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Gold

Gold yesterday settled up by 0.75% at 47260 as economic data showed US underlying consumer prices rose 0.1% in August, the least since February and below market expectations 0.4%. Investors were hoping the data to provide more clarity on when the Fed will start tapering ahead of a crucial meeting next week. Elsewhere, fears over the rapid spread of the Delta strain of COVID-19 in Asia lingered. China today reported the latest outbreaks in Fujian that prompted officials to roll out measures including travel restrictions. The U.S. government posted a $171 billion budget deficit for August, 15% lower than the $200 billion gap a year ago, as recovery-driven tax receipts grew faster than outlays for COVID-19 pandemic relief programs, the Treasury Department said. The August deficit was $2 billion less than the average forecast. A U.S. Treasury official said the August budget results would not alter the department's estimates for when Treasury's extraordinary financing measures to avoid breaching the $28.4 trillion debt limit would be exhausted. Physical gold demand in India was subdued despite a correction in bullion prices, while consumers in most other Asian hubs also stayed on the sidelines as they hoped for a clearer trend in global prices. Technically market is under short covering as market has witnessed drop in open interest by -9.02% to settled at 8394 while prices up 352 rupees, now Gold is getting support at 46814 and below same could see a test of 46367 levels, and resistance is now likely to be seen at 47514, a move above could see prices testing 47767.

Trading Ideas:
* Gold trading range for the day is 46367-47767.
* Gold prices gained as economic data showed US underlying consumer prices rose 0.1% in August
*  Support also seen amid fears over the rapid spread of the Delta strain of COVID-19 in Asia lingered.
* Investors were hoping the data to provide more clarity on when the Fed will start tapering ahead of a crucial meeting next week.

Silver

yesterday settled up by 0.45% at 63585 as the dollar retreated after a slower-than-expected rise in U.S. inflation cast doubts over the U.S. Federal Reserve's tapering timeline. The U.S. Labor Department said on Tuesday its Consumer Price Index excluding the volatile food and energy components edged up 0.1% last month, missing expectations of 0.3%. That was the smallest gain since February and followed a 0.3% rise in July. There were concerns that runaway inflation will force the US Fed to begin tapering its asset purchases scheme at a faster pace than expected, while waiting on inflation data to give further clues on the monetary policy outlook. The recent data could reinforce the view that the Fed may go slow on unwinding economic support measures and keep interest rates low, translating into reduced opportunity cost for holding non-interest bearing bullion. The Philadelphia Fed President Patrick Harker became the latest official to say he supports moving toward a tapering process sooner rather than later. A flurry of U.S. economic data is due out this week, starting with U.S. consumer inflation data later in the day, which could provide more clues on the health of the world's largest economy and when the Federal Reserve could start rolling back easy credit and other stimulus. Technically market is under short covering as market has witnessed drop in open interest by -4.7% to settled at 10683 while prices up 286 rupees, now Silver is getting support at 62903 and below same could see a test of 62221 levels, and resistance is now likely to be seen at 63967, a move above could see prices testing 64349.

Trading Ideas:

* Silver trading range for the day is 62221-64349.
* Silver rose as the dollar retreated after a slower-than-expected rise in U.S. inflation cast doubts over the U.S. Federal Reserve's tapering timeline.
* The recent data could reinforce the view that the Fed may go slow on unwinding economic support measures and keep interest rates low
* The inflation data comes on the heels of comments from several Fed officials that the central bank should begin tapering asset purchases this year.

Crude oil

yesterday settled down by -0.06% at 5178 hovering near a six-week high, on signs another storm could affect output in Texas this week even as the US industry struggles to return production after Hurricane Ida wreaked havoc on the Gulf Coast. Evacuations were underway on Monday from offshore U.S. Gulf of Mexico oil platforms as onshore oil refiners began preparing for Tropical Storm Nicholas, which was heading towards the Texas coast with 70 miles per hour (113 kph) winds, threatening coastal Texas and Louisiana still recovering from Hurricane Ida. Adding to price pressures, U.S. oil output from seven major shale formations is expected to rise by about 66,000 bpd in October to 8.1 million bpd, the highest since April 2020, according to the Energy Information Administration's monthly drilling productivity report. OPEC trimmed its world oil demand forecast for the last quarter of 2021 due to the Delta coronavirus variant, saying a further recovery would be delayed until next year when consumption will exceed pre-pandemic rates. The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report it expects oil demand to average 99.70 million barrels per day (bpd) in the fourth quarter of 2021, down 110,000 bpd from last month's forecast. Technically market is under long liquidation as market has witnessed drop in open interest by -33.63% to settled at 3109 while prices down -3 rupees, now Crude oil is getting support at 5138 and below same could see a test of 5099 levels, and resistance is now likely to be seen at 5229, a move above could see prices testing 5281.

Trading Ideas:

* Crude oil trading range for the day is 5099-5281.
* Crude oil prices ended flat hovering near a six-week high, on signs another storm could affect output in Texas this week
*Over 40% of U.S. Gulf's oil, gas output still shut following Ida
* Planned U.S. and China oil sale from reserves weigh on sentiment

Nat.Gas

yesterday settled up by 1.58% at 391.4 amid rise in European gas prices on tight inventories heading into winter, incentivising power producers to switch back to coal and industrial users to consider temporary plant closures. Prices in the U.K. and the Netherlands soar to record highs as concerns over tight supplies mount while demand increases. Prices also rose on worries Tropical Storm Nicholas could delay the already slow return of production in the Gulf of Mexico and as record global gas prices keep demand for U.S. exports high. Prices rose despite forecasts for less hot weather and lower demand over the next two weeks than previously expected. Data provider Refinitiv said gas output in the U.S. Lower 48 states fell to an average of 90.1 billion cubic feet per day (bcfd) so far in September, from 92.0 bcfd in August, due mostly to Ida-related losses along the Gulf Coast. About 1.2 bcfd, or 52%, of gas production in the U.S. Gulf of Mexico remains shut-in since Ida, according to government data. Refinitiv projected average U.S. gas demand, including exports, would rise from 86.8 bcfd this week to 87.1 bcfd next week as heating demand picks up in some regions. Technically market is under short covering as market has witnessed drop in open interest by -12.92% to settled at 10200 while prices up 6.1 rupees, now Natural gas is getting support at 382.8 and below same could see a test of 374.2 levels, and resistance is now likely to be seen at 398.2, a move above could see prices testing 405.

Trading Ideas:
 

* Natural gas trading range for the day is 374.2-405.
* Natural gas prices rose amid rise in European gas prices on tight inventories heading into winter
* Prices in the U.K. and the Netherlands soar to record highs as concerns over tight supplies mount while demand increases
* Prices also rose on worries Tropical Storm Nicholas could delay the already slow return of production in the Gulf of Mexico

Copper 

yesterday settled down by -0.91% at 722.4 amid concerns over the property market in top consumer China. Cash-strapped property group China Evergrande warned of default risks amid plunging property sales, raising the chance of contagion for other privately owned developers. New local COVID-19 infections more than doubled to 59 in China's southeastern province of Fujian, health authorities said. Underlying U.S. consumer prices increased at their slowest pace in six months in August, suggesting that inflation has probably peaked. China’s price increases of industrial products have both expanded month on month and year on year in August due to the higher prices of coal, chemicals, steel and other products. China's industrial producer prices index (PPI) rose 9.5% year on year and 0.7% month on month, and the purchase prices for industrial producers rose 13.6% year on year and 0.8% month on month. The average PPI from January to August in 2021 rose by 6.2% over the same period last year, and the purchase prices for industrial producers rose by 8.6%.The National Bureau of Statistics announced the Consumer Price Index (CPI) of 31 provinces in August, which was 2.4% higher year on year, the increase was 0.3 percentage point narrower than that in July. Technically market is under fresh selling as market has witnessed gain in open interest by 7% to settled at 3885 while prices down -6.6 rupees, now Copper is getting support at 717.5 and below same could see a test of 712.5 levels, and resistance is now likely to be seen at 728.3, a move above could see prices testing 734.1.

Trading Ideas:

* Copper trading range for the day is 712.5-734.1.
* Copper prices dropped amid concerns over the property market in top consumer China.
* Underlying U.S. consumer prices increased at their slowest pace in six months in August, suggesting that inflation has probably peaked.
* China’s price increases of industrial products have both expanded month on month and year on year in August

Zinc

yesterday settled down by -0.65% at 251.4 amid profit booking as the previously released national reserves had entered the market, pressuring prices. On the macro front, the US budget deficit in August turned out to be better than expected. And the recent fall in prices was partly triggered by worries over inflation. While costs also climbed due to supply shortage, insufficient inventory, rising commodity prices and high shipping costs. The monthly output of domestic zinc concentrate has continued to rise since March 2021, and the overall operating rates have steadily increased. After the raw material inventory of the smelters increased in June-July, and the bargaining power of zinc ore processing fee was transferred to the smelter, resulting in the rising in processing fees. However, the increase in zinc ore processing fees was hindered in September with diverged situations in different regions. Zinc stocks across LME-listed warehouses declined 9,325 mt to 226,900 mt last week. The contango of LME cash to 3-month contract rose to $14.5/mt. The market expects that the FOMC will not propose a gradual reduction in debt purchases in September due to sluggish US data and the spread of Delta virus. Technically market is under long liquidation as market has witnessed drop in open interest by -12.51% to settled at 1168 while prices down -1.65 rupees, now Zinc is getting support at 249.4 and below same could see a test of 247.3 levels, and resistance is now likely to be seen at 253, a move above could see prices testing 254.5.

Trading Ideas:

* Zinc trading range for the day is 247.3-254.5.
* Zinc dropped amid profit booking as the previously released national reserves had entered the market, pressuring prices.
* Fall in prices was partly triggered by worries over inflation. While costs also climbed due to supply shortage, insufficient inventory, rising commodity prices
* The US budget deficit in August turned out to be better than expected.

Nickel

yesterday settled down by -0.58% at 1483.4 on profit booking amid rising COVID-19 cases in China, the world's biggest metals consumer, spooked sentiment. China's refined nickel output in August rose 7.6% from the previous month as top producer Jinchuan Group ramped up supply after maintenance. Refined nickel output was 13,317 tonnes last month, which was nonetheless down 7.1% year-on-year as Jilin Jien Nickel became the latest smelter to stop making nickel cathodes and focus on battery material nickel sulphate. On the fundamentals, the demand from the new energy sector offered support of nickel prices, while the production restriction of stainless steel sent out bearish signals. Nickel prices are unlikely to significantly trend down in the short term as the short supply of nickel also remained. The U.S. government posted a $171 billion budget deficit for August, 15% lower than the $200 billion gap a year ago, as recovery-driven tax receipts grew faster than outlays for COVID-19 pandemic relief programs, the Treasury Department said. The August deficit was $2 billion less than the average forecast. Some $59 billion in August benefits were paid in July because the month started on a non-business day. Technically market is under long liquidation as market has witnessed drop in open interest by -12.94% to settled at 1345 while prices down -8.7 rupees, now Nickel is getting support at 1471.8 and below same could see a test of 1460.2 levels, and resistance is now likely to be seen at 1497, a move above could see prices testing 1510.6.

Trading Ideas:

* Nickel trading range for the day is 1460.2-1510.6.
* Nickel prices dropped on profit booking amid rising COVID-19 cases in China, the world's biggest metals consumer, spooked sentiment.
* China's refined nickel output in August rose 7.6% from the previous month as top producer Jinchuan Group ramped up supply after maintenance.
* Nickel prices are unlikely to significantly trend down in the short term as the short supply of nickel also remained.
 

Aluminium

yesterday settled down by -1.59% at 225.45 on profit booking as investors moved from risky assets after a new outbreak of coronavirus was reported. Pressure also seen dragged down by mounting fears that higher interest rates in the US could trigger capital outflows. The social aluminium inventories in China rose 20,000 mt from last Thursday to 771,000 mt, which indicated that demand has been suppressed by soring aluminium prices. Output curbs in China, the world's biggest aluminium producer, and political turmoil in Guinea, have boosted aluminium prices by around 50% so far this year. ShFE aluminium inventories fell to 228,529 tonnes, their lowest since December 2020, while stocks of the metal in the LME warehouses have dropped 33% since March to 1.32 million tonnes. Southwest China's Yunnan has told "green" aluminium smelters – those using the province's hydropower as their electricity source – to keep average monthly output for September-December at August volumes or lower, a government document shows. As of August, Yunnan aluminium smelters had already shut down nearly 1 million tonnes of annual capacity due to power curbs. Technically market is under fresh selling as market has witnessed gain in open interest by 4.83% to settled at 2213 while prices down -3.65 rupees, now Aluminium is getting support at 224 and below same could see a test of 222.4 levels, and resistance is now likely to be seen at 228.2, a move above could see prices testing 230.8.

Trading Ideas:

* Aluminium trading range for the day is 222.4-230.8.
* Aluminium dropped on profit booking as investors moved from risky assets after a new outbreak of coronavirus was reported.
* Pressure also seen dragged down by mounting fears that higher interest rates in the US could trigger capital outflows.
* China's Yunnan imposes output curbs on aluminium

Mentha oil

yesterday settled down by -1.22% at 960 on profit booking after prices gained as India saw a slight decline in fresh Covid cases, with unlockdown ahead of festival season helped mentha prices to hold support as mentha is used in medicine, beauty products, toothpaste as well as confectionery products. 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. 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. There is a possibility of an average reduction of 24-25 percent in the production of the total summer crop, the farmers said that the mentha crop which used to have a recovery of 8 to 10 kg oil per hectare, is now coming out only 6 kg. In Sambhal spot market, Mentha oil gained by 28.6 Rupees to end at 1070.1 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.71% to settled at 1169 while prices down -11.9 rupees, now Mentha oil is getting support at 953.8 and below same could see a test of 947.5 levels, and resistance is now likely to be seen at 968.6, a move above could see prices testing 977.1.

Trading Ideas:

* Mentha oil trading range for the day is 947.5-977.1.
* In Sambhal spot market, Mentha oil gained  by 28.6 Rupees to end at 1070.1 Rupees per 360 kgs.
* Mentha oil dropped on profit booking after prices gained as India saw a slight decline in fresh Covid cases, with unlockdown ahead of festival season.
* Prices got support in last few weeks due to crop failure and low recovery of oil
* Availability of Mentha oil will be low and demand from industries are expected to improve.

Soyabean

yesterday settled down by -2.02% at 6302 tracking weakness in overseas prices as farmers begin harvesting what is expected to be a near-record crop. The U.S. Department of Agriculture's monthly supply and demand report increased U.S. soybean production, though much of the agency's findings were already accounted for by recent sell-offs. The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, cut their net long position in soybeans. China’s Soybean imports are forecast at 101 million metric tons (MMT) in marketing year (MY) 21/22, up 3 MMT from the previous year. The increase is based on growing soybean meal feed use, lower soybean production, and limited imports of rapeseed. Soybean imports for MY20/21 are estimated at 98 MMT, a slight fall from the previous year that is mainly due to decreased pork and poultry profitability. Soybean production for MY21/22 is forecast 0.6 MMT lower than MY 20/21 as farmers switched soybean acreage to corn in response to high corn prices in MY20/21. In Marathwada, there were concerns about mosaic virus, as well as infestation of pink and American bollworm. At the Indore spot market in top producer MP, soybean gained 132 Rupees to 8683 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 6.53% to settled at 28705 while prices down -130 rupees, now Soyabean is getting support at 6257 and below same could see a test of 6211 levels, and resistance is now likely to be seen at 6382, a move above could see prices testing 6461.

Trading Ideas:
* Soyabean trading range for the day is 6211-6461.
* Soyabean prices dropped tracking weakness in overseas prices as farmers begin harvesting what is expected to be a near-record crop.
* The U.S. Department of Agriculture's monthly supply and demand report increased U.S. soybean production
* In Marathwada, there were concerns about mosaic virus, as well as infestation of pink and American bollworm.
* At the Indore spot market in top producer MP, soybean gained  132 Rupees to 8683 Rupees per 100 kgs.

Ref.Soyaoil

yesterday settled down by -0.09% at 1319.2 as India has cut base import taxes on palm oil, soyoil and sunflower oil, a government order showed, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The reduction in taxes could bring down prices of the edible oils in India and boost consumption, effectively increasing overseas buying by the south Asian country. The base import tax on crude palm oil has been slashed to 2.5% from 10%, while the tax on crude soyoil and crude sunflower oil has been reduced to 2.5% from 7.5%, the government said in a notification. India's vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors' Association of India (SEA) said. However downside seen limited prices seen supported amid lingering concerns over tight supply. Support seen on the back of tightening inventory levels of major vegetable oils and possibility of a lower planting area in oilseeds. The latest USDA release is slightly bearish, and as per the report the 2021/22 global oilseed supply and demand forecasts include lower production, crush, exports, and slightly higher ending stocks compared to last month. Foreign oilseed production is reduced 3.6 million tons to 501.4 million, reflecting lower canola production for Canada and sunflower seed for Russia. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1362.75 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 6.29% to settled at 23320 while prices down -1.2 rupees, now Ref.Soya oil is getting support at 1307 and below same could see a test of 1294 levels, and resistance is now likely to be seen at 1332, a move above could see prices testing 1344.

Trading Ideas:

*Ref.Soya oil trading range for the day is 1294-1344.
* Ref soyoil dropped as India cuts import taxes on vegetable oils to calm prices
* The reduction in taxes could bring down prices of the edible oils in India and boost consumption, effectively increasing overseas buying by the south Asian country.
* India's vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors' Association of India (SEA) said.
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1362.75 Rupees per 10 kgs.

Crude palm Oil

 yesterday settled up by 0.05% at 1112 dragged down by prospects of growing supply from the two world’s largest producers Indonesia and Malaysia. Malaysia's end-August palm oil stocks surged 25% mom to 1.87 million tonnes, its highest in 14 months, according to Malaysian Palm Oil Board data. Production rose 11.8%, while exports plunged 17%, the MPOB said. Top producer Indonesia's crude palm oil output in July stood at 4.1 million tonnes, up 5.4% from a year ago but down 9.5% from June, GAPKI data showed. Cargo surveyors reported that Malaysia's exports during the first 10 days of September rose between 50% and 57% from the same period in August due to larger shipments to India and China. India has cut base import taxes on palm oil, soyoil and sunflower oil, a government order showed, as the world's biggest vegetable oil buyer tries to cool near-record price rises. The reduction in taxes could bring down prices of the edible oils in India and boost consumption, effectively increasing overseas buying by the south Asian country. The base import tax on crude palm oil has been slashed to 2.5% from 10%, while the tax on crude soyoil and crude sunflower oil has been reduced to 2.5% from 7.5%, the government said. In spot market, Crude palm oil gained by 0.6 Rupees to end at 1136 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -1.82% to settled at 4686 while prices up 0.6 rupees, now CPO is getting support at 1101.1 and below same could see a test of 1090.1 levels, and resistance is now likely to be seen at 1122, a move above could see prices testing 1131.9.

Trading Ideas:

* CPO trading range for the day is 1090.1-1131.9.
* Crude palm oil prices settled flat dragged down by prospects of growing supply from the two world’s largest producers Indonesia and Malaysia.
* India cuts import taxes on vegetable oils to calm prices
* Malaysia's end-August palm oil stocks surged 25% mom to 1.87 million tonnes, its highest in 14 months
* In spot market, Crude palm oil gained  by 0.6 Rupees to end at 1136 Rupees.

Mustard Seed

yesterday settled down by -0.95% at 8696 on profit booking after prices seen supported as Government has increased the Mustard seed MSP from 4650.00 to 5050 i.e Rs.400 per quintal for RMS 2022-23. Support also seen amid regular demand from the stockists and lowering all India arrivals. In their August report, the IGC lowered their forecast for the world rapeseed production to 70.9 million tons (-2.2 compared to July and 72.1 compared to 2020/21). The rapeseed production in Canada will be 16 million tons (-2.8 and 18.7), 4.5 million tons in Australia (4.2 and 4.1), 2.8 million tons in Ukraine (2.7 and 2.7). USDA estimates Canada rapeseed production for marketing year 2021/22 at 16.0 million metric tons (mmt), down 4.2 mmt (21 percent) from last month, 3.0 mmt (16 percent) from last year, and 20 percent below the 5-year average. Harvested area is estimated at 8.7 million hectares, down 3 percent from last month, but 4 percent above last year, and roughly equivalent to the 5-year average. The month-to-month decrease in area is due to the expectation of weather-related abandonment with prospects for hay being the best use. Yield is estimated at 1.84 metric tons per hectare, down 18 percent from last month and 20 percent below the 5-year average. In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8870 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 2.85% to settled at 49720 while prices down -83 rupees, now Rmseed is getting support at 8630 and below same could see a test of 8565 levels, and resistance is now likely to be seen at 8805, a move above could see prices testing 8915.

Trading Ideas:

* Rmseed trading range for the day is 8565-8915.
* Mustard seed dropped on profit booking after prices seen supported as Government has increased the MSP by 400 per quintal for RMS 2022-23.
* Support also seen amid regular demand from the stockists and lowering all India arrivals.
* The IGC lowered their forecast for the world rapeseed production to 70.9 million tons (-2.2 compared to July and 72.1 compared to 2020/21).
* In Alwar spot market in Rajasthan the prices gained 141.6 Rupees to end at 8870 Rupees per 100 kg.

Turmeric

yesterday settled down by -4.9% at 7524 as the areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. However downside seen limited following export demand from Europe, Gulf countries and Bangladesh. 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 7266.65 Rupees dropped -6.2 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.64% to settled at 12280 while prices down -388 rupees, now Turmeric is getting support at 7368 and below same could see a test of 7210 levels, and resistance is now likely to be seen at 7822, a move above could see prices testing 8118.

Trading Ideas:

* Turmeric trading range for the day is 7210-8118.
* Turmeric dropped as the areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season.
* However downside seen limited following export demand from Europe, Gulf countries and Bangladesh.
* In the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year
* In Nizamabad, a major spot market in AP, the price ended at 7266.65 Rupees dropped -6.2 Rupees.

Jeera

yesterday settled down by -0.2% at 14725 as adequate stock with traders and farmers may keep 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. However prices rallied in recent sessions 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. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. With Gujarat and Rajasthan being the only producers of cumin in the country, the most impact of Skymet's forecast is visible on the cumin market. 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, the freight of container-vessels has increased and the shortage of containers is increasing continuously.

In Unjha, a key spot market in Gujarat, jeera edged up by 52.6 Rupees to end at 14600 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 6.84% to settled at 5907 while prices down -30 rupees, now Jeera is getting support at 14620 and below same could see a test of 14510 levels, and resistance is now likely to be seen at 14855, a move above could see prices testing 14980."

Trading Ideas:

* Jeera trading range for the day is 14510-14980.
* Jeera dropped on profit booking as adequate stock with traders and farmers may keep prices under pressure at higher levels.
* India's cumin exports will increase due to less supply from Afghanistan-Syrian
* Export of cumin is expected to reach a record level of 2.50 to 2.75 lakh tonnes in the current year
* In Unjha, a key spot market in Gujarat, jeera edged up by 52.6 Rupees to end at 14600 Rupees per 100 kg.


Cotton 

 yesterday settled flat at 25620 as Cotton production in Gujarat is likely to grown by 10-12% in the new cotton season beginning October. Despite lower acreage, the output is expected to increase in 2021-22 due to the improved yield following recent spell of rain and favourable climatic condition. The 2021/22 marketing year for cotton began on August 1 and the yield increase reflected in the September WASDE indicates significant weather improvements. On the supply side, USDA revised cotton area planted down from 11.72 million acres in August to 11.19 million acres, which is down almost 7.5% compared to the 12.09 million acres planted in 2020. On the demand side for cotton, domestic use remained unchanged from August at 2.5 million 480-pound bales, an increase of 6% compared to 2020. However, estimates for cotton exports increased 500,000 480-pound bales from August to September, now registering 15.5 million 480-pound bales, which is still pacing about 5% behind exports in 2020 when 16.37 million 480-pound bales were exported. The Southern India Mills’ Association (Sima) and Confederation of Indian Textile Industry (Citi) have thanked chief minister M K Stalin for removing the 1% cess on cotton and cotton waste. In spot market, Cotton dropped by -70 Rupees to end at 26430 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 1.15% to settled at 1752 while prices remain unchanged 0 rupees, now Cotton is getting support at 25550 and below same could see a test of 25490 levels, and resistance is now likely to be seen at 25650, a move above could see prices testing 25690.

Trading Ideas:
 

* Cotton trading range for the day is 25490-25690.
* Cotton prices settled flat as cotton production likely to rise by 12% in new season in Gujarat
* USDA hiked its estimate for U.S. production and ending stocks for the 2021/22 marketing year
*  Industry bodies hail removal of 1% cess on cotton, cotton waste
*  In spot market, Cotton dropped  by -70 Rupees to end at 26430 Rupees.

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