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Gold yesterday settled up by 0.61% at 46839 with traders largely staying cautious as they look ahead to U.S. jobs data for clues about the Federal Reserve's monetary policy stance. Federal Reserve Governor Christopher Waller said that the central bank may need to start dialing down its massive asset purchase program as soon as this year to allow the option of raising interest rates by late next year. St. Louis Fed President James Bullard had remarked last week that stronger than expected inflation had led him to anticipate a first Fed rate hike in 2022. U.S. private payrolls increased more than expected in June as companies rushed to boost production and services amid a rapidly reopening economy, though a shortage of willing workers continues to hang over the labor market recovery. The ADP National Employment Report on Wednesday showed hiring in the leisure and hospitality sector accounting for nearly half of the increase in private payrolls last month. Manufacturing payrolls growth slowed, likely reflecting labor shortages as well as scarce raw materials. A global shortage of semiconductors is hampering production of motor vehicles and some household appliances which require chips. Technically market is under short covering as market has witnessed drop in open interest by -2.52% to settled at 10994 while prices up 284 rupees, now Gold is getting support at 46555 and below same could see a test of 46272 levels, and resistance is now likely to be seen at 47027, a move above could see prices testing 47216.
Trading Ideas:
* Gold trading range for the day is 46272-47216.
* Gold prices steadied with traders largely staying cautious as they look ahead to U.S. jobs data for clues about the Federal Reserve's monetary policy stance.
* Fed’s Waller said that the central bank may need to start dialing down its massive asset purchase program as soon as this year.
* St. Louis Fed President James Bullard had remarked last week that stronger than expected inflation had led him to anticipate a first Fed rate hike in 2022.

Silver

Silver yesterday settled up by 1.17% at 69074 on some buying supported as investors turned to safety amid concerns over the spread of the highly infectious Delta variant and its impact on the global economic recovery. Investors were wary ahead of the upcoming U.S. jobs data that could intensify fears over the U.S. Federal Reserve easing its asset purchases. Additionally, hawkish Fed officials have re-affirmed they are going to raise rates in 2023 as well as start tapering bond purchases. Investors now await the U.S. Labor Department’s nonfarm payrolls due on Friday, which is expected to show a gain of 690,000 jobs in June compared with 559,000 in May. The data follows suggestions from Federal Reserve officials that the U.S. central bank should begin tapering its asset purchase program this year. Contracts to purchase previously owned U.S. homes rose strongly in May to the highest level for that month since 2005. The National Association of Realtors (NAR) said its Pending Home Sales Index, based on contracts signed last month, rose 8.0% to 114.7. Pending home contracts are seen as a forward-looking indicator of the health of the housing market because they become sales one to two months later. Technically market is under short covering as market has witnessed drop in open interest by -12.82% to settled at 10475 while prices up 800 rupees, now Silver is getting support at 68494 and below same could see a test of 67915 levels, and resistance is now likely to be seen at 69401, a move above could see prices testing 69729.
Trading Ideas:
* Silver trading range for the day is 67915-69729.
* Silver prices gained on some buying supported as investors turned to safety amid concerns over the spread of the highly infectious Delta variant
* Investors were wary ahead of the upcoming U.S. jobs data that could intensify fears over the U.S. Federal Reserve easing its asset purchases.
* Additionally, hawkish Fed officials have re-affirmed they are going to raise rates in 2023 as well as start tapering bond purchases.

Crude oil

Crude oil yesterday settled up by 1.2% at 5492 amid optimism about strong energy demand after OPEC+ said it expects demand to pick up. U.S. crude oil refinery inputs averaged 16.3 million barrels per day during the week ending June 25, 2021 which was 187,000 barrels per day more than the previous week’s average. Goldman Sachs Commodities Research said more oil production is needed from the Organization of the Petroleum Exporting Countries and allies (OPEC+) to balance the market by 2022 as supply risk looms elsewhere. The U.S. bank forecast oil demand to rise by an additional 2.2 million barrels per day (mbpd) by year-end, leaving a 5 mbpd supply shortfall, well in excess of what Iran and shale producers can bring online, it said in a note dated June 29. Japan's crude oil imports rose 5.9 percent in May from a year earlier to 2.42 million barrels per day (11.91 million kilolitres), the Ministry of Economy, Trade and Industry (METI) said. Japan's domestic oil product sales last month rose 7.2 percent from a year earlier to 2.28 million barrels per day(bpd), the data showed. (1 kilolitre is equal to 6.2898 barrels) Gasoline sales rose 14.3 percent to 718,574 bpd, while kerosene sales down 21.8 percent from a year earlier to 105,609 bpd, the data showed. Technically market is under fresh buying as market has witnessed gain in open interest by 28.19% to settled at 7740 while prices up 65 rupees, now Crude oil is getting support at 5440 and below same could see a test of 5389 levels, and resistance is now likely to be seen at 5530, a move above could see prices testing 5569.
Trading Ideas:
* Crude oil trading range for the day is 5389-5569.
* Crude oil gains amid optimism about strong energy demand after OPEC+ said it expects demand to pick up.
* Goldman sees 0.5 mbpd Opec+ output rise given Delta Covid variant risk
* Goldman says more OPEC+ supply needed to balance oil market

Nat.Gas

Nat.Gas yesterday settled down by -0.22% at 272.2 on profit booking after prices rallied in recent session on soaring global gas prices and forecasts for higher U.S. air-conditioning and export demand over the next two weeks than previously expected. In the power market, prices soared to $126 per megawatt hour in New England, their highest since November 2018, as a heat wave started to bake the region. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 91.6 billion cubic feet per day (bcfd) so far in June, up from 91.0 bcfd in May but well below the monthly record high of 95.4 bcfd in November 2019. Refinitiv projected average gas demand, including exports, would slide from 94.5 bcfd this week to 92.0 bcfd next week as the weather turns slightly milder. Those forecasts were higher than Refinitiv projected. The amount of gas flowing to U.S. liquefied natural gas (LNG) export plants slipped to an average of 10.1 bcfd so far in June due mostly to short-term maintenance at Gulf Coast facilities and the pipelines that supply them with fuel. U.S. natural gas producers hope climate-conscious electric utilities and gas exporters will pay a premium for what they say is "greener gas" that has been certified as coming from low-emission operations or from renewable sources such as landfills. Technically market is under long liquidation as market has witnessed drop in open interest by -5.9% to settled at 16133 while prices down -0.6 rupees, now Natural gas is getting support at 267.3 and below same could see a test of 262.4 levels, and resistance is now likely to be seen at 278.3, a move above could see prices testing 284.4.
Trading Ideas:
* Natural gas trading range for the day is 262.4-284.4.
* Natural gas dropped on profit booking after prices rallied on soaring global gas prices and forecasts for higher U.S. air-conditioning and export demand
* U.S. natural gas producers hope customers will pay more for 'green gas'
* In the power market, prices soared to $126 per megawatt hour in New England, their highest since November 2018, as a heat wave started to bake the region.


Copper

Copper yesterday settled up by 0.66% at 721.5 as rising consumer confidence in economic recovery boosted the prices. Rising demand for copper in infrastructure and electrification will cause shortages and higher prices in the coming years. However upside seen limited amid a stronger dollar, the threat of tighter U.S. monetary policy and moves by China to keep a lid on prices. Growth in China’s factory activity dipped to a four-month low in June. Other data showed that in May, Japan’s industrial output fell by the most in a year and South Korea’s dipped from April. Profit growth at China's industrial firms slowed again in May as surging raw material prices squeezed margins and weighed on factory activity. Glencore plans to restart its Mutanda Mining copper and cobalt project in Congo before the end of this year. The mine has been idle for about two years. Glencore suspended production at the Mutanda project in 2019 after prices of battery metal cobalt plummeted and cost of the project rose. Data show that in the first three months of 2021, global copper production at mines increased by 3.7%. Copper concentrate output increased by 5.5%, while solvent extraction electrowinning copper production fell by 3.5%. Technically market is under short covering as market has witnessed drop in open interest by -5.13% to settled at 4089 while prices up 4.75 rupees, now Copper is getting support at 715.9 and below same could see a test of 710.3 levels, and resistance is now likely to be seen at 728.3, a move above could see prices testing 735.1.
Trading Ideas:
* Copper trading range for the day is 710.3-735.1.
* Copper prices gained as rising consumer confidence in economic recovery boosted the prices.
* China is selling from state reserves of copper, aluminium and zinc as part of its pledge to control a surge in commodities prices.
* Morgan Stanley forecast copper would average a little above $9,000 a tonne for the rest of the year.

Zinc

Zinc yesterday settled up by 1.2% at 240.2 as economic data showed that the US house price and consumer confidence index rose strongly, and the house price rose the most in more than 30 years in April, boosting market optimism. China imported 57,500 mt of refined zinc in May, up 32.95% on the year and 41.07% on the month, the latest customs data showed. Exports stood at 500 mt. This left a net import of 57,000 mt. The imports totalled 231,600 mt in January-April, a year-on-year increase of 46.51%.The Fed released a hawkish signal at the June meeting on interest rates. The current inflation level has increased and interest rate will be increase twice before the end of 2023. Policy tightening may come earlier, thus, the US dollar has risen sharply and non-ferrous prices fell. LME zinc stocks fell to 260,000 mt, indicating a recovering end consumption. LME cash-to-three-month backwardation shrank to $11/mt. Market supply showed a recovery growth as zinc smelters resumed production earlier than previously expected in Yunnan. The State Bureau of Grain and Material Reserves will release copper, aluminium, zinc and other national reserves in batches in the near future, pressuring on domestic zinc prices. However, the current lower inventories also supported spot premiums and SHFE/LME price ratio rose amid rising demand for imported zinc. Technically market is under fresh buying as market has witnessed gain in open interest by 26.05% to settled at 2071 while prices up 2.85 rupees, now Zinc is getting support at 238.1 and below same could see a test of 235.9 levels, and resistance is now likely to be seen at 241.6, a move above could see prices testing 242.9.
Trading Ideas:
* Zinc trading range for the day is 235.9-242.9.
* Zinc gained as economic data showed that the US house price and consumer confidence index rose strongly
* China imported 57,500 mt of refined zinc in May, up 32.95% on the year and 41.07% on the month.
* LME zinc stocks fell to 260,000 mt, indicating a recovering end consumption.

Nickel

Nickel yesterday settled down by -0.57% at 1363.9 on profit booking after prices gained as ShFE nickel inventories dropped to a record low of 6,106 tonnes, while LME nickel stockpiles declined to their lowest level since July 2020 at 234,576 tonnes. Global demand of nickel used in batteries is expected to rise 18% this year from 2020, backed by strong sales of electric-vehicles (EVs) in China, Sumitomo Metal Mining, Japan’s biggest nickel smelter, said. Sumitomo Metal, which supplies cathode materials for Panasonic lithium ion batteries that are used in Tesla EVs, said demand of nickel used in rechargeable batteries will increase to 228,000 tonnes in 2021 from 193,000 tonnes in 2020. Indonesia's government is discussing with a parliament committee a plan to limit construction of smelters producing nickel pig iron or ferronickel in order to optimise nickel ore use for higher-value products, members of parliament said. Putting a restriction on construction of such plants is deemed necessary because of limited saprolite nickel ore reserves, the mining ministry said in a document presented to parliament this month. The global nickel market deficit narrowed to 15,600 tonnes in April from a shortfall of 17,100 tonnes in March, data from the International Nickel Study Group (INSG) showed. Technically market is under fresh selling as market has witnessed gain in open interest by 3.39% to settled at 2196 while prices down -7.8 rupees, now Nickel is getting support at 1353.1 and below same could see a test of 1342.3 levels, and resistance is now likely to be seen at 1380.2, a move above could see prices testing 1396.5.
Trading Ideas:
* Nickel trading range for the day is 1342.3-1396.5.
* Nickel dropped on profit booking after prices gained as support seen as LME and ShFE stockpiles declined.
* Global demand of nickel used in batteries is expected to rise 18% this year from 2020, backed by strong sales of electric-vehicles in China
* The global nickel market deficit narrowed to 15,600 tonnes in April from a shortfall of 17,100 tonnes in March

Aluminium

Aluminium yesterday settled up by 0.48% at 198.75 as China’s manufacturing industry PMI was higher than expected, and US Fed is likely to reduce QE in advance. China's manufacturing industry PMI in June was higher than expected, indicating that the manufacturing industry was expanding. US Fed officer Waller stated that they can reduce the quantitative easing in advance. U.S. private payrolls increased more than expected in June as companies rushed to boost production and services amid a rapidly reopening economy, though a shortage of willing workers continues to hang over the labor market recovery. Contracts to purchase previously owned U.S. homes rose strongly in May to the highest level for that month since 2005. The National Association of Realtors (NAR) said its Pending Home Sales Index, based on contracts signed last month, rose 8.0% to 114.7. Economists polled by Reuters had forecast pending home sales would decline 0.8% percent. US economic data showed that the consumer confidence index hit a new high since the pandemic in June, and the house price index rose the most in more than 30 years in April. At the same time, with the economic restart, the economic confidence index of the euro zone rose to the highest level in more than 20 years in June. Technically market is under short covering as market has witnessed drop in open interest by -3.49% to settled at 2879 while prices up 0.95 rupees, now Aluminium is getting support at 196.6 and below same could see a test of 194.4 levels, and resistance is now likely to be seen at 201.4, a move above could see prices testing 204.
Trading Ideas:
* Aluminium trading range for the day is 194.4-204.
* Aluminium prices remained supported as China’s manufacturing industry PMI was higher than expected, and US Fed is likely to reduce QE in advance.
* U.S. private payrolls increased more than expected in June as companies rushed to boost production and services amid a rapidly reopening economy
* Contracts to purchase previously owned U.S. homes rose strongly in May to the highest level for that month since 2005.


Mentha oil

Mentha oil yesterday settled up by 1.24% at 1074.4 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. Overall post-lock-down demand will be likely to improve as demand from the health industry will likely continue also as per CIMAP. In Sambhal spot market, Mentha oil gained by 0.9 Rupees to end at 1128.2 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 7.98% to settled at 663 while prices up 13.2 rupees, now Mentha oil is getting support at 1060 and below same could see a test of 1045.5 levels, and resistance is now likely to be seen at 1082.9, a move above could see prices testing 1091.3.
Trading Ideas:
* Mentha oil trading range for the day is 1045.5-1091.3.
* In Sambhal spot market, Mentha oil gained  by 0.9 Rupees to end at 1128.2 Rupees per 360 kgs.
* Mentha oil gained 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.
* Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days.

Soyabean

Soyabean yesterday settled up by 0.32% at 7181 as slow monsoon progress and lesser availability of certified soyabean seeds may impact kharif sowing of the oilseed in Madhya Pradesh and Rajasthan, top two producers of the crop in the country. “There is lesser availability of certified seeds this year,” D N Pathak, executive director of leading trade body Soyabean Processors Association of India (SOPA), told. “The soyabean crop last year was damaged due to excessive rains, high temperature and pest attack, for which the quality of seeds with the farmers maybe not so good.” Though sowing has started in some parts of Madhya Pradesh it is yet to pick up in many places due to lesser rains, Pathak said. Sowing of soyabean generally gets completed by the first week of July. “We still have time. If it rains, then sowing will pick up faster,” he said. Rains have not picked up in Madhya Pradesh and Rajasthan for sowing to gather momentum. Farmers typically store seeds with themselves for sowing, but the quality is not as good as certified seeds. Certified varieties are produced from foundation seeds derived from breeder seeds by agricultural scientists and are considered to be the best in quality and yield. At the Indore spot market in top producer MP, soybean gained 51 Rupees to 7325 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -9.25% to settled at 28635 while prices up 23 rupees, now Soyabean is getting support at 7098 and below same could see a test of 7015 levels, and resistance is now likely to be seen at 7296, a move above could see prices testing 7411.
Trading Ideas:
* Soyabean trading range for the day is 7015-7411.
* Soyabean gains as sowing may get impacted amid slow monsoon progress and lack of certified seeds
* There is lesser availability of certified seeds this year - SOPA
* Rains have not picked up in Madhya Pradesh and Rajasthan for sowing to gather momentum.
* At the Indore spot market in top producer MP, soybean gained  51 Rupees to 7325 Rupees per 100 kgs.

Ref.Soyaoil

Ref.Soyaoil yesterday settled down by -2.04% at 1222.6 on profit booking after prices reduction in base import tax on crude palm oil to 10% from 15% for three months. 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. India has put on hold a proposal to reduce import taxes on edible oils as cooking oil prices started to fall in the world market after hitting record highs, two government and one industry officials told. India slashed the base import prices of palm oil and soybean oil for a fortnight, the government said in a statement, as prices of the cooking oils fell sharply in the global market. Imports would remain elevated even in June as many states are easing lockdowns and allowing restaurants to reopen. A coalition of nine Argentine port worker unions went on a nationwide 24-hour strike to press for vaccinations against the coronavirus. Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021 At the Indore spot market in Madhya Pradesh, soyoil was steady at 1279.1 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 1.3% to settled at 36205 while prices down -25.5 rupees, now Ref.Soya oil is getting support at 1203 and below same could see a test of 1184 levels, and resistance is now likely to be seen at 1249, a move above could see prices testing 1276.
Trading Ideas:
* Ref.Soya oil trading range for the day is 1184-1276.
* Ref soyoil dropped on profit booking after prices reduction in base import tax on crude palm oil to 10% from 15% for three months.
* India exported 5.31 lakh tonnes of oilmeals in the first two months of the fiscal 2021-22
* A coalition of nine Argentine port worker unions went on a nationwide 24-hour strike to press for vaccinations against the coronavirus.
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1279.1 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled down by -2.4% at 981.7 after the world's biggest vegetable oil buyer, India, reduced its import tax for the commodity. India cut the base import tax on crude palm oil to 10% from 15% for three months, the government said in a statement, as the country tries to dampen near record high prices. Data from cargo surveyors released during the midday break showed Malaysia's June palm oil exports rose between 7% and 8.6% from the month before, slightly better than market expectations. In top producer Indonesia, the health minister is leading a push for stricter controls as coronavirus infections in the country surge to unprecedented levels, with The Straits Times reporting that the government will tighten restrictions this week. Indonesia to impose new palm oil export levies starting on July 2, the Estate Crop Fund Agency (BPDP) said in a statement. The world's top palm oil exporter last week said it will change its levy structure for palm oil exports, cutting the ceiling rate for crude palm oil levies (CPO) from $255 to $175 per tonne after criticism from stakeholders. Upstream players will get some relief from the lower export levy and see higher net realised selling prices, hence, better earnings for the second half of 2021. In spot market, Crude palm oil dropped by -24.1 Rupees to end at 1030.2 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 6.56% to settled at 4808 while prices down -24.1 rupees, now CPO is getting support at 964.3 and below same could see a test of 946.8 levels, and resistance is now likely to be seen at 1006.6, a move above could see prices testing 1031.4.
Trading Ideas:
* CPO trading range for the day is 946.8-1031.4.
* Crude palm oil dropped after the world's biggest vegetable oil buyer, India, reduced its import tax for the commodity.
* India lowers import tax to 10% for three months
* June exports rise between 7% and 8.6% m/m
* In spot market, Crude palm oil dropped  by -24.1 Rupees to end at 1030.2 Rupees.

Mustard Seed

Mustard Seed yesterday settled down by -0.59% at 6924 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. However downside limited as the arrival of mustard in the mandis has decreased at all places in the country. However upside seen limited pushed lower by flagging global overseas prices amid forecasts for beneficial rains across the Canadian Prairie. 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. 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 dropped -125 Rupees to end at 7110.25 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -7.9% to settled at 36510 while prices down -41 rupees, now Rmseed is getting support at 6882 and below same could see a test of 6839 levels, and resistance is now likely to be seen at 6998, a move above could see prices testing 7071.
Trading Ideas:
* Rmseed trading range for the day is 6839-7071.
* Mustard seed dropped 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.
* However downside limited as the arrival of mustard in the mandis has decreased at all places in the country.
* In Alwar spot market in Rajasthan the prices dropped -125 Rupees to end at 7110.25 Rupees per 100 kg.

Turmeric


Turmeric yesterday settled up by 0.63% at 7312 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. According to Spices Board data, turmeric exports during the April-December period of the last fiscal increased 34 per cent to 1.39 lakh tonnes valued at ₹1,251 crore compared with 1.03 lakh tonnes valued at ₹1,047 crore. In Nizamabad, a major spot market in AP, the price ended at 7325 Rupees dropped -40.65 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -7.2% to settled at 8380 while prices up 46 rupees, now Turmeric is getting support at 7236 and below same could see a test of 7158 levels, and resistance is now likely to be seen at 7370, a move above could see prices testing 7426.
Trading Ideas:
* Turmeric trading range for the day is 7158-7426.
* Turmeric prices gained on following export demand from Europe, Gulf countries and Bangladesh.
* The curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading.
* 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 7325 Rupees dropped -40.65 Rupees.

Jeera

Jeera yesterday settled down by -0.71% at 13380 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 -91.6 Rupees to end at 13668.4 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -4.34% to settled at 5682 while prices down -95 rupees, now Jeera is getting support at 13340 and below same could see a test of 13300 levels, and resistance is now likely to be seen at 13435, a move above could see prices testing 13490.
Trading Ideas:
* Jeera trading range for the day is 13300-13490.
* Jeera 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.
* As India struggles against curbing the Corona pandemic, exports markets have turned subdued.
* In Unjha, a key spot market in Gujarat, jeera edged down by -91.6 Rupees to end at 13668.4 Rupees per 100 kg.

Cotton

Cotton yesterday settled down by -0.36% at 24650 as CAI demand for withdrawal of 10 per cent customs duty on cotton imports. Trade body Cotton Association of India (CAI) has expressed concerns of India losing its competitiveness to China, Pakistan and Bangladesh in the international market. With 10 per cent customs duty on cotton varieties including extra-long staple (ELS), the export-oriented garments and cotton-madeups become costlier thereby giving an edge to the close competitors. The 10 per cent customs duty was imposed on cotton imports on February 2, 2021. The CAI has written a letter to the Union Finance Minister Nirmala Sitharaman seeking the withdrawal of duty. In the letter, Atul Ganatra, President, CAI, said that India produced merely 5-6 lakh bales (each of 170 kg) of ELS variety of cotton as against the local requirement of about 12 to 15 lakh bales of ELS and about 5-7 lakh bales of non ELS contamination-free sustainable cotton. The daily arrivals have stopped, as farmers and stockists have less stock. Meanwhile, mill owners and exporters are hoping to restore their supplies for the next two-three months, while the new crop is more than three months away. CAI has reduced the crop size by 4 lakh bales (each of 170 kg) to 356 lakh bales. In spot market, Cotton gained by 160 Rupees to end at 24810 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 0.48% to settled at 6903 while prices down -90 rupees, now Cotton is getting support at 24420 and below same could see a test of 24180 levels, and resistance is now likely to be seen at 24990, a move above could see prices testing 25320.
Trading Ideas:
* Cotton trading range for the day is 24180-25320.
* Cotton prices seen pressure as CAI writes to FM, points to shortfall in extra-long staple cotton production
* CAI has increased the consumption estimate for the current crop year by 10 lakh bales to 325 lakh bales from its previous estimate of 315 lakh bales.
* The daily arrivals have stopped, as farmers and stockists have less stock.
* In spot market, Cotton gained  by 160 Rupees to end at 24810 Rupees.

Chana

Chana yesterday settled down by -0.38% at 4967 on profit booking after seen supported earlier as the slow progress of monsoon has delayed sowing of pulses, and some pockets of the country may have to go for re-sowing if rainfall does not revive in a week. The India Meteorology Department (IMD) has forecast a break in the monsoon till July 5, but the industry is hoping for a revival sooner as the next one week will be crucial for kharif output. It is observed that NAFED buying stopped after mid-April as market price move above the MSP level i.e. above Rs. 5100/qtl. So far, NAFED It is observed that NAFED buying stopped after mid-April as market price move above the MSP level i.e. above Rs. 5100/qtl. So far, NAFED. Chana import for FY 2020-21 (Apr-Feb) stood at 2.89 lakh tonnes which is down by 21% as against 3.66 lakh tonnes imported during the corresponding period of the previous year. Import and export in month of February 2021 reported at 0.12 lakh tonnes and 0.11 lakh tonnes, respectively. Apart from Chana, 10.97 lakh tonnes of Masur and 3.67 lakh tonnes of Urad & Moong have been imported during 2020-21 (Apr-Feb) and total Pulses import stood at 24.14 lakh tonnes. Australia's exports of Chana in March remained down on a monthly basis, shows the data released from Australia Bureau of Statistics reports. In Delhi spot market, chana gained by 22.1 Rupees to end at 4950 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -4.2% to settled at 100560 while prices down -19 rupees, now Chana is getting support at 4937 and below same could see a test of 4908 levels, and resistance is now likely to be seen at 5014, a move above could see prices testing 5062.
Trading Ideas:
* Chana trading range for the day is 4908-5062.
* Chana dropped on profit booking after seen supported earlier as the slow progress of monsoon has delayed sowing of pulses
* However some pockets of the country may have to go for re-sowing if rainfall does not revive in a week.
* IMD has forecast a break in the monsoon till July 5, but the industry is hoping for a revival sooner as the next one week will be crucial for kharif output.
* In Delhi spot market, chana gained  by 22.1 Rupees to end at 4950 Rupees per 100 kgs.

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