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Trading Ideas:            

* Gold trading range for the day is 46209-47647.

* Gold remained under pressure as dollar continued to extend gains after Fed revised upwards its inflation forecasts for this year

* ECB’s Lagarde said that monetary and fiscal stimulus should remain until there are clear signs that a "firm, solid and sustainable" economic recovery is underway

* Gold purchases in India ticked up after a decline in local rates, although dealers cautioned that demand is unlikely to return to normal levels soon.

Silver      

Silver yesterday settled remain unchangeby 0% at 67598 after hawkish comments from the Federal Reserve prompted a rise in the dollar. US policymakers expect higher growth and inflation this year and see 2 rate hikes by the end of 2023. St. Louis Federal Reserve President James Bullard said that the U.S. central bank's shift this week towards a faster tightening of monetary policy was a "natural" response to economic growth and particularly inflation moving quicker than expected as the country reopens from the coronavirus pandemic. Bullard said he was among the seven Fed policymakers who expect the most aggressive steps, with rate increases beginning next year, to contain inflation that he thinks will prove more persistent than his colleagues. New economic projections released by the Fed after a two-day policy meeting showed a core of 13 out of 18 officials projected rates would likely need to increase by the end of 2023, a surprise to many investors and analysts. After reporting decreases in first-time claims for U.S. unemployment benefits for six straight weeks, the Labor Department released a report showing an unexpected uptick in initial jobless claims in the week ended June 12th. Technically market is under long liquidation as market has witnessed drop in open interest by -10.08% to settled at 10571 while prices remain unchanged -1 rupees, now Silver is getting support at 67156 and below same could see a test of 66713 levels, and resistance is now likely to be seen at 68391, a move above could see prices testing 69183.    

Trading Ideas:            

*  Silver trading range for the day is 66713-69183.

* Silver settled flat and ended the week with losses after hawkish comments from the Federal Reserve prompted a rise in the dollar.

* US policymakers expect higher growth and inflation this year and see 2 rate hikes by the end of 2023.

* St. Louis Fed’s Bullard said that faster monetary tightening was a "natural" response to faster than expected economic growth and inflation.

Crude oil           

Crude oil yesterday settled up by 0.94% at 5289 as investors were optimistic about an improved outlook for demand as the coronavirus vaccination campaign continues and economies reopen. OPEC officials heard from industry experts that U.S. oil output growth will likely remain limited in 2021 despite rising prices, OPEC sources said, giving it more power to manage the market in the short term before a potentially strong rise in shale output in 2022. Officials from OPEC's Economic Commission Board (ECB) and external presenters attended a meeting on Tuesday focused on U.S. output, the sources said. OPEC heard from more forecasters on the outlook for 2021 and 2022 at a separate meeting. While there was general agreement on limited U.S. supply growth this year, an industry source said for 2022 forecasts ranged from growth of 500,000 bpd to 1.3 million bpd. "The general sentiment regarding shale was it will come back as prices go up but not super fast," said a source at one of the companies that provided forecasts to OPEC. Saudi Arabia's crude oil exports in April eased to 5.408 million barrels per day from 5.427 million bpd in March, official data showed. Monthly export figures are provided by Riyadh and other members of the Organization of the Petroleum Exporting Countries (OPEC) to the Joint Organizations Data Initiative (JODI). Technically market is under fresh buying as market has witnessed gain in open interest by 37.98% to settled at 5635 while prices up 49 rupees, now Crude oil is getting support at 5204 and below same could see a test of 5119 levels, and resistance is now likely to be seen at 5355, a move above could see prices testing 5421.         

Trading Ideas:            

* Crude oil trading range for the day is 5119-5421.

* Crude oil gains as investors were optimistic about an improved outlook for demand as the coronavirus vaccination campaign continues and economies reopen.

* U.S. output growth seen at about 200,000 bpd in 2021

* Saudi Arabia crude exports fall to 5.408 mln bpd in April

Nat.Gas           

Nat.Gas yesterday settled down by -0.62% at 238.8 on forecasts for slightly less demand next week than previously expected following heat waves in California and Texas that boosted local gas use and prices. So far, Texas and California have passed the major heat wave test that stressed their electric systems with record demand, lots of forced generation outages in Texas and scorching weather across the West that reduced power imports into California. Prices declined even though demand is expected to climb in two weeks when heat returns and power generators burn more gas again to keep air conditioners humming and the amount of gas flowing to liquefied natural gas (LNG) export plants rises as units exit maintenance outages. U.S. natural gas production will rise in 2021 after falling last year due to coronavirus demand destruction, the U.S. Energy Information Administration (EIA) said in its Short Term Energy Outlook (STEO). Domestic demand for gas, meanwhile, will decline for a second year in a row in 2021, EIA forecast. provider Refinitiv said gas output in the Lower 48 U.S. states averaged 91.6 billion cubic feet per day (bcfd) so far in June, up from 91.0 bcfd in May but still well below the monthly record high of 95.4 bcfd recorded in November 2019. Technically market is under long liquidation as market has witnessed drop in open interest by -26.91% to settled at 9882 while prices down -1.5 rupees, now Natural gas is getting support at 234.7 and below same could see a test of 230.5 levels, and resistance is now likely to be seen at 242.4, a move above could see prices testing 245.9.   

Trading Ideas:            

* Natural gas trading range for the day is 230.5-245.9.

* Natural gas fell on forecasts for slightly less demand next week than previously expected following heat waves

* However downside seen limited as the release of a report showing a smaller-than-expected build in storage last week.

* U.S. natgas output to rise, demand to fall in 2021 – EIA

Copper           

Copper yesterday settled down by -0.61% at 693.1 after the Federal Reserve signalled it would begin to tighten monetary policy and China said it would sell state reserves to limit prices. Fed officials, increasingly confident the U.S. economy is recovering fast from the pandemic-induced recession, have begun telegraphing an exit from the central bank’s extraordinarily easy monetary policy. Macquarie also said it expected a deficit of copper this year, small surpluses over 2022-2024 and structural undersupply from 2025. They said prices would average around $8,000-$9,000 over the next four years. Copper inventories in LME-registered warehouses continued to increase, rising by 24,925 tonnes to 168,675 tonnes, the highest level since April. Stockpiles in warehouses registered with the Shanghai Futures Exchange fell by 8,440 tonnes to 172,527 tonnes in the week to Friday. Stocks of copper in Shanghai bonded areas increased on larger arrivals for the second consecutive week. Data showed that the stocks rose 10,300 mt from the prior week to 429,300 mt as of Friday June 18. China's copper exports edged up for a third straight month in May to their highest level since March last year, customs data showed, as higher international prices encouraged traders to ship more metal overseas. Technically market is under long liquidation as market has witnessed drop in open interest by -8.37% to settled at 4521 while prices down -4.25 rupees, now Copper is getting support at 688.7 and below same could see a test of 684.2 levels, and resistance is now likely to be seen at 700.5, a move above could see prices testing 707.8.   

Trading Ideas:            

* Copper trading range for the day is 684.2-707.8.

* Copper continued its weak trend after the Federal Reserve signalled it would begin to tighten monetary policy

* LME Copper inventories continued to increase, rising by 24,925 tonnes to 168,675 tonnes, the highest level since April.

* Macquarie also said it expected a deficit of copper this year, small surpluses over 2022-2024 and structural undersupply from 2025.

Zinc           

Zinc yesterday settled down by -1.39% at 230.3 as Fed officials implied to raise interest rates in advance and increased the excess reserve ratio. China’s benchmark lending rate is set to remain unchanged at its June fixing, but there are growing expectations of an interest rate rise in China after the U.S. Federal Reserve adopted a more hawkish tone. Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 7,500 mt in the week ended June 18 to 128,600 mt. The stocks fell 3,500 mt from Tuesday June 15. The use of reverse repurchase by the Federal Reserve surged to a record $756 billion, far exceeding the previous record high of $584 billion. In addition, the number of initial jobless claims in the US rose slightly last week, the first increase since April, which was higher than the median value expected by economists. After reporting decreases in first-time claims for U.S. unemployment benefits for six straight weeks, the Labor Department released a report showing an unexpected uptick in initial jobless claims in the week ended June 12th. At the same time, the chief economist of the European Central Bank downplayed the importance of discussing debt reduction in September. Technically market is under long liquidation as market has witnessed drop in open interest by -12.31% to settled at 1425 while prices down -3.25 rupees, now Zinc is getting support at 227.8 and below same could see a test of 225.3 levels, and resistance is now likely to be seen at 234.1, a move above could see prices testing 237.9.   

Trading Ideas:            

* Zinc trading range for the day is 225.3-237.9.

*  Zinc prices dropped as Fed officials implied to raise interest rates in advance and increased the excess reserve ratio.

*  Data showed that social inventories of refined zinc ingots across Shanghai decreased 7,500 mt to 128,600 mt.

* The number of initial jobless claims in the US rose slightly last week, the first increase since April

Nickel           

Nickel yesterday settled down by -0.37% at 1274.5 as prices seen under pressure after Federal Reserve Bank of St. Louis President James Bullard said inflation was stronger than anticipated and that it would take the Fed several meetings to figure out how to pare back stimulus. Fed raised the expectations of economic growth and inflation, and implied to lift interest rates twice before end-2023. US initial claims for unemployment benefits rose to 412,000 last week, higher than the market expectations. Nickel ore inventories across all Chinese ports decreased 550,000 wmt from June 11 to 4.96 million wmt as of June 18, showed data. Data also showed that nickel ore stocks across seven major Chinese ports decreased 450,000 wmt during the same period to 3.33 million wmt. China's refined nickel cathode output in May fell 4.5% from the prior month and slumped 10.8% year-on-year to 12,424 tonnes amid maintenance at top producer Jinchuan Group. Work on Jinchuan's smelter and sulphuric acid plant is set to be completed in mid-June, adding that Jilin Jien Nickel produced 350 tonnes of cathode in May after a long absence and planned to churn out 500 tonnes this month. Overall nickel cathode output in the first five months of 2021 fell 4.4% year on year to 65,000 tonnes, which sees this month's production rising to 13,500 tonnes. Technically market is under fresh selling as market has witnessed gain in open interest by 0.47% to settled at 1494 while prices down -4.7 rupees, now Nickel is getting support at 1265.8 and below same could see a test of 1257.2 levels, and resistance is now likely to be seen at 1288.3, a move above could see prices testing 1302.2.   

Trading Ideas:            

*  Nickel trading range for the day is 1257.2-1302.2.

*  Nickel dropped after Fed’s Bullard said inflation was stronger than anticipated and that it would take the Fed several meetings to figure out how to pare back stimulus.

*  Nickel ore inventories across all Chinese ports decreased 550,000 wmt to 4.96 million wmt as of June 18, showed data.

*  Fed raised the expectations of economic growth and inflation, and implied to lift interest rates twice before end-2023.

Aluminium           

Aluminium yesterday settled up by 0.74% at 190.15 as support seen after China's primary aluminium output fell slightly in May versus April, official data showed, as restrictions on power consumption in the smelting hub of Yunnan forced some production cuts. The world's top producer of the metal churned out 3.32 million tonnes in May, the National Bureau of Statistics said. That was down 0.8% from April's record high of 3.346 million tonnes but up 11.3% year on year. Yunnan, a province in Southwest China whose hydropower resources have attracted several smelters looking to reduce their emissions, was hit by severe drought last month, limiting its ability to generate electricity. China's aluminium imports in May fell 19.8% from the previous month, data released by the General Administration of Customs showed. Imports of unwrought aluminium and products - which include primary metal and unwrought, alloyed aluminium - were 225,458 tonnes last month, down from April's 281,139 tonnes but up 89.3% year-on-year. China, the world's top aluminium producer, started importing higher-than-usual amounts of the metal in 2020 as strong demand saw Shanghai prices overtake London prices, opening an arbitrage window for cheaper material from overseas. The Shanghai-London spread on May 17 hit its widest since July last year at almost 1,915 yuan ($297) a tonne, signalling the possible arrival of more inbound arbitrage flows this month. Technically market is under short covering as market has witnessed drop in open interest by -0.76% to settled at 2084 while prices up 1.4 rupees, now Aluminium is getting support at 188.9 and below same could see a test of 187.7 levels, and resistance is now likely to be seen at 191.2, a move above could see prices testing 192.3.  

Trading Ideas:            

*  Aluminium trading range for the day is 187.7-192.3.

*  Aluminium gains as support seen after China's primary aluminium output fell slightly in May versus April.

* The world's top producer of the metal churned out 3.32 million tonnes in May, the National Bureau of Statistics said.

* China’s aluminium imports declined in May, customs data showed.

Mentha oil           

Mentha oil yesterday settled up by 4.54% at 1029 due to rain harvesting of menthe crop will be affected and also production get affected. The crop is prone to rain because the leaves of the crop start falling due to waterlogging in the field. However upside seen limited as fresh season arrival started while the lock-down extension is impacting sentiments. Most of the farmers have planted Mentha crops and this rain is not less than acid for 50 percent of Mentha crop. As of now, daily arrival of fresh oil is relatively small (10-15 drums across Uttar Pradesh). Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days. Overall post-lock-down demand will be likely to improve as demand from the health industry will likely continue also as per CIMAP (Central Institute of Medicinal and Aromatic Plants) Herbal products may boost immunity to avoid infection and demand for same has improved significantly since last year. Mentha exhibits important biological activities. For that reason, it has been used through the years as a remedy for respiratory diseases like bronchitis, sinusitis, tuberculosis, and the common cold. Due to favourable wheather condition,the production of mentha in the states has improved and is at much better terms compare to last year. In Sambhal spot market, Mentha oil gained by 40.7 Rupees to end at 1112.2 Rupees per 360 kgs.Technically market is under short covering as market has witnessed remain unchanged in open interest by 0% to settled at 14 while prices up 44.7 rupees, now Mentha oil is getting support at 1021.8 and below same could see a test of 1014.5 levels, and resistance is now likely to be seen at 1038.2, a move above could see prices testing 1047.3. 

Trading Ideas:            

* Mentha oil trading range for the day is 1014.5-1047.3.

* In Sambhal spot market, Mentha oil gained  by 40.7 Rupees to end at 1112.2 Rupees per 360 kgs.

* Mentha oil gained due to rain harvesting of menthe crop will be affected and also production get affected.

* However upside seen limited as fresh season arrival started while the lock-down extension is impacting sentiments.

* Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days.

 Soyabean          

Soyabean yesterday settled down by -0.41% at 6519 as Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021 as record high prices for the oilseed could prompt some to switch from cultivating competing commodities such as cotton and pulses, industry officials said. The Soy Food Promotion and Welfare Association (SFPWA), which represents soybean food processing industries in India has urged Prime Minister Narendra Modi to allow the processing industry to import 50,000 tonnes of food specialty soybeans from the US duty-free as prices of domestic soybeans have increased 50% during the past six months. K Sarat Chandra Kumar, President, Soy Food Promotion and Welfare Association said, "The beans could be allowed into the country at “zero” duty under tariff rate quota since food specialty soybeans are not grown in the country." China’s soybean imports in May rose from the previous month, customs data showed, as more cargoes from top supplier Brazil cleared customs. China, the world’s top importer of soybeans, brought in 9.61 million tonnes of the oilseed in May, up 29% from 7.45 million tonnes in April, when some Brazilian shipments were delayed, data from the General Administration of Customs showed. At the Indore spot market in top producer MP, soybean dropped -116 Rupees to 6855 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -1.38% to settled at 37255 while prices down -27 rupees, now Soyabean is getting support at 6412 and below same could see a test of 6306 levels, and resistance is now likely to be seen at 6582, a move above could see prices testing 6646.    

Trading Ideas:            

*Soyabean trading range for the day is 6306-6646.

* Soyabean prices dropped as Indian farmers are likely to expand their soybean planting area by more than a tenth

* SFPWA has urged Prime Minister Narendra Modi to allow the processing industry to import 50,000 tonnes of food specialty soybeans from the US duty-free

* China Jan-May soybean imports up 12.8% at 38.23 million tonnes

* At the Indore spot market in top producer MP, soybean dropped  -116 Rupees to 6855 Rupees per 100 kgs.

Ref.Soyaoil        

Ref.Soyaoil yesterday settled up by 0.91% at 1208 as India has put on hold a proposal to reduce import taxes on edible oils as cooking oil prices started to fall in the world market after hitting record highs, two government and one industry officials told. India slashed the base import prices of palm oil and soybean oil for a fortnight, the government said in a statement, as prices of the cooking oils fell sharply in the global market. Imports would remain elevated even in June as many states are easing lockdowns and allowing restaurants to reopen. India is considering reducing import taxes on edible oils after cooking oil prices hit record highs last month, to reduce food costs in the world's biggest vegetable oil importer. While no decision has been made, the tax reduction could lower local prices and boost consumption, giving support to Malaysian palm oil, along with soy and sunflower oil prices, and dampening prices of local oilseeds such as rapeseed, soybean and groundnut. Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021 as record high prices for the oilseed could prompt some to switch from cultivating competing commodities such as cotton and pulses, industry officials said. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1263.25 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.66% to settled at 38330 while prices up 10.9 rupees, now Ref.Soya oil is getting support at 1182 and below same could see a test of 1157 levels, and resistance is now likely to be seen at 1229, a move above could see prices testing 1251.      

Trading Ideas:            

* Ref.Soya oil trading range for the day is 1157-1251.

* Ref soyoil gained as India has put on hold a proposal to reduce import taxes on edible oils 

* India slashed the base import prices of soybean oil for a fortnight

* Imports would remain elevated even in June as many states are easing lockdowns and allowing restaurants to reopen.

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1263.25 Rupees per 10 kgs.

Crude palm Oil           

Crude palm Oil yesterday settled up by 1.29% at 1021.8 tracking rise in soyoil prices as India has put on hold a proposal to reduce import taxes on edible oils as cooking oil prices started to fall in the world market after hitting record highs. India slashed the base import prices of palm oil and soybean oil for a fortnight, the government said in a statement, as prices of the cooking oils fell sharply in the global market. India's palm oil imports nearly doubled in May from last year's low base to the highest level in 4-months as refiners bought aggressively to replenish inventory. The country's palm oil imports in the month jumped 92% to 769,602 tonnes. U.S. President Joe Biden's administration, under pressure from labour unions and senators, is considering ways to provide relief to domestic oil refiners from biofuel blending mandates. Indonesia, the world's biggest palm oil producer, exported 2.64 million tonnes of palm oil and its refined products in April, down from a month earlier, data from the Indonesian Palm Oil Association (GAPKI) showed. That compares to 3.23 million tonnes exported in March, while April production of the vegetable oil "was relatively unchanged from March" at nearly 4.1 million tonnes, GAPKI said. In spot market, Crude palm oil dropped by -6.2 Rupees to end at 1023 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -1.38% to settled at 3156 while prices up 13 rupees, now CPO is getting support at 997.3 and below same could see a test of 972.7 levels, and resistance is now likely to be seen at 1039.9, a move above could see prices testing 1057.9. 

Trading Ideas:            

* CPO trading range for the day is 972.7-1057.9.

* Crude palm oil gained tracking rise in soyoil prices as India has put on hold a proposal to reduce import taxes on edible oils 

* India slashed the base import prices of palm oil and soybean oil for a fortnight, the government said in a statement

* India's palm oil imports nearly doubled in May as refiners bought aggressively to replenish inventory.

* In spot market, Crude palm oil dropped  by -6.2 Rupees to end at 1023 Rupees.

Mustard Seed           

Mustard Seed yesterday settled down by -0.85% at 6524 pushed lower by flagging global overseas prices amid forecasts for beneficial rains across the Canadian Prairie. However downside seen limited as the arrival of mustard in the mandis has decreased at all places in the country. U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield. Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. COOIT was against any reduction in import duties on edible oils but wanted the Centre to remove the GST of 5 per cent on mustard seed and oil as it will help farmers and consumers both. European Union rapeseed production is projected to show a modest gain in 2021/22 on increased planted area and improved yield but will remain below the levels observed from 2016 to 2018. However, the Central Organisation for Oil Industry and Trade (COOIT) and the Mustard Oil Producers' Association (MOPA) have estimated the production at 89.50 lakh tonnes. In Alwar spot market in Rajasthan the prices dropped -113.65 Rupees to end at 6780.75 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -1.63% to settled at 54190 while prices down -56 rupees, now Rmseed is getting support at 6444 and below same could see a test of 6364 levels, and resistance is now likely to be seen at 6592, a move above could see prices testing 6660.          

Trading Ideas:            

* Rmseed trading range for the day is 6364-6660.

* Mustard seed dropped amid flagging overseas prices on forecasts for beneficial rains across the Canadian Prairie.

* However downside seen limited as the arrival of mustard in the mandis has decreased at all places in the country.

* Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area.

* In Alwar spot market in Rajasthan the prices dropped -113.65 Rupees to end at 6780.75 Rupees per 100 kg.

Turmeric            

Turmeric yesterday settled down by -0.96% at 7400 as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading. However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh. In Nizamabad APMC in Telangana, the modal price of the finger variety turmeric was quoted at ₹6,950 a quintal. Prices are up about ₹400 since the beginning of this month. At Bangalore in Karnataka, turmeric is quoted at ₹11,500 at the APMC yard with most markets closed in the State to control the Covid-19 pandemic. In Tamil Nadu, too, the agricultural markets are closed as part of the lockdown to tackle the pandemic. Demand for exports to Bangladesh and Europe are helping turmeric prices to gain. Exporters are looking to pick up stocks from Nanded in view of its quality. Turmeric has been in demand over the last two years as it is reported to be effective in medical use, particularly in combating Covid-19. According to Spices Board data, turmeric exports during the April-December period of the last fiscal increased 34 per cent to 1.39 lakh tonnes valued at ₹1,251 crore compared with 1.03 lakh tonnes valued at ₹1,047 crore. In Nizamabad, a major spot market in AP, the price ended at 7485.85 Rupees dropped -18.7 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.59% to settled at 11415 while prices down -72 rupees, now Turmeric is getting support at 7358 and below same could see a test of 7314 levels, and resistance is now likely to be seen at 7462, a move above could see prices testing 7522.    

Trading Ideas:            

* Turmeric trading range for the day is 7314-7522.

* Turmeric dropped as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading.

* However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh.

* Turmeric has been in demand over the last two years as it is reported to be effective in medical use, particularly in combating Covid-19. 

* In Nizamabad, a major spot market in AP, the price ended at 7485.85 Rupees dropped -18.7 Rupees.

Jeera           

Jeera yesterday settled down by -0.71% at 13300 as lockdown restrictions increased against rising Covid cases, slowing spot trade interest weakened market sentiments. The wholesale offers for the NCDEX grade Jeera are currently offered around Rs.14000/qtl in Unjha and in Jodhpur, the mandi offers average near Rs.13900/qtl. Over a month, the wholesale prices in Unjha and Jodhpur have gone down by Rs.400/qtl and Rs.700/qtl respectively. As India struggles against curbing the Corona pandemic, exports markets have turned subdued. The importers prefer to wait for the situation to normalize before negotiating for fresh deals. They rather prefer to clear their older stocks first and presently they feel that the older inventory may be sufficient to balance the existing demand for next few weeks easily. The new season arrivals shall continue with good numbers hence there will be ample availability in the market. However from a broader perspective, India’s exports outlook has brightened while crop is expected to be lower versus year on year. Also, the nearest export competitors i.e. Turkey and Syria may not supply much to the world due to lower exportable surplus. In Unjha, a key spot market in Gujarat, jeera edged down by -111.75 Rupees to end at 13588.25 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 1.13% to settled at 6996 while prices down -95 rupees, now Jeera is getting support at 13225 and below same could see a test of 13155 levels, and resistance is now likely to be seen at 13420, a move above could see prices testing 13545.

Trading Ideas:            

* Jeera trading range for the day is 13155-13545.

* Jeera prices dropped as lockdown restrictions increased against rising Covid cases.

*  As India struggles against curbing the Corona pandemic, exports markets have turned subdued.

*  The importers prefer to wait for the situation to normalize before negotiating for fresh deals.

* In Unjha, a key spot market in Gujarat, jeera edged down by -111.75 Rupees to end at 13588.25 Rupees per 100 kg.

Cotton       

Cotton yesterday settled down by -0.25% at 23720 as Cotton acreage could see 5-10 per cent rise this Kharif season, thanks to good prices farmers have got during the current marketing season (October 2020-September 2021). Assured procurement through the Cotton Corporation of India, prospects of good monsoon and groundnut cultivation turning costly are other factors that are likely to aid higher coverage of cotton this year. Cotton Association of India (CAI) President Atul Ganatra told BusinessLine that the area under cotton will likely increase mainly in Gujarat, Maharashtra, Madhya Pradesh, Telangana, and Karnataka among the States where the natural fibre is grown. Latest cotton crop estimate for the season 2020-21, the trade body Cotton Association of India (CAI) has reduced the crop size by 4 lakh bales (each of 170 kg) to 356 lakh bales. The reduction is attributed to the lower output expected in Gujarat and Telangana. The CAI estimates show a decrease of one lakh bales in the crop estimate for Gujarat, while cotton crop for Telangana is estimated lower by 3 lakh bales based on the pressing data provided by Telangana Cotton Millers & Traders Welfare Association. In spot market, Cotton gained by 80 Rupees to end at 24210 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -3.41% to settled at 3394 while prices down -60 rupees, now Cotton is getting support at 23560 and below same could see a test of 23410 levels, and resistance is now likely to be seen at 23890, a move above could see prices testing 24070.

Trading Ideas:            

* Cotton trading range for the day is 23410-24070.

* Cotton prices dropped as Cotton acreage could see 5-10 per cent rise this Kharif season

* CAI that the area under cotton will likely increase among the States where the natural fibre is grown.

* The reduction is attributed to the lower output expected in Gujarat and Telangana.

* In spot market, Cotton gained  by 80 Rupees to end at 24210 Rupees.

Chana           

Chana yesterday settled down by -0.04% at 5032 on profit booking ahead of sowing report which can report higher sowing under Pulses area compare with last year. However there is a strong possibility of shortage in pulses production, especially due to uncertainty over sowing this crop year due to the pandemic. The country is most likely to face scarcity of pulses this year including masoor, chana and other pulses. There could be a shortage of around 10 lakh tonne in the production of tur this year. As the apex body for the trade, IPGA is bringing it to the notice of the government well in advance to augment the supply side. However, as per trade estimates, the production for tur has been around 2.90 million tonne, urad approximately 2.06 million tonne, moong around 2 million tonne, Chana around 9 million tonne and masoor around 0.95 million tonne. India’s supply of Kabuli chickpea is expected to plunge 32 percent to 396,000 tonnes due to low carryout and very poor production prospects for all of India’s rabi (winter) season crops. Exports will fall to an estimated 50,000 tonnes, down from 115,000 tonnes each of the previous two years. The situation is so dire that India is expected to import 50,000 tonnes from Canada, Argentina and Turkey. In Delhi spot market, chana dropped by -0.05 Rupees to end at 4986.1 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -4% to settled at 127780 while prices down -2 rupees, now Chana is getting support at 5004 and below same could see a test of 4975 levels, and resistance is now likely to be seen at 5051, a move above could see prices testing 5069.    

Trading Ideas:            

* Chana trading range for the day is 4975-5069.

* Chana dropped on profit booking ahead of sowing report which can report higher sowing under Pulses area compare with last year. 

* The country is most likely to face scarcity of pulses this year including masoor, chana and other pulses.

* India’s supply of Kabuli chickpea is expected to plunge 32 percent to 396,000 tonnes due to low carryout and very poor production prospects

* In Delhi spot market, chana dropped  by -0.05 Rupees to end at 4986.1 Rupees per 100 kgs.

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