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Gold

Gold yesterday settled down by -0.13% at 45995 as prices remained in range as investors avoided riskier assets because of China’s Evergrande saga, but looming interest rate hikes slowed bullion’s advance. Cleveland Fed President Loretta Mester said the central bank should start reducing its support for the economy in November and could start raising interest rates by the end of next year should labour markets continue to improve. Sales of new U.S. single-family homes increased for a second straight month in August, but demand for housing has probably peaked after a COVID-19 pandemic-fueled buying frenzy. New home sales rose 1.5% to a seasonally adjusted annual rate of 740,000 units last month, the Commerce Department said. Physical gold demand in top consumer China rose as buyers sought cover from the potential fallout of the Evergrande crisis coupled with factors including a seasonal pick-up in activity. In China, premiums rose to $7-$12 per ounce over global benchmark prices, from $5-$9 last week. Chinese demand has been tepid overall for most of 2021, keeping prices swinging between discounts to small premiums. Activity in India got a fillip from lower prices, with premiums unchanged at $3 an ounce over official domestic prices. Technically market is under long liquidation as market has witnessed drop in open interest by -17.06% to settled at 5453 while prices down -61 rupees, now Gold is getting support at 45810 and below same could see a test of 45626 levels, and resistance is now likely to be seen at 46155, a move above could see prices testing 46316.
 

Trading Ideas:
* Gold trading range for the day is 45626-46316.
* Gold dropped pressured as investors continued to position themselves for a sooner-than-expected interest rate hike from the U.S. Federal Reserve
* The U.S. central bank said it will likely begin reducing its bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected
* Pressure seen amid a general improvement in risk aversion as investors hope the Evergrande debt crisis can be contained

 

Silver

Silver yesterday settled down by -1.37% at 59955 continued its weak trend amid rising prospects of the Federal Reserve beginning to reduce its bond purchases before the end of this year. The Federal Reserve said while releasing its monetary policy that it would likely start tapering its bond-buying program before the end of this year. The Fed also hinted at hiking interst rate in 2022, and signaled a series of hikes over the next two years as well. The Bank of England left its key policy rates and QE unchanged, but opined that the recent price developments appeared to have strengthened the case for a modest tightening of monetary policy. Sales of new U.S. single-family homes increased for a second straight month in August, but demand for housing has probably peaked after a COVID-19 pandemic-fueled buying frenzy. New home sales rose 1.5% to a seasonally adjusted annual rate of 740,000 units last month, the Commerce Department said. July's sales pace was revised up to 729,000 units from the previously reported 708,000 units. Sales increased 6.0% in the populous South and gained 1.4% in the West. They soared 26.1% in the Northeast, but tumbled 31.1% in the Midwest. Technically market is under fresh selling as market has witnessed gain in open interest by 7.34% to settled at 13112 while prices down -834 rupees, now Silver is getting support at 59224 and below same could see a test of 58492 levels, and resistance is now likely to be seen at 60774, a move above could see prices testing 61592.
 

Trading Ideas:
* Silver trading range for the day is 58492-61592.
* Silver dropped amid fading concerns over China’s Evergrande and as investors largely brushed off concerns over the Fed’s tapering plans.
*  Fed Chair Powell indicated the central bank could begin tapering its asset purchases as soon as its next meeting in early November.
* Data showed first-time claims for U.S. unemployment benefits unexpectedly increased for the second straight week

 

Crude oil

Crude oil yesterday settled up by 0.77% at 5467 supported by global output disruptions and inventory draws. But China’s first public sale of state oil reserves capped crude price gains. PetroChina and Hengli Petrochemical bought four cargoes totaling about 4.43 million barrels. Some disruptions could last for months and have already led to sharp draws in U.S. and global inventories. U.S. oil refiners were hunting to replace Gulf crude, turning to Iraqi and Canadian oil. Some members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, have also struggled to raise output due to under-investment or maintenance delays during the pandemic. Iran, which wants to export more oil, said it would return to negotiations soon on resuming compliance with a 2015 nuclear deal with world powers. India's crude oil imports rose to a three-month peak in August, rebounding from a near one-year low hit in July, as refiners stocked up to boost runs in expectation of higher demand around the festival season. Crude oil imports last month rose 15.8% versus July and were also 3.1% higher than a year-ago at 17.39 million tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 7.39% to settled at 8222 while prices up 42 rupees, now Crude oil is getting support at 5408 and below same could see a test of 5349 levels, and resistance is now likely to be seen at 5506, a move above could see prices testing 5545.
 

Trading Ideas:
* Crude oil trading range for the day is 5349-5545.
* Crude oil prices rose supported by growing fuel demand and a draw in U.S. crude inventories.
* U.S. crude stocks fall to lowest since Oct. 2018, EIA says
* The U.S. EIA data showed U.S. crude stocks in the week to Sept. 17 fell by 3.5 million barrels to 414 million

 

Natural gas

Nat.Gas yesterday settled up by 2.36% at 381.4 on the back of robust demand for US exports as global prices surge and output remains sluggish in the aftermath of Hurricane Ida. Gas prices hover at record levels around $24/mmBtu in Europe and near $27/mmBtu in Asia. Meanwhile, the Energy Information Administration reported a 76 Bcf injection into inventories last week, broadly in line with market expectations. Global record high natural gas prices are pushing some energy-intensive companies to curtail production in a trend that is adding to disruptions to global supply chains in some sectors such as food and could result in higher costs being passed on to their customers. Some companies, including steel producers, fertiliser manufacturers and glass makers, have had to suspend or reduce production in Europe and Asia as a result of spiking energy prices. Data provider Refinitiv said gas output in the U.S. Lower 48 states fell to an average of 90.7 billion cubic feet per day (bcfd) so far in September from 92.0 bcfd in August, due mostly to Hurricane Ida-related losses along the Gulf Coast. About 0.5 bcfd, or 24%, of gas production in the U.S. Gulf of Mexico remained shut-in since Ida hit Louisiana on Aug. 29, government data showed. Technically market is under fresh buying as market has witnessed gain in open interest by 8.02% to settled at 6508 while prices up 8.8 rupees, now Natural gas is getting support at 374.6 and below same could see a test of 367.8 levels, and resistance is now likely to be seen at 387, a move above could see prices testing 392.6.
 

Trading Ideas:
* Natural gas trading range for the day is 367.8-392.6.
*  Natural gas rose as soaring global gas prices kept demand for U.S. LNG exports high and * output remained sluggish after Hurricane Ida in late August.
 Soaring gas prices ripple through heavy industry, supply chains
* The U.S. Energy Information Administration (EIA) said utilities added 76 billion cubic feet (bcf) of gas into storage

 

Copper

Copper yesterday settled up by 0.46% at 718.2 as sales of new U.S. single-family homes increased for a second straight month in August, but demand for housing has probably peaked after a COVID-19 pandemic-fueled buying frenzy. However upside seen limited as time ticked by on an interest payment deadline for the country's most indebted developer. US economy slows down in September evidenced by the sluggish readings of Markit manufacturing, services and composite PMI. On the fundamentals, multiple provinces and cities have been impacted by power rationing, containing the uptrend momentum of copper as the market was concerned over shrinking copper demand. The People's Bank of China injected a total CNY 120 billion of 14-day reverse repos at an interest rate of 2.35 percent to maintain liquidity in the banking system on September 24th, 2021. The global world refined copper market showed a 90,000 tonnes deficit in June, compared with a 4,000 tonnes surplus in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 6 months of the year, the market was in a 2,000 tonnes deficit compared with a 67,000 tonnes surplus in the same period a year earlier, the ICSG said. Technically market is under fresh buying as market has witnessed gain in open interest by 2.17% to settled at 3630 while prices up 3.3 rupees, now Copper is getting support at 712.8 and below same could see a test of 707.5 levels, and resistance is now likely to be seen at 722.6, a move above could see prices testing 727.1.
 

Trading Ideas:
* Copper trading range for the day is 707.5-727.1.
* Copper prices gained as market concerns eased about the default of Evergrande.
* Copper market in 90,000 tonnes deficit in Jun 2021 – ICSG
* PBoC Injects CNY 120 Billion into Market

 

Zinc

Zinc yesterday settled up by 2.19% at 261.5 as the market supply of concentrate in north China is likely to tighten as the heating season approaches. And the daily output of refined zinc is expected to fall by 700 mt/day on energy consumption control. While the demand side will also be suppressed by the energy consumption control. Total zinc inventories across seven Chinese markets stood at 129,200 mt as of September 24, up 6,200 mt from September 13 and 12,000 mt from September 17. Inventories in Shanghai increased sharply as arrivals of goods at smelters increased during the Mid-Autumn Festival and downstream demand weakened. Guangdong saw an increase in stocks amid normal arrivals of goods and muted downstream demand on power rationing. Inventory in Tianjin fell slightly as logistics restrictions caused in-plant overstocks at smelters and the arrivals of cargoes were less than expected on suspension of production at individual smelters. Inventories in Shanghai, Guangdong and Tianjin rose 11,900 mt, and inventories across seven Chinese markets increased 12,000 mt. Global zinc market remained in a marginal surplus of 11kt between January and July 2021, much smaller than the 420kt surplus seen during the same period last year. Total refined zinc production rose by 4.4% YoY to 8.15mt, while total consumption jumped 10.2% YoY to 8.14mt in the first seven months of the year. Technically market is under fresh buying as market has witnessed gain in open interest by 43.73% to settled at 1844 while prices up 5.6 rupees, now Zinc is getting support at 257.2 and below same could see a test of 252.8 levels, and resistance is now likely to be seen at 264.4, a move above could see prices testing 267.2.
 

Trading Ideas:
*  Zinc trading range for the day is 252.8-267.2.
* Zinc prices rose as support seen due to production restrictions in southwest China.
*  In China, power rationing sustained, and many zinc smelters have received notices to reduce their power consumption by 20 – 50%
* Global zinc market remained in a marginal surplus of 11kt between January and July 2021

 

Nickel

Nickel yesterday settled down by -0.12% at 1462.3 on profit booking as the global nickel market deficit declined to 24,700 tonnes in July from a June shortfall of 32,400 tonnes, data from the International Nickel Study Group (INSG) showed. During the first seven months of the year, the nickel market saw a deficit of 158,900 tonnes compared with a surplus of 80,500 tonnes in the same period last year, the INSG added. However downside seen limited as the inventory of pure nickel stood at a low level, and falling LME warrants. The demand of nickel fell as the influence of production reduction of stainless steel began to materialise. Transactions of ferronickel and nickel ore were thin. The number of Americans filing new claims for jobless benefits unexpectedly rose last week amid a surge in California, but the labor market continues to steadily recover. Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 351,000 for the week ended Sept. 18, the Labor Department said. The current nickel inventory is still low, and the price spread between the SHFE front-month and next-month contract is large, which will shore up nickel prices. Nickel ore inventory at Chinese ports grew 338,000 wmt from a week earlier to 7.35 million wmt as of September 24. Technically market is under fresh selling as market has witnessed gain in open interest by 17.52% to settled at 1187 while prices down -1.8 rupees, now Nickel is getting support at 1444.5 and below same could see a test of 1426.7 levels, and resistance is now likely to be seen at 1476.6, a move above could see prices testing 1490.9.
 

Trading Ideas:
*  Nickel trading range for the day is 1426.7-1490.9.
*  Nickel gains as prices seen supported by optimism that China, can avoid a damaging collapse of one of its biggest property developers, Evergrande.
*  Chinese regulators have asked China Evergrande Group to avoid a near-term default on its dollar bonds.
*  Global nickel market deficit narrows in July to 24,700 T – INSG

 

Aluminium

Aluminium yesterday settled down by -0.98% at 232.25 on profit booking as the demand side has been depressed on the back of energy control policy and power rationing. However downside seen limited as the supply side is shrinking amid power rationing policies in Xinjiang, Guangxi, Yunnan and Shanxi. On the macro front, US economy slows down in September evidenced by the sluggish readings of Markit manufacturing, services and composite PMI. US dollar index seen pressure as the pessimism over tapering weakened after the market fully digested the news that the Fed will withdraw the liquidity in November on the back of less-than-expected PMI readings. Data showed that China's social inventories of aluminium across eight consumption areas rose 23,000 mt on the week to 789,000 mt as of September 23. Increases were mostly contributed by Wuxi, Nanhai and Gongyi. The stocks of aluminium billet in five major consumption areas rose by 8,200 mt to 157,000 mt on Thursday September 23 from the previous week, an increase of 5.48%. Four major consumption areas have reports increasing inventories, with Huzhou and Changzhou being the leading contributors. The inventory in Huzhou rose 4,000 mt or 36.36% on the week, and Changzhou saw an increase of 2,900 mt or 22.31%. Technically market is under long liquidation as market has witnessed drop in open interest by -7.6% to settled at 2189 while prices down -2.3 rupees, now Aluminium is getting support at 231 and below same could see a test of 229.7 levels, and resistance is now likely to be seen at 233.4, a move above could see prices testing 234.5.
 

Trading Ideas:
*  Aluminium trading range for the day is 229.7-234.5.
*  Aluminum prices rose on concerns over supply and as debt troubles at China Evergrande Group soothe.
* China produced 3.16 million tonnes of primary aluminum in August, 3.2% less than in July
* Smelters in the European Union are also facing rising costs with both carbon credit and power inputs at record highs.

 

Mentha oil

Mentha oil yesterday settled down by -0.07% at 936.6 after the news that US House Democrats have proposed a tax hike on tobacco and nicotine to help fund their $3.5 trillion spending plan. The measure may increase current levies on cigarettes, cigars and roll-your-own and smokeless tobacco, according to a plan summary. They have also proposed new taxes on vaping products. Pressure also seen after the news that the Food and Drug Administration has proposed a ban on menthol cigarettes, suggesting it may prompt 923,000 U.S. smokers to quit, according to one study. Goldman Sachs covering the beverage and tobacco sectors, pointed to the potential federal menthol ban as another area of concern for retailers. This year US FDA announced it is taking steps to ban menthol as a characterizing flavor in cigarettes, and ban all characterizing flavors — including menthol — in cigars within the next year. In Goldman Sachs' Nicotine Nuggets survey, nearly 70 percent of retailers said they expected cigarette volume declines to accelerate in 2021. In Sambhal spot market, Mentha oil gained by 28.6 Rupees to end at 1044.5 Rupees per 360 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 25.44% to settled at 1297 while prices down -0.7 rupees, now Mentha oil is getting support at 933 and below same could see a test of 929.4 levels, and resistance is now likely to be seen at 940.6, a move above could see prices testing 944.6.
 

Trading Ideas:
* Mentha oil trading range for the day is 929.4-944.6.
* In Sambhal spot market, Mentha oil gained  by 28.6 Rupees to end at 1044.5 Rupees per 360 kgs.
* Mentha oil gained on short covering after prices droppedafter the news that US House Democrats have proposed a tax hike on tobacco and nicotine.
* The measure may increase current levies on cigarettes, cigars and roll-your-own and smokeless tobacco, according to a plan summary.
* Goldman Sachs covering the beverage and tobacco sectors, pointed to the potential federal menthol ban as another area of concern for retailers.

 

Soyabean

Soyabean yesterday settled down by -3.35% at 5912 amid new crop arrivals and the commencement of soymeal imports. Latur Agriculture Produce Market Committee (APMC), reported arrivals of 15,000 quintals with average prices ranging between Rs 5,500 per quintal and Rs 6,100 per quintal. Soyabean crop has been totally damaged on about 8 lakh hectares (lh) due to excess rains and the crop condition is poor in about 12.83 per cent of the planted area, according to Soyabean Processors Association of India (SOPA), the apex trade body. As a result of complete crop damage, SOPA has pegged the acreage lower to the extent of 6.45 per cent at 115.5 lh against the Agriculture Ministry’s estimates of 123.60 lh. SOPA said crop condition is normal in 42.20 per cent of the sown area, good in 22.97 per cent and very good in 15.46 per cent. SOPA had carried out extensive survey recently across every major soyabean growing districts in states such as Madhya Pradesh, Maharashtra, Rajasthan, Gujarat, Karnataka among others interacting with farmers on the fields, traders, input suppliers, mandi officials and soya processors to assess the health of the oilseed crop. India's soybean production in MY 2021-22 is expected to be around 10.8 million mt, nearly 16.6% lower on the year. At the Indore spot market in top producer MP, soybean gained 132 Rupees to 6348 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -1.2% to settled at while prices down -205 rupees, now Soyabean is getting support at 5791 and below same could see a test of 5669 levels, and resistance is now likely to be seen at 6126, a move above could see prices testing 6339.
 

Trading Ideas:
* Soyabean trading range for the day is 5669-6339.
* Soyabean gained as India's soybean production may decline sharply in the marketing year 2021-22
* India’s Aug’2021 soymeal exports declined by 81%, Oil meal export down by 4%.
* U.S. September 2020/21 Soybean end stocks estimate at 185 million bushels: USDA
* At the Indore spot market in top producer MP, soybean gained  132 Rupees to 6348 Rupees per 100 kgs.

 

Soyabean

Ref.Soyaoil yesterday settled down by -0.74% at 1309.6 on profit booking after prices seen supported as oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively. Favorable weather over the weekend boosted U.S. harvest, while exports remain capped by terminals on the U.S. Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season. India's vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors' Association of India (SEA) said. Imports in 2020/21 marketing year ending Oct. 31 could fall to 13.1 million tonnes, the lowest in six years, from last year's 13.2 million, B.V. Mehta, SEA executive director, said in a virtual conference. Palm oil imports, however, could rise 8% from a year ago to 7.8 million tonnes, he said, as India allowed imports of refined palm oil and cut the import tax on crude palm oil. India's export of oilmeal, used as animal feed, declined 4 percent to 1,64,831 tonne in August from the year-ago period, in view of domestic shortage of the key oilmeal products. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1337.1 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -0.66% to settled at while prices down -9.7 rupees, now Ref.Soya oil is getting support at 1302 and below same could see a test of 1294 levels, and resistance is now likely to be seen at 1323, a move above could see prices testing 1336.
 

Trading Ideas:
* Ref.Soya oil trading range for the day is 1294-1336.
* Ref soyoil prices gained as oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected
* India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA
* U.S. August soybean oil stock seen at 1.668 billion pounds: NOPA
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1337.1 Rupees per 10 kgs.

 

Crude palm Oil

Crude palm Oil yesterday settled up by 0.17% at 1112.5 underpinned by signs of slowing production and a recovery in rival soyoil prices. Southern Peninsula Palm Oil Millers' Association estimated Malaysia's production during Sept. 1-20 fell 4.5% from the same period in August. Exports of Malaysian palm oil products for Sep. 1-20 rose 36.7 percent to 1,070,096 tonnes from 783,027 tonnes shipped during Aug. 1-20. Malaysia's palm oil exports during Sept. 1-20 rose 38% to 1,089,071 tonnes from the same week in August, cargo surveyor Amspec Agri said. However, this was slower than a 54% monthly rise in Sept. 1-15. Malaysia maintained its October export tax for crude palm oil at 8%, a circular on the Malaysian Palm Oil Board website showed. The world's second-largest palm exporter calculated a reference price of 4,472.46 ringgit ($1,068.18) per tonne for October, up from 4,255.52 ringgit in September. India has cut base import taxes on palm oil, soyoil and sunflower oil, a government order showed, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The reduction in taxes could bring down prices of the edible oils in India and boost consumption, effectively increasing overseas buying by the south Asian country. In spot market, Crude palm oil gained by 0.6 Rupees to end at 1143.3 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 5.41% to settled at 3781 while prices up 1.9 rupees, now CPO is getting support at 1105.5 and below same could see a test of 1098.5 levels, and resistance is now likely to be seen at 1120.5, a move above could see prices testing 1128.5.
 

Trading Ideas:
* CPO trading range for the day is 1098.5-1128.5.
* Crude palm oil gains underpinned by signs of slowing production and a recovery in rival soyoil prices.
* Southern Peninsula Palm Oil Millers' Association estimated Malaysia's production during Sept. 1-20 fell 4.5% from the same period in August.
* Malaysia’s September 1-20 palm oil exports shoots up
* In spot market, Crude palm oil gained  by 0.6 Rupees to end at 1143.3 Rupees.

 

Mustard Seed

Mustard Seed yesterday settled down by -1.78% at 8520 amid profit booking after prices seen supported due to deficient stocks and peak consumption season. Mustards stocks dwindle to 30Lakh tonnes with about 5-6 months remaining for new arrival season. Statistics Canada cut its canola production estimate to a 13-year low, due to drought. Prices seen supported as Government has increased the Mustard seed MSP from 4650.00 to 5050 i.e Rs.400 per quintal for RMS 2022-23. Support also seen amid regular demand from the stockists and lowering all India arrivals. In their August report, the IGC lowered their forecast for the world rapeseed production to 70.9 million tons (-2.2 compared to July and 72.1 compared to 2020/21). The rapeseed production in Canada will be 16 million tons (-2.8 and 18.7), 4.5 million tons in Australia (4.2 and 4.1), 2.8 million tons in Ukraine (2.7 and 2.7). USDA estimates Canada rapeseed production for marketing year 2021/22 at 16.0 million metric tons (mmt), down 4.2 mmt (21 percent) from last month, 3.0 mmt (16 percent) from last year, and 20 percent below the 5-year average. Harvested area is estimated at 8.7 million hectares, down 3 percent from last month, but 4 percent above last year, and roughly equivalent to the 5-year average. In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8844.25 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -5.14% to settled at while prices down -154 rupees, now Rmseed is getting support at 8433 and below same could see a test of 8345 levels, and resistance is now likely to be seen at 8667, a move above could see prices testing 8813.
 

Trading Ideas:
* Rmseed trading range for the day is 8345-8813.
* Mustard seed gained due to deficient stocks and peak consumption season.
* Statistics Canada cut its canola production estimate to a 13-year low, due to drought.
* Government has increased the Mustard seed MSP from 4650.00 to 5050 i.e Rs.400 per quintal for RMS 2022-23.
* In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8844.25 Rupees per 100 kg.

 

Turmeric

Turmeric yesterday settled up by 0.51% at 7136 on short covering following export demand from Europe, Gulf countries and Bangladesh. However upside seen limited amid prospects of better crop this kharif season along with tepid demand. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains. India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough, and ensure that the most important crops for the kharif season have normal sowing. This is good news for agricultural production and food prices. Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices. According to the statistics of the Department of Commerce, Government of India, the highest number of 1.84 lakh tonnes of turmeric was exported during the last financial year 2020-21. In the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year, but could be higher in the coming months. In Nizamabad, a major spot market in AP, the price ended at 7195 Rupees dropped -6.2 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.68% to settled at while prices up 36 rupees, now Turmeric is getting support at 7072 and below same could see a test of 7010 levels, and resistance is now likely to be seen at 7208, a move above could see prices testing 7282.
 

Trading Ideas:
* Turmeric trading range for the day is 7010-7282.
* Turmeric dropped amid prospects of better crop this kharif season along with tepid demand.
* Pressure seen as the areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season.
* However downside seen limited on short covering following export demand from Europe, Gulf countries and Bangladesh.
* In Nizamabad, a major spot market in AP, the price ended at 7195 Rupees dropped -6.2 Rupees.
 

Jeera

Jeera yesterday settled up by 1.16% at 14375 as 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. However upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels. With the forecast of normal rains in the western region during September to November, the sowing of cumin seeds in Gujarat and Rajasthan may increase. In 2021 (January-June), the country has exported more than 1.50 lakh tonnes of cumin as compared to 1.3 lakh tonnes in the same period last year. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. With Gujarat and Rajasthan being the only producers of cumin in the country, the most impact of Skymet's forecast is visible on the cumin market. 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. However, the freight of container-vessels has increased and the shortage of containers is increasing continuously. In Unjha, a key spot market in Gujarat, jeera edged up by 52.6 Rupees to end at 14462.5 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -0.66% to settled at while prices up 165 rupees, now Jeera is getting support at 14255 and below same could see a test of 14135 levels, and resistance is now likely to be seen at 14470, a move above could see prices testing 14565.
 

Trading Ideas:
* Jeera trading range for the day is 14135-14565.
* Jeera gains as the export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin
* However upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels.
* India's cumin exports will increase due to less supply from Afghanistan-Syrian
* In Unjha, a key spot market in Gujarat, jeera edged up by 52.6 Rupees to end at 14462.5 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled up by 2.79% at 26530 as the pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated. Over one fourth area in biggest cotton growing districts of Bathinda and Mansa are disturbed on the count though earlier the attack was felt in around 10-15% area in these districts. Cotton procurement for 2021-22 kharif season should commence from the first week of November, Minister for Cooperation and Marketing Balasaheb Patil said. At a meeting, Patil took the stock of cotton cultivation in Maharashtra. He directed the department to start early cotton procurement from November first week to facilitate timely sale and income for farmers. The directives come in the wake of a delay in the last kharif season due to Covid-19 pandemic and lockdown, for which procurement centres did not open on time. “Cotton sowing in the current kharif season was done on 39.37 lack hectares. Last year, it was sown on 42.08 lakh hectares. The area under cotton sowing has declined by 6.44 per cent,” Patil said. Amid high demand and better prices being offered by private players, Punjab has witnessed a 50-fold increase in the arrival of cotton crop at mandis as compared to the figures till September 21 last year. In spot market, Cotton dropped by -70 Rupees to end at 26300 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 0.97% to settled at 1876 while prices up 720 rupees, now Cotton is getting support at 25910 and below same could see a test of 25300 levels, and resistance is now likely to be seen at 26880, a move above could see prices testing 27240.
 

Trading Ideas:
* Cotton trading range for the day is 25300-27240.
* Cotton prices remained supported as the pink bollworm attack on cotton crop in Punjab has been found to be much beyond earlier anticipated.
* Kharif cotton procurement should begin in November: Maharashtra minister
* Amid high demand and better prices being offered by private players, Punjab has witnessed a 50-fold increase in the arrival of cotton crop
* In spot market, Cotton dropped  by -70 Rupees to end at 26300 Rupees.

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