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Gold

Gold yesterday settled down by -0.21% at 47534 as a stronger dollar, firmer yields and equity markets chipped away at its appeal. Pressure seen on prices as fears over rising delta variant COVID-19 cases have eased, driving investors to equities as risk appetite returned. Market focus now turns to next week's U.S. Federal Reserve meeting for more clues on monetary policy after the European Central Bank pledged to keep interest rates at record lows for some time.

Russia's central bank increased its key interest rate to 6.5% to curb stubbornly high inflation and indicated that further rate increases were possible even after the 100 basis point hike, its sharpest since late 2014. After slashing rates to a record low of 4.25% amid the COVID-19 pandemic in 2020, Russia this year embarked on a monetary tightening cycle to rein in inflation, which is a sensitive issue ahead of September parliamentary election.

Physical gold demand in India was lacklustre with buyers put off by price volatility, forcing dealers to raise discounts to their highest in nearly a month to encourage purchases. Discounts up to $6 an ounce over official domestic price were offered, compared to last week's discount of $5. In top consumer China, premiums were around $1-$3 an ounce over the benchmark compared with last week's premium of $1-$2, while Hong Kong dealers quoted premiums of between $0.80 and $1.80.

Technically market is under long liquidation as market has witnessed drop in open interest by -3.12% to settled at 5314 while prices down -100 rupees, now Gold is getting support at 47316 and below same could see a test of 47098 levels, and resistance is now likely to be seen at 47736, a move above could see prices testing 47938.

Trading Ideas:
* Gold trading range for the day is 47098-47938.
* Gold prices dropped as a stronger dollar, firmer yields and equity markets chipped away at its appeal.
* Market focus now turns to Fed meeting for more clues on monetary policy after the ECB pledged to keep interest rates at record lows
* Discounts in India widen to near 1 month high as demand falters

Silver

Silver yesterday settled down by -0.52% at 67024 as the dollar remained strong and investors' risk appetite improved as focus shifts to the earnings season. Still, concerns over the rapid spread of the coronavirus delta variant and the impact it will have on the global economy remain in the spotlight, creating room for upside momentum.

U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints, suggesting a cooling in economic activity after what was expected to have been a robust second quarter.

Data firm IHS Markit said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to a four-month low of 59.7 from 63.7 in June. Britain's rapid economic bounce-back from the coronavirus pandemic slowed sharply in July as a new wave of cases forced hundreds of thousands of workers to self-isolate under government rules to limit the spread of the disease.

The European Central Bank kept its very accommodative monetary policy in place and revised its guidance on when interest rates might rise to convince investors it would keep interest rates at record lows for even longer. The focus now shifts to the U.S. Federal Reserve meeting due next week, with Fed officials expected to accelerate deliberations over how to scale back their easy-money policies.

Technically market is under fresh selling as market has witnessed gain in open interest by 0.27% to settled at 12166 while prices down -350 rupees, now Silver is getting support at 66608 and below same could see a test of 66191 levels, and resistance is now likely to be seen at 67501, a move above could see prices testing 67977.

Trading Ideas:
* Silver trading range for the day is 66191-67977.
* Silver prices dropped as the dollar remained strong and investors' risk appetite improved as focus shifts to the earnings season.
* Still, concerns over the rapid spread of the coronavirus delta variant and the impact it will have on the global economy remain in the spotlight
* Silver investment demand remains strong and dealers are running of out silver inventories

Crude oil 

Crude oil yesterday settled up by 0.49% at 5369 underpinned by expectations that supply will remain tight through the year. Demand growth is expected to outpace supply after Sunday's deal between the Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively known as OPEC+, to add back 400,000 barrels per day (bpd) each month from August.

Data from Energy Information Administration (EIA) showed that gasoline stockpiles dropped by 100,000 barrels last week, while distillate stockpiles declined by about 1.3 million barrels. The EIA report also showed a drop in crude stockpiles at the storage hub in Cushing, Oklahoma, to the lowest level in about seven months.

U.S. commercial crude imports last week rose to 7.1 million barrels per day (bpd), their highest since July 2020, boosting net crude imports to their highest since December 2020, data from the Energy Information Administration showed. U.S. Midwest crude stockpiles fell 2.2 million barrels to 119 million barrels, their lowest since October 2018, according to the data.

U.S. weekly crude oil production rose last week to 11.4 million barrels per day, its highest since May 2020, the U.S. Energy Information Administration said. Meanwhile, U.S. crude stockpiles fell to 437.6 million barrels, their lowest since January 2020. Inventories have fallen for eight consecutive weeks, the most consecutive weeks since January 2018, EIA said.

Technically market is under short covering as market has witnessed drop in open interest by -7.45% to settled at 5763 while prices up 26 rupees, now Crude oil is getting support at 5339 and below same could see a test of 5308 levels, and resistance is now likely to be seen at 5389, a move above could see prices testing 5408.

Trading Ideas:
* Crude oil trading range for the day is 5308-5408.
* Crude oil prices gained underpinned by expectations that supply will remain tight through the year
* Data from Energy Information Administration (EIA) showed that gasoline stockpiles dropped by 100,000 barrels last week
* The EIA report showed a drop in crude stockpiles at the storage hub in Cushing, Oklahoma, to the lowest level in about seven months.
 

Natural gas

Nat.Gas yesterday settled up by 1.89% at 302 on forecasts for hotter weather and higher air conditioning demand over the next two weeks than previously expected. Data provider Refinitiv said U.S. output in the Lower 48 states slipped to 91.5 billion cubic feet per day (bcfd) so far in July, due mostly to pipeline problems in West Virginia earlier in the month.

That compares with an average of 92.2 bcfd in June and an all-time high of 95.4 bcfd in November 2019. Refinitiv projected average gas demand, including exports, would rise from 92.5 bcfd this week to 95.5 bcfd next week and 95.6 bcfd in two weeks as the weather turns hotter than normal. Those forecasts were slightly higher than Refinitiv predicted on Thursday on expectations power generators will burn more gas to meet rising air conditioning demand.

The amount of gas flowing to U.S. liquefied natural gas (LNG) export plants has averaged 10.8 bcfd so far in July, up from 10.1 bcfd in June but still below the record 11.5 bcfd in April. With European and Asian gas trading near $12 and $14 per mmBtu, respectively, analysts said buyers around the world would keep purchasing all the LNG the United States can produce. U.S. pipeline exports to Mexico, meanwhile, have averaged 6.6 bcfd so far in July, down from a record 6.7 bcfd in June.

Technically market is under short covering as market has witnessed drop in open interest by -40.47% to settled at 4933 while prices up 5.6 rupees, now Natural gas is getting support at 297.7 and below same could see a test of 293.4 levels, and resistance is now likely to be seen at 304.6, a move above could see prices testing 307.2.

Trading Ideas:
* Natural gas trading range for the day is 293.4-307.2.
* Natural gas rose on forecasts for hotter weather and higher air conditioning demand over the next two weeks than previously expected.
* U.S. output in the Lower 48 states slipped to 91.5 billion cubic feet per day (bcfd) so far in July, due mostly to pipeline problems in West Virginia
* U.S. natural gas storage is expected to end the April-October injection season at 3.550 trillion cubic feet (tcf) on Oct. 31, the lowest since 2018.

Copper 

Copper yesterday settled up by 2.19% at 748.65 as investors bet that extended easy monetary policy would help to boost economic recovery and metals demand. The European Central Bank pledged to keep interest rates at record lows for even longer to boost sluggish inflation.

Meanwhile, a new study found two doses of Pfizer or AstraZeneca's COVID-19 vaccine are nearly as effective against the highly transmissible Delta coronavirus variant, which has sparked concerns over economic recovery recently, as they are against the previously dominant Alpha variant. The global world refined copper market showed a 75,000 tonnes deficit in April, compared with a 13,000 tonnes deficit in March, the International Copper Study Group (ICSG) said in its latest monthly bulletin.

For the first 4 months of the year, the market was in a 69,000 tonnes surplus compared with a 110,000 tonnes surplus in the same period a year earlier, the ICSG said. World refined copper output in April was 2.07 million tonnes , while consumption was 2.14 million tonnes. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 15.4 percent from last Friday, the exchange said. Stocks of copper in Shanghai bonded areas decreased on smaller arrivals for two consecutive weeks.

Data showed that the stocks fell 6,900 mt from the prior week to 428,600 mt as of Friday July 23. Technically market is under fresh buying as market has witnessed gain in open interest by 20.56% to settled at 3811 while prices up 16.05 rupees, now Copper is getting support at 738.6 and below same could see a test of 728.5 levels, and resistance is now likely to be seen at 754.9, a move above could see prices testing 761.1.

Trading Ideas:
* Copper trading range for the day is 728.5-761.1.
* Copper prices gained as investors bet that extended easy monetary policy would help to boost economic recovery and metals demand.
* Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 15.4 percent from last Friday, the exchange said.
* The global world refined copper market showed a 75,000 tonnes deficit in April, compared with a 13,000 tonnes deficit in March.

Zinc

Zinc yesterday settled up by 1.41% at 241.45 as the initial manufacturing PMI for July in Eurozone was higher than expected. The German manufacturing PMI in July was also higher than expected, which to some extent alleviated the market's worries about the negative impact of mutated COVID-19 virus on economic recovery, leading to a slight increase in LME zinc.

The global zinc market was undersupplied by 17,900 tonnes in May following a revised deficit of 13,800 tonnes in April, data from the International Lead and Zinc Study Group (ILZSG) showed. Previously, the ILZSG had reported a deficit of 26,900 tonnes in April. During the first five months of 2021, the ILZSG data showed the market saw a surplus of 40,000 tonnes, down from a surplus of 335,000 tonnes in the same period of 2020.

Around 13.5 million tonnes of zinc are produced and consumed each year. Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 1,500 mt in the week ended July 23 to 115,900 mt. The stocks fell 1,000 mt from Monday June 19. Stocks in Shanghai rebounded on week as arrivals of imported zinc increased and downstream purchase for rigid demand.

Technically market is under fresh buying as market has witnessed gain in open interest by 14.5% to settled at 1500 while prices up 3.35 rupees, now Zinc is getting support at 239.2 and below same could see a test of 236.9 levels, and resistance is now likely to be seen at 242.9, a move above could see prices testing 244.3.

Trading Ideas:
* Zinc trading range for the day is 236.9-244.3.
* Zinc prices gained as the initial manufacturing PMI for July in Eurozone was higher than expected.
* The European Central Bank pledged to keep interest rates at record lows for even longer to boost sluggish inflation.
* The global zinc market was undersupplied by 17,900 tonnes in May following a revised deficit of 13,800 tonnes in April

Nickel 

Nickel yesterday settled up by 3.18% at 1461.7 on the expectations of a shortage on the global market provoked by the increase in demand that outpaces the supply growth. The rebound in the steel industry and rising electric vehicle manufacturing drive nickel consumption.

Pandemic-related lockdowns in the first half of 2020 and the related uncertainty led to a decrease in the global nickel mine output by -4% y-o-y. Despite this, refined nickel production increased by +2% y-o-y, boosted by the recovering demand from mid-2020 and the use of secondary smelting. Indonesia, the largest nickel ore producer worldwide, banned exports of the ore and thus achieved a record output of refined nickel.

The global nickel market deficit widened to 21,300 tonnes in May compared a shortfall of 20,400 tonnes in April, data from the International Nickel Study Group (INSG) showed. During the first five months of the year, the nickel market saw a deficit of 61,200 tonnes compared with a surplus of 61,000 tonnes in the same period last year, the Lisbon-based INSG added.

According to World Bank, the average nickel price in the first half of 2021 reached $17,489 per tonne, which was 27% higher than the 2020’s average price of $13,787 per tonne. Technically market is under fresh buying as market has witnessed gain in open interest by 68.08% to settled at 2464 while prices up 45 rupees, now Nickel is getting support at 1433.4 and below same could see a test of 1405.2 levels, and resistance is now likely to be seen at 1476.4, a move above could see prices testing 1491.2.

Trading Ideas:
* Nickel trading range for the day is 1405.2-1491.2.
* Nickel rose on the expectations of a shortage on the global market provoked by the increase in demand that outpaces the supply growth.
* The global nickel market deficit widened to 21,300 tonnes in May compared a shortfall of 20,400 tonnes in April
* China's nickel cathode output fell 4.4% year-on-year to 79,400 tonnes in January-June.

Aluminium

Aluminium yesterday settled up by 1.03% at 200.4 supported by tight global supply and continued robust demand from the automotive, packaging, and construction sectors. Demand for the metal used in cars and planes has bounced back strongly from the coronavirus-induced blow, with global aluminum consumption seen rising 8% to around 69 million this year.

U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints, suggesting a cooling in economic activity after what was expected to have been a robust second quarter.

Data firm IHS Markit said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to a four-month low of 59.7 from 63.7 in June. The European Central Bank maintained its benchmark interest rate and the scale of asset purchases, but revised its forward guidance to link policy adjustments more closely to the new 2% inflation target.

Bank President Lagarde made dovish statement that the monetary policy would not be tightened too early. The initial jobless claims in US for rose last week rose unexpectedly, making the largest increase since late March, highlighting the turbulent situation in the job market, and market concerns eased.

Technically market is under fresh buying as market has witnessed gain in open interest by 60.64% to settled at 1616 while prices up 2.05 rupees, now Aluminium is getting support at 199.2 and below same could see a test of 197.9 levels, and resistance is now likely to be seen at 201.3, a move above could see prices testing 202.1.

Trading Ideas:
* Aluminium trading range for the day is 197.9-202.1.
* Aluminium rose supported by tight global supply and continued robust demand from the automotive, packaging, and construction sectors.
* U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints
* The European Central Bank maintained its benchmark interest rate and the scale of asset purchases.

Mentha oil

Mentha oil yesterday settled down by -0.44% at 956.9 as average yield in Barabanki is improved by 5-6 kgs per acre due to better weather. Support also seen due to the rotting of the crop due to stagnant water in the field. The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting.

Due to drowning in the water, the rows have started to wither. With the harvesting of the crop, oil extraction work has also started. However upside seen limited as arrivals likely to increase due to favourable weather conditions. Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days. Last week, prices rallied.

The Lucknow-based Central Institute of Medicinal and Aromatic Plants estimates that this adverse effect of rains on the crop is expected to reduce production by 30% in the last two weeks. The crop is prone to rain because the leaves of the crop start falling due to waterlogging in the field. Most of the farmers have planted Mentha crops and this rain is not less than acid for 50 percent of Mentha crop. In Sambhal spot market, Mentha oil dropped by -17.4 Rupees to end at 1058.7 Rupees per 360 kgs.

Technically market is under fresh selling as market has witnessed gain in open interest by 51.97% to settled at 848 while prices down -4.2 rupees, now Mentha oil is getting support at 950 and below same could see a test of 943.1 levels, and resistance is now likely to be seen at 966.4, a move above could see prices testing 975.9.

Trading Ideas:
* Mentha oil trading range for the day is 943.1-975.9.
* In Sambhal spot market, Mentha oil dropped  by -17.4 Rupees to end at 1058.7 Rupees per 360 kgs.
* Mentha oil prices dropped as average yield in Barabanki improved
* Prices gained in recent sessions due to the rotting of the crop due to stagnant water in the field.
* The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting.
 

Soyabean

Soyabean yesterday settled up by 5.68% at 8591 amid tightening inventory situation in the country and amid slower pace of sowing. Government reports indicate that the weakening of rains has impacted the sowing of crops in Maharashtra, Gujarat, Rajasthan, Haryana and Punjab. Area sown under soybean was lagging behind last year’s area by nearly 11.05 per cent.

Planting of overall oilseeds, including soybean was at 11.2 million hectares, down from 12.6 million hectares the previous year. A “break” in the monsoon has affected Kharif sowing in many parts of the country this year. However, area under soybean planting is likely to increase by 5-7% across the country this kharif season despite speculation in the market over the shortage of seeds.

Farmers, however, are keeping their fingers crossed due to the break in monsoon and hope for a revival of the monsoon to ensure a good crop. In the 2020 kharif season, soybean cultivation took place on 120 lakh hectares and the yield was about 105 lakh tonne. China's soybean imports in June hit their third-highest monthly level on record, customs data showed, boosted by a jump in shipments from Brazil. At the Indore spot market in top producer MP, soybean gained 142 Rupees to 8700 Rupees per 100 kgs.

Technically market is under short covering as market has witnessed drop in open interest by -6.56% to settled at 39245 while prices up 462 rupees, now Soyabean is getting support at 8296 and below same could see a test of 8000 levels, and resistance is now likely to be seen at 8752, a move above could see prices testing 8912.

Trading Ideas:
* Soyabean trading range for the day is 8000-8912.
* Soyabean prices gained amid tightening inventory situation in the country and amid slower pace of sowing.
* Government reports indicate that the weakening of rains has impacted the sowing of crops in Maharashtra, Gujarat, Rajasthan, Haryana and Punjab.
* Area sown under soybean was lagging behind last year’s area by nearly 11.05 per cent.
* At the Indore spot market in top producer MP, soybean gained  142 Rupees to 8700 Rupees per 100 kgs.

Soya Oil

Ref.Soyaoil yesterday settled up by 2.27% at 1403.5 supported by lingering concerns over tight supply. China raised its forecast on imports of edible oils in 2020/21 marketing year, on increase of palm oil and sunflower oil shipments, the country's agriculture ministry said. China's 2020/21 edible oils imports were seen at 10.23 million tonnes, up 900,000 tonnes from last month's forecast, the Ministry of Agriculture and Rural Affairs said in its monthly crop report.

Estimates on output, planting acreage and imports of corn, soybeans and cotton in the 2021/22 year remain unchanged from a month ago, according to the ministry. China's soybean acreage in 2021/22 year was seen at 9.347 million hectares, down 5.4% from 9.882 million hectares in the previous year, according to the report. India has slashed the base import price of palm oil and soyoil, the government said in a statement, as prices fell in the overseas market.

India exported 5.31 lakh tonnes of oilmeals in the first two months of the fiscal 2021-22 against 3.50 lakh tonnes in the same period a year ago, recording a growth of 52 per cent. BV Mehta, Executive Director of Solvent Extractors’ Association of India (SEA), said the export of oilmeals increased sharply on the back of shipments of rapeseed meal during the period.

At the Indore spot market in Madhya Pradesh, soyoil was steady at 1397.7 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.61% to settled at 32835 while prices up 31.1 rupees, now Ref.Soya oil is getting support at 1384 and below same could see a test of 1365 levels, and resistance is now likely to be seen at 1416, a move above could see prices testing 1429.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1365-1429.
* Ref soyoil prices gained supported by lingering concerns over tight supply.
* China raised its forecast on imports of edible oils in 2020/21 marketing year, on increase of palm oil and sunflower oil shipments.
* China's 2020/21 edible oils imports were seen at 10.23 million tonnes, up 900,000 tonnes from last month's forecast
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1397.7 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled up by 1.08% at 1123.8 underpinned by concerns over declining production as a labour shortage hampers output. A labour shortage and coronavirus restrictions are clouding outlook for palm oil production in Malaysia, dashing hopes of a large rise in output in the seasonal peak production months during the third quarter of the year. Support also seen on higher exports during July 1-15 and expectations of a sluggish rise in production.

Exports of Malaysian palm oil products for July 1-15 rose 3.8% to 682,426 tonnes from June 1-15, cargo surveyor Societe Generale de Surveillance said. Dry weather in the United States and Canada is curbing soybean and canola yields. Investors are also expecting palm oil production in July to be below potential despite the peak production season due to a labour shortage.

European Union palm oil imports in the 2021/22 season fell to 80,608 tonnes versus 214,613 tonnes in 2020/21, European Commission data showed. Plantations in Malaysia are entering the seasonal higher production months, but analysts are anticipating a small uptick in July output as a labour shortage continues to hamper harvesting.

India's palm oil and soyoil imports plunged by nearly a quarter in June from a month ago, a leading trade body said in a statement, as refiners postponed purchases anticipating a reduction in the import tax. In spot market, Crude palm oil gained by 13 Rupees to end at 1135 Rupees.

Technically market is under short covering as market has witnessed drop in open interest by -5.41% to settled at 3705 while prices up 12 rupees, now CPO is getting support at 1116.5 and below same could see a test of 1109.3 levels, and resistance is now likely to be seen at 1129.7, a move above could see prices testing 1135.7.

Trading Ideas:
* CPO trading range for the day is 1109.3-1135.7.
* Crude palm oil gained underpinned by concerns over declining production as a labour shortage hampers output.
* Export shipments from Malaysia during July 1-20 fell 7.9% to 863,586 tonnes compared with the same period in June
* The Southern Peninsula Palm Oil Millers' Association has estimated production during July 1-15 fell by 3.5% from the corresponding period in June
* In spot market, Crude palm oil gained  by 13 Rupees to end at 1135 Rupees.

Mustard Seed

Mustard Seed yesterday settled up by 1.76% at 7595 as the arrival of mustard in the mandis has decreased at all places in the country. 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. 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. 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. 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.

In Alwar spot market in Rajasthan the prices dropped -51.5 Rupees to end at 7634 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -1.53% to settled at 44490 while prices up 131 rupees, now Rmseed is getting support at 7513 and below same could see a test of 7432 levels, and resistance is now likely to be seen at 7652, a move above could see prices testing 7710.

Trading Ideas:
* Rmseed trading range for the day is 7432-7710.
* Mustard seed prices gained tracking firmness in overseas prices as drought continued across the Canadian Prairies, threatening crop yields.
* The arrival of mustard in the mandis has decreased at all places in the country.
* 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 dropped -51.5 Rupees to end at 7634 Rupees per 100 kg.

Turmeric

Turmeric yesterday settled down by -0.3% at 7398 on profit booking after prices gained in recent sessions as turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains. Support also seen on following export demand from Europe, Gulf countries and Bangladesh. However upside seen limited as sentiment is weak and sluggish demand from local stockists amid poor quality arrivals in the market has led to the fall in prices.

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.

In Nizamabad, a major spot market in AP, the price ended at 7322.75 Rupees dropped -17.25 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -0.86% to settled at 11515 while prices down -22 rupees, now Turmeric is getting support at 7324 and below same could see a test of 7252 levels, and resistance is now likely to be seen at 7458, a move above could see prices testing 7520.

Trading Ideas:
* Turmeric trading range for the day is 7252-7520.
* Turmeric dropped on profit booking after prices gained as turmeric crops were severely damaged in Parbhani and Hingoli due to heavy rains.
* Support also seen on following export demand from Europe, Gulf countries and Bangladesh.
* However upside seen limited as sentiment is weak and sluggish demand from local stockists amid poor quality arrivals in the market has led to the fall in prices.
* In Nizamabad, a major spot market in AP, the price ended at 7322.75 Rupees dropped -17.25 Rupees.

Jeera 

Jeera yesterday settled up by 0.37% at 13630 as only 45-50 percent of the total production has come to the market. In recent sessions, prices dropped amid excess supply and as demand is likely to remain subdued on weak buying from local and overseas markets.

Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions. In the benchmark market Unjha, 7,000 bags (1 bag = 55 kg) arrived yesterday as against 10,000 bags.

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 -57.15 Rupees to end at 13700 Rupees per 100 kg.

Technically market is under short covering as market has witnessed drop in open interest by -2.44% to settled at 6249 while prices up 50 rupees, now Jeera is getting support at 13580 and below same could see a test of 13535 levels, and resistance is now likely to be seen at 13670, a move above could see prices testing 13715.

Trading Ideas:
* Jeera trading range for the day is 13535-13715.
* Jeera prices gained as only 45-50 percent of the total production has come to the market.
* However upside seen limited amid excess supply and as demand is likely to remain subdued on weak buying from local and overseas markets.
* Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions.
* In Unjha, a key spot market in Gujarat, jeera edged down by -57.15 Rupees to end at 13700 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled remain unchangeby 0% at 26860 paring gains on profit booking seen earlier in the day as Chinese prices made purchasing U.S. cotton more lucrative. The USDA's weekly export sales report showed net sales of 251,900 running bales (RB) for the 2021/2022 marketing year, primarily for Turkey, Pakistan, Vietnam, Mexico, and China.

The report also showed exports of 246,100 RB for the new marketing year, up 32% from the previous week and 2% from the prior 4-week average. Pink bollworm attack on cotton crop has been reported in some areas in Bathinda district. Farmers are claiming damage on the cotton sown earlier. The pink bollworm attack has been reported in Talwandi Sabo, Sangat and Rama blocks along with few villages adjoining Bathinda city.

Overall area under sowing for Cotton covered is 8.05 lakh ha more than compared to normal of corresponding week. About 98.38 lakh ha area coverage has been reported compared to normal of corresponding week (90.33 lakh ha). Cotton sowing has taken place only on 67% of the expected area of 6.97 lakh hectare in the Aurangabad division and 65% of the expected area (3.58 lakh hectare) in the Latur division. In spot market, Cotton gained by 160 Rupees to end at 26590 Rupees.

Technically market is under fresh selling as market has witnessed gain in open interest by 7.64% to settled at 5300 while prices remain unchanged 0 rupees, now Cotton is getting support at 26700 and below same could see a test of 26530 levels, and resistance is now likely to be seen at 27070, a move above could see prices testing 27270.

Trading Ideas:
* Cotton trading range for the day is 26530-27270.
* Cotton prices settled flat paring gains on profit booking seen earlier in the day as Chinese prices made purchasing U.S. cotton more lucrative.
* The USDA's weekly export sales report showed net sales of 251,900 running bales (RB) for the 2021/2022 marketing year
* Pink bollworm attack on cotton crop has been reported in some areas in Bathinda district.
* In spot market, Cotton gained  by 160 Rupees to end at 26590 Rupees.
 

Chana

Chana yesterday settled down by -0.73% at 5005 as targeted area under total kharif pulses increased to 4121 thousand hectares i.e up by 6.84% from 5year average of 3857 thousand hectares, as per latest Rajasthan Govt Sowing Data.

The Central Government has relaxed stock limits for Millers and wholesalers and exempted importers from the same. Amid tremendous pressure from the sector, the government increased the permissible stock quantity of pulses allowed for wholesalers and millers with a complete exemption for importers.

Under the revised stock limit, wholesalers can now keep 500 metric tonnes (MT) of pulses at a time provided the quantity of any one pulse does not exceed 200 MT. Under the old order, the maximum stock that wholesalers could keep was 200 MT, with the quantity of a single pulse restricted to a maximum of 100 MT.

It may be noted that Government of India has been making continuous efforts to crackdown on prices of essential commodities like pulses and had taken various measures like stock declaration of pulses by the stockholders of different categories on 14thMay,2021 and thereafter imposition of stock limits on pulses on 2nd July,2021.

Overall area under sowing for Kharif Pulses Crop area covered is 10.56 lakh ha less compared to normal of corresponding week. In Delhi spot market, chana dropped by -87.8 Rupees to end at 4912.2 Rupees per 100 kgs.

Technically market is under long liquidation as market has witnessed drop in open interest by -1.2% to settled at 110710 while prices down -37 rupees, now Chana is getting support at 4967 and below same could see a test of 4929 levels, and resistance is now likely to be seen at 5059, a move above could see prices testing 5113.

Trading Ideas:
* Chana trading range for the day is 4929-5113.
* Chana dropped as targeted area under total kharif pulses increased to 4121 thousand hectares i.e up by 6.84% in Rajasthan.
* Overall area under sowing for Kharif Pulses Crop area covered is 10.56 lakh ha less compared to normal of corresponding week.
* About 70.64 lakh ha area coverage has been reported compared to normal of corresponding week (81.20 lakh ha).
* In Delhi spot market, chana dropped  by -87.8 Rupees to end at 4912.2 Rupees per 100 kgs.

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