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Gold

Gold yesterday settled up by 0.52% at 49292 as inflation worries boosted demand for the safe-haven metal, even as the U.S. dollar held near multi-month highs on rising bets of an early hike in interest rates in the United States. British inflation hit a 10-year high as household energy bills rocket, bolstering expectations the Bank of England will raise interest rates in December. The U.S. Federal Reserve began phasing out its bond-buying this month and expects to end purchases altogether by mid-2022. Its next policy-setting meeting is in mid-December. St Louis Fed President James Bullard urged a quicker end to asset purchases to put the Fed in a position to raise rates as soon as the spring. U.S. President Joe Biden's nominee as the next chair of the Federal Reserve, expected as soon as this week, will inherit an economy headed for the fastest annual growth in a generation with wage increases flowing to the lowest-paid workers, strong hiring, and household bank accounts flush with cash. They'll also inherit a situation where homes, cars, food, and clothing are becoming steadily more expensive, and whether it's current chair Jerome Powell for a second four-year term or a promotion for current Fed Governor Lael Brainard, dealing with that inflation shock carries risks for both the president, the economy and the Fed. Technically market is under fresh buying as market has witnessed gain in open interest by 3.86% to settled at 6647 while prices up 254 rupees, now Gold is getting support at 49073 and below same could see a test of 48855 levels, and resistance is now likely to be seen at 49421, a move above could see prices testing 49551.

Trading Ideas:

* Gold trading range for the day is 48855-49551.

* Gold gains as the dollar eased a bit from 16-month highs and on lingering concerns about rising inflation.

* Eurozone inflation increased as estimated in October, final data from Eurostat showed.

* British inflation hit a 10-year high

Silver

Silver yesterday settled up by 0.59% at 66625 lifted by reignited inflation woes after US consumer prices jumped 6.2% in October, the steepest hike in the CPI since 1990. The precious metal also took advantage of US Fed Chairman Powell’s remarks last week, saying the central bank will be patient on the rate hike program. Earlier, US household inflation expectations accelerated to a record high of 5.7%, as consumers continued to suffer from rising household expenses, a New York Fed Survey showed. Joe Biden and Xi Jinping held an online meeting, the first since the US President took office, to discuss Taiwan, where the US President underscored his administration’s commitment to the “One China” Policy, and also to talk about trade and a potential joint oil release. Sentiment also improved after embattled property developer Evergrande made another interest payment on its dollar-denominated bonds. U.S. homebuilding unexpectedly fell in October as activity remains constrained by shortages of materials as well as scarce land and labor. Housing starts slipped 0.7% to a seasonally adjusted annual rate of 1.520 million units last month, the Commerce Department said. Data for September was revised down to a rate of 1.530 million units from the previously reported 1.555 million units. Technically market is under fresh buying as market has witnessed gain in open interest by 0.93% to settled at 8475 while prices up 391 rupees, now Silver is getting support at 66301 and below same could see a test of 65977 levels, and resistance is now likely to be seen at 66903, a move above could see prices testing 67181.

Trading Ideas:

* Silver trading range for the day is 65977-67181.

* Silver rose lifted by reignited inflation woes after US consumer prices jumped 6.2% in October, the steepest hike in the CPI since 1990.

* U.S. homebuilding unexpectedly fell in October as activity remains constrained by shortages of materials as well as scarce land and labor.

* US household inflation expectations accelerated to a record high of 5.7%, as consumers continued to suffer from rising household expenses



Crude oil

Crude oil yesterday settled down by -3.11% at 5792 after the International Energy Agency (IEA) and OPEC warned of impending oversupply and as COVID-19 cases in Europe increased the downside risks to demand recovery, though a fall in U.S. gasoline stocks curbed losses. The IEA on Tuesday warned that while the “oil market remains tight by all measures, ... a reprieve from the price rally could be on the horizon ... due to rising oil supplies.” OPEC said the global oil market will switch from being under- to over-supplied as early as next month as the economic rebound from the coronavirus pandemic falters. The group’s Secretary-General Mohammad Barkindo comments come in the shadow of U.S. politicians putting pressure on President Joe Biden to bring down gasoline prices, possibly by banning crude exports and releasing oil from the government’s strategic reserve. The International Energy Agency (IEA) upped its average Brent crude oil price assumption for 2022 to $79.40 a barrel, but predicted a rally may ease off as prices that hit a three-year high last month push up global production. Brent is expected to average $71.50 a barrel this year, it added, in a rarely published take on oil prices. The average annual oil price last broke above $80 in 2014. Technically market is under fresh selling as market has witnessed gain in open interest by 132.79% to settled at 5573 while prices down -186 rupees, now Crude oil is getting support at 5732 and below same could see a test of 5672 levels, and resistance is now likely to be seen at 5890, a move above could see prices testing 5988.

Trading Ideas:

* Crude oil trading range for the day is 5672-5988.

* Crude oil dropped after the IEA and OPEC warned of impending oversupply

* OPEC Secretary Barkindo said the group sees signs of an oil supply surplus building from next month adding that its members

* OPEC says oil market will soon be over-supplied

Nat.Gas

Nat.Gas yesterday settled down by -8.11% at 362.7 as output continues to rise and on forecasts for lower heating demand this week than previously expected. The decline came despite record gas futures in Asia and a 32% jump in European prices over the past three days on worries Russian gas giant Gazprom PAO will not deliver enough fuel to Europe for this winter after Germany's energy regulator suspended the approval process for Gazprom's Nord Stream 2 gas pipe from Russia to Germany. Global gas prices hit record highs as utilities around the world scramble for LNG cargoes to replenish extremely low stockpiles in Europe and meet insatiable demand in Asia, where energy shortfalls have caused power blackouts in China. Data provider Refinitiv said output in the U.S. Lower 48 states averaged 96.0 billion cubic feet per day (bcfd) so far in November, up from 94.1 bcfd in October and a monthly record of 95.4 bcfd in November 2019. Refinitiv projected average U.S. gas demand, including exports, would jump from 104.2 bcfd this week to 112.2 bcfd next week as the weather turns colder and homes and businesses crank up their heaters. The forecast for this week was lower than Refinitiv projected on Tuesday. Technically market is under fresh selling as market has witnessed gain in open interest by 15.52% to settled at 4704 while prices down -32 rupees, now Natural gas is getting support at 354.4 and below same could see a test of 346.1 levels, and resistance is now likely to be seen at 377.7, a move above could see prices testing 392.7.

Trading Ideas:

* Natural gas trading range for the day is 346.1-392.7.

* Natural gas prices dropped ahead inventory report following the release of fresh weather forecasts calling for milder temperatures.

* The decline came despite record gas futures in Asia and a 32% jump in European prices over the past three days

* Speculators cut their net long positions for a sixth week to their lowest since June 2020



Copper

Copper yesterday settled down by -1.98% at 718.65 as expectations of U.S. interest rate rises lifted the dollar to 16-month highs. Strong U.S. economic data and high inflation lead many investors to expect a U.S. rate hike as early as mid-2022. The world will need to double its copper supply and quadruple its nickel supply in the next 30 years to facilitate a decarbonised world. A supply squeeze on the LME that pushed prices up last month has faded, with copper moving into exchange warehouses and the premium for cash copper over the three-month contract falling to $13.50 a tonne from over $1,100 last month. Chinese coal prices continued to plummet as Chinese mines ramp up production. Cheaper coal should reduce energy costs for metal smelters. The amount of copper making its way on to LME warrant has so far been underwhelming given the extreme level of the cash premium last month. Arrivals since the middle of October have totalled 51,125 tonnes, split across LME warehouses in Europe (19,025 tonnes), Asia (18,675) and the United States (13,425 tonnes). The headline inventory figure has still been falling as all the metal that was cancelled going into the October squeeze leaves the warehouse system. Technically market is under fresh selling as market has witnessed gain in open interest by 8.93% to settled at 5220 while prices down -14.5 rupees, now Copper is getting support at 713.2 and below same could see a test of 707.7 levels, and resistance is now likely to be seen at 729, a move above could see prices testing 739.3.

Trading Ideas:

* Copper trading range for the day is 707.7-739.3.

* Copper prices fell as expectations of U.S. interest rate rises lifted the dollar to 16-month highs.

* Strong U.S. economic data and high inflation lead many investors to expect a U.S. rate hike as early as mid-2022.

* China's Oct refined copper output -0.3% y/y at 855,000 tonnes.


Zinc

Zinc yesterday settled down by -2.94% at 264.15 as weak property data and rising warehouse inventories in China pressured prices. China's zinc output in October fell 9.2% year-on-year to 532,000 tonnes, the NBS said, hitting its lowest monthly total since May as power curbs on smelters constrained production. Total zinc inventory across seven Chinese markets stood at 135,200 mt as of November 15, up 3,900 mt from November 12 and 7,400 mt from November 8. The inventory in Shanghai rose slightly as the arrivals of imported zinc declined and downstream demand stabilised. The stocks in Guangdong rose sharply as the output at smelters showed recovery and downstream demand weakened. Tianjin saw an increase in stocks as the arrivals of goods improved limitedly and downstream demand fell. Inventories in Shanghai, Guangdong and Tianjin rose 4,100 mt, and inventories across seven Chinese markets increased 3,900 mt. U.S. President Joe Biden's nominee as the next chair of the Federal Reserve, expected as soon as this week, will inherit an economy headed for the fastest annual growth in a generation with wage increases flowing to the lowest-paid workers, strong hiring, and household bank accounts flush with cash. Technically market is under long liquidation as market has witnessed drop in open interest by -16.12% to settled at 1353 while prices down -8 rupees, now Zinc is getting support at 259.6 and below same could see a test of 255.1 levels, and resistance is now likely to be seen at 271.3, a move above could see prices testing 278.5.

Trading Ideas:

* Zinc trading range for the day is 255.1-278.5.

* Zinc prices dropped as weak property data and rising warehouse inventories in China pressured prices.

* China's zinc output in October fell 9.2% year-on-year to 532,000 tonnes, the NBS said.

* Total zinc inventory across seven Chinese markets stood at 135,200 mt as of November 15, up 3,900 mt from November 12

 

Nickel

Nickel yesterday settled down by -0.48% at 1498.3 amid a bearish macro front, while the hawkish rhetoric from the US also suppressed the nonferrous market. A fire broke out in the ferronickel smelting furnace at the nickel smelter in southeast Sulawesi, Indonesia yesterday. According to sources, the furnace is located in Konawe and belongs to the PT.Obsidian stainless steel mill. The fire is currently affecting only one smelting furnace production line. The output of one ferronickel production line is expected to be 650 mt/month in Ni content under normal production. On the macro front, St. Louis Fed China Bullard signalled strong hawkish stance yesterday, saying that the taper shall be advanced to Q1 next year in order to contain inflation, which heightened market estimate of an early interest rate hike. Meanwhile, the US retail sales for October rose 1.7% YoY, the fastest growth in seven months. The US manufacturing output value in October rose 1.2%.Housing starts in the US unexpectedly fell 0.7% mom to an annualized rate of 1.52 million in October of 2021 from a downwardly revised 1.53 million in September and well below forecasts of 1.576 million. Technically market is under long liquidation as market has witnessed drop in open interest by -2.88% to settled at 1216 while prices down -7.3 rupees, now Nickel is getting support at 1489.3 and below same could see a test of 1480.4 levels, and resistance is now likely to be seen at 1509, a move above could see prices testing 1519.8.

Trading Ideas:

* Nickel trading range for the day is 1480.4-1519.8.

* Nickel dropped amid a bearish macro front, while the hawkish rhetoric from the US also suppressed the nonferrous market.

* Fire broke out at nickel smelter in Southeast Sulawesi, Indonesia

* The US retail sales for October rose 1.7% YoY, the fastest growth in seven months.
 

Aluminium

Aluminium yesterday settled up by 1.22% at 207.25 supported by a decline in LME warehouse inventories to a two-year low of 959,975 tonnes. LME cash aluminium flipped to a premium, of $5.90 a tonne, over the three-month contract for the first time since Sept. 2, indicating tightening nearby supplies. However upside seen limited as weak property data and rising warehouse inventories in China pressured prices. Stockpiles of the metal, which is used widely in construction, transportation and consumer goods, rose to the highest since June 4 at 307,779 tonnes in ShFE warehouses. Trading inventories of the metal in China hit a six-month high of 1 million tonnes. Meanwhile, data released earlier this week showed China's property woes worsened on all fronts in October amid deeper contractions in construction starts and investment by developers. Weighing on investor sentiment towards China's vast real estate sector has been a liquidity crisis that was triggered by debt woes at property giant China Evergrande Group. Aluminium social inventory increased, the falling prices of coal and alumina dragged weakened the cost support, and the downstream consumption was weak. The inventory of aluminium ingots continued to increase, which brought confidence to the shorts. Technically market is under short covering as market has witnessed drop in open interest by -12.51% to settled at 2980 while prices up 2.5 rupees, now Aluminium is getting support at 204.6 and below same could see a test of 201.8 levels, and resistance is now likely to be seen at 209.2, a move above could see prices testing 211.

Trading Ideas:

* Aluminium trading range for the day is 201.8-211.

* Aluminium prices gained supported by a decline in LME warehouse inventories to a two-year low of 959,975 tonnes.

* China's China Oct alumina output -2.2% y/y at 6.29 mln tonnes, lowest monthly total since December 2020.

* LME cash aluminium flipped to a premium, of $5.90 a tonne, indicating tightening nearby supplies.

Mentha oil

Mentha oil yesterday settled down by -0.51% at 935.6 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 19.2 Rupees to end at 1082.3 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -7% to settled at 824 while prices down -4.8 rupees, now Mentha oil is getting support at 932.6 and below same could see a test of 929.7 levels, and resistance is now likely to be seen at 939.4, a move above could see prices testing 943.3.

Trading Ideas:

* Mentha oil trading range for the day is 929.7-943.3.

* In Sambhal spot market, Mentha oil gained  by 19.2 Rupees to end at 1082.3 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 up by 2.78% at 6093 due to rise in overseas prices amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages. The U.S. Department of Agriculture confirmed private sales of 256,930 tonnes of U.S. soybeans to unknown destinations. The announcement followed rumors this week that China was buying U.S. soybeans. The USDA also reported export sales of U.S. soybeans in the week ended Nov. 4 at 1.289 million tonnes, in line with trade expectations for 950,000 to 1.8 million tonnes. China booked 939,300 tonnes and shipped 2.34 million tonnes. There was higher demand from oil mills amid low arrivals. The government is very cautious about reviewing the implementation of stock limits on oilseeds and edible oils, which keep prices in check in the country. According to SEA, soymeal exports declined sharply to 5,831 tonnes in September this year from 68,576 tonnes in the same period a year ago. Support seen after smaller-than-expected soybean harvests in the major production states of Indiana, Iowa, Kansas and Ohio sparked a surprise cut to the U.S. harvest outlook. Despite the cut to the soybean harvest view, the domestic ending stocks projection grew because of weakening export demand for U.S. supplies. At the Indore spot market in top producer MP, soybean gained 138 Rupees to 6084 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 4.2% to settled at 80180 while prices up 165 rupees, now Soyabean is getting support at 5958 and below same could see a test of 5824 levels, and resistance is now likely to be seen at 6188, a move above could see prices testing 6284.

Trading Ideas:

* Soyabean trading range for the day is 5824-6284.

* Soyabean prices gained due to rise in overseas prices amid soaring demand for soymeal

* USDA confirmed private sales of 256,930 tonnes of U.S. soybeans to unknown destinations.

* Weekly U.S. soymeal export sales, at 278,000 tonnes, topped a range of trade expectations for 100,000 to 250,000 tonnes.

* At the Indore spot market in top producer MP, soybean gained  138 Rupees to 6084 Rupees per 100 kgs.


 

Soyaoil

Ref.Soyaoil yesterday settled up by 0.92% at 1226.5 as the vegetable oil market faces a significant squeeze due to lower output. India slashed its base import tax on crude palm oil, crude soyoil and crude sunflower oil to zero from 2.5%, as the world's biggest vegetable oil buyer tries to cool near-record price rises. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1250 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 5.47% to settled at 40960 while prices up 11.2 rupees, now Ref.Soya oil is getting support at 1218 and below same could see a test of 1210 levels, and resistance is now likely to be seen at 1232, a move above could see prices testing 1238.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1210-1238.

* Ref soyoil prices seen supported as the vegetable oil market faces a significant squeeze due to lower output.

* 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 1250 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled up by 0.55% at 1133.5 underpinned by estimates of weaker production and higher exports during the first half of November. Concerns over weaker output is weighing on the market as plantations enter the lower production season amid rainy weather. The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated production during Nov. 1-15 fell 6.3% from the month before. Exports of Malaysian palm oil products during the same period rose between 10% and 29% month-on-month, according to data by cargo surveyors. India's palm oil imports in 2020/21 rose 15.2% from a year ago to 8.32 million tonnes, while soyoil imports fell 15% to 2.87 million tonnes, a leading trade body said. The country's vegetable oil imports for the 2020/21 marketing year ended on Oct. 31 stood at 13.53 million tonnes, a tad higher than 13.52 million tonnes a year ago, the Solvent Extractors' Association of India (SEA) said. Output in the world's second-largest palm oil producer is also expected to slow as the peak production season has ended, while the monsoon brings heavy rainfall. Indonesia, the world's biggest palm oil maker, exported 2.89 million tonnes of the vegetable oil in September, including refined products, data from Indonesia Palm Oil Association (GAPKI) showed. In spot market, Crude palm oil gained by 7.7 Rupees to end at 1130.9 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -6.23% to settled at 4230 while prices up 6.2 rupees, now CPO is getting support at 1127.4 and below same could see a test of 1121.2 levels, and resistance is now likely to be seen at 1138.9, a move above could see prices testing 1144.2.

Trading Ideas:

* CPO trading range for the day is 1121.2-1144.2.

* Crude palm oil gains underpinned by estimates of weaker production and higher exports during the first half of November.

* Concerns over weaker output is weighing on the market as plantations enter the lower production season amid rainy weather.

* The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated production during Nov. 1-15 fell 6.3% from the month before.

* In spot market, Crude palm oil gained  by 7.7 Rupees to end at 1130.9 Rupees.
 

Turmeric

Turmeric yesterday settled down by -1.37% at 7368 amid poor demand for old stocks as traders wait for the new season of turmeric. However downside seen limited amid less area in Telangana and unseasonal rains, also expectations of better export demand supporting the prices. Turmeric exports in the first 5 months (April-August) of FY 2021-22 declined by 25% to 64,600 tonnes as compared to the same period last year, but almost at the same level as the 5-year average. There were also reports of export demand from Europe, Gulf countries and Bangladesh. However upside seen limited amid prospects of better crop this kharif season along with tepid demand. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season. Besides, heavy carryover stocks and slack in bulk demand are keeping prices under pressure. In the first 4 months of FY 2021-22, turmeric exports declined by 26% to 53,000 tonnes as compared to the same period last year, but almost at the same level as the 5-year average. In Nizamabad, a major spot market in AP, the price ended at 7217.85 Rupees gained 63.4 Rupees.Technically market is under long liquidation as market has witnessed remain unchanged in open interest by 0% to settled at 9850 while prices down -102 rupees, now Turmeric is getting support at 7262 and below same could see a test of 7158 levels, and resistance is now likely to be seen at 7514, a move above could see prices testing 7662.

Trading Ideas:

* Turmeric trading range for the day is 7158-7662.

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

* However downside seen limited amid less area in Telangana and unseasonal rains, expectations of better export demand.

* Turmeric exports in the first 5 months (April-August) of FY 2021-22 declined by 25% to 64,600 tonnes as compared to the same period last year.

* In Nizamabad, a major spot market in AP, the price ended at 7217.85 Rupees gained 63.4 Rupees.


Jeera

Jeera yesterday settled up by 2.11% at 16445 as domestic demand is now picking up also the export inquiries to support price. However upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. As of now Exports of Jeera for Apr-Aug was down by 12% Y/Y at 1.24 lakh tonnes but expected improve in coming months as Rupee weakness will support exports. During last two months, the prices were higher compared to last year despite sufficient stocks with traders. Sowing can see drop as farmers preferred to have other crop against Jeera. Weather in key sowing area will be crucial in next few months. The export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. In Unjha, a key spot market in Gujarat, jeera edged up by 61.25 Rupees to end at 15980 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 3.96% to settled at 10326 while prices up 340 rupees, now Jeera is getting support at 16210 and below same could see a test of 15975 levels, and resistance is now likely to be seen at 16590, a move above could see prices testing 16735.

Trading Ideas:

* Jeera trading range for the day is 15975-16735.

* Jeera prices gained as domestic demand is now picking up also the export inquiries to support price.

* 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 61.25 Rupees to end at 15980 Rupees per 100 kg.

Cotton

Cotton yesterday settled down by -1.58% at 31110 as China will start a new round of sales from its cotton reserves, with a total 600,000 tonnes of imported and domestic cotton to be sold off in daily auctions, according to an official notice. It is the second batch of cotton to be released from reserves this year and is designed to better meet demand for the fibre from spinning companies. However downside seen limited bolstered by strong demand from both the domestic textile sector and export markets over the last year, and high global prices. Both production estimates for the 2021/22 crop year and ending stocks in the U.S. were largely unchanged at 18.20 million bales and 3.40 million bales respectively, the USDA said in its November World Agricultural Supply and Demand Estimates (WASDE) report. India’s cotton production in 2021-22 season is likely to be 360.13 lakh bales of 170 kg each (equivalent to 382.64 lakh running bales of 160 kg each), which is more by 7.13 lakh bales than the previous season’s crop of 353 lakh bales, the Cotton Association of India (CAI) has said in its first estimate for the new season beginning October 1, 2021. In spot market, Cotton dropped by -510 Rupees to end at 31590 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -5.09% to settled at 2163 while prices down -500 rupees, now Cotton is getting support at 30530 and below same could see a test of 29960 levels, and resistance is now likely to be seen at 31920, a move above could see prices testing 32740.

Trading Ideas:

* Cotton trading range for the day is 29960-32740.

* Cotton dropped as China will start a new round of sales from its cotton reserves

* However downside seen limited amid strong demand from both the domestic textile sector and export markets

* China starts new round of cotton sales to boost supply

* In spot market, Cotton dropped  by -510 Rupees to end at 31590 Rupees.

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