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Gold

Gold yesterday settled up by 1.67% at 48474 driven by weaker U.S. Treasury yields and inflation concerns that weighed on investors' appetite for risk. Benchmark U.S. 10-year Treasury yields slipped to their lowest in nearly a week, reducing the opportunity cost of holding non-interest bearing gold. Investors now await minutes of the U.S. Federal Reserve's last meeting, due on Wednesday, for more cues on the central bank's monetary policy and any comments on inflation. Gold import, which has a bearing on the country's current account deficit (CAD), zoomed to USD 6.3 billion for the month of April due to a surge in domestic demand, according to the Commerce Ministry data. Silver imports during the month, however, dipped by 88.53 per cent to about USD 11.9 million. Gold import stood at USD 2.83 million (Rs 21.61 crore) in April 2020, the data showed. Physical gold was sold at the biggest discount in over seven months in India this week as pandemic-led restrictions kept jewellery stores closed during a key gold-buying festival in the world's second biggest consumer. Discounts rose to $5 an ounce over official domestic prices – the biggest since the week of Oct. 1 – inclusive of 10.75% import and 3% sales levies, versus last week's $3 discount. Technically market is under short covering as market has witnessed drop in open interest by -6.29% to settled at 6596 while prices up 798 rupees, now Gold is getting support at 48089 and below same could see a test of 47705 levels, and resistance is now likely to be seen at 48678, a move above could see prices testing 48883.

Trading Ideas: 

* Gold trading range for the day is 47705-48883.

* Gold prices climbed driven by weaker U.S. Treasury yields and inflation concerns that weighed on investors' appetite for risk.

* Benchmark U.S. 10-year Treasury yields slipped to their lowest in nearly a week

* Investors now await minutes of the U.S. Federal Reserve's last meeting, for more cues on the central bank's monetary policy and any comments on inflation.

Silver

Silver yesterday settled up by 3.15% at 73324 as surging COVID-19 cases in some Asian countries and inflation pressures tempered demand for riskier assets. The dollar weakened amid dovish Fed expectations and Treasury yields eased as investors await the minutes from the Federal Open Market Committee's latest meeting, due out Wednesday, for further clues to officials' views on the recovery. Disappointing U.S. retail sales data, mixed economic data from China and a worsening coronavirus outbreak in Asia also supported the precious metal's safe-haven appeal. In Japan, the government enhanced its response to tackle the fourth wave of coronavirus infections with expanded and extended state of emergency in more areas. Increases in prices above the Federal Reserve's 2 percent goal should be temporary and the Fed would not raise rates until it sees inflation above target for a long time, said Federal Reserve Governor Christopher Waller. Output at U.S. factories increased in April as operations at plants that were damaged by February’s stormy weather in the South came back online, offsetting a decline in the production of motor vehicles. Manufacturing production rose 0.4% last month after surging 3.1% in March, the Federal Reserve said. Technically market is under fresh buying as market has witnessed gain in open interest by 20.37% to settled at 11652 while prices up 2239 rupees, now Silver is getting support at 72096 and below same could see a test of 70869 levels, and resistance is now likely to be seen at 73980, a move above could see prices testing 74637.

Trading Ideas: 

* Silver trading range for the day is 70869-74637.

* Silver prices rose as surging COVID-19 cases in some Asian countries and inflation pressures tempered demand for riskier assets.

* The dollar weakened amid dovish Fed expectations and Treasury yields eased as investors await the minutes from the FOMC’s latest meeting

* Disappointing U.S. retail sales data, mixed economic data from China and a worsening coronavirus outbreak in Asia also supported prices.

Crude oil

Crude oil yesterday settled up by 1.53% at 4859 lifted by European economic reopenings and rising U.S. demand after prices fell earlier due to surging coronavirus cases in Asia and underwhelming Chinese manufacturing data. The British economy reopened, giving 65 million people a measure of freedom after a four-month COVID-19 lockdown. With accelerating vaccination rates, France and Spain have relaxed COVID-related restrictions, and on Saturday Portugal and the Netherlands eased travel restrictions. The promise of economic growth has supported oil prices in recent weeks, although the pace of inflation has kept many investors concerned that interest rates could rise, which could hit consumer spending. China’s crude oil throughput rose 7.5% in April from the same month a year ago, but remained off the peak seen in the last quarter of 2020. Progress in vaccinating the world against COVID-19 means the world's economic recovery and demand for oil will outpace the output of top producers, the International Energy Agency (IEA) said. "The anticipated supply growth through the rest of this year comes nowhere close to matching our forecast for significantly stronger demand beyond the second quarter," the IEA said in its monthly report, citing increased pumping from OPEC+ countries. Technically market is under short covering as market has witnessed drop in open interest by -33.81% to settled at 1701 while prices up 73 rupees, now Crude oil is getting support at 4787 and below same could see a test of 4715 levels, and resistance is now likely to be seen at 4901, a move above could see prices testing 4943.

Trading Ideas: 

* Crude oil trading range for the day is 4715-4943.

* Crude oil gained lifted by European economic reopenings and rising U.S. demand after prices fell earlier due to surging coronavirus cases in Asia

* The British economy reopened, giving 65 million people a measure of freedom after a four-month COVID-19 lockdown.

* IEA sees oil demand recovery outpacing growth in supply

Nat.Gas

Nat.Gas yesterday settled up by 6.7% at 230.9 on forecasts for warmer weather over the next two weeks that is expected to prompt power generators to burn more gas to meet rising air conditioning use. Traders noted that was the biggest daily percentage gain since the Texas freeze in mid February. They noted the price gain came despite a slow but steady increase in production and small declines in exports this month even though gas prices in Europe and Asia were soaring. Speculators, meanwhile, boosted their net long gas futures and options positions on the New York Mercantile and Intercontinental Exchanges for a second week in a row last week to their highest since early March. They were acting on expectations U.S. prices would rise as exports return to record highs with gas prices in Europe near their highest since 2018 and Asia over $10 per mmBtu. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 90.9 billion cubic feet per day (bcfd) so far in May, up from 90.6 bcfd in April, but still well below November 2019's monthly record of 95.4 bcfd. With the weather warming, Refinitiv projected average gas demand, including exports, would rise from 82.4 bcfd this week to 85.8 bcfd next week as power generators burn more of the fuel to meet rising air conditioning use. Technically market is under fresh buying as market has witnessed gain in open interest by 21.67% to settled at 20297 while prices up 14.5 rupees, now Natural gas is getting support at 222 and below same could see a test of 213.2 levels, and resistance is now likely to be seen at 235.4, a move above could see prices testing 240.

Trading Ideas: 

* Natural gas trading range for the day is 213.2-240.

* Natural gas jumped on forecasts for warmer weather over the next two weeks that is expected to prompt power generators to burn more gas 

* Speculators, meanwhile, boosted their net long gas futures and options positions on the NYMEX and ICE to their highest since early March.

* Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 90.9 bcfd so far in May, up from 90.6 bcfd in April

Copper

Copper yesterday settled up by 1.27% at 783.65 as the threat of strikes at mines in Chile and a belief among investors that prices will rally further offset weak factory data from top metals consumer China. A union representing workers at BHP’s Escondida and Spence mines in Chile rejected the company’s contract offer, raising the risk of a strike. Political risk for miners is rising in South America’s copper-rich Andes as high poverty and debt levels drive potentially sharp policy shifts. Confidence among U.S. single-family homebuilders held steady in May despite worries over shortages of building materials, which are boosting prices and threatening to sideline first-time homebuyers from the market, a survey showed. The National Association of Home Builders/Wells Fargo Housing Market Index was unchanged at 83 in May. China’s new bank loans fell more than expected in April while money supply growth slowed to a 21-month low, as the central bank gradually scales back pandemic-driven stimulus to reduce debt and financial risks in hot areas of the economy. China’s state council said the country, the world’s biggest metals consumer, will monitor changes in overseas and domestic markets and effectively cope with a fast increase in commodity prices, without specifying how. Technically market is under short covering as market has witnessed drop in open interest by -2.45% to settled at 3308 while prices up 9.85 rupees, now Copper is getting support at 775.9 and below same could see a test of 768.1 levels, and resistance is now likely to be seen at 788.4, a move above could see prices testing 793.1.

Trading Ideas: 

* Copper trading range for the day is 768.1-793.1.

* Copper rose as the threat of strikes at mines in Chile and a belief among investors that prices will rally further offset weak factory data from top metals consumer China.

* A union representing workers at BHP’s Escondida and Spence mines in Chile rejected the company’s contract offer, raising the risk of a strike.

* Political risk for miners is rising in South America’s copper-rich Andes as high poverty and debt levels drive potentially sharp policy shifts.

Zinc

Zinc yesterday settled up by 3.05% at 238.2 as China's economic strengthened and improved in April, boosting market sentiment. Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 5,100 mt from last Friday May 14 to 171,200 mt as of Monday May 17. The stocks were down 16,700 mt from May 10. On fundamentals, the supply of zinc ingots continued to be loose in May, and the spot market traded generally under the high zinc prices, which still limited the upward momentum of zinc prices. Output at U.S. factories increased in April as operations at plants that were damaged by February’s stormy weather in the South came back online, offsetting a decline in the production of motor vehicles. Fears that central banks will act to contain rising inflation hit stock markets and commodities while boosting the dollar and bond yields. New bank loans in China fell more than expected in April and money supply growth slowed to a 21-month low, pointing to slower growth in the world's biggest metals consumer. The government has also said it will monitor and effectively cope with a rapid increase in commodity prices, without specifying how, while warnings of a crackdown on misbehaviour in the steel market have hammered Chinese steel prices. Technically market is under fresh buying as market has witnessed gain in open interest by 10.91% to settled at 1931 while prices up 7.05 rupees, now Zinc is getting support at 233.7 and below same could see a test of 229 levels, and resistance is now likely to be seen at 240.9, a move above could see prices testing 243.4.

Trading Ideas: 

* Zinc trading range for the day is 229-243.4.

* Zinc prices gained as China's economic strengthened and improved in April, boosting market sentiment.

* Data showed that social inventories of refined zinc ingots across Shanghai, decreased 5,100 mt from last Friday May 14 to 171,200 mt.

* Output at U.S. factories increased in April as operations at plants that were damaged by February’s stormy weather in the South came back online

Nickel

Nickel yesterday settled up by 1.54% at 1322.6 as China's industrial production as well as fixed asset investment growth moderated, while growth in retail sales eased sharply in April as the initial boost from the relaxation of coronavirus containment measures in March faded. Data published by the National Bureau of Statistics, on Monday, showed that industrial production grew 9.8 percent year-on-year in April, slower than the 14.1 percent increase in March but it in line with expectations. Retail sales climbed 17.7 percent annually, much slower than the 34.2 percent increase seen in March and the forecast of 24.9 percent. During January to April, fixed asset investment expanded 19.9 percent compared to 25.6 percent in three months to March. Likewise, growth in property investment slowed in January to April period to 21.6 percent from 25.6 percent. Investors reacted to the release of Chinese economic data while also monitoring the Covid situation in places such as Taiwan, which has seen a recent spike in domestic infections. Chinese economic data for April all fell short of expectations but this is not a cause for concern yet. This suggests that economic growth as well as policy support measures are gradually normalizing. The government targets to achieve above 6 percent economic growth for the whole year of 2021. Technically market is under short covering as market has witnessed drop in open interest by -26.45% to settled at 1424 while prices up 20 rupees, now Nickel is getting support at 1304.8 and below same could see a test of 1287.1 levels, and resistance is now likely to be seen at 1332.3, a move above could see prices testing 1342.1.

Trading Ideas: 

* Nickel trading range for the day is 1287.1-1342.1.

* Nickel prices gained as China's industrial production as well as fixed asset investment growth moderated

* China said that consumer spending grew at a slower-than-expected pace in April.

* China Retail sales rose 17.7% last month from a year ago, the National Bureau of Statistics said.

Aluminium

Aluminium yesterday settled up by 1.98% at 198 on strong demand, rising tensions between China and Australia and growing expectations that China’s supply will be limited due to carbon emission targets. However, social stocks of aluminium ingot decreased smoothly today, which formed a certain support for the bottom of aluminium prices. It is still in the peak season of aluminium consumption from May to June, and stocks will continue to fall. China, the biggest producer of the metal, said it would indefinitely suspend economic dialogue with Australia, the biggest supply of raw material such as bauxite and alumina used to smelt aluminum. Also, the Chinese city of Baotou in Inner Mongolia shut down 34 ferroalloy companies and some captive power plants as part of a series of measures to meet its energy consumption targets for the first quarter, which could curb aluminum production by around 100,000 tonnes on an annual basis. China's aluminium production in April rose 12.4% from March to a record monthly volume, official data showed, after a relaxation of output curbs in Inner Mongolia boosted supply. Primary aluminium output in China, by far the world's biggest producer of the metal, was 3.35 million tonnes in April, the National Bureau of Statistics said. That was up from 3.276 million tonnes in March and 12.9% higher than production in April 2020. Technically market is under fresh buying as market has witnessed gain in open interest by 0.65% to settled at 1239 while prices up 3.85 rupees, now Aluminium is getting support at 195.5 and below same could see a test of 192.8 levels, and resistance is now likely to be seen at 200.2, a move above could see prices testing 202.2.

Trading Ideas: 

* Aluminium trading range for the day is 192.8-202.2.

* Aluminium prices rose on strong demand, and growing expectations that China’s supply will be limited due to carbon emission targets.

* China's aluminium production in April rose 12.4% from March to a record monthly volume, official data showed

* Primary aluminium output in China, was 3.35 million tonnes in April, the National Bureau of Statistics said.

Mentha oil

Mentha oil yesterday settled down by -0.17% at 961.7 amid worries of lockdown it is anticipated that there will be slow supply and same with demand in domestic as well as in the international market. Due to favourable wheather condition,the production of mentha in the states has improved and is at much better terms compare to last year. Sowing data is adequate and it is expected that Mentha can hit the market by 15th of June. Mentha has high demand in the production of cosmetics and confectionery goods but as it is not considered as necessity in present scenerio it is not much in demand. The COVID-19 outbreak has had a huge impact on the worldwide economy, and has posed a similar influence on the aroma chemicals market. The market has been faced with the lack of migrant labor, supply chain disruptions, shutdown of manufacturing activities, to name a few. In India, mentha is grown on 3,27,000-3,34,000 hectares, producing about 33,000-35,000 tonnes, accounting for 80 per cent share globally. With the boom in demand for oil and its derivatives in export markets, mentha production continued to rise until 2010. However, with the entry of synthetic menthol, the demand, price and production of mentha were hit. In Sambhal spot market, Mentha oil dropped by -20.3 Rupees to end at 1058.9 Rupees per 360 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 17.39% to settled at 27 while prices down -1.6 rupees, now Mentha oil is getting support at 941.9 and below same could see a test of 922.2 levels, and resistance is now likely to be seen at 975.4, a move above could see prices testing 989.2.

Trading Ideas: 

* Mentha oil trading range for the day is 922.2-989.2.

* In Sambhal spot market, Mentha oil dropped  by -20.3 Rupees to end at 1058.9 Rupees per 360 kgs.

* Mentha oil prices dropped amid worries of lockdown there will be slow demand 

* Due to favourable wheather condition,the production of mentha in the states has improved and is at much better terms compare to last year.

* The COVID-19 outbreak has had a huge impact on the worldwide economy, and has posed a similar influence on the aroma chemicals market.

Soyabean

Soyabean yesterday settled up by 0.45% at 7349 amid concerns over global supplies and prospects of a strong economic recovery in 2021. However upside seen limited after Global oilseed production is forecast to grow 5 percent in 2021/22, primarily on growth in soybean output in the United States and South America. Global oilseed production is projected to reach 632 million tons on record plantings. Soybean production is forecast to rise 23 million tons to 386 million, a 6-percent increase. Production of all oilseeds is forecast to increase, with all but cottonseed and rapeseed reaching at least 10-year records. The U.S. Department of Agriculture projected U.S. 2021/22 soybean ending stocks at 140 million bushels, up only slightly from the 120 million expected at the end of 2020/21. The USDA projected a U.S. 2021/22 soybean crop of 4.405 billion bushels, based on an average yield of 50.8 bushels per acre. Brazilian government supply agency Conab trimmed its forecast of Brazil's 2020/21 soybean crop to 135.4 million tonnes, from 135.54 million in April. The USDA left its estimate of Brazil's 2020/21 soybean crop unchanged at 136 million tonnes. Madhya Pradesh, which had imposed restrictions on the sale of soyabean seeds outside the state, has revoked its order following protests by the Maharashtra government. At the Indore spot market in top producer MP, soybean dropped -98 Rupees to 7777 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 4.42% to settled at 57290 while prices up 33 rupees, now Soyabean is getting support at 7290 and below same could see a test of 7230 levels, and resistance is now likely to be seen at 7395, a move above could see prices testing 7440.

Trading Ideas: 

* Soyabean trading range for the day is 7230-7440.

* Soyabean gains amid concerns over global supplies and prospects of a strong economic recovery in 2021. 

* Global oilseed production is forecast to grow 5 percent in 2021/22

* Soybean production is forecast to rise 23 million tons to 386 million, a 6-percent increase.

* At the Indore spot market in top producer MP, soybean dropped  -98 Rupees to 7777 Rupees per 100 kgs.

Ref.Soyaoil

Ref.Soyaoil yesterday settled up by 0.81% at 1466 as concerns over tight global supplies underpinned the market. Support also seen as vegetable oils import, including both edible and non-edible oils, increased 32 per cent during April this year, while it grew 1.7 per cent during the first six months of the current oil year November 2020 to April 2021). According to the Solvent Extractors’ Association (SEA) of India, 1.05 million tonnes (mt) of vegetable oils were imported in April 2021 compared with 798,715 tonnes in the same period a year ago. The imports comprised 1.02 mt of edible oils and 23,435 tonnes of non-edible oils. The overall import of vegetable oils stood at 6.42 mt during November-April 2020-21 against 6.31 mt during the corresponding period a year ago. There is no impact of COVID-19 pandemic situation on progress of area coverage under summer crops in the country. Oilseeds 10.45 lakh ha area against 9.03 lakh ha area of last year, thus increase in area coverage by 1.41 lakh ha. Total vegetable oil imports rose marginally to 9,80,243 tonne in March 2021, compared to 9,55,422 tonne in the year-ago period. Support also seen due to low stocks, a slow recovery in output and higher global use in biofuel production. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1496 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 10.16% to settled at 37675 while prices up 11.8 rupees, now Ref.Soya oil is getting support at 1456 and below same could see a test of 1446 levels, and resistance is now likely to be seen at 1472, a move above could see prices testing 1478.

Trading Ideas: 

* Ref.Soya oil trading range for the day is 1446-1478.

* Ref soyoil gained as concerns over tight global supplies underpinned the market.

* Support also seen as vegetable oils import, including both edible and non-edible oils, increased 32 per cent during April this year.

* According to SEA, 1.05 million tonnes (mt) of vegetable oils were imported in April 2021 compared with 798,715 tonnes in the same period a year ago.

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1496 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled up by 0.78% at 1258.3 as tightening edible oil supplies across the world underpinned prices. However upside seen limited amid rising inventories and upbeat outlook for U.S crop plantings countered a surge in May exports so far. Malaysia's palm oil stocks at the end of April rose 7.1% from the previous month to 1.55 million tonnes, data from industry regulator the Malaysian Palm Oil Board (MPOB) showed. Crude palm oil production jumped 7% from March to 1.52 million tonnes, while palm oil exports expanded 12.6% to 1.34 tonnes, MPOB said. Indian edible oil refiners are curtailing palm oil imports for May and June as most states have imposed curbs on hotels and restaurants to arrest rising coronavirus infections, denting institutional demand, industry officials said. Lower imports by India, the world's biggest buyer of the edible oil, could limit a rally in benchmark Malaysian palm oil futures , which hit their highest level since 2008. The country was expected to import 850,000 tonnes of palm oil per month in May and June, but now industry officials estimate imports could come down to around 650,000 tonnes. India imports palm oil mainly from Indonesia and Malaysia, and other oils such as soy and sunflower from Argentina, Brazil, Ukraine and Russia. In spot market, Crude palm oil gained by 21 Rupees to end at 1272.8 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -5.29% to settled at 4186 while prices up 9.8 rupees, now CPO is getting support at 1245.6 and below same could see a test of 1232.9 levels, and resistance is now likely to be seen at 1265, a move above could see prices testing 1271.7.

Trading Ideas: 

* CPO trading range for the day is 1232.9-1271.7.

* Crude palm oil gained as tightening edible oil supplies across the world underpinned prices. 

* Malaysia's palm oil stocks at the end of April rose 7.1% from the previous month to 1.55 million tonnes

* Crude palm oil production jumped 7% from March to 1.52 million tonnes

* In spot market, Crude palm oil gained  by 21 Rupees to end at 1272.8 Rupees.

Mustard Seed

Mustard Seed yesterday settled down by -0.56% at 7304 on profit booking after U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield. Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area. European Union rapeseed production is projected to show a modest gain in 2021/22 on increased planted area and improved yield but will remain below the levels observed from 2016 to 2018. Prices rallied in recent session lifted by higher soy prices and concerns about dry Canadian planting conditions. Support also seen as crushing as increased due to rise in mustard oil demand. A total of 1.2 million tonnes of mustard crushing occurred in the country in March 2021 compared to 5.50 lakh tonnes in the month of February. Whereas, the stock of mustard with farmers is estimated to be 62.50 lakh tonnes and processors and stockists have a stock of six lakh tonnes of mustard. India mustard output this year is projected at 104.27 lakh tonnes. However, the Central Organisation for Oil Industry and Trade (COOIT) and the Mustard Oil Producers' Association (MOPA) have estimated the production at 89.50 lakh tonnes. In Alwar spot market in Rajasthan the prices gained 105 Rupees to end at 7325 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -0.09% to settled at 67950 while prices down -41 rupees, now Rmseed is getting support at 7252 and below same could see a test of 7201 levels, and resistance is now likely to be seen at 7377, a move above could see prices testing 7451.

Trading Ideas: 

* Rmseed trading range for the day is 7201-7451.

* Mustard seed prices dropped on profit booking after U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield.

* Pressure also seen as Canada rapeseed production is projected at 20.5 million tons, up 1.5 million on greater area.

* European Union rapeseed production is projected to show a modest gain in 2021/22 on increased planted area and improved yield

* In Alwar spot market in Rajasthan the prices gained 105 Rupees to end at 7325 Rupees per 100 kg.

Turmeric

Turmeric yesterday settled up by 0.72% at 7862 as again demand is seen as an immune booster amid a resurgence in infections that has spurred curbs in some states. Support also seen on concerns over production prospects in the new season, relatively lower carryover stocks, active buying by bulk buyers and better exports prospects. The arrival so far this year has been 10.15 lakh bags (one bag of 50 kg) as compared to 11.50 lakh bags in the same period last year and 14 lakh bags in 2019.In Nanded in Maharashtra, arrivals are at least 40 per cent lower. In addition to this, stocks in the pipeline have also come down this year following the increase in turmeric exports. Export orders have come from Bangladesh and Gulf countries and shipment will start from April. According to data by the Ministry of Agriculture, turmeric production was estimated at 9.46 lakh tonnes during the 2019-20 season (July-June), compared with 9.61 lakh tonnes the previous year, despite the area under the crop rising by 4,000 hectares to 2.57 lakh hectares. According to data by the Spices Board, turmeric exports during the April-September period of the current fiscal were 99,000 tonnes compared with 69,500 tonnes during the same period a year ago with the value of the shipments rising 35 per cent. In Nizamabad, a major spot market in AP, the price ended at 7600 Rupees dropped -73.55 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -1.93% to settled at 10950 while prices up 56 rupees, now Turmeric is getting support at 7750 and below same could see a test of 7640 levels, and resistance is now likely to be seen at 7952, a move above could see prices testing 8044.

Trading Ideas: 

* Turmeric trading range for the day is 7640-8044.

* Turmeric gained as again demand is seen as an immune booster amid a resurgence in infections that has spurred curbs in some states.

* Support also seen on concerns over production prospects in the new season, relatively lower carryover stocks, and better exports prospects.

* The arrival so far this year has been 10.15 lakh bags as compared to 11.50 lakh bags in the same period last year

* In Nizamabad, a major spot market in AP, the price ended at 7600 Rupees dropped -73.55 Rupees.

Jeera

Jeera yesterday settled down by -1.38% at 13905 as lockdown restrictions increased against rising Covid cases, slowing spot trade interest weakened market sentiments and pushed prices lower. The wholesale offers for the NCDEX grade Jeera are currently offered around Rs.14000/qtl in Unjha and in Jodhpur, the mandi offers average near Rs.13900/qtl. Over a month, the wholesale prices in Unjha and Jodhpur have gone down by Rs.400/qtl and Rs.700/qtl respectively. As India struggles against curbing the Corona pandemic, exports markets have turned subdued. The importers prefer to wait for the situation to normalize before negotiating for fresh deals. They rather prefer to clear their older stocks first and presently they feel that the older inventory may be sufficient to balance the existing demand for next few weeks easily. The new season arrivals shall continue with good numbers hence there will be ample availability in the market. However from a broader perspective, India’s exports outlook has brightened while crop is expected to be lower versus year on year. Also, the nearest export competitors i.e. Turkey and Syria may not supply much to the world due to lower exportable surplus. In Unjha, a key spot market in Gujarat, jeera edged down by -40 Rupees to end at 14000 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 2.35% to settled at 6396 while prices down -195 rupees, now Jeera is getting support at 13740 and below same could see a test of 13580 levels, and resistance is now likely to be seen at 14140, a move above could see prices testing 14380.

Trading Ideas: 

* Jeera trading range for the day is 13580-14380.

* Jeera dropped as lockdown restrictions increased against rising Covid cases, slowing spot trade interest weakened market sentiments

* As India struggles against curbing the Corona pandemic, exports markets have turned subdued.

* The importers prefer to wait for the situation to normalize before negotiating for fresh deals.

* In Unjha, a key spot market in Gujarat, jeera edged down by -40 Rupees to end at 14000 Rupees per 100 kg.

Cotton

Cotton yesterday settled flat at 22050 as US Department of Agriculture (USDA) has pegged India’s cotton production next season (October 2021 - September 2022) at 378 lakh bales (of 170 kg each), up four per cent from its current season’s estimate of 362.5 lakh bales. But the Indian textile industry feels that it is too early to make any projection, given the vagaries of the South-West Monsoon. In its “Cotton and Products Update”, it said that the higher production would be in view of yield increasing by five per cent as the South-West Monsoon has been forecast to be normal by the India Meteorological Department (IMD). The projection has been made despite the USDA pegging the area under cotton lower at 129 lakh hectares compared with 130 lakh hectares. Sowing of cotton is scheduled to begin shortly in States such as Punjab and Haryana, while in other States it will start next month. The USDA’s cotton projection next season is also against India’s Committee for Cotton Production and Consumption (CCPC), which has all stakeholders including government officials on board, estimating the current season’s production at 360 lakh bales at its meeting held on April 30 this year. In spot market, Cotton gained by 10 Rupees to end at 22430 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.98% to settled at 5979 while prices remain unchanged 0 rupees, now Cotton is getting support at 21920 and below same could see a test of 21800 levels, and resistance is now likely to be seen at 22190, a move above could see prices testing 22340.

Trading Ideas: 

* Cotton trading range for the day is 21800-22340.

* Cotton prices settled flat as output projected at 378 lakh bales on 5% higher yield

* But the Indian textile industry feels that it is too early to make any projection, given the vagaries of the South-West Monsoon.

* Sowing of cotton is scheduled to begin shortly in States such as Punjab and Haryana, while in other States it will start next month.

* In spot market, Cotton gained  by 10 Rupees to end at 22430 Rupees.

Chana

Chana yesterday settled down by -1.68% at 5337 as pressure seen after the Government amended the pulses import policy by moving tur, urad and moong from ‘restricted’ to ‘free’ category. The Commerce Ministry in a notification said the revision in pulses import policy is with immediate effect and will for the period up to October 31, 2021. Further, import consignments of these items with Bill of Landing issued on or before October 31 shall not be allowed by Customs beyond November 30, the notification said. “The Open General License (OGL) under the free import policy will enable the traders to quickly import the required quantity of tur, moong and urad to fulfil the shortage of the pulses. We are expecting minimum 250,000 tonnes of tur, 150,000 tonnes of urad and around 50,000-75,000 tonnes of moong beans to be imported primarily from Myanmar, African, and the neighbouring countries.” Total summer crops have been sown on 73.76 lakh ha area against 60.67 lakh ha during the corresponding period of last year, thus increase in total summer area coverage by 13.09 lakh ha compared to corresponding period of last year in the country. Sowing reported under Pulses 12.75 lakh ha against 6.45 lakh ha area of last year i.e. increase in area coverage by 6.30 lakh ha. In Delhi spot market, chana dropped by -42.3 Rupees to end at 5428.15 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -0.67% to settled at 153440 while prices down -91 rupees, now Chana is getting support at 5289 and below same could see a test of 5242 levels, and resistance is now likely to be seen at 5379, a move above could see prices testing 5422.

Trading Ideas: 

* Chana trading range for the day is 5242-5422.

* Chana prices dropped after the Government amended the pulses import policy by moving tur, urad and moong from ‘restricted’ to ‘free’ category.

* The Commerce Ministry in a notification said the revision in pulses import policy is with immediate effect and will for the period up to October 31

* Sowing reported under Pulses 12.75 lakh ha against 6.45 lakh ha area of last year i.e. increase in area coverage by 6.30 lakh ha.

* In Delhi spot market, chana dropped  by -42.3 Rupees to end at 5428.15 Rupees per 100 kgs.

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