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Gold

Gold yesterday settled up by 0.03% at 47051 as there were expectations that the Federal Reserve would not delay its plans to taper economic support. Investors came to terms with the possibility the Fed could still have enough fodder to start weaning the economy off stimulus. The dollar started the week on a positive footing and yields of the key U.S. 10-year benchmark note climbed past the 1.61 percent, as a soft U.S. jobs report did little to allay fears that the Federal Reserve will begin tapering its massive bond purchases as early as next month. The focus this week will be on U.S. inflation and retail sales data, and minutes of the Federal Reserve's last meeting which should confirm that a November tapering was discussed. Elsewhere, there is speculation that the Bank of England may raise rates sooner than previously expected. BoE policy maker Michael Saunders told that inflationary surge "could become more persistent unless monetary policy responds." "I think it is appropriate that the markets have moved to pricing a significantly earlier path of tightening than they did previously," Saunders said. Saunders remarks came after a warning from Governor Andrew Bailey that inflation exceeding the BoE's goal of 2 percent will be damaging the economy. Technically market is under short covering as market has witnessed drop in open interest by -3% to settled at 13273 while prices up 14 rupees, now Gold is getting support at 46880 and below same could see a test of 46710 levels, and resistance is now likely to be seen at 47204, a move above could see prices testing 47358.
 

Trading Ideas:
Gold trading range for the day is 46710-47358.
Gold prices settled flat as there were expectations that the Federal Reserve would not delay its plans to taper economic support.
The dollar started the week on a positive footing and yields of the key U.S. 10-year benchmark note climbed past the 1.61 percent
Investors came to terms with the possibility the Fed could still have enough fodder to start weaning the economy off stimulus.


Silver

Silver yesterday settled down by -0.09% at 61744 as markets digested a lower-than-expected increase in U.S. Nonfarm Payrolls, which eases the pressure from the U.S Federal Reserve to cut back on monetary stimulus. The US economy added 194 thousand jobs in September, the least so far this year and largely missed market forecasts of 500 thousand. Meanwhile, the U.S. debt ceiling concerns receded after Senate approved a legislation to raise the debt limit by $480 billion that would run through early December. U.S. wholesale inventories surged in August amid a decline in sales, though automobile stocks remained very low because of a global chip shortage, which is hampering motor vehicle production. The Commerce Department said that wholesale inventories increased 1.2% as estimated last month. Stocks at wholesalers gained 0.6% in July. Wholesale inventories shot up 12.3% in August from a year earlier. The Federal Reserve may move to begin reducing its support for the economy next month despite a sharp slowdown in jobs gains last month as the latest U.S. surge in COVID-19 cases crested and began to recede. Fed Chair Jerome Powell said last month that he’d only need to see a “decent” September U.S. jobs report to be ready to begin to taper in November. Technically market is under fresh selling as market has witnessed gain in open interest by 2.79% to settled at 10429 while prices down -57 rupees, now Silver is getting support at 61355 and below same could see a test of 60965 levels, and resistance is now likely to be seen at 62175, a move above could see prices testing 62605.

Trading Ideas:
Silver trading range for the day is 60965-62605.
Silver pared gains as markets digested a lower-than-expected increase in U.S. Nonfarm Payrolls
The US economy added 194 thousand jobs in September, the least so far this year
The U.S. debt ceiling concerns receded after Senate approved a legislation to raise the debt limit by $480 billion


Crude oil

Crude oil yesterday settled up by 2.79% at 6107 as an energy crisis grips major economies amid a pick-up in economic activity and restrained supplies from major producers. Prices have risen as more vaccinated populations are brought out of coronavirus lockdowns, supporting a revival in economic activity, with Brent advancing for five weeks and U.S. crude for seven. The pace of economic recovery combined with cold weather have increased the demand for energy, while pressure on governments to accelerate the transition to cleaner energy have slowed investment in oil projects to boost supplies. A fire broke out at a fuel storage tank in the Zahrani oil facility in southern Lebanon, and firefighters were attempting to control the blaze. The Lebanese army was evacuating the region amid fears that the fire would spread and cause an explosion. Kuwait dropped the official selling prices (OSPs) for two crude grades it sells to Asia for a second straight month in November. The producer has set November Kuwait Export Crude (KEC) price at 90 cents a barrel above the average of Oman/Dubai quotes, down 35 cents from the previous month. Drillers in the United States added five new oil wells last week for the fifth straight weekly increase in oil and gas rigs. Technically market is under fresh buying as market has witnessed gain in open interest by 6.69% to settled at 10446 while prices up 166 rupees, now Crude oil is getting support at 6043 and below same could see a test of 5980 levels, and resistance is now likely to be seen at 6181, a move above could see prices testing 6256.

Trading Ideas:
Crude oil trading range for the day is 5980-6256.
Crude oil prices rose as an energy crisis grips major economies amid a pick-up in economic activity and restrained supplies from major producers.
Oil storage tank on fire in southern Lebanon
Kuwait drops crude prices for Asia for 2nd month in Nov


Natural gas

Nat.Gas yesterday settled down by -3.89% at 405.7 on rising output and forecasts that milder than normal weather will continue through late October, keeping heating demand light and allowing utilities to inject more gas into storage than usual ahead of the winter. Traders noted U.S. gas futures were down even though gas prices in Europe were up about 5% and U.S. oil futures were up about 3% to their highest since October 2014 on worries energy supplies could run short this winter. Last week, gas prices in Europe and Asia soared to record highs on worries Europe will not have enough gas in storage for the winter heating season and as Asia's demand for the fuel remains insatiable. Those worries boosted U.S. gas prices to their highest since 2008 last week on expectations competition for gas from Europe and Asia would keep demand for U.S. liquefied natural gas (LNG) exports strong. After U.S. gas futures closed at their highest since 2008 during last week's record volatility, speculators cut their net long positions on the New York Mercantile and Intercontinental Exchanges to their lowest since April 2021 as some traders cashed in their winnings, according to data from the Commodity Futures Trading Commission (CFTC). Technically market is under fresh selling as market has witnessed gain in open interest by 16.68% to settled at 4687 while prices down -16.4 rupees, now Natural gas is getting support at 392.1 and below same could see a test of 378.6 levels, and resistance is now likely to be seen at 428.2, a move above could see prices testing 450.8.

Trading Ideas:
Natural gas trading range for the day is 378.6-450.8.
Natural gas fell on rising output and forecasts that milder than normal weather will continue through late October, keeping heating demand light
Pressure also mounting with U.S. gas production rising and heating demand expected to remain low for the rest of the month.
However downside seen limited amid expectations that insatiable global demand for the fuel would keep U.S.



Copper

Copper yesterday settled up by 1.63% at 740.75 as the energy crisis has overwhelmed the globe. US non-farm payrolls for September added 194,000, which was way below the market estimated and recorded the slowest gain since the beginning of this year. The good news that the unemployment rate has been declining steadily. The market is still uncertain as for the Fed’s tapering decisions. The ration of cancelled warrants of LME copper still stood at an extremely high level, while the registered warrants remained low. LME copper inventory kept falling. In China, the SHFE copper inventory and social inventory both advanced slightly from a low level after the National Day holiday. The post-holiday power rationing policy has still been intensive, constraining the increase in supply. China released 150,000 tonnes of industrial metals from its state reserves in the fourth round of sales this year as it continues a campaign to ease supply tightness and tame high commodity prices. The world's top metals consumer offered processors and manufacturers the chance to bid for 30,000 tonnes of copper, 70,000 tonnes of aluminium and 50,000 tonnes of zinc reserves on online platforms operated by state-run China Minmetals Corp and Norinco. Technically market is under fresh buying as market has witnessed gain in open interest by 11.15% to settled at 4426 while prices up 11.9 rupees, now Copper is getting support at 732.1 and below same could see a test of 723.3 levels, and resistance is now likely to be seen at 747.1, a move above could see prices testing 753.3.

Trading Ideas:
Copper trading range for the day is 723.3-753.3.
Copper prices rose as the energy crisis has overwhelmed the globe.
US non-farm payrolls for September added 194,000, which was way below the market estimated and recorded the slowest gain since the beginning of this year.
The ration of cancelled warrants of LME copper still stood at an extremely high level, while the registered warrants remained low.


Zinc

Zinc yesterday settled up by 0.11% at 269.2 as overseas energy issue intensifies and the production of smelters reduces further. The supply of global zinc concentrate has been tight in 2021. The output of domestic zinc concentrate has been rising since March, 2021, and the overall operating rates of concentrate plants have grown steadily as well. However, the imports of zinc concentrate has been low due to the closed import window and sea transport disruptions. The social inventory of zinc ingots stood at 119,800 mt as of September 30, which has been falling after set a record high at March 15, 2021. China released 150,000 tonnes of industrial metals from its state reserves in the fourth round of sales this year as it continues a campaign to ease supply tightness and tame high commodity prices. The world's top metals consumer offered processors and manufacturers the chance to bid for 30,000 tonnes of copper, 70,000 tonnes of aluminium and 50,000 tonnes of zinc reserves on online platforms operated by state-run China Minmetals Corp and Norinco. Total zinc inventories across seven Chinese markets stood at 136,600 mt as of October 11, up 2,800 mt from October 8 and 16,800 mt from September 30. Goods in transit during the November holiday continued to arrive in Shanghai, and inventory increased. Technically market is under short covering as market has witnessed drop in open interest by -19.46% to settled at 1775 while prices up 0.3 rupees, now Zinc is getting support at 264.9 and below same could see a test of 260.4 levels, and resistance is now likely to be seen at 274, a move above could see prices testing 278.6.

Trading Ideas:
Zinc trading range for the day is 260.4-278.6.
Zinc prices rose as overseas energy issue intensifies and the production of smelters reduces further.
The supply of global zinc concentrate has been tight in 2021.
Citi raises zinc Q1, 2022 average price forecast to $2,900/t from $2,800/t


Nickel

Nickel yesterday settled down by -0.7% at 1483.2 on profit booking after prices rose as supply worries deepened on the back of Chinese power shortages and rising electricity costs in Europe amid falling inventory levels of the metal. Widespread power shortages in China and higher electricity prices in Europe have dampened production in some sectors of those economies. Kosovo’s sole ferro-nickel producer Newco Ferronikeli said it was shutting down production because of the increase in energy prices. In China, there were concerns that nickel smelters will be forced to curtail output amid power shortages, and a hike in electricity prices is expected to dent margins for many producers, potentially reducing supply. LME nickel inventories fell to 149,412 tonnes, their lowest since December 2019. ShFE stocks were last at 6,422 tonnes, hovering near a record low of 4,455 tonnes. On the fundamentals, domestic nickel ore inventory has been rose slowly, and the supply of raw materials remained tight. Meanwhile, the ferronickel plants were also affected by the power rationing. The tight supply of ferronickel have boosted the demand for nickel plate as an alternative. The output in October is likely to stay stable though the downstream production has been dragged down by production reduction policies. Technically market is under long liquidation as market has witnessed drop in open interest by -16.96% to settled at 1625 while prices down -10.5 rupees, now Nickel is getting support at 1469.1 and below same could see a test of 1454.9 levels, and resistance is now likely to be seen at 1508.9, a move above could see prices testing 1534.5.
 

Trading Ideas:
Nickel trading range for the day is 1454.9-1534.5.
Nickel dropped on profit booking after prices rose as supply worries deepened on the back of Chinese power shortages
Widespread power shortages in China and higher electricity prices in Europe have dampened production in some sectors of those economies.
Citi lowers nickel 0-3 month target to $17,000/t, with $18,300/t average for 4Q'21


Aluminium

Aluminium yesterday settled up by 1.97% at 242.85 due to increases in costs of energy and raw materials used to make the metal and output cuts by the biggest producer, China. China's production, already curbed by a government anti-pollution drive, has been further hit by power shortages gripping the country. Chinese energy futures prices have surged to multi-year and record highs, with India also facing power outages and soaring energy costs, forcing a Dutch aluminium producer and a Spanish steel plant to halt production. Macquarie estimates supply disruption will reduce Chinese aluminium output by 1.5 million tonnes this year, leading to a 1 million tonne deficit in the roughly 65 million tonne global market. But demand in China is falling, stockpiles are plentiful and prices are likely to fall towards $2,200 in 2022. Bottlenecks in transportation and energy supply are pushing up costs for global miners but this should be temporary, the head of Antofagasta Minerals said. The city of Harbin announced measures to support property developers and their projects, reassuring investors fearing a damaging debt crisis in China's construction sector. China released 150,000 tonnes of industrial metals from its state reserves in the fourth round of sales this year as it continues a campaign to ease supply tightness and tame high commodity prices. Technically market is under short covering as market has witnessed drop in open interest by -2.25% to settled at 2525 while prices up 4.7 rupees, now Aluminium is getting support at 238.4 and below same could see a test of 233.9 levels, and resistance is now likely to be seen at 246.5, a move above could see prices testing 250.1.
 

Trading Ideas:
Aluminium trading range for the day is 233.9-250.1.
Aluminium prices rose due to increases in costs of energy and raw materials used to make the metal and output cuts by China.
China's production, already curbed by a government anti-pollution drive, has been further hit by power shortages gripping the country.
Russian aluminium exports rose in the first eight months of 2021


Mentha oil

Mentha oil yesterday settled down by -1.27% at 931.1 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 gained by 2.8 Rupees to end at 1062.6 Rupees per 360 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 0.73% to settled at 1237 while prices down -12 rupees, now Mentha oil is getting support at 926.1 and below same could see a test of 921 levels, and resistance is now likely to be seen at 937.1, a move above could see prices testing 943.

Trading Ideas:
Mentha oil trading range for the day is 921-943.
In Sambhal spot market, Mentha oil gained  by 2.8 Rupees to end at 1062.6 Rupees per 360 kgs.
Mentha oil 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.


Soyabean

Soyabean yesterday settled down by -3.37% at 5385 on the expectation that soon arrival will hit mandi. However downside seen limited on the news of damages due to rain in key sowing area. Also support seen as Chicago Board of Trade soybean futures rose for a second straight session and headed for their first weekly gain in six, supported by strong demand for U.S. supplies of the oilseed. Soybean in Indore mandi is at 5787 while 6252 in Kota and 6020 in Nagpur, the soyabean crop is good in the Malwa region of Madhya Pradesh besides some other areas in the State. It is good in Rajasthan and Maharashtra, too as per physical trader. Support also seen in soybean futures by signs of strong exports as more recently harvested supplies became available. The average soybean production estimate was 4.415 billion bushels, up from USDA's September view of 4.374 billion. The USDA said that export sales of soybeans totalled 1.042 million tonnes. The government also said that private exporters reported a sale of 261,264 tonnes of soybeans to Mexico. At the Indore spot market in top producer MP, soybean dropped -359 Rupees to 5401 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 12.27% to settled at 69565 while prices down -188 rupees, now Soyabean is getting support at 5307 and below same could see a test of 5230 levels, and resistance is now likely to be seen at 5506, a move above could see prices testing 5628.

Trading Ideas:
Soyabean trading range for the day is 5230-5628.
Soyabean dropped on the expectation that soon arrival will hit mandi.
However downside seen limited on the news of damages due to rain in key sowing area.
The average soybean production estimate was 4.415 billion bushels, up from USDA's September view of 4.374 billion. The
At the Indore spot market in top producer MP, soybean dropped  -359 Rupees to 5401 Rupees per 100 kgs.


Ref.Soyaoil

Ref.Soyaoil yesterday settled down by -0.25% at 1319 as the Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022. This decision has been taken to soften the prices of edible oils in the country and provide relief to consumers. The Ministry said that the stock limits will be decided by the respective state governments depending on local conditions. It has however decided to give exemption to importers and exporters subject to conditions. Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively. Favorable weather over the weekend boosted U.S. harvest, while exports remain capped by terminals on the U.S. Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season. India's vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors' Association of India (SEA) said. Imports in 2020/21 marketing year ending Oct. 31 could fall to 13.1 million tonnes, the lowest in six years, from last year's 13.2 million, B.V. Mehta, SEA executive director, said in a virtual conference. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1366.55 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 2.02% to settled at 27060 while prices down -3.3 rupees, now Ref.Soya oil is getting support at 1308 and below same could see a test of 1297 levels, and resistance is now likely to be seen at 1336, a move above could see prices testing 1353.

Trading Ideas:
Ref.Soya oil trading range for the day is 1297-1353.
Ref soyoil prices dropped as Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022.
Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected.
India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA
At the Indore spot market in Madhya Pradesh, soyoil was steady at 1366.55 Rupees per 10 kgs.


Crude palm Oil

Crude palm Oil yesterday settled up by 0.71% at 1160 as Malaysia's end-September palm oil end-stocks fell 6.99% from the previous month to 1.75 million tonnes, data from industry regulator Malaysian Palm Oil Board (MPOB) showed. Crude palm oil production declined 0.39% from August to 1.7 million tonnes, while palm oil exports surged 36.83% to 1.6 million tonnes, MPOB said. Exports of Malaysian palm oil products for October 1 – 10 fell 7.6 percent to 528,901 tonnes from 572,345 tonnes shipped during September 1 – 10, cargo surveyor Intertek Testing Services said. Post is adjusting its MY 2021/22 crude palm oil (CPO) production forecast down 1.5 million metric tons (MT) from the USDA Official estimate to 18.2 million MT. Acute COVID-19 related labor issues are expected to negatively impact the Malaysian palm oil industry as the Government of Malaysia (GoM) has not finalized a decision to allow foreign workers to work in the sector. As the price of CPO is expected to stabilize in 2022, CPO export is forecast to recover slightly to 16.5 million tons, though this recovery will continue to be restrained by production limitations. CPO production for MY 2020/21 is revised slightly to 17.9 million MT. In spot market, Crude palm oil gained by 10.5 Rupees to end at 1212 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.74% to settled at 4839 while prices up 8.2 rupees, now CPO is getting support at 1148.6 and below same could see a test of 1137.3 levels, and resistance is now likely to be seen at 1170.6, a move above could see prices testing 1181.3.

Trading Ideas:
CPO trading range for the day is 1137.3-1181.3.
Crude palm oil gains as Malaysia end – Sept palm oil stocks drop 7% to 1.75 mln T
Malaysia's Oct 1 – 10 palm oil exports fall 7.6 pct – ITS
MY 2021/22 CPO production forecasted down 1.5 million metric tons from the USDA Official estimate to 18.2 million MT.
In spot market, Crude palm oil gained  by 10.5 Rupees to end at 1212 Rupees.


Turmeric

Turmeric yesterday settled down by -0.14% at 7350 amid prospects of better crop this kharif season along with tepid demand. However downside seen limited following 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. Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains. India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough, and ensure that the most important crops for the kharif season have normal sowing. This is good news for agricultural production and food prices. Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices. According to the statistics of the Department of Commerce, Government of India, the highest number of 1.84 lakh tonnes of turmeric was exported during the last financial year 2020-21. In the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year, but could be higher in the coming months. In Nizamabad, a major spot market in AP, the price ended at 7111.85 Rupees dropped -13.15 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 17.48% to settled at 8400 while prices down -10 rupees, now Turmeric is getting support at 7272 and below same could see a test of 7196 levels, and resistance is now likely to be seen at 7452, a move above could see prices testing 7556.

Trading Ideas:
Turmeric trading range for the day is 7196-7556.
Turmeric dropped amid prospects of better crop this kharif season along with tepid demand.
However downside seen limited following 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 Nizamabad, a major spot market in AP, the price ended at 7111.85 Rupees dropped -13.15 Rupees.


Jeera

Jeera yesterday settled up by 0.65% at 14610 as 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. However upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels. With the forecast of normal rains in the western region during September to November, the sowing of cumin seeds in Gujarat and Rajasthan may increase. In 2021 (January-June), the country has exported more than 1.50 lakh tonnes of cumin as compared to 1.3 lakh tonnes in the same period last year. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. Recent estimates state that cumin production has slumped by 60% in Iran’s Razavi Khorasan Province due to severe drought and unusually cold weather coupled with an early spring. Rainfall ranges 63% lower than last year this season so far. Temperatures ranged 3.1-0.4C (37.58-32.72F) lower between October 2020 and April 2021 than in the same period in 2019/2020 according to official statistics. Extensive crop losses seen, the early onset of spring in February also caused serious damage to production. In Unjha, a key spot market in Gujarat, jeera edged up by 26.65 Rupees to end at 14266.65 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 12.7% to settled at 5643 while prices up 95 rupees, now Jeera is getting support at 14490 and below same could see a test of 14375 levels, and resistance is now likely to be seen at 14700, a move above could see prices testing 14795.

Trading Ideas:
Jeera trading range for the day is 14375-14795.
Jeera gained as the export of cumin is increasing continuously and in the coming days there are signs of increasing the export.
However upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels.
India's cumin exports will increase due to less supply from Afghanistan-Syrian
In Unjha, a key spot market in Gujarat, jeera edged up by 26.65 Rupees to end at 14266.65 Rupees per 100 kg.


Cotton

Cotton yesterday settled down by -1.8% at 30470 on profit booking amid prospects of rising production. Higher output from Australia, Brazil, and the United States should offset the fall projected for China and India, according to the International Cotton Advisory Committee (ICAC). Still, production would remain below the level observed before the pandemic and demand is seen strong due to the recovery in the textile industry, specially from top user China. China ramped up imports from the US to make goods and ship them back after last year President Trump banned cotton imports from the Xinjiang Production and Construction Corps saying it uses the forced labor of detained Uighur Muslims. Meanwhile, heavy rains are threatening crops in major US growing regions including Texas and the Mississippi Delta, while a pest called pink bollworm is rapidly spreading across fields. Unseasonal rains in growing areas are proving to be a blessing in disguise as they might help cotton farmers go in for third and fourth picking of their crop this year. India’s cotton production to increase in view of this as higher prices besides a favourable water storage situation will prompt farmers to extend the picking period beyond November-December. In spot market, Cotton gained by 80 Rupees to end at 28560 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -0.05% to settled at 2160 while prices down -560 rupees, now Cotton is getting support at 30180 and below same could see a test of 29900 levels, and resistance is now likely to be seen at 30820, a move above could see prices testing 31180.
Trading Ideas:
Cotton trading range for the day is 29900-31180.
Cotton prices dropped on profit booking amid prospects of rising production.
Higher output from Australia, Brazil, and the United States should offset the fall projected for China and India.
Still, production would remain below the level observed before the pandemic and demand is seen strong due to the recovery in the textile industry.
In spot market, Cotton gained  by 80 Rupees to end at 28560 Rupees.

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