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Gold

Gold yesterday settled up by 0.76% at 48674 as weaker equity markets and inflation concerns boosted bullion’s safe-haven appeal, with focus turning to minutes from the U.S. Federal Reserve latest policy meeting. Gold has risen by more than $200, or over 12%, since falling to a nine-month trough in early March, with gains driven by a pullback in the dollar and a rise in inflation expectations, as bullion is considered a hedge against inflation. Meanwhile, nations around the world continue to report soaring consumer prices, with Canada reporting the highest inflation rate in 10 years in April and UK inflation rate jumping to a 1-year high. Federal Reserve Vice Chair Randal Quarles will tell lawmakers a strong economic recovery is underway in the United States, but is not yet complete. In prepared testimony, Quarles said some households and businesses remain vulnerable, although the broader economy is in the “last stretch of the return to normal.” U.S. homebuilding fell more than expected in April, likely pulled down by soaring prices for lumber and other materials, but construction remains supported by an acute shortage of previously owned homes on the market. Housing starts tumbled 9.5% to a seasonally adjusted annual rate of 1.569 million units last month, the Commerce Department said. Technically market is under short covering as market has witnessed drop in open interest by -1.29% to settled at 6196 while prices up 367 rupees, now Gold is getting support at 48125 and below same could see a test of 47575 levels, and resistance is now likely to be seen at 49050, a move above could see prices testing 49425.

Trading Ideas: 

* Gold trading range for the day is 47575-49425.

* Gold jumped as weaker equity markets and inflation concerns boosted bullion’s safe-haven appeal

* Fed’s Quarles will tell lawmakers a strong economic recovery is underway in the United States, but is not yet complete.

* Nations around the world continue to report soaring consumer prices, with Canada reporting the highest inflation rate in 10 years and UK inflation rate jumping to a 1-year high.

 

Silver

Silver yesterday settled down by -1.12% at 72374 tracking weakness in base metals and crude oil prices amid concerns persist about higher inflation and a possible policy tightening by the U.S. Federal Reserve. The downside, however, remained capped by lingering worries about a resurgence of coronavirus infections in some parts of Asia. A risk-off mood drove some haven flows towards the U.S. dollar and U.S. Treasury yields edged higher as investors grew more nervous about the growing threat of higher inflation. Data showed that U.K. inflation more than doubled to 1.5 percent in April. Eurozone inflation also accelerated, as initially estimated to a two-year high in April, driven by higher energy prices, final data from Eurostat revealed. Inflation rose to 1.6 percent in April from 1.3 percent in March. The annual rate came in line with the flash estimate published on April 30. This was the highest rate since April 2019, when inflation was 1.7 percent. Iceland's central bank raised its key interest rate by a quarter-basis point today, citing higher inflationary pressures. Dallas Federal Reserve President Robert Kaplan reiterated his view that he does not expect interest rates to rise until next year, fuelling a further decline in bets that inflationary pressure could force the Fed to act sooner. Technically market is under long liquidation as market has witnessed drop in open interest by -8.61% to settled at 10330 while prices down -822 rupees, now Silver is getting support at 71261 and below same could see a test of 70149 levels, and resistance is now likely to be seen at 73365, a move above could see prices testing 74357.

Trading Ideas: 

* Silver trading range for the day is 70149-74357.

* Silver prices dropped tracking weakness in base metals and crude oil prices amid concerns persist about higher inflation and a possible policy tightening by Fed.

* Data showed that U.K. inflation more than doubled to 1.5 percent in April.

* Eurozone inflation also accelerated, as initially estimated to a two-year high in April, driven by higher energy prices, final data from Eurostat revealed.

 

Crude oil

Crude oil yesterday settled down by -2.71% at 4669 after an increase in U.S. crude inventories added to concerns around the prospect of more Iranian oil returning to the market under a potential revival of the nuclear deal. Crude oil stockpiles grew by 1.32 million barrels last week, the largest increase since mid-March, according to a U.S. government report. Prices were already under pressure as broader markets tumbled on inflation concerns and as talks continue on the Iran nuclear deal. Iran said it will soon export oil from a new port, while the Persian Gulf country’s deputy foreign minister told state television he sees “good progress” being made in the talks. Azerbaijan's oil and gas condensate output declined to 11.6 million tonnes in January-April from 12.5 million tonnes a year earlier, the State Statistics Committee said on Wednesday, amid a global deal to curb production. Angola will export 33 crude oil cargoes in July, including one cargo of Plutonio deferred from June, down from 37 cargoes initially scheduled in June. Russian Deputy Prime Minister Alexander Novak said there was an oil deficit on the global market even though some countries were recording a growing number of COVID-19 cases. Technically market is under fresh selling as market has witnessed gain in open interest by 13.45% to settled at 4665 while prices down -130 rupees, now Crude oil is getting support at 4566 and below same could see a test of 4464 levels, and resistance is now likely to be seen at 4769, a move above could see prices testing 4870.

Trading Ideas: 

* Crude oil trading range for the day is 4464-4870.

* Crude oil dropped after an increase in U.S. crude inventories added to concerns around the prospect of more Iranian oil returning to the market

* Prices were already under pressure as broader markets tumbled on inflation concerns and as talks continue on the Iran nuclear deal.

* Crude oil stockpiles grew by 1.32 million barrels last week, the largest increase since mid-March

 

Nat.Gas

Nat.Gas yesterday settled down by -1.13% at 218 as exports dipped and on forecasts for milder weather and lower demand over the next two weeks than previously expected. Traders noted gas prices were also following oil futures lower. U.S. crude fell more than $2 a barrel on renewed global demand concerns as coronavirus cases in Asia rise, among other things. 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. That is still well below November 2019's monthly record of 95.4 bcfd. With the coming of summer air conditioning use, Refinitiv projected average gas demand, including exports, would rise from 81.1 bcfd this week to 84.2 bcfd next week. The forecast for next week, however, was lower than Refinitiv projected on Tuesday because the latest outlook was for milder weather that should reduce the amount of gas power generators burn to keep air conditioners humming. 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 pipes that supply them. Technically market is under long liquidation as market has witnessed drop in open interest by -33.26% to settled at 9456 while prices down -2.5 rupees, now Natural gas is getting support at 215.5 and below same could see a test of 213.1 levels, and resistance is now likely to be seen at 220.1, a move above could see prices testing 222.3.

Trading Ideas: 

* Natural gas trading range for the day is 213.1-222.3.

* Natural gas slipped as exports dipped and on forecasts for milder weather and lower demand over the next two weeks than previously expected.

* U.S. pipeline exports to Mexico, meanwhile, averaged 6.0 bcfd so far in May, just off April's monthly record of 6.1 bcfd, Refinitiv data showed.

* 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

 

Copper

Copper yesterday settled down by -2.98% at 760.5 after as the National Development and Reform Commission responded to the recent sharp increase in commodity prices, stating that commodity prices will gradually return to the fundamentals of supply and demand. At present, the National Development and Reform Commission and the State Administration of Market Supervision are jointly investigating industry market conditions, and will take targeted measures to strengthen the supervision of the futures market and effectively maintain market stability. Pressure also seen as rising inflation pushed investors into a risk-off sentiment, offsetting the impact of potential supply disruptions in the top producing region of South America. Chile’s Cochilco copper commission said that it was significantly raising its projection for the price of copper this year to $4.30 per pound. In January, Cochilco had forecast a price of $3.30 for 2021, but said it was updating its projection because of expectations of a short-term deficit through 2022 of refined copper and a drop in inventories in warehouses tracked by the London Metal Exchange. LME copper sank into a deep contango, indicating plentiful supply. The discount of LME cash copper to the three-month contract swung to $28.75 a tonne, the widest since June 2020, compared to a premium of $30 a tonne last month. Technically market is under long liquidation as market has witnessed drop in open interest by -4.21% to settled at 3254 while prices down -23.35 rupees, now Copper is getting support at 750.3 and below same could see a test of 740.2 levels, and resistance is now likely to be seen at 774.7, a move above could see prices testing 789.

Trading Ideas: 

* Copper trading range for the day is 740.2-789.

* Copper prices dropped after China’s NDRC stated that commodity prices will gradually return to the fundamentals of supply and demand.

* Pressure also seen as rising inflation pushed investors into a risk-off sentiment, offsetting the impact of potential supply disruptions in South America.

* Chile’s Cochilco copper commission said that it was significantly raising its projection for the price of copper this year to $4.30 per pound.

 

Zinc

Zinc yesterday settled down by -2.89% at 231.5 after news that China plans to strengthen management of both supply and demand sides to curb “unreasonable” increases in commodity prices and prevent the pass-through to consumers, also dragged metals lower. Zinc concentrate supply tightened in Yunnan amid the lack of imported zinc concentrate. Some smelters in this region reduced output due to power restrictions in Yunnan, alleviating the tight supply situation. Dallas Federal Reserve President Robert Kaplan on Monday reiterated his view that he does not expect interest rates to rise until next year, fuelling a further decline in bets that inflationary pressure could force the Fed to act sooner. China's economic strengthened and improved in April, boosting market sentiment. Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 5,100 mt from last Friday May 14 to 171,200 mt as of Monday May 17. The stocks were down 16,700 mt from May 10. On fundamentals, the supply of zinc ingots continued to be loose in May, and the spot market traded generally under the high zinc prices, which still limited the upward momentum of zinc prices. Technically market is under long liquidation as market has witnessed drop in open interest by -20.56% to settled at 1472 while prices down -6.9 rupees, now Zinc is getting support at 228.5 and below same could see a test of 225.3 levels, and resistance is now likely to be seen at 235.9, a move above could see prices testing 240.1.

Trading Ideas: 

* Zinc trading range for the day is 225.3-240.1.

* Zinc prices dropped after news that China plans to strengthen management of both supply and demand sides to curb “unreasonable” increases in commodity prices

* Zinc concentrate supply tightened in Yunnan amid the lack of imported zinc concentrate.

* Some smelters in this region reduced output due to power restrictions in Yunnan, alleviating the tight supply situation.

 

Nickel

Nickel yesterday settled down by -3.75% at 1272.2 after China will strengthen management of both supply and demand sides to curb "unreasonable" increases in commodity prices and prevent the pass-through to consumers, the country's cabinet said. Pressure also seen on prices due to oversupply concerns. China’s Lygend Mining said its nickel and cobalt smelting project in Indonesia had produced first batch of nickel and cobalt hydroxide products which will gradually enter the global market. Also, early in March, China’s Tsingshan said it would produce a large amount of nickel matte in Indonesia. Meantime, the commodity growing usage in lithium-ion batteries and the accelerated roll-out of electric vehicles remains a positive backdrop for markets. China's industrial production as well as fixed asset investment growth moderated, while growth in retail sales eased sharply in April as the initial boost from the relaxation of coronavirus containment measures in March faded. Data published by the National Bureau of Statistics, on Monday, showed that industrial production grew 9.8 percent year-on-year in April, slower than the 14.1 percent increase in March but it in line with expectations. Retail sales climbed 17.7 percent annually, much slower than the 34.2 percent increase seen in March and the forecast of 24.9 percent. Technically market is under fresh selling as market has witnessed gain in open interest by 15.11% to settled at 1699 while prices down -49.5 rupees, now Nickel is getting support at 1252.8 and below same could see a test of 1233.3 levels, and resistance is now likely to be seen at 1307.9, a move above could see prices testing 1343.5.

Trading Ideas: 

* Nickel trading range for the day is 1233.3-1343.5.

* Nickel prices dropped after China says it will stabilise commodity market, step up trade and stockpiling adjustment

* Pressure also seen on prices due to oversupply concerns.

* China’s Lygend Mining said its nickel and cobalt smelting project in Indonesia had produced first batch of nickel products will gradually enter the global market.

 

Aluminium

Aluminium yesterday settled down by -1.52% at 191.75 as pressure seen after China said, will increase regulation of commodity futures and spot markets, as well as clamp down on unusual transactions. Prices for commodities such as steel, iron ore and copper have surged this year fueled by post-lockdown recoveries and easing liquidity globally. China will step up adjustments on the trade and stockpiling of commodities and reinforce inspections on both spot and futures market, CCTV reported the cabinet meeting chaired by Premier Li Keqiang as saying. It will strictly crack down malicious trading and inspect behaviors that bid up prices, the cabinet said. The country also urged coal producers to boost production “in the premise of ensuring safety” to meet peak demand in summer, the cabinet said. China will maintain stable monetary policy and keep yuan exchange rates basically steady, according to the cabinet. The cabinet said China will help small and micro firms to cope with production and operation difficulties amid rising costs. “(China) will implement tax reduction or exemption for small and micro companies… strengthen relending, rediscouting and guide banks to expand credit loans,” the state media report said. The US and the EU announced they have begun discussions to “address global steel and aluminum excess capacity” while agreeing to not escalate their dispute over tariffs for now. Technically market is under long liquidation as market has witnessed drop in open interest by -10.79% to settled at 1191 while prices down -2.95 rupees, now Aluminium is getting support at 189.8 and below same could see a test of 187.7 levels, and resistance is now likely to be seen at 194, a move above could see prices testing 196.1.

Trading Ideas: 

* Aluminium trading range for the day is 187.7-196.1.

* Aluminium prices dropped as pressure seen after China said, will increase regulation of commodity futures and spot markets, as well as clamp down on unusual transactions.

* The US and the EU announced they have begun discussions to “address global steel and aluminum excess capacity” while agreeing to not escalate their dispute over tariffs.

* China's aluminium imports in April rose 36.1% from the previous month and jumped 165.2% year-on-year.

 

Mentha oil

Mentha oil yesterday settled up by 0.29% at 960.7 on low level buying after prices dropped 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 short covering as market has witnessed drop in open interest by -3.85% to settled at 25 while prices up 2.8 rupees, now Mentha oil is getting support at 959.5 and below same could see a test of 958.2 levels, and resistance is now likely to be seen at 961.8, a move above could see prices testing 962.8.

Trading Ideas: 

* Mentha oil trading range for the day is 958.2-962.8.

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

* Mentha oil recovered on low level buying after 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 -1.77% at 7268 after reports India's soybean planting could rise by over 10% on record prices. 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. It could also boost Indian exports of animal feed ingredient soymeal to places such as Bangladesh, Japan, Vietnam and Iran, industry officials said. "Farmers have realized exceptionally good prices this year. There could be 10 to 12% higher area under soybean," said Davish Jain, chairman of the Soybean Processors Association of India. The country is likely to receive an average amount of rain in the 2021 monsoon, the state-run weather office said last month. Indian farmers planted soybean on 11.83 million hectares in 2020 and produced 10.4 million tonnes, according to SOPA. USDA recent 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. At the Indore spot market in top producer MP, soybean dropped -26 Rupees to 7693 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 1.35% to settled at 53880 while prices down -131 rupees, now Soyabean is getting support at 7178 and below same could see a test of 7089 levels, and resistance is now likely to be seen at 7378, a move above could see prices testing 7489.

Trading Ideas: 

* Soyabean trading range for the day is 7089-7489.

* Soyabean prices dropped after reports India's soybean planting could rise by over 10% on record prices

* Farmers seen switching away from pulses, cotton

* Production depends on June-Sept monsoon rains

* At the Indore spot market in top producer MP, soybean dropped  -26 Rupees to 7693 Rupees per 100 kgs.

 

Ref.Soyaoil

Ref.Soyaoil yesterday settled down by -2.34% at 1407.5 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 1490 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -6.29% to settled at 36415 while prices down -33.7 rupees, now Ref.Soya oil is getting support at 1390 and below same could see a test of 1372 levels, and resistance is now likely to be seen at 1437, a move above could see prices testing 1466.

Trading Ideas: 

* Ref.Soya oil trading range for the day is 1372-1466.

* Ref soyoil prices dropped 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 1490 Rupees per 10 kgs.

 

Crude palm Oil

Crude palm Oil yesterday settled down by -1.63% at 1208.2 as Malaysian Palm Oil Board reported Malaysian palm oil stock near 15.5 lakh tons by the end of April against market expectation of 15 lakh tons. 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, a trade body said. The country imported 701,795 tonnes of palm oil last month, while soyoil imports fell by 21% to 144,020 tonnes, the Solvent Extractors' Association of India (SEA) said in a statement. Palm oil imports showed a big jump in April from a year ago as a complete lockdown last year hit imports in April 2020, the SEA 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 limit coronavirus infections, denting institutional demand, industry officials have said. In spot market, Crude palm oil dropped by -18.7 Rupees to end at 1262.3 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -18.64% to settled at 3478 while prices down -20 rupees, now CPO is getting support at 1187.8 and below same could see a test of 1167.5 levels, and resistance is now likely to be seen at 1238.6, a move above could see prices testing 1269.1.

Trading Ideas: 

* CPO trading range for the day is 1167.5-1269.1.

* Crude palm oil dropped as MPOB reported Malaysian palm oil stock near 15.5 lakh tons by the end of April against market expectation of 15 lakh tons.

* 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.

* India's imports of palm oil imports jumped 82% in April on the year

* In spot market, Crude palm oil dropped  by -18.7 Rupees to end at 1262.3 Rupees.

 

Mustard Seed

Mustard Seed yesterday settled down by -1.29% at 7198 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. 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. 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 long liquidation as market has witnessed drop in open interest by -1.2% to settled at 66850 while prices down -94 rupees, now Rmseed is getting support at 7133 and below same could see a test of 7068 levels, and resistance is now likely to be seen at 7254, a move above could see prices testing 7310.

Trading Ideas: 

* Rmseed trading range for the day is 7068-7310.

* Mustard seed prices dropped after U.S. rapeseed production is forecast to reach a record 1.8 million tons

* 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

* 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 2.86% at 8138 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 7705.55 Rupees gained 108.5 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.09% to settled at 10870 while prices up 226 rupees, now Turmeric is getting support at 7924 and below same could see a test of 7708 levels, and resistance is now likely to be seen at 8274, a move above could see prices testing 8408.

Trading Ideas: 

* Turmeric trading range for the day is 7708-8408.

* 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.

* The arrival so far this year has been 10.15 lakh bags as compared to 11.50 lakh bags in the same period last year

* In Nizamabad, a major spot market in AP, the price ended at 7705.55 Rupees gained 108.5 Rupees.

 

Jeera

Jeera yesterday settled up by 0.58% at 13985 on some short covering after prices dropped 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 -40 Rupees to end at 14000 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -0.75% to settled at 6357 while prices up 80 rupees, now Jeera is getting support at 13870 and below same could see a test of 13750 levels, and resistance is now likely to be seen at 14090, a move above could see prices testing 14190.

Trading Ideas: 

* Jeera trading range for the day is 13750-14190.

* Jeera prices settled flat 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 -40 Rupees to end at 14000 Rupees per 100 kg.

 

Cotton

Cotton yesterday settled down by -0.77% at 22020 as 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. According to the Punjab Agriculture Department, sowing is been done on only 63,220 hectares till 10th May 2021, whereas the target is to cover 3.25 lakh hectares area and till now as less than 20 percent of the crop has been sown. In spot market, Cotton gained by 40 Rupees to end at 22500 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -12.58% to settled at 4953 while prices down -170 rupees, now Cotton is getting support at 21890 and below same could see a test of 21760 levels, and resistance is now likely to be seen at 22190, a move above could see prices testing 22360.

Trading Ideas: 

* Cotton trading range for the day is 21760-22360.

* Cotton prices dropped as India’s cotton output in the 2020-21 (October-September) market year is seen at 38 million bales, up 4 percent on the year.

* Cotton farmers from various states are planning to increase the area under cultivation in the coming 2021-22 Kharif season.

* The country’s cotton exports are likely to be 20 percent higher at 1.02 million tonnes in 2020-21

* In spot market, Cotton gained  by 40 Rupees to end at 22500 Rupees.

 

Chana

Chana yesterday settled up by 0.19% at 5201 on some short covering after prices dropped in recent sessions as pressure seen after the 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. Sowing reported under Pulses 12.75 lakh ha against 6.45 lakh ha area of last year i.e. increase in area coverage by 6.30 lakh ha. In Delhi spot market, chana dropped by -33.6 Rupees to end at 5187.5 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -3.6% to settled at 140890 while prices up 10 rupees, now Chana is getting support at 5154 and below same could see a test of 5107 levels, and resistance is now likely to be seen at 5244, a move above could see prices testing 5287.

Trading Ideas: 

* Chana trading range for the day is 5107-5287.

* Chana gained on some short covering after prices dropped in recent sessions as pressure seen after the Government amended the pulses import policy

* 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

* Sowing reported under Pulses 12.75 lakh ha against 6.45 lakh ha area of last year i.e. increase in area coverage by 6.30 lakh ha.

* In Delhi spot market, chana dropped  by -33.6 Rupees to end at 5187.5 Rupees per 100 kgs.

 

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