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Gold

Gold yesterday settled up by 0.47% at 48164 boosted by elevated U.S. consumer prices, which also cooled some bets for aggressive interest rate hikes since the jump in inflation was not as big as expected. Bullion also drew strength from a slip in the dollar, which increased its appeal for overseas buyers, and as U.S. Treasury yields fell after data showed U.S. consumer prices increased further in November, leading to the largest annual gain since 1982. Top Asian hubs saw healthy demand for physical gold this week as domestic prices retreated into the year-end, although volatility in rates deterred retail buyers and jewellers in India. Customers in top consumer China were charged premiums of $7-$10 an ounce versus last week's $6-$9. Hong Kong premiums rose to $0.80-$1.80 from $0.50-$1 previously. The Indian market flipped to a discount of about $2 an ounce over official domestic prices from last week's $2 premiums. The volatility has prompted jewellers to delay purchases for the upcoming wedding season. The Commerce Department released a report showing a sharp increase in U.S. wholesale inventories in the month of October. The report said wholesale inventories surged up by 2.3 percent in October after jumping by 1.4 percent in September. Technically market is under short covering as market has witnessed drop in open interest by -0.79% to settled at 8750 while prices up 225 rupees, now Gold is getting support at 47930 and below same could see a test of 47697 levels, and resistance is now likely to be seen at 48328, a move above could see prices testing 48493.

Trading Ideas:

* Gold trading range for the day is 47697-48493.

* Gold gained boosted by elevated U.S. consumer prices

* Bullion also drew strength from a slip in the dollar, and as U.S. Treasury yields fell

* Focus will now be on the Fed's policy meeting on Dec. 14-15.

Silver

Silver yesterday settled up by 0.58% at 61151 as the dollar pared early gains and exhibited weakness against most of its major counterparts. Rising concerns about the spread of the Omicron coronavirus, and worries about Chinese economic growth following Fitch downgrading Chinese real estate developers China Evergrande and Kaisa Holdings prompted traders to pick up the safe-haven commodity. Data from the Labor Department showed U.S. consumer prices surged at the fastest annual rate of in nearly 40 years in November. The data said the annual rate of growth in consumer prices accelerated to 6.8% in November from 6.2% a month earlier. Core consumer prices rose by 0.5% in November after climbing by 0.6% in October. The increase in core prices matched economist estimates. While the elevated rate of inflation may lead the Federal Reserve to accelerate the pace of tapering its asset purchases next week, traders seemed relieved that the price growth was not even faster. Meanwhile, the University of Michigan released a report showing the consumer sentiment index climbed to 70.4 in December after dropping to a ten-year low of 67.4 in November. U.S. jobless claims dropped to their lowest level in more than 52 years last week as labour market conditions continued to tighten amid an acute shortage of workers. Technically market is under short covering as market has witnessed drop in open interest by -7.61% to settled at 13934 while prices up 353 rupees, now Silver is getting support at 60557 and below same could see a test of 59963 levels, and resistance is now likely to be seen at 61510, a move above could see prices testing 61869.

Trading Ideas:

* Silver trading range for the day is 59963-61869.

* Silver gained as the dollar pared early gains and exhibited weakness against most of its major counterparts.

* Rising concerns about the spread of the Omicron coronavirus, and worries about Chinese economic growth prompted traders to pick up the safe-haven commodity.

* Data from the Labor Department showed U.S. consumer prices surged at the fastest annual rate of in nearly 40 years in November.



Crude oil

Crude oil yesterday settled up by 0.04% at 5408 amid slightly easing worries about the Omicron coronavirus variant's impact on global economic growth. Fears of a likely slowdown in China's property sector as well as the country's broader economy, and declining domestic air traffic in China due to tighter travel restrictions limited oil's uptick. The Labor Department that showed U.S. consumer prices surged at the fastest annual rate in nearly 40 years in November. The data said the annual rate of growth in consumer prices accelerated to 6.8% in November from 6.2% a month earlier. The OPEC+ alliance of oil producers will continue to restore supply to meet growing demand, Russia's Deputy Prime Minister Alexander Novak said. Volatility on the oil market is not very high at the moment, Novak said. A report from Baker Hughes said the number of active U.S. rigs drilling for oil rose by four to 471 this week. The total U.S. rig count, which includes those drilling for natural gas, climbed by seven to 576, the data showed. Money managers cut their net long U.S. crude futures and options positions in the week to December 7, 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 3,112 contracts to 271,407 during the period. Technically market is under short covering as market has witnessed drop in open interest by -14.25% to settled at 3670 while prices up 2 rupees, now Crude oil is getting support at 5341 and below same could see a test of 5275 levels, and resistance is now likely to be seen at 5473, a move above could see prices testing 5539.

Trading Ideas:

* Crude oil trading range for the day is 5275-5539.

* Crude oil recovered from lows amid slightly easing worries about the Omicron coronavirus variant's impact on global economic growth.

* OPEC+ to continue to restore oil supply to meet growing demand – Novak

* A report from Baker Hughes said the number of active U.S. rigs drilling for oil rose by four to 471 this week.

Nat.Gas

Nat.Gas yesterday settled up by 1.85% at 297.7 on forecasts for heating demand to rise in a couple of weeks with a seasonal cooling of the weather. Price rise occurred even though the weather was expected to remain milder than normal through late December. 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. Refinitiv projected average U.S. gas demand, including exports, would drop from 116.9 bcfd this week to 110.5 bcfd next week with an unusual warming of the weather before rocketing to 121.8 bcfd in two weeks as temperatures turn seasonally colder. The amount of gas flowing to U.S. LNG export plants has averaged 11.8 bcfd so far in December now that the sixth train at Cheniere Energy Inc's Sabine Pass plant in Louisiana is producing LNG. That compares to 11.4 bcfd in November and a monthly record of 11.5 bcfd in April. With gas prices around $34 per mmBtu in Europe and $35 in Asia , compared with about $4 in the United States, traders said buyers around the world would keep purchasing all the LNG the United States can produce. Technically market is under short covering as market has witnessed drop in open interest by -8.2% to settled at 7557 while prices up 5.4 rupees, now Natural gas is getting support at 290 and below same could see a test of 282.2 levels, and resistance is now likely to be seen at 303.2, a move above could see prices testing 308.6.

Trading Ideas:

* Natural gas trading range for the day is 282.2-308.6.

* Natural gas climbed on forecasts for heating demand to rise in a couple of weeks with a seasonal cooling of the weather.

* Price rise occurred even though the weather was expected to remain milder than normal through late December.

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



Copper

Copper yesterday settled down by -0.56% at 730.6 after U.S. consumer prices rose in line with expectations, dampening moves by investors to buy commodities as a hedge against inflation. While U.S. inflation data showed the biggest annual gain in more than 39 years, many investors had been bracing for much higher numbers. Major copper miners and Chinese smelters have moved closer to agreement on treatment and refining charges (TC/RC) for 2022, two sources with knowledge of the talks said. TC/RCs are paid by miners to smelters to process copper concentrate into refined metal. The first settlement between a major miner and a smelter in top copper consumer China in annual negotiations usually becomes the benchmark for the year ahead and has a large role in determining profitability. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 14.6 percent from last Friday, the exchange said. China's major copper smelters boosted output by 1.3% in November from the previous month as fewer producers carried out maintenance and power supply shortages eased. While widespread power rationing on industry in China has now faded, supply of raw materials copper concentrate and blister is relatively tight, restricting smelter ramp-up rates. Technically market is under long liquidation as market has witnessed drop in open interest by -2.71% to settled at 4913 while prices down -4.1 rupees, now Copper is getting support at 727 and below same could see a test of 723.3 levels, and resistance is now likely to be seen at 737.4, a move above could see prices testing 744.1.

Trading Ideas:

* Copper trading range for the day is 723.3-744.1.

* Copper prices slipped after U.S. consumer prices rose in line with expectations, dampening moves by investors to buy

* Major copper miners and Chinese smelters have moved closer to agreement on treatment and refining charges (TC/RC) for 2022.

* Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 14.6 percent from last Friday, the exchange said
 

Zinc

Zinc yesterday settled up by 0.02% at 277.25 as LME daily inventory data showed a jump of 14,025 tonnes to 164,425 tonnes, interrupting a months-long trend of outflows. The zinc ingot social inventories across seven major markets in China totalled 125,300 mt as of Friday December 10, down 4,800 mt from last Friday. The weekly decline in domestic social inventory implied warming downstream demand, which boosted market confidence to some extent. On the supply side, the zinc ingot output fell short due to environmental protection-related restrictions. In other words, the fundamentals of zinc were favourable to zinc prices, coupled with low inventory. However, the downstream purchased on rigid demand, and the environmental protection policies also suppressed the demand side. China's refined zinc output stood at 519,500 mt in November, up 20,200 mt or 4.05% on the month but down 7.61% on the year. The combined output from January to November stood at 5.57 million mt, up 0.41% year on year. Alloy output at domestic refined zinc smelters in survey sample registered 77,000 mt in November, up 3,500 mt mt on the month. China's refined zinc output in November was basically on par with estimate. The increase in output was partly contributed by the expected production resumption from power rationing in Hunan, Guangxi, Henan, Gansu and Liaoning. Technically market is under short covering as market has witnessed drop in open interest by -0.24% to settled at 1660 while prices up 0.05 rupees, now Zinc is getting support at 276 and below same could see a test of 274.7 levels, and resistance is now likely to be seen at 278.6, a move above could see prices testing 279.9.

Trading Ideas:

* Zinc trading range for the day is 274.7-279.9.

* Zinc settled flat as LME daily inventory data showed a jump of 14,025 tonnes to 164,425 tonnes, interrupting a months-long trend of outflows.

* The zinc ingot social inventories across seven major markets in China totalled 125,300 mt as of Friday December 10, down 4,800 mt

* China's refined zinc output stood at 519,500 mt in November, up 20,200 mt or 4.05% on the month

Nickel

Nickel yesterday settled down by -0.26% at 1555.1 as stainless steel mills have advanced their maintenance plan, leading to less demand for nickel. In the new energy sector, the spot prices of nickel sulphate moved lower, and independent nickel sulphate manufacturers cut their output to contain costs. 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. 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. 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%. Technically market is under long liquidation as market has witnessed drop in open interest by -5.12% to settled at 1574 while prices down -4 rupees, now Nickel is getting support at 1548.4 and below same could see a test of 1541.6 levels, and resistance is now likely to be seen at 1562.6, a move above could see prices testing 1570.

Trading Ideas:

* Nickel trading range for the day is 1541.6-1570.

* Nickel prices dropped as stainless steel mills have advanced their maintenance plan, leading to less demand for nickel.

* China's Tsingshan starts producing EV battery raw material nickel matte in Indonesia

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

Aluminium

Aluminium yesterday settled down by -0.58% at 213.2 amid stronger risk aversion sentiments after Japanese research claims that the Omicron COVID-19 variant is more than four times more infectious than Delta variant in the early stage, and more countries have confirmed cases of infection and tightened pandemic prevention and control measures. On the macro front, the US initial jobless claims last week dropped to 52-year low, and the non-farm payrolls also recorded the slowest growth in this year, indicating that labour shortage will be a long-term issue. US President Biden said that the price hikes of energy and other key commodities were slowing down in an effort to appease the public. A Japanese research claims that the Omicron COVID-19 variant is more than four times more infectious than Delta variant in the early stage, and more countries have confirmed cases of infection and tightened pandemic prevention and control measures. Data showed that China's social inventories of aluminium across eight consumption areas dropped 50,000 mt on the week to 952,000 mt as of December 9, mainly contributed by Wuxi, Nanhai and Shanghai. The inventory in Gongyi also declined on the week. Data showed that China's aluminium output was 3.07 million mt in November (30 days), a year-on-year decrease of 3%. Technically market is under long liquidation as market has witnessed drop in open interest by -11.92% to settled at 1596 while prices down -1.25 rupees, now Aluminium is getting support at 212.3 and below same could see a test of 211.5 levels, and resistance is now likely to be seen at 214.6, a move above could see prices testing 216.1.

Trading Ideas:

* Aluminium trading range for the day is 211.5-216.1.

* Aluminium prices dropped amid stronger risk aversion sentiments

* Data showed that China's social inventories of aluminium across eight consumption areas dropped 50,000 mt on the week

* Data showed that China's aluminium output was 3.07 million mt in November (30 days), a year-on-year decrease of 3%.
 

Mentha oil

Mentha oil yesterday settled down by -0.74% at 962 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 -0.4 Rupees to end at 1084.6 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -1.28% to settled at 848 while prices down -7.2 rupees, now Mentha oil is getting support at 956.8 and below same could see a test of 951.7 levels, and resistance is now likely to be seen at 968.5, a move above could see prices testing 975.1.

Trading Ideas:

* Mentha oil trading range for the day is 951.7-975.1.

* In Sambhal spot market, Mentha oil dropped  by -0.4 Rupees to end at 1084.6 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 1.35% at 6460 after the U.S. Department of Agriculture (USDA) trimmed its global supply outlook despite market expectations for an increase. In a monthly report, the USDA projected 2021/22 marketing year U.S. ending stocks at 340 million bushels, unchanged from a month earlier but below the average trade forecast for 352 million. Global ending stocks were seen at 102 million tonnes, below the average trade estimate for 104.13 million. Private exporters reported sales of 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year. China's Ag Min lowered 21/22 soybean production to 16.4MMT down from November forecast at 18.65MMT, & -16.3% lower than yr earlier crop of 19.6MMT. Brazil's CONAB projected the country's 2021/22 soybean crop at 142.789 million tonnes, up from the prior estimate for 142.009 million and 137.321 million tonnes in the 2020/21 season. In a weekly report, the USDA said net U.S. soybean exports in the week ended Dec. 2 rose to a five-week high of 1,637,888 tonnes, near the high end of a range of analyst estimates. China, Egypt and Spain were top buyers. The USDA also reported 280,000 tonnes in U.S. soybean export sales to undisclosed buyers via its daily reporting system. Shipment was for the current and next marketing years. At the Indore spot market in top producer MP, soybean dropped -68 Rupees to 6497 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 0.95% to settled at 72295 while prices up 86 rupees, now Soyabean is getting support at 6345 and below same could see a test of 6231 levels, and resistance is now likely to be seen at 6548, a move above could see prices testing 6637.

Trading Ideas:

* Soyabean trading range for the day is 6231-6637.

* Soyabean gains after the U.S. Department of Agriculture (USDA) trimmed its global supply outlook despite market expectations for an increase.

* In a monthly report, the USDA projected 2021/22 marketing year U.S. ending stocks at 340 million bushels, unchanged from a month earlier.

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

* At the Indore spot market in top producer MP, soybean dropped  -68 Rupees to 6497 Rupees per 100 kgs.

Soyaoil

Ref.Soyaoil yesterday settled up by 0.55% at 1181.2 tracking soyabean prices as the 2021/22 global oilseed supply and demand forecasts include lower production and lower ending stocks compared to last month. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1206.5 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 12.48% to settled at 29210 while prices up 6.5 rupees, now Ref.Soya oil is getting support at 1174 and below same could see a test of 1167 levels, and resistance is now likely to be seen at 1186, a move above could see prices testing 1191.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1167-1191.

* Ref soyoil gains tracking soyabean prices as the 2021/22 global oilseed supply and demand forecasts include lower production and lower ending stocks

* The U.S raised a proposal to scale back biofuel blending mandates.

* 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 1206.5 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled down by -0.14% at 1101.8 due to a smaller-than-expected decline in November stockpile. Malaysia's palm oil end-stocks fell 0.96% by November-end from October to 1.82 million tonnes, Malaysian Palm Oil Board (MPOB) data showed. Crude palm oil production declined 5.3% from October to 1.63 million tonnes, while palm oil exports rose 3.3% to 1.47 million tonnes, MPOB said. Malaysia's palm oil exports during Dec. 1-10 was unchanged from the same period in November at 544,059 tonnes, cargo surveyor Amspec Agri said. Planters in the world's second-largest producer are racing to adjust to an acute shortage of workers due to the coronavirus and sharply higher costs of recruitment as they make changes in response to accusations of forced labour. 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. In spot market, Crude palm oil dropped by -0.9 Rupees to end at 1112.2 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -0.88% to settled at 4725 while prices down -1.5 rupees, now CPO is getting support at 1094.9 and below same could see a test of 1088 levels, and resistance is now likely to be seen at 1109.8, a move above could see prices testing 1117.8.

Trading Ideas:

* CPO trading range for the day is 1088-1117.8.

* Crude palm oil ended with small losses due to a smaller-than-expected decline in November stockpile.

* Malaysia's palm oil end-stocks fell 0.96% by November-end from October to 1.82 million tonnes, Malaysian Palm Oil Board (MPOB) data showed.

* Crude palm oil production declined 5.3% from October to 1.63 million tonnes, while palm oil exports rose 3.3% to 1.47 million tonnes, MPOB said.

* In spot market, Crude palm oil dropped  by -0.9 Rupees to end at 1112.2 Rupees.

Turmeric

Turmeric yesterday settled up by 0.68% at 8842 due to heavy rainfall, the minimum crop damage has gone to 40% to 50% in producing parts of Maharashtra, Telangana and Andhra. Support also as the demand from exporters is good. 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. In Nizamabad, a major spot market in AP, the price ended at 7797.5 Rupees dropped -39.4 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 7.73% to settled at 5715 while prices up 60 rupees, now Turmeric is getting support at 8710 and below same could see a test of 8580 levels, and resistance is now likely to be seen at 8922, a move above could see prices testing 9004.

Trading Ideas:

* Turmeric trading range for the day is 8580-9004.

* Turmeric prices gained due to heavy rainfall, the minimum crop damage has gone to 40% to 50%

* 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 7797.5 Rupees dropped -39.4 Rupees.
 

Jeera

Jeera yesterday settled down by -0.86% at 16105 as Cumin exports declined by 1.4% year-on-year to 1.39 lakh tonnes in April-September but are expected to improve in the coming months. Pressure also seen 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. 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 -111.9 Rupees to end at 16066.65 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 3.88% to settled at 8670 while prices down -140 rupees, now Jeera is getting support at 16020 and below same could see a test of 15940 levels, and resistance is now likely to be seen at 16210, a move above could see prices testing 16320.

Trading Ideas:

* Jeera trading range for the day is 15940-16320.

* Jeera dropped as Cumin exports declined by 1.4% year-on-year to 1.39 lakh tonnes in April-September but are expected to improve in the coming months.

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

* 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 -111.9 Rupees to end at 16066.65 Rupees per 100 kg.

Cotton

Cotton yesterday settled down by -0.38% at 31210 as arrivals of cotton were at 177,500 bales, higher than 5,500 bales against 172,000 bales previous day. 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. Of the total quantity, around 12,000 bales arrived in Haryana, 3,000 in Punjab, and 18,500 bales in Rajasthan. Arrivals were pegged at 45,000 bales in Gujarat, around 13,000 bales in Madhya Pradesh, and 40,000 bales in Maharashtra. Nearly 13,000 bales arrived in Karnataka, 3,000 in Odisha, and 30,000 bales in Telangana and Andhra Pradesh combined. The United States Department of Agriculture (USDA) in its monthly supply and demand report lowered global ending stock estimates for the 2021/2022 crop year. "Projected 2021/22 world cotton ending stocks are 1.2 million bales lower this month due to lower beginning stocks, lower production, and slightly higher consumption," the USDA said in its December World Agricultural Supply and Demand Estimates (WASDE) report. In spot market, Cotton dropped by -70 Rupees to end at 31610 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -5.19% to settled at 4166 while prices down -120 rupees, now Cotton is getting support at 31130 and below same could see a test of 31060 levels, and resistance is now likely to be seen at 31300, a move above could see prices testing 31400.

Trading Ideas:

* Cotton trading range for the day is 31060-31400.

* Cotton prices dropped as arrivals of cotton were at 177,500 bales and exports have slowed due to higher prices in the domestic market

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

* Brazil 2021/2022 cotton (lint) output seen at 2.612 million tns versus 2.653 million tns in the previous forecast

* In spot market, Cotton dropped  by -70 Rupees to end at 31610 Rupees.

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