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Gold

Gold yesterday settled up by 0.39% at 47960 as investors reacted to a newly identified coronavirus variant spreading in South Africa by piling into safe haven assets. The variant was considered by scientists to be the most significant yet found, Britain said, adding that authorities needed to ascertain whether or not it rendered vaccines ineffective. ECB policymakers Ignazio Visco and Luis de Guindos said the euro zone economy was still rebounding but the pandemic was once again a source of worry. The central bank is still on course to end its Pandemic Emergency Purchase Programme in March, ECB vice-president de Guindos said. ECB President Christine Lagarde was quoted as saying to a German daily that the central bank expected inflation to fall from January. Physical gold demand picked up in major Asian hubs this week helped by a retreat in prices, with dealers in India prepared for a likely spurt in buying as the wedding season gathers pace. Dealers offered discounts of up to $1 an ounce over official domestic prices down from the prior week's $2 discounts. Chinese customers were charged premiums of $4-$5 an ounce over benchmark spot prices, versus last week's $1-$4. The country's monthly net gold imports via Hong Kong jumped 56% in October to the highest since June 2018 Technically market is under fresh buying as market has witnessed gain in open interest by 5.3% to settled at 9339 while prices up 186 rupees, now Gold is getting support at 47712 and below same could see a test of 47464 levels, and resistance is now likely to be seen at 48404, a move above could see prices testing 48848.

Trading Ideas:

* Gold trading range for the day is 47464-48848.

* Gold gains as investors reacted to a newly identified coronavirus variant spreading in South Africa by piling into safe haven assets.

* ECB policymakers Ignazio Visco and Luis de Guindos said the euro zone economy was still rebounding but the pandemic was once again a source of worry.

* ECB President Christine Lagarde was quoted as saying to a German daily that the central bank expected inflation to fall from January.

Silver

Silver yesterday settled down by -1.3% at 62965 amid weakness in crude oil and base metals prices pressured by expectations that the U.S. Federal Reserve could hasten interest rate rises. Atlanta Federal Reserve President Raphael Bostic said he is hopeful that the momentum of the U.S. economy will carry it through the next wave of the coronavirus pandemic, and said he remains open to accelerating the pace of the central bank's bond taper. The World Health Organization said it was designating the new Omicron variant, first identified in South Africa, as being "of concern." If the new Omicron coronavirus variant follows the pattern seen with previous variants, it should cause less of an economic slowdown than the Delta variant, Bostic said. Amid mounting worries over the global spread of new Covid-19 variant that was first identified in South Africa, the U.K. and Israel temporarily suspended flights from six African countries to prevent the spread of the variant. Global silver demand will rise to 1.029 billion ounces this year, up 15% from 2020 and exceeding a billion ounces for the first time since 2015, the Silver Institute said in a report. The prediction is a slight downgrade from April, when the institute forecast demand for 2021 at 1.033 billion ounces. Technically market is under fresh selling as market has witnessed gain in open interest by 26.47% to settled at 8810 while prices down -827 rupees, now Silver is getting support at 62228 and below same could see a test of 61492 levels, and resistance is now likely to be seen at 64022, a move above could see prices testing 65080.

Trading Ideas:

* Silver trading range for the day is 61492-65080.

* Silver prices dropped pressured by expectations that the U.S. Federal Reserve could hasten interest rate rises.

* Fed's Bostic says he remains open to faster taper and one or two rate hikes in 2022

* Global silver demand will rise to 1.029 billion ounces this year, up 15% from 2020
 

Crude oil

Crude oil yesterday settled down by -11.15% at 5186 as a new variant of the coronavirus spooked investors and added to concerns that a supply surplus could swell in the first quarter. Oil fell with global equities markets on fears the variant, could dampen economic growth and fuel demand. The World Health Organization has designated the new variant, which it named Omicron, as "of concern," according to the South African health minister. OPEC+ is also monitoring developments around the variant, sources said, with some expressing concern that it may worsen the oil market outlook less than a week before a meeting to set policy. The forecasts cloud the outlook for a Dec. 2 meeting when the group will discuss whether to adjust its plan to increase output by 400,000 barrels per day in January and beyond. U.S. crude stocks rose last week as refineries hiked output, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said. Crude inventories rose by 1 million barrels in the week to November 19, compared with expectations for a decrease of 481,000 barrels. U.S. crude stocks in the Strategic Petroleum Reserve fell last week to the lowest since June 2003, Energy Information Administration data showed. Technically market is under fresh selling as market has witnessed gain in open interest by 108.71% to settled at 7908 while prices down -651 rupees, now Crude oil is getting support at 4940 and below same could see a test of 4694 levels, and resistance is now likely to be seen at 5629, a move above could see prices testing 6072.

Trading Ideas:

* Crude oil trading range for the day is 4694-6072.

* Crude oil plunged as a new variant of the coronavirus spooked investors and added to concerns that a supply surplus could swell in the first quarter.

* Oil fell with global equities markets on fears the variant, could dampen economic growth and fuel demand.

* U.S. crude stocks rose last week as refineries hiked output, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said
 

Nat.Gas

Nat.Gas yesterday settled up by 5.82% at 405.2 supported by forecasts for slightly higher heating demand than previously expected. That increase came even though near record output caused last week's storage withdrawal to be smaller-than-usual, as expected. The U.S. Energy Information Administration (EIA) said utilities pulled 21 billion cubic feet (bcf) of gas from storage during the week ended Nov. 19, which was the first withdrawal of the 2021-2022 winter season. Last week's withdrawal cut stockpiles to 3.623 trillion cubic feet (tcf), or 1.6% below the five-year average of 3.681 tcf for this time of year. Data provider Refinitiv said output in the U.S. Lower 48 states averaged 96.2 billion cubic feet per day (bcfd) so far in November, up from 94.1 bcfd in October and a monthly record of 95.4 bcfd in November 2019. Refinitiv projected average U.S. gas demand, including exports, would rise from 111.4 bcfd this week to 112.9 bcfd next week as the weather turns seasonally colder and homes and businesses crank up their heaters. The amount of gas flowing to U.S. LNG export plants averaged 11.2 bcfd so far in November, up from 10.5 bcfd in October as the sixth train at Cheniere Energy Inc's Sabine Pass plant in Louisiana started producing LNG. Technically market is under fresh buying as market has witnessed gain in open interest by 38.24% to settled at 5227 while prices up 22.3 rupees, now Natural gas is getting support at 382.3 and below same could see a test of 359.3 levels, and resistance is now likely to be seen at 421.5, a move above could see prices testing 437.7.

Trading Ideas:

* Natural gas trading range for the day is 359.3-437.7.

* Natural gas jumped supported by forecasts for slightly higher heating demand than previously expected.

* That increase came even though near record output caused last week's storage withdrawal to be smaller-than-usual, as expected.

* EIA said utilities pulled 21 bcf of gas from storage during the week ended Nov. 19, which was the first withdrawal of the 2021-2022 winter season.

Copper

Copper yesterday settled down by -2.41% at 727.65 as a newly identified COVID-19 variant in South Africa and expectations of faster-than-expected U.S. rate hikes fuelled concerns of an economic slowdown. South African scientists have detected a new COVID-19 variant in small numbers and are working to understand its potential implications. The new variant announcement prompted Britain to introduce travel restrictions on South Africa and five neighbouring countries. Minutes of the U.S. Federal Reserve's last policy meeting showed a growing number of policymakers being open to speeding up the central bank's tapering programme. An early rate hike could trim liquidity in financial markets and slow recovery in the world's biggest economy. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 19.9 percent from last Friday, the exchange said. The global world refined copper market showed a 52,000 tonnes surplus in August, compared with a 39,000 tonnes deficit in July, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 8 months of the year, the market was in a 107,000 tonnes deficit compared with a 97,000 tonnes deficit in the same period a year earlier, the ICSG said. World refined copper output in August was 2.09 million tonnes, while consumption was 2.04 million tonnes. Technically market is under long liquidation as market has witnessed drop in open interest by -8.61% to settled at 5095 while prices down -17.95 rupees, now Copper is getting support at 721.4 and below same could see a test of 715 levels, and resistance is now likely to be seen at 738.5, a move above could see prices testing 749.2.

Trading Ideas:

* Copper trading range for the day is 715-749.2.

* Copper prices fell as a newly identified COVID-19 variant in South Africa fuelled concerns of an economic slowdown.

* Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 19.9 percent from last Friday.

* Fed’s an early rate hike could trim liquidity in financial markets and slow recovery in the world's biggest economy.

Zinc

Zinc yesterday settled down by -2.77% at 268.85 as the market panics arouse by overseas energy crisis were being digested. As of this Friday November 26, the total social zinc inventory across seven major places of consumption stood at 135,100 mt, up 4,300 mt from Monday November 22 and 6,400 mt from last Friday November 19. The downstream demand has been sluggish ahead of the year-end and amid rising zinc prices; and the market was also pessimistic as a whole due to repeating COVID in overseas market. Rising electricity prices will probably lead to reduced output of smelters amid excessively high costs. While the domestic market also faces contradictions between high prices and low consumption. The global zinc market deficit widened to 44,000 tonnes in September from a downwardly revised shortfall of 14,000 tonnes in August, data from the International Lead and Zinc Study Group (ILZSG) showed. Previously, the ILZSG had reported a deficit of 14,900 tonnes in August. During the first nine months of 2021, ILZSG data showed a deficit of 93,000 tonnes versus a surplus of 457,000 tonnes in the same period of 2020. Around 13.5 million tonnes of zinc is produced and consumed each year. Technically market is under fresh selling as market has witnessed gain in open interest by 4.93% to settled at 1532 while prices down -7.65 rupees, now Zinc is getting support at 264.9 and below same could see a test of 260.9 levels, and resistance is now likely to be seen at 274.3, a move above could see prices testing 279.7.

Trading Ideas:

* Zinc trading range for the day is 260.9-279.7.

* Zinc prices dropped as the market panics arouse by overseas energy crisis were being digested.

* The total social zinc inventory across seven major places of consumption stood at 135,100 mt, up 4,300 mt from Monday November 22

* The global zinc market deficit widened to 44,000 tonnes in September from a downwardly revised shortfall of 14,000 tonnes in August

Nickel

Nickel yesterday settled down by -2.18% at 1546.7 as the COVID in South Africa worsened, pushing down prices. The spot transactions from stainless steel and new energy sectors were also sluggish. However, production has been hit badly in the top producer Philippines due to the rainy season. Meanwhile, inventories at LME warehouses depleted by 130,000 tonnes this year and combined exchange warehouse stocks declined to 143,888 tonnes, down from 266,091 tonnes at the start of the year. The nickel ore inventory at Chinese ports dipped 114,000 wmt from a week earlier to 9.35 million wmt as of November 26. Total Ni content stood at 74,300 mt. Total inventory at seven major ports stood at around 4.52 million wmt, a drop of 24,000 wmt from a week earlier. The low domestic inventory early in the week combined with the high premiums in the domestic spot market improved the SHFE/LME nickel price ratio. But the price ratio returned to the previous level with the arriving shipments of domestic nickel briquette and price cuts by Jinchuan Group. The global nickel market deficit narrowed to 5,200 tonnes in September from a shortfall a month earlier of 14,600 tonnes, data from the International Nickel Study Group (INSG) showed. Technically market is under long liquidation as market has witnessed drop in open interest by -31.04% to settled at 1542 while prices down -34.4 rupees, now Nickel is getting support at 1522.4 and below same could see a test of 1498.2 levels, and resistance is now likely to be seen at 1575.4, a move above could see prices testing 1604.2.

Trading Ideas:

* Nickel trading range for the day is 1498.2-1604.2.

* Nickel prices dropped as the COVID in South Africa worsened, pushing down prices.

* However, production has been hit badly in the top producer Philippines due to the rainy season.

* Meanwhile, inventories at LME warehouses depleted by 130,000 tonnes this year and combined exchange warehouse stocks declined to 143,888 tonnes
 

Aluminium

Aluminium yesterday settled down by -3.94% at 208.65 as the market feared the new COVID variant detected in South Africa with higher infection rate, according to some health authorities. The Goldman Sachs anticipated that the Fed will accelerate its tapering of bond purchase to $30 billion per month starting from January next year, in order to end the massive stimulus package for COVID in advance by mid-March; while it also predicted that the interest rate hike will begin in June the earliest, followed by two other rounds in 2022. In Eurozone, according to the European Central Bank’s October meeting minutes regarding monetary policy, the Bank will reserve its policy options after the key meeting is held in December as the evolvement of inflation has been extremely uncertain. Hence, the US and Eurozone markets were quite worried about the uncertainties of future inflation, and raised their expectations of interest rate hike, which suppressed prices. Data showed that China's social inventories of aluminium across eight consumption areas dropped 21,000 mt on the week to 1.02 million mt as of November 25, mainly contributed by Nanhai, Shanghai and Gongyi. Global primary aluminium output rose to 5.689 million tonnes in October, up 1.2% year on year, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production was 3.270 million tonnes in October, up from 3,250 million tonnes in the same month last year, the IAI said. Technically market is under fresh selling as market has witnessed gain in open interest by 14.88% to settled at 2277 while prices down -8.55 rupees, now Aluminium is getting support at 205.9 and below same could see a test of 202.9 levels, and resistance is now likely to be seen at 214.2, a move above could see prices testing 219.5.

Trading Ideas:

* Aluminium trading range for the day is 202.9-219.5.

* Aluminium dropped as the market feared the new COVID variant detected in South Africa with higher infection rate

* Data showed that China's social inventories of aluminium across eight consumption areas dropped 21,000 mt

* Global primary aluminium output rises to 5.689 mln T in Oct – IAI

 

Mentha oil

Mentha oil yesterday settled up by 0.44% at 945.1 on low level buying after prices dropped as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil dropped by -2.6 Rupees to end at 1065.6 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.08% to settled at 933 while prices up 4.1 rupees, now Mentha oil is getting support at 941.8 and below same could see a test of 938.6 levels, and resistance is now likely to be seen at 947, a move above could see prices testing 949.

Trading Ideas:

* Mentha oil trading range for the day is 938.6-949.

* In Sambhal spot market, Mentha oil dropped  by -2.6 Rupees to end at 1065.6 Rupees per 360 kgs.

* Mentha oil gained on low level buying after prices dropped as demand from consumer side is extremely weak

* Prices got support in last few weeks as due to crop failure and low recovery of oil

* Availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season.

Soyabean

Soyabean yesterday settled down by -2% at 6708 on profit booking amid weaker soybean demand from China. Pressure also seen after additional margin of 5% will be applicable on both long and short side in all the running contracts of soyabean. According to USDA's November monthly report, soybean production in India has increased 8% month-on-month to 11.9 million tonnes. The U.S. Department of Agriculture confirmed private sales of 256,930 tonnes of U.S. soybeans to unknown destinations. The announcement followed rumors this week that China was buying U.S. soybeans. The USDA also reported export sales of U.S. soybeans in the week ended Nov. 4 at 1.289 million tonnes, in line with trade expectations for 950,000 to 1.8 million tonnes. China's October soybean imports from the United States fell sharply from the previous year, customs data showed Sunday, hit by poor demand and limited exports. China brought in 775,331 tonnes of U.S. soybeans in October, down 77% from 3.4 million tonnes a year earlier, according to data released from the General Administration of Customs. Soybean shipments from the United States usually pick up in the fourth quarter of the year when the U.S. harvest gets underway and American beans dominate the market. At the Indore spot market in top producer MP, soybean gained 4 Rupees to 6749 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -6.83% to settled at while prices down -137 rupees, now Soyabean is getting support at 6617 and below same could see a test of 6526 levels, and resistance is now likely to be seen at 6837, a move above could see prices testing 6966.

Trading Ideas:

* Soyabean trading range for the day is 6526-6966.

* Soyabean dropped on profit booking amid weaker soybean demand from China.

* Pressure also seen after additional margin of 5% will be applicable on both long and short side in all the running contracts of soyabean.

* USDA's November monthly report showed soyabean production in India has grown 8% month-on-month to 11.9 million tonnes.

* At the Indore spot market in top producer MP, soybean gained  4 Rupees to 6749 Rupees per 100 kgs.

 

Soyaoil

Ref.Soyaoil yesterday settled down by -1.73% at 1223.7 on profit booking as India’s October edible oil imports fell 14.29 percent y-o- y to 10.49 lakh tons from 16.98 lakh tons in October 2020. India’s October’2021 soymeal exports declined by 88% to 14,538 metric tonnes compared to 120,290 metric tonnes in the same period last year. Further, the soymeal shipments too declined by 60% to 176,126 metric tonnes in aggregate, during the months (April-Oct.) of financial year 2020-21 compared to 438,205 metric tonnes during the corresponding period last year. Soy oil imports fell 22.02 percent in October-o-y to 2.16lakh tons from 2.77lakh tons in October 2020. Sunflower oil imports fell 31.76percent in October y-o-y to 1.16 lakh tons from 1.70lakh tons in October 2020. Rapeseed (canola) oil stood at 19,125tons imports in October compared to zero imports in last year for same period. India’s November edible oil stocks at ports and pipelines fell by 14.96 percent m-o-m to 17.05lakh tons from 20.05 lakh tons in October 2021. Global production of the top four vegetable oils – palm, sunflower, soy and rapeseed oils – is likely to rise the highest in four years. The production of the four oils is estimated to rise by 6.3-6.8 mln tonnes in the 2021/2022 crop year altogether, after two years of a global production deficit. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1256 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -9.38% to settled at while prices down -21.5 rupees, now Ref.Soya oil is getting support at 1214 and below same could see a test of 1205 levels, and resistance is now likely to be seen at 1239, a move above could see prices testing 1255.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1205-1255.

* Ref soyoil ended with losses on profit booking as India’s October edible oil imports fell 14.29 percent y-o- y to 10.49 lakh tons.

* India’s October’2021 soymeal exports declined by 88% Global production of the top four vegetable oils – palm, sunflower, soy and rapeseed oils – is likely to rise the highest in four years.

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1256 Rupees per 10 kgs.
 

Crude palm Oil

Crude palm Oil yesterday settled down by -1.08% at 1128 amid an outlook of better vegetable oil production next year. Southern Peninsula Palm Oil Millers' Association's (SPPOMA) production data had cushioned the fall in CPO prices. SPPOMA revealed the Nov 1-20 production data was lower by 2.4%, compared to the same period last month. Indonesia's total palm oil exports are expected to fall for a second year by 0.34% in 2021 from a year earlier, the vice chairman of the country's palm oil association said. Indonesia's crude palm oil exports, meanwhile, are expected to plummet by 60.5% this year compared to 2020, vice chairman Togar Sitanggang told. Global production of the top four vegetable oils – palm, sunflower, soy and rapeseed oils – is likely to rise the highest in four years, up by 6.3 million to 6.8 tonnes in the 2021/2022 crop year altogether. India's palm oil imports in 2020/21 rose 15.2% from a year ago to 8.32 million tonnes, while soyoil imports fell 15% to 2.87 million tonnes, a leading trade body said. The country's vegetable oil imports for the 2020/21 marketing year ended on Oct. 31 stood at 13.53 million tonnes, a tad higher than 13.52 million tonnes a year ago, the Solvent Extractors' Association of India (SEA) said. In spot market, Crude palm oil dropped by -7.6 Rupees to end at 1134.9 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -26.01% to settled at 2128 while prices down -12.3 rupees, now CPO is getting support at 1122.3 and below same could see a test of 1116.5 levels, and resistance is now likely to be seen at 1136.7, a move above could see prices testing 1145.3.

Trading Ideas:

* CPO trading range for the day is 1116.5-1145.3.

* Crude palm oil dropped amid an outlook of better vegetable oil production next year.

* Indonesia 2021 total palm oil exports seen down 0.34%

* India's palm oil imports in 2020/21 rose 15.2% from a year ago to 8.32 million tonnes, while soyoil imports fell 15% to 2.87 million tonnes

* In spot market, Crude palm oil dropped  by -7.6 Rupees to end at 1134.9 Rupees.

Turmeric

Turmeric yesterday settled down by -0.66% at 7578 as turmeric standing crop quality reported well as of now, weather is favourable in growing regions. Currently, export demand reported lower due to increased shipping cost and some travel restriction in South Asian countries added the bearish sentiment. Turmeric all India production for 2022 is estimated at 4.89 lakh MT. Last year’s production was 4.46 lakh MT, up by 9.64% from last year. Pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric. Turmeric exports in the first 5 months (April-August) of FY 2021-22 declined by 25% to 64,600 tonnes as compared to the same period last year, but almost at the same level as the 5-year average. There were also reports of export demand from Europe, Gulf countries and Bangladesh. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season. Besides, heavy carryover stocks and slack in bulk demand are keeping prices under pressure. In the first 4 months of FY 2021-22, turmeric exports declined by 26% to 53,000 tonnes as compared to the same period last year, but almost at the same level as the 5-year average. In Nizamabad, a major spot market in AP, the price ended at 7325 Rupees dropped -118.2 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -5.31% to settled at while prices down -50 rupees, now Turmeric is getting support at 7464 and below same could see a test of 7350 levels, and resistance is now likely to be seen at 7660, a move above could see prices testing 7742.

Trading Ideas:

* Turmeric trading range for the day is 7350-7742.

* Turmeric dropped as turmeric standing crop quality reported well as of now, weather is favourable in growing regions.

* Currently, export demand reported lower due to increased shipping cost.

* Turmeric all India production for 2022 is estimated at 4.89 lakh MT up by 9.64% from last year.

* In Nizamabad, a major spot market in AP, the price ended at 7325 Rupees dropped -118.2 Rupees.

Jeera

Jeera yesterday settled down by -1.06% at 15805 on profit booking after reports cumin seed sowing picked up in Gujarat and Rajasthan. The area under cumin in Gujarat is only 63,144 hectares as against 1.68 lakh hectares at the same time last year, while in Rajasthan 1.75 lakh hectares have been sown under cumin. Pressure also seen as adequate stock with traders and farmers may keeping prices under pressure at higher levels. However downside seen limited as domestic demand is now picking up also the export inquiries to support price. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. As of now Exports of Jeera for Apr-Aug was down by 12% Y/Y at 1.24 lakh tonnes but expected improve in coming months as Rupee weakness will support exports. During last two months, the prices were higher compared to last year despite sufficient stocks with traders. Sowing can see drop as farmers preferred to have other crop against Jeera. Weather in key sowing area will be crucial in next few months. The export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. In Unjha, a key spot market in Gujarat, jeera edged down by -41.05 Rupees to end at 15892.3 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -7.88% to settled at while prices down -170 rupees, now Jeera is getting support at 15655 and below same could see a test of 15505 levels, and resistance is now likely to be seen at 15980, a move above could see prices testing 16155.

Trading Ideas:

* Jeera trading range for the day is 15505-16155.

* Jeera prices dropped on profit booking after reports cumin seed sowing picked up in Gujarat and Rajasthan.

* The area under cumin in Gujarat is only 63,144 hectares as against 1.68 lakh hectares at the same time last.

* Pressure also seen as adequate stock with traders and farmers may keeping prices under pressure at higher levels.

* In Unjha, a key spot market in Gujarat, jeera edged down by -41.05 Rupees to end at 15892.3 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled down by -3.6% at 31640 as selling pressure intensified after demand from China eased. However downside seen limited in anticipation of a possible fall in production, and the remaining cotton stock is also low, while import demand from China remains high. China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions, according to an official notice. It is the second batch of cotton to be released from reserves this year and is designed to better meet demand for the fibre from spinning companies. Both production estimates for the 2021/22 crop year and ending stocks in the U.S. were largely unchanged at 18.20 million bales and 3.40 million bales respectively, the USDA said in its November World Agricultural Supply and Demand Estimates (WASDE) report. India’s cotton production in 2021-22 season is likely to be 360.13 lakh bales of 170 kg each (equivalent to 382.64 lakh running bales of 160 kg each), which is more by 7.13 lakh bales than the previous season’s crop of 353 lakh bales, the Cotton Association of India (CAI) has said in its first estimate for the new season beginning October 1, 2021. In spot market, Cotton gained by 30 Rupees to end at 31910 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -5.79% to settled at 4605 while prices down -1180 rupees, now Cotton is getting support at 31050 and below same could see a test of 30450 levels, and resistance is now likely to be seen at 32750, a move above could see prices testing 33850.

Trading Ideas:

* Cotton trading range for the day is 30450-33850.

* Cotton dropped as selling pressure intensified after demand from China eased.

* However downside seen limited in anticipation of a possible fall in production.

* China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions

* In spot market, Cotton gained  by 30 Rupees to end at 31910 Rupees.

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