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Gold

Gold yesterday settled up by 0.29% at 48303 as the market focus pivoted to this week's Federal Reserve meeting to learn how quickly it plans to unwind economic support measures introduced in response to the coronavirus pandemic. Data showed U.S. consumer prices rose further in November, leading to the largest annual gain since 1982. Although gold is considered an inflation hedge, reduced stimulus and interest rate increases tend to push government bond yields up, raising the opportunity cost of bullion, which pays no interest. U.S. jobless claims dropped to their lowest level in more than 52 years last week as labour market conditions continued to tighten amid an acute shortage of workers. Top Asian hubs saw healthy demand for physical gold as domestic prices retreated into the year-end, although volatility in rates deterred retail buyers and jewellers in India. Customers in top consumer China were charged premiums of $7-$10 an ounce versus last week's $6-$9. Hong Kong premiums rose to $0.80-$1.80 from $0.50-$1 previously. The Indian market flipped to a discount of about $2 an ounce over official domestic prices from last week's $2 premiums. The volatility has prompted jewellers to delay purchases for the upcoming wedding season. Technically market is under short covering as market has witnessed drop in open interest by -0.31% to settled at 8723 while prices up 139 rupees, now Gold is getting support at 48174 and below same could see a test of 48044 levels, and resistance is now likely to be seen at 48391, a move above could see prices testing 48478.

Trading Ideas:

* Gold trading range for the day is 48044-48478.

* Gold steadied as the market focus pivoted to this week's Federal Reserve meeting to learn how quickly it plans to unwind economic support measures

* U.S. jobless claims dropped to their lowest level in more than 52 years last week as labour market conditions continued to tighten.

* India gold imports to remain high as mining, recycling low, says WGC

Silver

Silver yesterday settled up by 0.7% at 61582 as markets prepared for a busy central bank calendar week, headlined by the two-day Federal Reserve meeting on Dec. 14-15. In economic releases, U.S. reports on producer price inflation, import and export prices, retail sales, housing starts and industrial production are due this week. Concerns about the Omicron Covid-10 variant persist amid rising caseloads in some of the European countries. The overall risk related to the new variant of concern Omicron remains very high for a number of reasons, the World Health Organization said in a technical brief, referring to the virus' potential ability to evade immunity provided by antibodies. The Fed is likely to announce a faster tapering of bond purchases but more pronounced concerns over inflation or an aggressive "dot plot" could roil markets. In Europe, the ECB is expected to confirm its PEPP pandemic support scheme will end in March and maintain a more dovish take on inflation pressure. In the UK, the BoE will have to contend with surging Omicron infections; uncertainty over the economic impact has already dampened expectations of a rate hike on Thursday. In Japan, the BOJ may decide to phase out some pandemic stimulus programmes in March, while leaving its ultra-easy policy settings intact. Technically market is under short covering as market has witnessed drop in open interest by -6.49% to settled at 13030 while prices up 431 rupees, now Silver is getting support at 61253 and below same could see a test of 60924 levels, and resistance is now likely to be seen at 61828, a move above could see prices testing 62074.

Trading Ideas:

* Silver trading range for the day is 60924-62074.

* Silver prices gained as markets prepared for a busy central bank calendar week, headlined by the two-day Federal Reserve meeting on Dec. 14-15.

* Concerns about the Omicron Covid-10 variant persist amid rising caseloads in some of the European ountries.

* The Fed is likely to announce a faster tapering of bond purchases but more pronounced concerns over inflation or an aggressive "dot plot" could roil markets.



Crude oil

Crude oil yesterday settled up by 0.55% at 5438 as OPEC raised its world oil demand forecast for the first quarter of 2022 and stuck to its timeline for a return to pre-pandemic levels of oil use, saying the Omicron coronavirus variant would have a mild and brief impact. The upbeat view from the Organization of the Petroleum Exporting Countries comes as oil prices have recovered some of the slide seen when the variant emerged last month. However upside seen limited as new concerns about the Omicron coronavirus variant and doubts around the effectiveness of vaccines against it were weighing on prices. Still, the World Health Organization says Omicron poses a "very high" global risk. In a monthly report, OPEC said it expects world oil demand to average 99.13 million barrels per day (bpd) in the first quarter of 2022, up 1.11 million bpd from its forecast last month. The OPEC+ alliance of oil producers will continue to restore supply to meet growing demand, Russia's Deputy Prime Minister Alexander Novak said. Volatility on the oil market is not very high at the moment, Novak said. Russia's planned offline primary oil refining capacity for December has been revised up by 20% to 1.779 million tonnes, Refinitiv data. Technically market is under short covering as market has witnessed drop in open interest by -5.31% to settled at 3475 while prices up 30 rupees, now Crude oil is getting support at 5357 and below same could see a test of 5275 levels, and resistance is now likely to be seen at 5526, a move above could see prices testing 5613.

Trading Ideas:

* Crude oil trading range for the day is 5275-5613.

* Crude oil gained as OPEC raised its world oil demand forecast for the first quarter of 2022

* Iraqi oil minister expects OPEC to maintain policy in next meeting

* U.S. to sell 18 million bbls of oil from reserve on Dec 17

Nat.Gas

Nat.Gas yesterday settled down by -0.1% at 297.4 as the weather was still expected to remain milder than normal through late December. U.S. natural gas prices in 2021 at the Henry Hub benchmark in Louisiana will likely rise to their highest since 2014 as governments ease lockdowns and demand rises faster than producers can restore output shut during the 2020 coronavirus-linked price drop. After collapsing to a 25-year low in 2020, analysts forecast gas prices will rise to an average of $3.74 per million British thermal units (mmBtu) in 2021 and $3.92 in 2022. U.S. natural gas storage is expected to end the November-March withdrawal season at 1.635 trillion cubic feet (tcf) on March 31, the lowest since 2019. That compares with 1,801 tcf at the end of the winter withdrawal season in 2021 and a five-year (2017-2021) average of 1,694 tcf. There was 1,185 tcf in storage at the end of March 2019, a five-year low. The number of rigs drilling for natural gas in the United States rose by 3 to 105, data from oil services firm Baker Hughes showed. Technically market is under long liquidation as market has witnessed drop in open interest by -0.49% to settled at 7520 while prices down -0.3 rupees, now Natural gas is getting support at 291.6 and below same could see a test of 285.9 levels, and resistance is now likely to be seen at 306.6, a move above could see prices testing 315.9.

Trading Ideas:

* Natural gas trading range for the day is 285.9-315.9.

* Natural gas pared gains and settled flat as the weather was still expected to remain milder than normal through late December.

* U.S. Henry Hub natgas annual price forecasts, 2021 to rise to 7 – year high

* U.S. natural gas storage is expected to end the November-March withdrawal season at 1.635 tcf on March 31



Copper

Copper yesterday settled up by 0.16% at 731.75 boosted by positive demand outlook as government said will focus on economic stability next year. China pledged to continue its prudent monetary policy and proactive fiscal policy, and to prioritise stability in 2022, according to the annual Central Economic Work Conference last week. Major copper miners and Chinese smelters have moved closer to agreement on treatment and refining charges (TC/RC) for 2022, two sources with knowledge of the talks said. TC/RCs are paid by miners to smelters to process copper concentrate into refined metal. The first settlement between a major miner and a smelter in top copper consumer China in annual negotiations usually becomes the benchmark for the year ahead and has a large role in determining profitability. MMG Ltd's Las Bambas copper mine has increased its offer of jobs and investment to a Peruvian province blockading a road used to transport the red metal in a bid to stave off a production shutdown next week, meeting minutes seen by Reuters show. The dirt road from the Chinese-owned mine to a sea port has been blocked since Nov. 20 by residents of the Chumbivilcas province, who are negotiating contracts for locals to be hired as drivers for the mine. Technically market is under short covering as market has witnessed drop in open interest by -5.86% to settled at 4625 while prices up 1.15 rupees, now Copper is getting support at 729.1 and below same could see a test of 726.5 levels, and resistance is now likely to be seen at 735.6, a move above could see prices testing 739.5.

Trading Ideas:

* Copper trading range for the day is 726.5-739.5.

* Copper remained supported boosted by positive demand outlook as government said will focus on economic stability next year.

* Copper miners, smelters inch closer to treatment charge deal

* MMG's Las Bambas mine ups offer to Peruvian community in bid to avoid production shutdown

Zinc

Zinc yesterday settled up by 0.54% at 278.75 as the total zinc inventory across seven major markets in China totalled 125,600 mt, down 5,100 mt from last Monday. On the supply side, the environmental protection incident in Guangxi did not evolve, and the production in the south was not affected, hence the zinc supply was relatively sufficient. The reserve ratio will be increased to 9% from 7%, the People's Bank of China (PBOC) said on its website, to strengthen FX liquidity management at financial institutions. China will start adding fiscal stimulus in early 2022 after the country’s top officials said their key goals for the coming year include counteracting growth pressures and stabilizing the economy. China's refined zinc output stood at 519,500 mt in November, up 20,200 mt or 4.05% on the month but down 7.61% on the year. The combined output from January to November stood at 5.57 million mt, up 0.41% year on year. Survey showed that China's refined zinc output in November was basically on par with estimate. The increase in output was partly contributed by the expected production resumption from power rationing in Hunan, Guangxi, Henan, Gansu and Liaoning. The additional output from Guangxi Yusheng Ge Co. and Southwest Energy & Mineral came on top of estimate. Technically market is under fresh buying as market has witnessed gain in open interest by 10.42% to settled at 1833 while prices up 1.5 rupees, now Zinc is getting support at 276.5 and below same could see a test of 274.2 levels, and resistance is now likely to be seen at 280.9, a move above could see prices testing 283.

Trading Ideas:

* Zinc trading range for the day is 274.2-283.

* Zinc prices rose as the total zinc inventory across seven major markets in China totalled 125,600 mt, down 5,100 mt from last Monday.

* The environmental protection incident in Guangxi did not evolve, and the production in the south was not affected, hence the zinc supply was relatively sufficient.

* China raises banks' FX reserve requirements for 2nd time this year

Nickel

Nickel yesterday settled down by -0.38% at 1549.2 as traders weighed inflation and pandemic woes against a stronger demand outlook in China. US consumer prices climbed 6.8% YoY in November, the steepest price hike since June of 1982, strengthening the case for a faster unwinding of stimulus by the US Fed. Meanwhile, the Prime Minister of the UK warned that the nation was facing a “tidal wave” of the omicron coronavirus strain and that two doses of the vaccine wouldn’t be enough to contain it. Elsewhere, Chinese policymakers pledged to implement prudent monetary policy and proactive fiscal policies to stabilize the economy and support growth to a reasonable range in 2022. Earlier, the nation’s top decision-making body had vowed to promote the healthy development of the property sector, a key pillar of copper demand. China's Tsingshan Holding Group said it had officially started producing nickel matte – an intermediate nickel product that can be further processed into chemicals for electric vehicle (EV) batteries – in Indonesia. The company sent nickel prices nosediving in March when it announced plans to mass-produce matte and sell it to Huayou Cobalt and CNGR , both of which supply EV battery materials, from October. It had already achieved trial production in 2020. Technically market is under long liquidation as market has witnessed drop in open interest by -3.24% to settled at 1523 while prices down -5.9 rupees, now Nickel is getting support at 1539.9 and below same could see a test of 1530.5 levels, and resistance is now likely to be seen at 1559.9, a move above could see prices testing 1570.5.

Trading Ideas:

* Nickel trading range for the day is 1530.5-1570.5.

* Nickel dropped as traders weighed inflation and pandemic woes against a stronger demand outlook in China.

* Chinese policymakers pledged to implement prudent monetary policy and proactive fiscal policies to stabilize the economy and support growth

* US consumer prices climbed 6.8% YoY in November, the steepest price hike since June of 1982

Aluminium

Aluminium yesterday settled up by 1.57% at 216.55 as the People’s Bank of China (PBoC) announced to raise the foreign exchange RRR by 2 percentage points to 9%. On the macro front, the US consumer confidence picked up unexpectedly at the beginning of December, according to US Department of Labor; US CPI in November rose 6.8% YoY, and the inflation surged again, heightening market expectation of accelerated taper since November, 2022. The reserve ratio will be increased to 9% from 7%, the People's Bank of China (PBOC) said on its website, to strengthen FX liquidity management at financial institutions China will start adding fiscal stimulus in early 2022 after the country’s top officials said their key goals for the coming year include counteracting growth pressures and stabilizing the economy. Data showed that China's aluminium output was 3.07 million mt in November (30 days), a year-on-year decrease of 3%. The daily average output was 102,000 mt, flat on the month. China produced 35.32 million mt of aluminium from January to November, a year-on-year increase of 4.35%. The operating capacity of aluminium rose slightly in November. Among them, the production in Guangxi and Chongqing reduced due to short power supply. While the output was also negatively impacted by the accident of an aluminium smelter in Wenshan, Yunnan. Technically market is under fresh buying as market has witnessed gain in open interest by 1.63% to settled at 1622 while prices up 3.35 rupees, now Aluminium is getting support at 214.5 and below same could see a test of 212.5 levels, and resistance is now likely to be seen at 217.7, a move above could see prices testing 218.9.

Trading Ideas:

* Aluminium trading range for the day is 212.5-218.9.

* Aluminium gains as the PBoC announced to raise the foreign exchange RRR by 2 percentage points to 9%.

* Data showed that China's aluminium output was 3.07 million mt in November (30 days), a year-on-year decrease of 3%.

* China raises banks' FX reserve requirements for 2nd time this year



Mentha oil

Mentha oil yesterday settled down by -0.57% at 956.5 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 -26.7 Rupees to end at 1057.9 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -0.94% to settled at 840 while prices down -5.5 rupees, now Mentha oil is getting support at 953.2 and below same could see a test of 949.9 levels, and resistance is now likely to be seen at 960.6, a move above could see prices testing 964.7.

Trading Ideas:

* Mentha oil trading range for the day is 949.9-964.7.

* In Sambhal spot market, Mentha oil dropped  by -26.7 Rupees to end at 1057.9 Rupees per 360 kgs.

* Mentha oil 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 -0.36% at 6437 on profit booking after prices gained after the U.S. Department of Agriculture (USDA) trimmed its global supply outlook despite market expectations for an increase. In a monthly report, the USDA projected 2021/22 marketing year U.S. ending stocks at 340 million bushels, unchanged from a month earlier but below the average trade forecast for 352 million. Global ending stocks were seen at 102 million tonnes, below the average trade estimate for 104.13 million. Private exporters reported sales of 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year. China's Ag Min lowered 21/22 soybean production to 16.4MMT down from November forecast at 18.65MMT, & -16.3% lower than yr earlier crop of 19.6MMT. Brazil's CONAB projected the country's 2021/22 soybean crop at 142.789 million tonnes, up from the prior estimate for 142.009 million and 137.321 million tonnes in the 2020/21 season. In a weekly report, the USDA said net U.S. soybean exports in the week ended Dec. 2 rose to a five-week high of 1,637,888 tonnes, near the high end of a range of analyst estimates. China, Egypt and Spain were top buyers. The USDA also reported 280,000 tonnes in U.S. soybean export sales to undisclosed buyers via its daily reporting system. Shipment was for the current and next marketing years. At the Indore spot market in top producer MP, soybean gained 87 Rupees to 6584 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 0.7% to settled at 72800 while prices down -23 rupees, now Soyabean is getting support at 6388 and below same could see a test of 6340 levels, and resistance is now likely to be seen at 6502, a move above could see prices testing 6568.

Trading Ideas:

* Soyabean trading range for the day is 6340-6568.

* Soyabean dropped on profit booking after prices gained after the USDA trimmed its global supply outlook despite market expectations for an increase.

* In a monthly report, the USDA projected 2021/22 marketing year U.S. ending stocks at 340 million bushels, unchanged from a month earlier.

* Private exporters reported sales of 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.

* At the Indore spot market in top producer MP, soybean gained  87 Rupees to 6584 Rupees per 100 kgs.

 

Soyaoil

Ref.Soyaoil yesterday settled up by 0.1% at 1182.4 as the 2021/22 global oilseed supply and demand forecasts include lower production and lower ending stocks compared to last month. The U.S raised a proposal to scale back biofuel blending mandates. The Biden administration proposed scaling back the amount of biofuels that U.S. oil refiners were required to blend into their fuel mix since the onset of the COVID-19 pandemic. Pressure also seen as crop prospects brightened in South America, fuelling expectations for bumper global supplies. Prices came under pressure as forecasts for improving crop weather in Brazil and Argentina weighed on the market. The U.S. soybean crush in October likely jumped to a nine-month high of 5.868 million short tons, or 195.6 million bushels, ahead of a monthly U.S. Department of Agriculture (USDA) report. Crush estimates ranged from 194.5 million bushels to 196.3 million bushels, with a median of 195.7 million bushels. The National Oilseed Processors Association said its members, which account for about 95% of all U.S. soybean crushings, processed 183.993 million bushels in October. Soyoil stocks among NOPA members rose to 1.835 billion lbs at the end of the month. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1206.5 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 4.5% to settled at 30525 while prices up 1.2 rupees, now Ref.Soya oil is getting support at 1179 and below same could see a test of 1174 levels, and resistance is now likely to be seen at 1187, a move above could see prices testing 1190.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1174-1190.

* Ref soyoil gains as the 2021/22 global oilseed supply and demand forecasts include lower production and lower ending stocks

* The U.S raised a proposal to scale back biofuel blending mandates.

* The Maharashtra Government has decided not to put stock-limit on edible oil stocks

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1206.5 Rupees per 10 kgs.


Crude palm Oil

Crude palm Oil yesterday settled down by -0.04% at 1101.4 due to a smaller-than-expected decline in November stockpile. Malaysia's palm oil end-stocks fell 0.96% by November-end from October to 1.82 million tonnes, Malaysian Palm Oil Board (MPOB) data showed. Crude palm oil production declined 5.3% from October to 1.63 million tonnes, while palm oil exports rose 3.3% to 1.47 million tonnes, MPOB said. Malaysia's palm oil exports during Dec. 1-10 was unchanged from the same period in November at 544,059 tonnes, cargo surveyor Amspec Agri said. Planters in the world's second-largest producer are racing to adjust to an acute shortage of workers due to the coronavirus and sharply higher costs of recruitment as they make changes in response to accusations of forced labour. Concerns over the Omicron coronavirus variant hurting demand and stalling economic recovery globally have weighed on prices in recent days, as the spread of the new strain causes alarm worldwide. Palm oil production will likely remain soft until at least the first half of 2022, which would continue to provide cushion for prices in the coming months. The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated November production fell 6.8% from the month before. In spot market, Crude palm oil dropped by -4.7 Rupees to end at 1107.5 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -4.19% to settled at 4527 while prices down -0.4 rupees, now CPO is getting support at 1097.3 and below same could see a test of 1093.2 levels, and resistance is now likely to be seen at 1105.1, a move above could see prices testing 1108.8.

Trading Ideas:

* CPO trading range for the day is 1093.2-1108.8.

* Crude palm oil ended with small losses due to a smaller-than-expected decline in November stockpile.

* Malaysia's palm oil end-stocks fell 0.96% by November-end from October to 1.82 million tonnes, MPOB data showed.

* Crude palm oil production declined 5.3% from October to 1.63 million tonnes, while palm oil exports rose 3.3% to 1.47 million tonnes, MPOB said.

* In spot market, Crude palm oil dropped  by -4.7 Rupees to end at 1107.5 Rupees.
 

Turmeric

Turmeric yesterday settled down by -0.23% at 8822 as pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric. However, downside seen limited due to heavy rainfall, the minimum crop damage has gone to 40% to 50% in producing parts of Maharashtra, Telangana and Andhra. Support also as the demand from exporters is good. Spices Board has set a target of 33 per cent increase in turmeric exports to 183000 tonnes on a year-on-year basis in the financial year 2020-21. At the same time, the government estimates that turmeric production may be 1.11 million tonnes in 2020-21, which was 1.15 million tonnes a year ago. 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. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. Exports of jeera during Apr-Sep declined 14% on year to 139,295 tn, from 162,033 tn a year ago. 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. In Nizamabad, a major spot market in AP, the price ended at 7833.35 Rupees gained 35.85 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -7.96% to settled at 5260 while prices down -20 rupees, now Turmeric is getting support at 8742 and below same could see a test of 8664 levels, and resistance is now likely to be seen at 8934, a move above could see prices testing 9048.

Trading Ideas:

* Turmeric trading range for the day is 8664-9048.

* Turmeric dropped as pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric.

* However, downside seen limited due to heavy rainfall, the minimum crop damage has gone to 40% to 50% in producing parts

* At the same time, the government estimates that turmeric production may be 1.11 million tonnes in 2020-21, which was 1.15 million tonnes a year ago.

* In Nizamabad, a major spot market in AP, the price ended at 7833.35 Rupees gained 35.85 Rupees.
 

Jeera

Jeera yesterday settled down by -0.47% at 16030 as Cumin exports declined by 1.4% year-on-year to 1.39 lakh tonnes in April-September but are expected to improve in the coming months. 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. The area under cumin in Gujarat is only 1.71 lakh hectares as against 3 lakh hectares in the same period last year, while in Rajasthan, cumin was sown in 3.20 lakh hectares. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. India exported 77,245 tn of turmeric in Apr-Sep, down 26% on year. 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 -111.9 Rupees to end at 16066.65 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 5.26% to settled at 9126 while prices down -75 rupees, now Jeera is getting support at 15930 and below same could see a test of 15835 levels, and resistance is now likely to be seen at 16160, a move above could see prices testing 16295.

Trading Ideas:

* Jeera trading range for the day is 15835-16295.

* Jeera dropped as Cumin exports declined by 1.4% year-on-year to 1.39 lakh tonnes in April-September but are expected to improve in the coming months.

* However downside seen limited as domestic demand is now picking up also the export inquiries to support price.

* The area under cumin in Gujarat is only 1.71 lakh hectares as against 3 lakh hectares in the same period last year

* In Unjha, a key spot market in Gujarat, jeera edged down by -111.9 Rupees to end at 16066.65 Rupees per 100 kg.

Cotton

Cotton yesterday settled up by 0.67% at 31420 taking cues from a wider market rebound, as investors shrugged off worries over the Omicron coronavirus variant. Sentiment was also buoyed by the December World Agricultural Supply and Demand Estimates (WASDE) report, which forecast global ending stocks at 85.73 million bales for the 2021/22 crop year, about 1.2 million bales lower than the previous month, citing lower output and slightly higher consumption. But the report also slightly raised its U.S. production estimate to 18.28 million bales, while ending stocks estimates were unchanged at 3.40 million bales. Meanwhile, the United States Department of Agriculture in another report announced net sales of 382,600 running bales, rose 2% from the previous week and 83% from the prior 4-week average. Increases were primarily from China. Arrivals of cotton were at 177,500 bales, higher than 5,500 bales against 172,000 bales previous day. India's cotton exports in the ongoing 2021-22 (Oct-Sep) marketing year have slowed due to higher prices in the domestic market, making overseas sales economically unviable. In the ongoing marketing year, around 800,000 bales of cotton were exported till November, sharply lower than the previous year. In spot market, Cotton dropped by -70 Rupees to end at 31610 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -2.18% to settled at 4075 while prices up 210 rupees, now Cotton is getting support at 31350 and below same could see a test of 31280 levels, and resistance is now likely to be seen at 31500, a move above could see prices testing 31580.

Trading Ideas:

* Cotton trading range for the day is 31280-31580.

* Cotton gains taking cues from a wider market rebound, as investors shrugged off worries over the Omicron coronavirus variant.

* WASDE forecast global ending stocks at 85.73 million bales for the 2021/22 crop year, about 1.2 million bales lower

* The report also slightly raised its U.S. production estimate to 18.28 million bales

* In spot market, Cotton dropped  by -70 Rupees to end at 31610 Rupees.

 

 

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