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Gold
Gold yesterday settled up by 0.31% at 48553 as the dollar languished near four-month lows as bets on a robust global economic recovery continued to support currencies seen as riskier. Traders are also watching for progress on a new stimulus package in the United States, after the White House pared down its infrastructure bill to $1.7 trillion but failed to gain Senate Republican backing. Data showed strong comeback by the services sector both in the US and Europe as businesses reopened following prolonged lockdown and benefited from a global demand recovery. The initial PMI of service industry has been expanding for 10 consecutive months, with the fastest expansion rate in history. According to the data from the US, the economic recovery in the post-pandemic period showed a strong momentum, but at the same time, investors' worries about inflation prospects continued to increase. In order to discuss the easing policy, many regional Federal Reserve Presidents in the US put forward the idea of reducing bond purchases as soon as possible and gradually withdrawing policy easing, and the market sentiment tended to be cautious. Data due on Friday, including U.S. personal consumption and inflation figures, could move the markets to anticipate a more hawkish tone from the next Fed policy meeting on June 15-16. Technically market is under short covering as market has witnessed drop in open interest by -4.25% to settled at 5478 while prices up 149 rupees, now Gold is getting support at 48400 and below same could see a test of 48248 levels, and resistance is now likely to be seen at 48672, a move above could see prices testing 48792.
Trading Ideas:
* Gold trading range for the day is 48248-48792.
* Gold prices gained as the dollar languished near four-month lows as bets on a robust global economic recovery continued to support currencies seen as riskier.
* Traders are also watching for progress on a new stimulus package in the United States, after the White House pared down its infrastructure bill to $1.7 trillion
* Data showed strong comeback by the services sector both in the US and Europe as businesses reopened following prolonged lockdown

Silver

Silver yesterday settled up by 1.07% at 71811 buoyed by a subdued dollar and a selloff in cryptocurrencies, while investors awaited key economic data releases this week. Rising U.S. inflationary risks have spooked markets, and minutes from the Fed's most recent meeting suggested some policymakers were ready to talk about reducing stimulus by tapering bond purchases. Growing digital currency options could lead to a "fragmentation" of the payment system that poses financial risks for households and businesses, Federal Reserve Governor Lael Brainard said in a speech that outlined the major policy questions the Fed will need to address as it explores the potential development of a digital version of the U.S. dollar. As the holder of the world's reserve currency, the United States must be highly involved as digital payments become more common and other countries develop digital currencies that can be used to send money across borders, Brainard said. Fed officials are making it clear that the U.S. central bank plans to take an active role in developing standards as more countries research and develop central bank digital currencies. Markets will be keen to hear if the crowd of Fed speakers this week will stick to the script on being patient with policy. A slew of economic data including GDP, jobless claims and durable goods are also scheduled for release. Technically market is under short covering as market has witnessed drop in open interest by -5.99% to settled at 10350 while prices up 762 rupees, now Silver is getting support at 71303 and below same could see a test of 70795 levels, and resistance is now likely to be seen at 72216, a move above could see prices testing 72621.
Trading Ideas:
* Silver trading range for the day is 70795-72621.
* Silver gained buoyed by a subdued dollar and a selloff in cryptocurrencies, while investors awaited key economic data releases this week.
* Markets will be keen to hear if the crowd of Fed speakers this week will stick to the script on being patient with policy.
* A slew of economic data including GDP, jobless claims and durable goods are also scheduled for release.

Crude oil

Crude oil yesterday settled up by 3.56% at 4825 as a storm formed in the Gulf of Mexico and Iran said a three-month nuclear monitoring deal had expired, raising doubts about the future of indirect talks that could end U.S. sanctions on Iranian crude exports. Oil prices rose as a potential snag emerged in reviving the 2015 Iran nuclear deal that could add more oil supply, while Goldman Sachs said the case for higher prices remains intact even with increased Iran exports. Weather concerns heightened after advisories that the disorganized area of cloudiness and thunderstorms in the Gulf of Mexico could develop into a hurricane like disturbance, ahead of the hurricane season that usually begins in June. Oil demand has already increased to 95 million barrels per day (bpd), and the market is rebalancing, according to the chief executive of the Abu Dhabi National Oil Company (ADNOC), Sultan Ahmed Al Jaber. Money managers cut their net long U.S. crude futures and options positions in the week to May 18, 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 16,431 contracts to 365,516 during the period. Technically market is under fresh buying as market has witnessed gain in open interest by 59.3% to settled at 7089 while prices up 166 rupees, now Crude oil is getting support at 4723 and below same could see a test of 4620 levels, and resistance is now likely to be seen at 4879, a move above could see prices testing 4932.
Trading Ideas:
* Crude oil trading range for the day is 4620-4932.
* Crude oil rose as a storm formed in the Gulf of Mexico and Iran said a three-month nuclear monitoring deal had expired, raising doubts about the future of indirect talks
* Goldman Sachs said the case for higher prices remains intact even with increased Iran exports.
* UAE: Oil demand has already increased to 95 million bpd

Nat.Gas

Nat.Gas yesterday settled flat at 210.2 as production increased and on forecasts for milder Weather and less demand over the next two weeks than previously expected. Traders noted cooler weather would cut the amount of gas power generators burn to keep air conditioners humming. Speculators, meanwhile, boosted their net long gas futures and options positions on the New York Mercantile and Intercontinental Exchanges for a third week in a row last week for the first time since February. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 90.9 billion cubic feet per day (bcfd) so far in May, up from 90.6 bcfd in April. That is still well below November 2019's monthly record of 95.4 bcfd. With the milder weather on the horizon, Refinitiv projected average gas demand, including exports, would ease from 85.0 bcfd this week to 84.6 bcfd next week. The forecast for next week was lower than Refinitiv forecasts on Friday. The amount of gas flowing to U.S. LNG export plants averaged 10.9 bcfd so far in May, down from April's monthly record of 11.5 bcfd. The decline was due to short-term issues and normal spring maintenance at a few Gulf Coast plants and the gas pipelines that supply them. Technically market is under long liquidation as market has witnessed remain unchanged in open interest by 0% to settled at 2819 while prices remain unchanged 0 rupees, now Natural gas is getting support at 207.5 and below same could see a test of 204.7 levels, and resistance is now likely to be seen at 212.1, a move above could see prices testing 213.9.
Trading Ideas:
* Natural gas trading range for the day is 204.7-213.9.
* Natural gas settled flat as production increased and on forecasts for milder Weather and less demand over the next two weeks than previously expected.
* Traders noted cooler weather would cut the amount of gas power generators burn to keep air conditioners humming.
* Speculators, meanwhile, boosted their net long gas futures and options positions for a third week in a row last week for the first time since February.

Copper


Copper yesterday settled up by 0.61% at 751.05 as a softer dollar spurred modest purchases, but gains were capped by concerns over price curbs on industrial metals in top consumer China. China’s market regulators warned industrial metal companies to maintain “normal market order” during talks on the significant gains in metals prices this year. China’s government also said last week that it would manage “unreasonable” price increases for commodities such as copper, coal, steel and iron ore. Chile's state-run Codelco, the world's largest copper producer, said in a letter to lawmakers this week that as much as 40% of its copper output is at risk if a bill that limits mine operations near glaciers advances, according to a report in local daily El Mercurio. The letter, sent by Codelco to the Chilean Senate´s Mining and Energy committee, notes that three of its major mine operations - Andina, El Teniente and Salvador - would be impacted by the "absolute prohibitions" currently under consideration in the bill. Some concern about supplies on the LME market has narrowed the discount for cash copper over the three-month contract to about $14 a tonne from $28 last week. Supporting copper is political uncertainty in Peru and top producer Chile. Technically market is under fresh buying as market has witnessed gain in open interest by 37.71% to settled at 3272 while prices up 4.55 rupees, now Copper is getting support at 742.3 and below same could see a test of 733.4 levels, and resistance is now likely to be seen at 755.8, a move above could see prices testing 760.4.
Trading Ideas:
* Copper trading range for the day is 733.4-760.4.
* Copper prices held firm as a softer dollar spurred modest purchases, but gains were capped by concerns over price curbs on industrial metals in top consumer China.
* China’s market regulators warned industrial metal companies to maintain “normal market order” during talks on the significant gains in metals prices this year.
* Chile's Codelco says 40% of its copper output at risk if glacier bill passes

Zinc

Zinc yesterday settled down by -0.77% at 231.15 affected by macro policies and the downstream consumption gradually entering the traditional off-season. Further, the decline of housing sales in the US in April for the third consecutive month limited the upward trend of zinc. However, due to Yunnan's power curtailment policy, the start of smelters wais limited, and the supply reduction limited the downside. The initial value of Markit manufacturing PMI in the US reached a record high in May, and the encouraging US manufacturing data boosted the market's concerns about reducing monetary policy. Zinc inventories in China fell over the weekend. Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 4,700 mt from last Friday May 21 to 161,500 mt as of Monday May 24. The stocks were down 9,700 mt from May 17. Stocks in Shanghai continued to decrease as the inflow of imported zinc slowed down, and the market digested domestic zinc stocks. In south China's Guangdong, power curtailment and limited production in Yunnan smelters affected market arrivals, which led to the continuous decrease in stocks. Stocks in Tianjin piled up as downstream orders were moderate with bearish zinc prices, and downstream continued to purchase on rigid demand. Technically market is under fresh selling as market has witnessed gain in open interest by 37.06% to settled at 1298 while prices down -1.8 rupees, now Zinc is getting support at 228.9 and below same could see a test of 226.7 levels, and resistance is now likely to be seen at 233, a move above could see prices testing 234.9.
Trading Ideas:
* Zinc trading range for the day is 226.7-234.9.
* Zinc prices dropped affected by macro policies and the downstream consumption gradually entering the traditional off-season.
* Further, the decline of housing sales in the US in April for the third consecutive month limited the upward trend of zinc.
* However, due to Yunnan's power curtailment policy, the start of smelters wais limited, and the supply reduction limited the downside.

Nickel

Nickel yesterday settled up by 2.42% at 1261.5 as support seen after data showed the global nickel market deficit widened to 16,100 tonnes in March from a small deficit of 600 tonnes in the previous month, data from the International Nickel Study Group (INSG) showed. Lisbon-based INSG's original estimate of the market balance for February was a 6,200 tonne surplus. During the first three months of the year, the global market saw a deficit of 18,700 tonnes, down from a surplus of 38,000 tonnes in the same period of 2020, INSG's data showed. In US, the PMI of service industry and manufacturing industry reached a new record high in May, the economic recovery was still strong, and the US dollar index went up. A number of state Federal Reserve presidents all voiced the adjustment of easing policy, and the discussion on the contraction of bond purchase program "sooner rather than later" also supported the dollar to stop falling and recover to a certain extent. The European Central Bank remained dovish, and the yield of European government bonds fell collectively. China's refined nickel cathode output held steady in April from the previous month at 13,014 tonnes. The total, which came from just two smelters -Jinchuan Group and Xinjiang Xinin Mining - was down 11.6% year on year. Technically market is under fresh buying as market has witnessed gain in open interest by 69.28% to settled at 1989 while prices up 29.8 rupees, now Nickel is getting support at 1238 and below same could see a test of 1214.6 levels, and resistance is now likely to be seen at 1275.8, a move above could see prices testing 1290.2.
Trading Ideas:
* Nickel trading range for the day is 1214.6-1290.2.
* Nickel prices gained as support seen after data showed Nickel market sees a wider deficit in March
* The global nickel market deficit widened to 16,100 tonnes in March from a small deficit of 600 tonnes in the previous month
* During the first three months of the year, the global market saw a deficit of 18,700 tonnes, down from a surplus of 38,000 tonnes in the same period of 2020


Aluminium

Aluminium yesterday settled up by 0.21% at 189.95 on short covering after prices dropped earlier as investors continued to focus on inflation concerns. In order to discuss the easing policy of code reduction, several regional Federal Reserve Presidents in the US gave a briefing, and five departments interviewed key enterprises such as ferrous metals, copper and aluminium over the weekend to maintain the order of commodity prices. Global primary aluminium output fell to 5.56 million tonnes in April from revised 5.744 million tonnes in March, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production fell to 3.223 million tonnes in April from revised 3.33 million tonnes in March, it added. China's aluminium production rose by 12.4 percent to 3.35 million tonnes in April from a year earlier, according to data released by the National Bureau of Statistics. In the first four months of the year, China produced 13.02 million tonnes, a rise of 9.6 percent from the same period last year, the data showed. Production of ten nonferrous metals – including copper, aluminium, lead, zinc and nickel – rose 11.6 percent to 5.48 million tonnes from a year earlier. Year-to-date output was up 11.5 percent at 21.43 million tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 59.69% to settled at 1426 while prices up 0.4 rupees, now Aluminium is getting support at 186.2 and below same could see a test of 182.4 levels, and resistance is now likely to be seen at 192.3, a move above could see prices testing 194.6.
Trading Ideas:
* Aluminium trading range for the day is 182.4-194.6.
* Aluminium recovered on short covering after prices dropped earlier as investors continued to focus on inflation concerns.
* Global primary aluminium output fell to 5.56 million tonnes in April from revised 5.744 million tonnes in March, data from the IAI showed.
* China aluminium production up 12.4 pct to 3.35 mln tonnes in April

Mentha oil

Mentha oil yesterday settled down by -1.24% at 920.7 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 fresh selling as market has witnessed gain in open interest by 233.33% to settled at 30 while prices down -11.6 rupees, now Mentha oil is getting support at 912.8 and below same could see a test of 904.9 levels, and resistance is now likely to be seen at 930.8, a move above could see prices testing 940.9.
Trading Ideas:
* Mentha oil trading range for the day is 904.9-940.9.
* 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 up by 1.72% at 6979 after Edible Oil industry cautioned the government against resorting to any knee-jerk reaction of lowering import duties to cool down domestic prices, saying it could have a 'very negative’ impact on oilseed farmers, kharif planting for which will start in the coming few weeks. Prices dropped in recent session as USDA report showed Soybean production in the world is likely to increase by 6% to 386 million tonnes in next season (September- 2021- August 2020) in expectation of higher crop size in US and India. Total crop size in India may stand higher by 750,000 tonnes to 11.2 Million tonnes against 10.45 Million tonnes in this season. Higher soybean prices in this season will encourage farmers in India to cover higher soybean area. China's soybean imports from Brazil surged in April from the previous month, customs data showed, as cargoes that had been delayed by poor weather cleared customs. China, the world's top importer of soybeans, brought in 5.08 million tonnes of the oilseed from top supplier Brazil in April, up from only 315,334 tonnes in March, data from the General Administration of Customs showed. Chinese crushers stepped up purchases of soybeans in expectation of increasing demand for animal feed from the steadily recovering pig sector. At the Indore spot market in top producer MP, soybean dropped -10 Rupees to 7302 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -5.63% to settled at 55105 while prices up 118 rupees, now Soyabean is getting support at 6845 and below same could see a test of 6711 levels, and resistance is now likely to be seen at 7069, a move above could see prices testing 7159.
Trading Ideas:
* Soyabean trading range for the day is 6711-7159.
* Soyabean prices gained after Edible Oil industry cautioned the government against resorting to any knee-jerk reaction of lowering import duties
* China's April soybean imports from Brazil surge from previous month
* Brazil's Abiove sees 2021 soybean exports at record 85.6 million tns
* At the Indore spot market in top producer MP, soybean dropped  -10 Rupees to 7302 Rupees per 100 kgs.

Ref.Soyaoil

Ref.Soyaoil yesterday settled up by 0.86% at 1402.5 on short covering tracking rise in soyabean prices after seen pressure in recent session as higher soybean output could limit edible oil imports. Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021 as record high prices for the oilseed could prompt some to switch from cultivating competing commodities such as cotton and pulses, industry officials said. Increased production of India's main summer-sown oilseed could help the world's biggest vegetable oil importer trim costly purchases of palm oil, soyoil and sunflower oil from Indonesia, Malaysia, Argentina and Ukraine. Global oilseed production is forecast to grow 5 percent in 2021/22, primarily on growth in soybean output in the United States and South America. Global oilseed production is projected to reach 632 million tons on record plantings. Soybean production is forecast to rise 23 million tons to 386 million, a 6-percent increase. Production of all oilseeds is forecast to increase, with all but cottonseed and rapeseed reaching at least 10-year records. The U.S. Department of Agriculture projected U.S. 2021/22 soybean ending stocks at 140 million bushels, up only slightly from the 120 million expected at the end of 2020/21. The USDA projected a U.S. 2021/22 soybean crop of 4.405 billion bushels, based on an average yield of 50.8 bushels per acre. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1425.85 Rupees per 10 kgs.Technically market is under short covering as market has witnessed drop in open interest by -12.49% to settled at 34625 while prices up 12 rupees, now Ref.Soya oil is getting support at 1381 and below same could see a test of 1358 levels, and resistance is now likely to be seen at 1416, a move above could see prices testing 1428.
Trading Ideas:
* Ref.Soya oil trading range for the day is 1358-1428.
* Ref soyoil gained on short covering tracking rise in soyabean prices after seen pressure as higher soybean output could limit edible oil imports.
* Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021
* Global oilseed production is forecast to grow 5 percent in 2021/22, primarily on growth in soybean output in the United States and South America.
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1425.85 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled down by -1.81% at 1189.1 hit by demand and lockdown concerns in Malaysia. However downside seen limited as Malaysia's palm exports during May 1-20 rose 16% month-on-month. There are also concerns of stricter movement restrictions in Malaysia, which could implode consumption from the domestic hospitality, restaurants and catering sectors. Malaysia has kept its May export tax for crude palm oil at 8% but raised the reference price, a circular on the Malaysian Palm Oil Board website showed. The world's second-largest palm exporter calculated a reference price of 4,533.40 ringgit per tonne for May, up from 4,331.48 ringgit a tonne in April. The export tax structure starts at 3% for crude palm oil in a 2,250 to 2,400 ringgit-per-tonne range. The maximum tax rate is set at 8% when prices exceed 3,450 ringgit a tonne. India's palm oil imports in 2021 are set to fall for the second consecutive year as pandemic concerns continue to unfold in the country, forcing refiners to dial back production and keep stocks at a bare minimum level. India's imports of palm oil imports jumped 82% in April on the year as refiners stepped up purchases of the tropical oil to reduce imports of expensive soyoil and sunflower oil. In spot market, Crude palm oil dropped by -25.6 Rupees to end at 1206.9 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -10.24% to settled at 2507 while prices down -21.9 rupees, now CPO is getting support at 1175.1 and below same could see a test of 1161.2 levels, and resistance is now likely to be seen at 1206.4, a move above could see prices testing 1223.8.
Trading Ideas:
* CPO trading range for the day is 1161.2-1223.8.
* Crude palm oil dropped hit by demand and lockdown concerns in Malaysia.
* However downside seen limited as Malaysia's palm exports during May 1-20 rose 16% month-on-month.
* Malaysia has kept its May export tax for crude palm oil at 8% but raised the reference price
* In spot market, Crude palm oil dropped  by -25.6 Rupees to end at 1206.9 Rupees.

Mustard Seed

Mustard Seed yesterday settled up by 0.53% at 6982 after COOIT was against any reduction in import duties on edible oils but wanted the Centre to remove the GST of 5 per cent on mustard seed and oil as it will help farmers and consumers both. Prices dropped in recent session as U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield. Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. European Union rapeseed production is projected to show a modest gain in 2021/22 on increased planted area and improved yield but will remain below the levels observed from 2016 to 2018. Prices rallied in recent session 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. 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. 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. In Alwar spot market in Rajasthan the prices gained 105 Rupees to end at 7325 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -4.27% to settled at 59370 while prices up 37 rupees, now Rmseed is getting support at 6883 and below same could see a test of 6785 levels, and resistance is now likely to be seen at 7046, a move above could see prices testing 7111.
Trading Ideas:
* Rmseed trading range for the day is 6785-7111.
* Mustard seed prices gained after COOIT was against any reduction in import duties on edible oils.
* COOIT wanted the Centre to remove the GST of 5 per cent on mustard seed and oil as it will help farmers and consumers both.
* U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield.
* 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 0.2% at 8200 following export demand from Europe, Gulf countries and Bangladesh. Prices had dropped over the last few weeks as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading. In Nizamabad APMC in Telangana, the modal price of the finger variety turmeric was quoted at ₹6,950 a quintal. Prices are up about ₹400 since the beginning of this month. At Bangalore in Karnataka, turmeric is quoted at ₹11,500 at the APMC yard with most markets closed in the State to control the Covid-19 pandemic. In Tamil Nadu, too, the agricultural markets are closed as part of the lockdown to tackle the pandemic. Demand for exports to Bangladesh and Europe are helping turmeric prices to gain. Exporters are looking to pick up stocks from Nanded in view of its quality. Turmeric has been in demand over the last two years as it is reported to be effective in medical use, particularly in combating Covid-19. According to Spices Board data, turmeric exports during the April-December period of the last fiscal increased 34 per cent to 1.39 lakh tonnes valued at ₹1,251 crore compared with 1.03 lakh tonnes valued at ₹1,047 crore. In Nizamabad, a major spot market in AP, the price ended at 7722.6 Rupees dropped -2.4 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.38% to settled at 10460 while prices up 16 rupees, now Turmeric is getting support at 8150 and below same could see a test of 8100 levels, and resistance is now likely to be seen at 8250, a move above could see prices testing 8300.
Trading Ideas:
* Turmeric trading range for the day is 8100-8300.
* Turmeric prices recovered following export demand from Europe, Gulf countries and Bangladesh.
* Prices had dropped over the last few weeks as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading.
* At least 50 per cent of the crop cultivated in the Maharashtra growing regions are estimated to have arrived at the terminal agricultural markets.
* In Nizamabad, a major spot market in AP, the price ended at 7722.6 Rupees dropped -2.4 Rupees.

Jeera

Jeera yesterday settled down by -1.65% at 13730 as lockdown restrictions increased against rising Covid cases, slowing spot trade interest weakened market sentiments and pushed prices lower. The wholesale offers for the NCDEX grade Jeera are currently offered around Rs.14000/qtl in Unjha and in Jodhpur, the mandi offers average near Rs.13900/qtl. Over a month, the wholesale prices in Unjha and Jodhpur have gone down by Rs.400/qtl and Rs.700/qtl respectively. As India struggles against curbing the Corona pandemic, exports markets have turned subdued. The importers prefer to wait for the situation to normalize before negotiating for fresh deals. They rather prefer to clear their older stocks first and presently they feel that the older inventory may be sufficient to balance the existing demand for next few weeks easily. The new season arrivals shall continue with good numbers hence there will be ample availability in the market. However from a broader perspective, India’s exports outlook has brightened while crop is expected to be lower versus year on year. Also, the nearest export competitors i.e. Turkey and Syria may not supply much to the world due to lower exportable surplus. In Unjha, a key spot market in Gujarat, jeera edged down by -83.35 Rupees to end at 14016.65 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 0.57% to settled at 6306 while prices down -230 rupees, now Jeera is getting support at 13625 and below same could see a test of 13515 levels, and resistance is now likely to be seen at 13895, a move above could see prices testing 14055.
Trading Ideas:
* Jeera trading range for the day is 13515-14055.
* Jeera dropped as lockdown restrictions increased against rising Covid cases, slowing spot trade interest weakened market sentiments.
* As India struggles against curbing the Corona pandemic, exports markets have turned subdued.
* The importers prefer to wait for the situation to normalize before negotiating for fresh deals.
* In Unjha, a key spot market in Gujarat, jeera edged down by -83.35 Rupees to end at 14016.65 Rupees per 100 kg.

Cotton

Cotton yesterday settled up by 0.54% at 22480 after CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales against 60 lakh bales projected till last month. Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (July-June) season due to yield loss. India’s cotton output in the 2020-21 (October-September) market year is seen at 38 million bales, up 4 percent on the year. The country’s cotton exports are likely to be 20 percent higher at 1.02 million tonnes in 2020-21 (October-September) backed by competitive pricing in the global markets and an improvement in international cotton consumption, said Care Rating. Higher exports along with a recovery in domestic cotton demand will help reduce the surplus availability of cotton in the nation despite higher supply, the rating agency said in a note. Cotton farmers from various states are planning to increase the area under cultivation in the coming 2021-22 Kharif season. Indian textile mills have reduced production due to lower domestic demand and labour shortage. The government has allowed mills to operate but markets are closed so mills are facing a cash crunch. Textiles mills dealing in exports are still going strong as Indian yarn prices are attractive. In spot market, Cotton gained by 40 Rupees to end at 22650 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 20.26% to settled at 6198 while prices up 120 rupees, now Cotton is getting support at 22390 and below same could see a test of 22310 levels, and resistance is now likely to be seen at 22560, a move above could see prices testing 22650.
Trading Ideas:
* Cotton trading range for the day is 22310-22650.
* Cotton seen supported as CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales
* Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (July-June) season due to yield loss.
* According to the Punjab Agriculture Department, sowing is been done on only 63,220 hectares, whereas the target is to cover 3.25 lakh hectares area.
* In spot market, Cotton gained  by 40 Rupees to end at 22650 Rupees.

Chana

Chana yesterday settled down by -0.5% at 5201 as the Centre opened up imports of tur, urad and moong. Government amended the pulses import policy by moving tur, urad and moong from ‘restricted’ to ‘free’ category. The Commerce Ministry in a notification said the revision in pulses import policy is with immediate effect and will for the period up to October 31, 2021. Further, import consignments of these items with Bill of Landing issued on or before October 31 shall not be allowed by Customs beyond November 30, the notification said. “The Open General License (OGL) under the free import policy will enable the traders to quickly import the required quantity of tur, moong and urad to fulfil the shortage of the pulses. We are expecting minimum 250,000 tonnes of tur, 150,000 tonnes of urad and around 50,000-75,000 tonnes of moong beans to be imported primarily from Myanmar, African, and the neighbouring countries.” Total summer crops have been sown on 73.76 lakh ha area against 60.67 lakh ha during the corresponding period of last year, thus increase in total summer area coverage by 13.09 lakh ha compared to corresponding period of last year in the country. In Delhi spot market, chana dropped by -18.85 Rupees to end at 5206.15 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.77% to settled at 126270 while prices down -26 rupees, now Chana is getting support at 5175 and below same could see a test of 5149 levels, and resistance is now likely to be seen at 5237, a move above could see prices testing 5273.
Trading Ideas:
* Chana trading range for the day is 5149-5273.
* Chana dropped continuing its weak trend as the Centre opened up imports of tur, urad and moong.
* Government amended the pulses import policy by moving tur, urad and moong from ‘restricted’ to ‘free’ category.
* The revision in pulses import policy is with immediate effect and will for the period up to October 31, 2021.
* In Delhi spot market, chana dropped  by -18.85 Rupees to end at 5206.15 Rupees per 100 kgs.

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