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Gold

Gold yesterday settled down by -0.09% at 47438 weighed down by higher Treasury yields and a stronger dollar after a sharp rise in U.S. consumer prices boosted expectations of early interest rate hikes. Data showed U.S. consumer prices jumped the most in nearly 12 years in April, intensifying concerns over rising inflation and bets over an earlier-than-expected Fed rate hike. However, Fed Vice Chair Richard Clarida said the twin surprises of weak jobs growth and strong inflation in April has not dented the central bank's plans to keep its support for the economy wide open. The Fed has pledged to keep interest rates low until the economy reaches full employment, and inflation hits 2% and is on track to "moderately" exceed that level for some time. India and China drove gold jewellery demand 52 per higher during the first quarter this year compared with the same period a year ago, but it was still lower than the average first quarter demand during 2015-2019, according to the World Gold Council (WGC). China's 2021 gold demand will see annual growth and will revert to pre-pandemic levels if there are no dramatic changes to the global economic and geo-political situation, a World Gold Council (WGC) official said. Technically market is under fresh selling as market has witnessed gain in open interest by 0.17% to settled at 7496 while prices down -44 rupees, now Gold is getting support at 47256 and below same could see a test of 47074 levels, and resistance is now likely to be seen at 47575, a move above could see prices testing 47712.

Trading Ideas:            

* Gold trading range for the day is 47074-47712.

* Gold prices slipped weighed down by higher Treasury yields and a stronger dollar after a sharp rise in U.S. consumer prices boosted expectations of early interest rate hikes

* U.S. consumer prices post largest gain since 2009

* 10-year Treasury yields climb to over 1-month high

Silver    

Silver yesterday settled down by -0.91% at 70473 as dollar held on to its gains in a continuation of moves that started in the previous session when a surprisingly large rise in U.S. consumer prices fanned inflation fears. Data showed that U.S. consumer prices increased by the most in nearly 12 years in April, sparking a “risk-off” move in global markets: equities and riskier currencies fell while U.S. Treasury yields rose. Fewer Americans filed new claims for unemployment benefits last week, as companies held on to their workers amid the growing labor shortage that helped to curb job growth in April. Initial claims for state unemployment benefits totaled a seasonally adjusted 473,000 for the week ended May 8, compared to 507,000 in the prior week, the Labor Department said. The Labor Department said its producer price index for final demand rose 0.6% in April after surging 1.0% in March. In the 12 months through April, the PPI shot up 6.2%. That was the biggest year-on-year rise since the series was revamped in 2010 and followed a 4.2% jump in March. U.S. Federal Reserve Vice Chair Richard Clarida said that weak job growth and strong inflation in April had not changed the central bank’s plan to maintain loose monetary policy. Technically market is under fresh selling as market has witnessed gain in open interest by 3.42% to settled at 10156 while prices down -648 rupees, now Silver is getting support at 70102 and below same could see a test of 69731 levels, and resistance is now likely to be seen at 70842, a move above could see prices testing 71211.      

Trading Ideas:            

* Silver trading range for the day is 69731-71211.

* Silver prices dropped as dollar held on to its gains after a surprisingly large rise in U.S. consumer prices fanned inflation fears.

* Fewer Americans filed new claims for unemployment benefits last week, as companies held on to their workers

* Data showed that U.S. consumer prices increased by the most in nearly 12 years in April

Crude oil

Crude oil yesterday settled down by -4.34% at 4672 as concerns about the coronavirus crisis in India, the world's third-biggest importer of crude, tempered a rally driven by IEA and OPEC predictions that demand is coming back strong. Oil demand is already outstripping supply and the shortfall is expected to grow further even if Iran boosts exports, the International Energy Agency (IEA) said in its monthly report. OPEC stuck to its forecast for a strong return of world oil demand in 2021, with growth in China and the United States cancelling out the impact of the coronavirus crisis in India. Colonial Pipeline began to slowly restart the nation's largest fuel pipeline network after a ransomware attack shut the line, triggering fuel shortages and panic buying in the southeastern United States. It will take several days for the 5,500 mile (8,850 km) pipeline to return to normal operations, Colonial said, even as motorists in southeastern states jammed stations seeking fuel. U.S. crude oil stockpiles dropped last week and exports fell to their lowest since 2018, while gasoline inventories rose unexpectedly and distillate hit their lowest levels in more than a year, the Energy Information Administration said on Wednesday. Crude inventories fell by 427,000 barrels in the week to May 7 to 484.7 million barrels, compared with expectations for a 2.8 million-barrel drop. Technically market is under long liquidation as market has witnessed drop in open interest by -32.07% to settled at 4293 while prices down -212 rupees, now Crude oil is getting support at 4589 and below same could see a test of 4507 levels, and resistance is now likely to be seen at 4804, a move above could see prices testing 4937.  

Trading Ideas:            

*  Crude oil trading range for the day is 4507-4937.

* Crude oil dropped as concerns about the coronavirus crisis in India, tempered a rally driven by IEA and OPEC predictions

* Oil demand is already outstripping supply and the shortfall is expected to grow further even if Iran boosts exports, the International Energy Agency (IEA) said in its monthly report

* Colonial Pipeline slowly restarts as Southeast U.S. scrambles for fuel

Nat.Gas    

Nat.Gas yesterday settled down by -0.18% at 218.3 recovered losses following the release of a storage report showing a build last week that was lower than usual due to near record exports. Traders noted that price increase came despite a decline in exports this week, a small increase in output and forecasts for milder weather and lower demand next week than previously expected. The U.S. Energy Information Administration (EIA) said U.S. utilities added 75 billion cubic feet (bcf) of gas into storage during the week ended May 7. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 90.8 billion cubic feet per day (bcfd) so far in May, up from 90.6 bcfd in April, but still well below November 2019's monthly record of 95.4 bcfd. Refinitiv projected average gas demand, including exports, would fall from 87.3 bcfd this week to 80.8 bcfd next week as the weather turns milder. The forecast for this week was higher due to increased power generator use and the forecast for next week was lower due to reduced heating use than Refinitiv estimated on Wednesday. The amount of gas flowing to U.S. LNG export plants averaged 11.2 bcfd so far in May, down from April's monthly record of 11.5 bcfd. Technically market is under fresh selling as market has witnessed gain in open interest by 2.61% to settled at 20012 while prices down -0.4 rupees, now Natural gas is getting support at 216.3 and below same could see a test of 214.2 levels, and resistance is now likely to be seen at 220.2, a move above could see prices testing 222. 

Trading Ideas:            

*  Natural gas trading range for the day is 214.2-222.

* Natural gas recovered losses following the release of a storage report showing a build last week that was lower than usual due to near record exports.

*  Traders noted that price increase came despite a decline in exports this week, a small increase in output and forecasts for milder weather

* The U.S. Energy Information Administration (EIA) said U.S. utilities added 75 billion cubic feet (bcf) of gas into storage

Copper           

Copper yesterday settled down by -1.4% at 779.6 as higher-than-expected inflation rate in the United States sparked fears of monetary tightening, potentially restricting liquidity into commodities. Workers' strike threats at BHP Group's Escondida and Spence copper mines loomed after contract negotiations stalled, putting further pressure on an already tight copper concentrate market. Prices have also been supported by hope that copper demand will be boosted by the renewable energy and electric vehicle sectors, as well as by a global economic recovery from the impacts of the pandemic. Yangshan copper premium , however, hovered around its lowest since February 2016 of $38.50 a tonne, as Chinese demand for imported metal weakened amid elevated commodities prices. Chinese smelter Tongling Nonferrous Metals Group's output this year will be down by 40,000 tonnes due to maintenance at its Jinlong plant. The global copper market should see a surplus of 79,000 tonnes this year and of 109,000 tonnes in 2022, the International Copper Study Group (ICSG) said. The global world refined copper market showed a 28,000 tonnes surplus in January, compared with a 1,000 tonnes deficit in December, the International Copper Study Group (ICSG) said in its latest monthly bulletin. Technically market is under long liquidation as market has witnessed drop in open interest by -5.85% to settled at 3543 while prices down -11.05 rupees, now Copper is getting support at 772.1 and below same could see a test of 764.4 levels, and resistance is now likely to be seen at 787.5, a move above could see prices testing 795.2.           

Trading Ideas:            

* Copper trading range for the day is 764.4-795.2.

* Copper prices fell as higher-than-expected inflation rate in the United States sparked fears of monetary tightening, potentially restricting liquidity into commodities.

*  Workers' strike threats at BHP Group's Escondida and Spence copper mines loomed after contract negotiations stalled, putting further pressure on supply.

*  Prices have also been supported by hope that copper demand will be boosted by the renewable energy and electric vehicle sectors

Zinc         

Zinc yesterday settled down by -1.82% at 229.65 as Zinc and zinc alloy output from 51 Chinese smelters in April was at 438,000 tonnes, up 3.7% year-on-year and 6.4% month-on-month on a daily basis. Global supply of refined zinc is expected to exceed demand by 353,000 tonnes in 2021, the International Lead and Zinc Study Group (ILZSG) said, adding it expects global supply of lead to exceed demand by 96,000 tonnes. ILZSG forecasts global demand for refined zinc to rise by 4.3% to 13.78 million tonnes in 2021 and global zinc mine production by 5.7% to 12.92 million tonnes. The US dollar rose off a 2-1/2-month low, as some traders bet that a hotter-than-expected inflation report could force the Federal Reserve to tighten monetary policy sooner than telegraphed. Though the dollar index touched its weakest in more than two months against the euro overnight, it later rose to 90.77 as selling pressure persisted in stock markets following the Labor Department’s report on consumer prices. The government said inflation accelerated at its fastest pace in more than 12 years for April with the Consumer Price Index rising 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. Technically market is under long liquidation as market has witnessed drop in open interest by -12.03% to settled at 1755 while prices down -4.25 rupees, now Zinc is getting support at 227.5 and below same could see a test of 225.3 levels, and resistance is now likely to be seen at 232.3, a move above could see prices testing 234.9.      

Trading Ideas:            

* Zinc trading range for the day is 225.3-234.9.

*  Zinc prices dropped as Zinc and zinc alloy output from 51 Chinese smelters in April was at 438,000 tonnes, up 3.7% year-on-year

* Global supply of refined zinc is expected to exceed demand by 353,000 tonnes in 2021, the International Lead and Zinc Study Group (ILZSG) said

* ILZSG forecasts global demand for refined zinc to rise by 4.3% to 13.78 million tonnes in 2021 and global zinc mine production by 5.7% to 12.92 million tonnes.

Nickel            

Nickel yesterday settled down by -2.48% at 1282 after the shocking rise in U.S. inflation sent bond yields surging on worries the Federal Reserve might have to move early on tightening. U.S. consumer prices increased by the most in nearly 12 years in April as booming demand amid a reopening economy pushed against supply constraints, which could add fuel to financial market fears of a lengthy period of higher inflation. China's central bank said it would keep prudent monetary policy flexible, targeted and appropriate. In its first-quarter monetary policy implementation report, the People's Bank of China said global inflation and a low base effect could drive up China's producer price index (PPI) in the second and third quarter. However, the annual increase in the PPI for 2020-2021 is expected to stay within a reasonable range, it added. Indonesian state miner Aneka Tambang (Antam) said its nickel ore output rose more than four-fold in the first three months of 2021 compared to the same period a year ago. Antam's nickel ore output stood at 2.64 million wet metric tonnes (WMT) in the first quarter, up from 629,000 WMT in the same period in 2020, the company said in a statement. Antam's nickel ore sales, meanwhile, stood at 1.6 million wet metric tonnes in the first quarter, the company said. Technically market is under fresh selling as market has witnessed gain in open interest by 16.4% to settled at 1760 while prices down -32.6 rupees, now Nickel is getting support at 1273.3 and below same could see a test of 1264.6 levels, and resistance is now likely to be seen at 1291, a move above could see prices testing 1300.

Trading Ideas:            

* Nickel trading range for the day is 1264.6-1300.

*  Nickel prices dropped after the shocking rise in U.S. inflation sent bond yields surging on worries the Federal Reserve might have to move early on tightening.

* U.S. consumer prices increased by the most in nearly 12 years in April as booming demand amid a reopening economy pushed against supply constraints

*  China central bank says to keep monetary policy flexible, targeted

 Aluminium          

Aluminium yesterday settled down by -1.38% at 195.9 as the US dollar went higher as the CPI in April was significantly higher than the market expectation, hitting the fastest growth rate in more than 12 years, and inflation jumped. The overall CPI of the US in April announced yesterday increased 4.2% year on year, and the growth rate reached a new high since September 2008. The resurgence of inflation in the market caused investors to worry about tightening monetary policy. Federal Reserve Chairman Powell promised to keep interest rates stable and at the same time allow inflation to rise for a period of time. At the same time, the Federal Reserve also said that inflation may be temporary and will fall again by the end of this year. In its first-quarter monetary policy implementation report, the People's Bank of China said global inflation and a low base effect could drive up China's producer price index (PPI) in the second and third quarter. However, the annual increase in the PPI for 2020-2021 is expected to stay within a reasonable range, it added. Eurozone investor confidence improved to the highest level in more than three years in May suggesting that the recession caused by the coronavirus has been overcome, survey results from Sentix showed. Technically market is under long liquidation as market has witnessed drop in open interest by -2.89% to settled at 1346 while prices down -2.75 rupees, now Aluminium is getting support at 194.3 and below same could see a test of 192.7 levels, and resistance is now likely to be seen at 197.6, a move above could see prices testing 199.3.          

Trading Ideas:            

*   Aluminium trading range for the day is 192.7-199.3.

*  Aluminium prices dropped as the US dollar went higher as the CPI in April was significantly higher than the market expectation

* The resurgence of inflation in the market caused investors to worry about tightening monetary policy.

*  Federal Reserve Chairman Powell promised to keep interest rates stable and at the same time allow inflation to rise for a period of time

 Mentha oil          

Mentha oil yesterday settled down by -0.67% at 966.1 amid worries of lockdown it is anticipated that there will be slow supply and same with demand in domestic as well as in the international market. Due to favourable wheather condition,the production of mentha in the states has improved and is at much better terms compare to last year. Sowing data is adequate and it is expected that Mentha can hit the market by 15th of June. Mentha has high demand in the production of cosmetics and confectionery goods but as it is not considered as necessity in present scenerio it is not much in demand. The COVID-19 outbreak has had a huge impact on the worldwide economy, and has posed a similar influence on the aroma chemicals market. The market has been faced with the lack of migrant labor, supply chain disruptions, shutdown of manufacturing activities, to name a few. In India, mentha is grown on 3,27,000-3,34,000 hectares, producing about 33,000-35,000 tonnes, accounting for 80 per cent share globally. With the boom in demand for oil and its derivatives in export markets, mentha production continued to rise until 2010. However, with the entry of synthetic menthol, the demand, price and production of mentha were hit. In Sambhal spot market, Mentha oil dropped by -20.3 Rupees to end at 1058.9 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -6.9% to settled at 27 while prices down -6.5 rupees, now Mentha oil is getting support at 960.5 and below same could see a test of 954.8 levels, and resistance is now likely to be seen at 970.9, a move above could see prices testing 975.6.          

Trading Ideas:            

* Mentha oil trading range for the day is 954.8-975.6.

* In Sambhal spot market, Mentha oil dropped  by -20.3 Rupees to end at 1058.9 Rupees per 360 kgs.

* Mentha oil prices dropped amid worries of lockdown there will be slow demand 

* Due to favourable wheather condition,the production of mentha in the states has improved and is at much better terms compare to last year.

* The COVID-19 outbreak has had a huge impact on the worldwide economy, and has posed a similar influence on the aroma chemicals market.

Soyabean           

Soyabean yesterday settled down by -0.96% at 7393 on profit booking after prices gained tracking rise in overseas prices amid strong demand and concerns over global supplies. Tight oilseed stocks have been supporting the market despite fear over diminished vegetable oil demand in India due to a surge in coronavirus cases. Madhya Pradesh, which had imposed restrictions on the sale of soyabean seeds outside the state, has revoked its order following protests by the Maharashtra government. After Madhya Pradesh, Maharashtra is the biggest soyabean producing state in the country with farmers growing the oilseed in over 35-40 lakh hectares yearly. China's soybean imports in April rose 11% from the same month a year earlier, boosted by the arrival of some delayed cargoes, customs data showed. China, the world's top importer of soybeans, brought in 7.45 million tonnes of the oilseed in April, up from 6.714 million tonnes a year earlier, according to General Administration of Customs data. Meanwhile, the imports from Brazil, the world's top exporter, dropped to the lowest since January 2017 as rain delayed some shipments. Also, the cool and dry weather in Midwest can impact the crops despite US farmers planning to sow 87.600 million acres with soybeans this year, the most since 2018. At the Indore spot market in top producer MP, soybean gained 54 Rupees to 6720 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 7.99% to settled at 51330 while prices down -72 rupees, now Soyabean is getting support at 7294 and below same could see a test of 7194 levels, and resistance is now likely to be seen at 7552, a move above could see prices testing 7710.          

Trading Ideas:            

*  Soyabean trading range for the day is 7194-7710.

*  Soyabean dropped on profit booking after prices gained tracking rise in overseas prices amid strong demand and concerns over global supplies.

*  Tight oilseed stocks have been supporting the market despite fear over diminished vegetable oil demand in India due to a surge in coronavirus cases.

*  Madhya Pradesh, which had imposed restrictions on the sale of soyabean seeds outside the state, has revoked its order following protests by the Maharashtra government.

*  At the Indore spot market in top producer MP, soybean gained  35 Rupees to 7875 Rupees per 100 kgs.

 Ref.Soyaoil 

Ref.Soyaoil yesterday settled down by -0.69% at 1441.7 on profit booking after prices gained as concerns over tight global supplies underpinned the market. Traders are awaiting Wednesday's World Agricultural Supply and Demand Estimates (WASDE) report, in which the U.S. Department of Agriculture (USDA) will give its first global outlook for 2021/22 and update its 2020/21 estimates. There is no impact of COVID-19 pandemic situation on progress of area coverage under summer crops in the country. Oilseeds 10.45 lakh ha area against 9.03 lakh ha area of last year, thus increase in area coverage by 1.41 lakh ha. Total vegetable oil imports rose marginally to 9,80,243 tonne in March 2021, compared to 9,55,422 tonne in the year-ago period. Support also seen due to low stocks, a slow recovery in output and higher global use in biofuel production. Prices rallied in recent session tracking rise in soyabean prices after the U.S. Department of Agriculture's plantings forecast for 2021 fell below most trade expectations. Export of oilmeals jumped 205% year-on-year in February to 393,309 tonne, compared with 128,761 tonne, according to data compiled by the Solvent Extractors’ Association of India (SEA). At the Indore spot market in Madhya Pradesh, soyoil was steady at 1335.8 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 3.41% to settled at 28850 while prices down -10 rupees, now Ref.Soya oil is getting support at 1437 and below same could see a test of 1432 levels, and resistance is now likely to be seen at 1448, a move above could see prices testing 1454.

Trading Ideas:            

* Ref.Soya oil trading range for the day is 1432-1454.

*  Ref Soyoil dropped on profit booking after prices gained as concerns over tight global supplies underpinned the market. 

* However upside seen limited after reports that summer oilseed crop sowing progress is very good as on date. 

* There is no impact of COVID-19 pandemic situation on progress of area coverage under summer crops in the country.

*  At the Indore spot market in Madhya Pradesh, soyoil was steady at 1491 Rupees per 10 kgs.

Crude palm Oil           

Crude palm Oil yesterday settled down by -0.35% at 1243 as pressure from rising inventories and upbeat outlook for U.S crop plantings countered a surge in May exports so far. Malaysia's palm oil stocks at the end of April rose 7.1% from the previous month to 1.55 million tonnes, data from industry regulator the Malaysian Palm Oil Board (MPOB) showed. Crude palm oil production jumped 7% from March to 1.52 million tonnes, while palm oil exports expanded 12.6% to 1.34 tonnes, MPOB said. Indian edible oil refiners are curtailing palm oil imports for May and June as most states have imposed curbs on hotels and restaurants to arrest rising coronavirus infections, denting institutional demand, industry officials said. Lower imports by India, the world's biggest buyer of the edible oil, could limit a rally in benchmark Malaysian palm oil futures , which hit their highest level since 2008. The country was expected to import 850,000 tonnes of palm oil per month in May and June, but now industry officials estimate imports could come down to around 650,000 tonnes. India imports palm oil mainly from Indonesia and Malaysia, and other oils such as soy and sunflower from Argentina, Brazil, Ukraine and Russia. In spot market, Crude palm oil dropped by -1.4 Rupees to end at 1178.6 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -2.46% to settled at 4397 while prices down -4.4 rupees, now CPO is getting support at 1239.1 and below same could see a test of 1235.1 levels, and resistance is now likely to be seen at 1246.9, a move above could see prices testing 1250.7.       

Trading Ideas:            

* CPO trading range for the day is 1235.1-1250.7.

* Crude palm oil dropped as pressure from rising inventories and upbeat outlook for U.S crop plantings countered a surge in May exports so far. 

* Malaysia's palm oil stocks at the end of April rose 7.1% from the previous month to 1.55 million tonnes

* Crude palm oil production jumped 7% from March to 1.52 million tonnes

* In spot market, Crude palm oil gained  by 10.3 Rupees to end at 1251.8 Rupees.

Mustard Seed           

Mustard Seed yesterday settled down by -0.03% at 7500 paring gains on profit booking after prices gained lifted by higher soy prices and concerns about dry Canadian planting conditions. Support also seen as crushing as increased due to rise in mustard oil demand. A total of 1.2 million tonnes of mustard crushing occurred in the country in March 2021 compared to 5.50 lakh tonnes in the month of February. Whereas, the stock of mustard with farmers is estimated to be 62.50 lakh tonnes and processors and stockists have a stock of six lakh tonnes of mustard. The arrival of mustard in February was 4.50 lakh tonne while in March it reached 17.7 million tonne. India mustard output this year is projected at 104.27 lakh tonnes. 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. As per USDA, World Mustard seed production is estimated to remain steady at 689 lakh tonnes in 2020-21. The beginning stock estimated to fall by 25% y-o-y, taking the total supply to decline by 2% to 923 lakh tonnes as compared to 944 lakh tonnes recorded in the last year. Total consumption and ending stocks are also estimated to be lower by 1% and 29% respectively. In Alwar spot market in Rajasthan the prices gained 57 Rupees to end at 6197.5 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -0.55% to settled at 69180 while prices down -2 rupees, now Rmseed is getting support at 7436 and below same could see a test of 7373 levels, and resistance is now likely to be seen at 7606, a move above could see prices testing 7713.  

Trading Ideas:            

* Rmseed trading range for the day is 7373-7713.

* Mustard seed settled flat paring gains on profit booking after prices gained lifted by higher soy prices and concerns about dry Canadian planting conditions.

* Support also seen as crushing as increased due to rise in mustard oil demand.

*  Canada canola stocks plunge by 37.7% compared to 2020

* In Alwar spot market in Rajasthan the prices gained 105 Rupees to end at 7325 Rupees per 100 kg.

Turmeric           

Turmeric yesterday settled up by 1.82% at 7848 as again demand is seen as an immune booster amid a resurgence in infections that has spurred curbs in some states. Support also seen on concerns over production prospects in the new season, relatively lower carryover stocks, active buying by bulk buyers and better exports prospects. The arrival so far this year has been 10.15 lakh bags (one bag of 50 kg) as compared to 11.50 lakh bags in the same period last year and 14 lakh bags in 2019.In Nanded in Maharashtra, arrivals are at least 40 per cent lower. In addition to this, stocks in the pipeline have also come down this year following the increase in turmeric exports. Export orders have come from Bangladesh and Gulf countries and shipment will start from April. According to data by the Ministry of Agriculture, turmeric production was estimated at 9.46 lakh tonnes during the 2019-20 season (July-June), compared with 9.61 lakh tonnes the previous year, despite the area under the crop rising by 4,000 hectares to 2.57 lakh hectares. According to data by the Spices Board, turmeric exports during the April-September period of the current fiscal were 99,000 tonnes compared with 69,500 tonnes during the same period a year ago with the value of the shipments rising 35 per cent. In Nizamabad, a major spot market in AP, the price ended at 7752.8 Rupees gained 72.8 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 6.39% to settled at 9405 while prices up 140 rupees, now Turmeric is getting support at 7698 and below same could see a test of 7546 levels, and resistance is now likely to be seen at 7996, a move above could see prices testing 8142.         

Trading Ideas:            

* Turmeric trading range for the day is 7546-8142.

*  Turmeric gained as again demand is seen as an immune booster amid a resurgence in infections that has spurred curbs in some states.

*  Support also seen on concerns over production prospects in the new season, relatively lower carryover stocks, and better exports prospects.

* Support seen following the concerns over supply disruptions amid lockdown restrictions imposed, in the backdrop surge in Covid-19 cases.

* In Nizamabad, a major spot market in AP, the price ended at 7600 Rupees dropped -73.55 Rupees.

Jeera

Jeera yesterday settled up by 1.73% at 14135 amid expectation of fall production in 2020-21 crop year and lower carry-over stocks amid steady to firm domestic and export demand. A survey conducted by the Federation of Indian Spice Stakeholders (FISS) estimated Jeera production for the crop year 2020-21 to fall by around 11% on account of decline in sown area and lower yield due to adverse weather prevailed in key growing states Gujarat and Rajasthan. As per the second advance estimates released by the Ministry of Agriculture, Govt. of Gujarat, Jeera production is likely to remain around 3.7 lakh tonnes in the crop year 2020-21 despite fall in sowings due to better yield. While the Govt. of Rajasthan has not released Jeera statistics, as per market feedback, higher temperature in Jeera growing regions of Rajasthan (like Jodhpur) has impacted standing crop quality of Jeera which is likely to affect production. Preliminary estimates suggested that carryover stock of Jeera is likely to be around of about 20-25 Lakh bags (of 55 Kg each), i.e., 1.10 to 1.30 lakh tonnes which are higher than usual range of 7-12 Lakh bags. On the export front, India exported around 2.45 lakh tonnes of Jeera during April 2020 to January 2021 which is 34% higher than 1.83 lakh tonnes shipped during the corresponding period of the previous year. In Unjha, a key spot market in Gujarat, jeera edged down by -25 Rupees to end at 14170 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 3.48% to settled at 5625 while prices up 240 rupees, now Jeera is getting support at 13895 and below same could see a test of 13655 levels, and resistance is now likely to be seen at 14305, a move above could see prices testing 14475.  

Trading Ideas:            

* Jeera trading range for the day is 13655-14475.

* Jeera exports from India has already surpassed the total exports (2.14 lakh tonnes) recorded for the last year (2019-20).

*  FISS estimated Jeera production for the crop year 2020-21 to fall by around 11% on account of decline in sown area

* As per the second advance estimates, Govt. of Gujarat, Jeera production is likely to remain around 3.7 lakh tonnes in the crop year 2020-21.

* In Unjha, a key spot market in Gujarat, jeera edged up by 40 Rupees to end at 14040 Rupees per 100 kg.

  Cotton         

Cotton yesterday settled up by 0.32% at 22260 as Indian exporters have up to now shipped over 75 per cent of the 65 lakh bales of cotton exports projected for the entire year 2020-21. Cotton Association of India’s (CAI) newest data confirmed shipments as on April 30 at 50 lakh bales. This means, India by April has shipped out what was exported throughout the entire of final season. The commerce physique, in its revised export projections, has estimated India’s cotton exports for the year at 65 lakh bales. “Indian cotton was the cheapest in the world. Therefore, we could take advantage of being competitive in the international market,” stated Atul Ganatra, President, CAI. With brightened worldwide price prospects, India’s cotton shipments gained momentum, thereby lifting the home prices to ₹40,800 on December 10, 2020 and ₹46,200 on May 10, 2021. “The CAI has reduced its consumption estimate for the current crop year by 15 lakh bales to 315 lakh bales of 170 kgs each from its previous estimate of 330 lakh bales . The consumption now estimated for the current crop year is, however, higher by 65 lakh bales compared to the previous year’s consumption estimate of 250 lakh bales,” stated Ganatra in a statement after the CAI Crop Committee meeting on May 11. In spot market, Cotton gained by 70 Rupees to end at 22090 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.58% to settled at 6352 while prices up 70 rupees, now Cotton is getting support at 22090 and below same could see a test of 21920 levels, and resistance is now likely to be seen at 22380, a move above could see prices testing 22500.       

Trading Ideas:            

* Cotton trading range for the day is 21920-22500.

* Cotton prices gained as Indian exporters have up to now shipped over 75 per cent of the 65 lakh bales of cotton exports projected for the entire year 2020-21.

* CAI confirmed shipments at 50 lakh bales, India by April has shipped out what was exported throughout the entire of final season.

* Cotton consumption this year is likely to take a hit because of the ongoing Covid-19 pandemic and lockdown in most of the States.

* In spot market, Cotton gained  by 200 Rupees to end at 22420 Rupees.

Chana           

Chana yesterday settled down by -0.6% at 5448 on profit booking after prices gained as support seen as tightening of lockdown restrictions has resulted in limited supplies in the mandis. The farmers are bringing in lesser quantum for sale in the mandis currently, in anticipation of getting better returns for their produce. Estimations of a lower crop size against previous estimates and a lower carry over inventory for this year shall continue supporting the prices. Following the second wave of Covid-19, a few state governments including Rajasthan, Kerala and Uttarkhand have recently asked the centre to restart distribution of free food grains to 810 million poor people under the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) scheme. This scheme was launched last year during the first wave of the pandemic. Under this, the centre had distributed 5 kg rice or wheat per person and one kg of pulses per family covered under the National Food Security Act from April- November 2020. The government agency Nafed is learnt to have procured 1.24 lakh tonnes of chana in Andhra Pradesh, Maharashtra, Madhya Pradesh, Telangana, Karnataka and Gujarat. As per Ministry of Agriculture data, chana sowing in this Rabi season crossed 112 lakh ha, which is up by about five per cent from same period last year. In Delhi spot market, chana gained by 111.5 Rupees to end at 5408.6 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 4.97% to settled at 152260 while prices down -33 rupees, now Chana is getting support at 5407 and below same could see a test of 5367 levels, and resistance is now likely to be seen at 5511, a move above could see prices testing 5575.    

Trading Ideas:            

* Chana trading range for the day is 5367-5575.

* Chana dropped on profit booking after prices gained as support seen as tightening of lockdown restrictions has resulted in limited supplies in the mandis.

* The farmers are bringing in lesser quantum for sale in the mandis currently, in anticipation of getting better returns for their produce.

*  Estimations of a lower crop size against previous estimates and a lower carry over inventory for this year shall continue supporting the prices.

* In Delhi spot market, chana gained  by 5.15 Rupees to end at 5470.45 Rupees per 100 kgs.

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