabean is getting support at 6227 and below same could see a test of 6024 levels, and resistance is now likely to be seen at 6531, a move above could see prices testing 6632.

Trading Ideas:

* Soyabean trading range for the day is 6024-6632.

* Soyabean gained amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages.

* USDA's November monthly report showed soyabean production in India has grown 8% month-on-month to 11.9 million tonnes.

* China's Oct. soy imports from U.S. slump due to weak demand, hurricane

* At the Indore spot market in top producer MP, soybean gained  424 Rupees to 6570 Rupees per 100 kgs.

 

Soyaoil

Ref.Soyaoil yesterday settled up by 0.62% at 1242.6 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 1260 Rupees per 10 kgs.Technically market is under short covering as market has witnessed remain unchanged in open interest by 0% to settled at 46585 while prices up 7.7 rupees, now Ref.Soya oil is getting support at 1234 and below same could see a test of 1225 levels, and resistance is now likely to be seen at 1248, a move above could see prices testing 1253.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1225-1253.

* 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 1260 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled up by 0.14% at 1152.7 underpinned by estimates of weaker production and higher exports during the first half of November. Concerns over weaker output is weighing on the market as plantations enter the lower production season amid rainy weather. The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated production during Nov. 1-15 fell 6.3% from the month before. Exports of Malaysian palm oil products during the same period rose between 10% and 29% month-on-month, according to data by cargo surveyors. 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. In spot market, Crude palm oil gained by 8.5 Rupees to end at 1149 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -1.29% to settled at 4125 while prices up 1.6 rupees, now CPO is getting support at 1147.4 and below same could see a test of 1142.1 levels, and resistance is now likely to be seen at 1157, a move above could see prices testing 1161.3.

Trading Ideas:

* CPO trading range for the day is 1142.1-1161.3.

* Crude palm oil prices seen supported underpinned by estimates of weaker production and higher exports

* Concerns over weaker output is weighing on the market as plantations enter the lower production season amid rainy weather.

* The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated production during Nov. 1-15 fell 6.3% from the month before.

* In spot market, Crude palm oil gained  by 8.5 Rupees to end at 1149 Rupees.

 

Turmeric

Turmeric yesterday settled up by 5.95% at 7694 amid less area in Telangana due to unseasonal rains, also expectations of better export demand supporting the prices. However upside seen limited amid poor demand for old stocks as traders wait for the new season of turmeric. 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. 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 7357.15 Rupees gained 139.3 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -4.89% to settled at 9825 while prices up 432 rupees, now Turmeric is getting support at 7472 and below same could see a test of 7248 levels, and resistance is now likely to be seen at 7808, a move above could see prices testing 7920.

Trading Ideas:

* Turmeric trading range for the day is 7248-7920.

* Turmeric gained amid less area in Telangana due to unseasonal rains, also expectations of better export demand supporting the prices.

* However upside seen limited amid poor demand for old stocks as traders wait for the new season of turmeric.

* 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 7357.15 Rupees gained 139.3 Rupees.

 

Jeera

Jeera yesterday settled down by -1.63% at 16260 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 -31.25 Rupees to end at 16068.75 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -0.84% to settled at 9933 while prices down -270 rupees, now Jeera is getting support at 16050 and below same could see a test of 15845 levels, and resistance is now likely to be seen at 16530, a move above could see prices testing 16805.

Trading Ideas:

* Jeera trading range for the day is 15845-16805.

* 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 -31.25 Rupees to end at 16068.75 Rupees per 100 kg.

 

Cotton

Cotton yesterday settled up by 0.66% at 32010 in anticipation of a possible fall in production, and the remaining cotton stock is also low, while import demand from China remains high. 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 gained by 90 Rupees to end at 31780 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -9.48% to settled at 1777 while prices up 210 rupees, now Cotton is getting support at 31650 and below same could see a test of 31290 levels, and resistance is now likely to be seen at 32370, a move above could see prices testing 32730.

Trading Ideas:

* Cotton trading range for the day is 31290-32730.

* Cotton gained in anticipation of a possible fall in production, and the remaining cotton stock is also low, while import demand from China remains high.

* Support also 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 gained  by 90 Rupees to end at 31780 Rupees.

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