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Gold

Gold yesterday settled down by -0.48% at 48072 ahead of a Federal Reserve meeting that investors will be watching for an update on the pace at which the U.S. central bank plans to wind down its pandemic stimulus measures. Meanwhile, U.S. Treasury yields ticked up from a one-week trough touched in the previous session, also pressuring gold. The Fed will begin its two-day monetary policy meeting later in the day. It is expected to announce that it is wrapping up bond buying stimulus sooner than previously communicated, potentially setting up earlier interest rate hikes next year. India continued to heavily rely on imports to meet its domestic requirements for gold with imports making up 86% of its total supply during 2016-2020, the World Gold Council said. Mining and recycling activity accounted for only 1% and 13%, respectively, WGC said in its Bullion Trade in India report. Global gold exchange-traded funds saw inflows of 13.6 tn, or $838 mln, in November, the World Gold Council said in a report. This was the first month of inflows since July. Global holdings in exchange-traded funds rebounded from year-to-date lows, rising to 3,578 tn in November, notching up year-to-date low levels, "as investment demand for larger gold ETFs returned amid decades-high inflation and heightened market volatility," WGC said. Technically market is under long liquidation as market has witnessed drop in open interest by -2.36% to settled at 8517 while prices down -231 rupees, now Gold is getting support at 47877 and below same could see a test of 47683 levels, and resistance is now likely to be seen at 48313, a move above could see prices testing 48555.

Trading Ideas:

* Gold trading range for the day is 47683-48555.

* Gold eased as investors will be watching for an update on the pace at which the U.S. central bank plans to wind down its pandemic stimulus measures.

* U.S. Treasury yields ticked up from a one-week trough touched in the previous session, also pressuring gold.

* FOMC's two-day meeting scheduled on Dec. 14-15
 

Silver

Silver yesterday settled down by -1.24% at 60818 as the dollar held near one-week high as investors fretted over the economic impact of the Omicron coronavirus variant and looked ahead to a series of central bank meetings this week for directional cues. The Labor Department released a report showing U.S. producer prices increased by more than expected in the month of November. The report said the producer price index for final demand advanced by 0.8 percent in November after climbing by 0.6 percent in October. The Asian Development Bank trimmed its growth forecasts for developing Asia for this year and next to reflect risks and uncertainty brought on by the new Omicron coronavirus variant. The Manila-based lender now sees 2021 gross domestic product (GDP) growth of 7.0% for developing Asia, down from 7.1%, and 2022 growth of 5.3%, down from 5.4% in September. The Federal Reserve begins its two-day meeting later in the day, with economists expecting the U.S. central bank to announce a faster tapering of its asset purchase program. The monetary policy announcements from the European Central Bank, the Bank of Japan, the Bank of England and the Swiss National Bank are also due this week. On the Covid-19 front, the United Kingdom reported the first death of a person infected with the Omicron variant, a day after Prime Minister Boris Johnson declared an "Omicron emergency" in the country. Technically market is under fresh selling as market has witnessed gain in open interest by 10.91% to settled at 14452 while prices down -764 rupees, now Silver is getting support at 60188 and below same could see a test of 59558 levels, and resistance is now likely to be seen at 61526, a move above could see prices testing 62234.

Trading Ideas:

* Silver trading range for the day is 59558-62234.

* Silver prices eased as the dollar held near one-week high as investors fretted over the economic impact of the Omicron coronavirus variant

* The Labor Department released a report showing U.S. producer prices increased by more than expected in the month of November.

* ADB trims developing Asia's growth forecasts over Omicron risks

Crude oil

Crude oil yesterday settled down by -1.66% at 5348 after the International Energy Agency (IEA) said that the Omicron coronavirus variant is set to dent the global demand recovery. A surge in COVID-19 cases and the emergence of the Omicron variant will dent global demand for oil, the International Energy Agency (IEA) said, but the broader picture is one of increasing output set to top demand this month and soar next year. "The surge in new COVID-19 cases is expected to temporarily slow, but not upend, the recovery in oil demand that is underway," the Paris-based IEA said in its monthly oil report. OPEC raised its world oil demand forecast for the first quarter of 2022 and stuck to its timeline for a return to pre-pandemic levels of oil use, saying the Omicron coronavirus variant would have a mild and brief impact. The upbeat view from the Organization of the Petroleum Exporting Countries comes as oil prices have recovered some of the slide seen when the variant emerged last month. Still, the World Health Organization says Omicron poses a "very high" global risk. The largest U.S. shale basin's output will surge to a record in January, according to a monthly forecast from the U.S. Energy Information Administration. Technically market is under long liquidation as market has witnessed drop in open interest by -15.74% to settled at 2928 while prices down -90 rupees, now Crude oil is getting support at 5273 and below same could see a test of 5199 levels, and resistance is now likely to be seen at 5443, a move above could see prices testing 5539.

Trading Ideas:

* Crude oil trading range for the day is 5199-5539.

* Crude oil dropped after the IEA said that the Omicron coronavirus variant is set to dent the global demand recovery.

* OPEC upbeat on 2022 oil demand, says Omicron impact to be mild

* Omicron impact aside, oil supply set to top demand – IEA
 

Nat.Gas

Nat.Gas yesterday settled down by -4.27% at 284.7 on forecasts for milder weather and less heating demand over the next two weeks than previously expected. That price decline came despite a 3% rise in European gas prices to their highest since hitting a record in early October that should keep U.S. liquefied natural gas (LNG) exports near record highs. In recent months, global gas prices hit record highs as utilities around the world scrambled for LNG cargoes from the United States and elsewhere to replenish low stockpiles in Europe and meet surging demand in Asia, where energy shortfalls caused power blackouts in China. Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 96.51 billion cubic feet per day (bcfd) so far in December, just shy of November's monthly record of 96.54 bcfd. Refinitiv projected average U.S. gas demand, including exports, would jump from 109.9 bcfd this week to 121.4 bcfd next week as the weather turns seasonally colder. Those forecasts were lower than Refinitiv's outlook on Monday. The amount of gas flowing to U.S. LNG export plants has averaged 11.8 bcfd so far in December now that the sixth train at Cheniere Energy Inc's Sabine Pass plant in Louisiana is producing LNG. Technically market is under fresh selling as market has witnessed gain in open interest by 6.77% to settled at 8029 while prices down -12.7 rupees, now Natural gas is getting support at 279.6 and below same could see a test of 274.6 levels, and resistance is now likely to be seen at 290.9, a move above could see prices testing 297.2.

Trading Ideas:

* Natural gas trading range for the day is 274.6-297.2.

* Natural gas eased on forecasts for milder weather and less heating demand over the next two weeks than previously expected.

* That price decline came despite a 3% rise in European gas prices to their highest since hitting a record in early October

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


Copper

Copper yesterday settled down by -0.17% at 730.5 as the US PPI for November recorded new high in terms of YoY growth, strengthening market expectations of an early warp up of the stimulus package. The top consumer of industrial metals said it will implement new tax and fee cuts, front-load infrastructure investment next year and support key areas such as employment, financing, trade and investment. Mainland China detected first case of the Omicron variant in the port city of Tianjin. Stocks of copper in LME warehouses rose for the fourth consecutive day taking the total to 87,275 tonnes from 74,225 tonnes Dec. 6. Concerns about supply have eased as on-warrant stocks -- metal available to the market -- have risen to 82,850 tonnes from close to 15,000 tonnes in the middle of October. The premium for the cash over the three-month contract has reversed into a discount. A Peruvian community blocking a transport road used by MMG Ltd's Las Bambas copper mine rejected a revised offer from the company as "a joke", and threatened to boycott further talks, the group's legal adviser told. The blockade, in place since Nov. 20, threatens to halt output at the Chinese-owned mine in southern Peru, which produces some 2% of the world's supply of copper. Peru is the world's no. 2 copper producer. Technically market is under long liquidation as market has witnessed drop in open interest by -6.7% to settled at 4315 while prices down -1.25 rupees, now Copper is getting support at 728.2 and below same could see a test of 725.8 levels, and resistance is now likely to be seen at 734.1, a move above could see prices testing 737.6.

Trading Ideas:

* Copper trading range for the day is 725.8-737.6.

* Copper dropped as pressure seen as the US PPI for November recorded new high in terms of YoY growth

* Stocks of copper in LME warehouses rose for the fourth consecutive day taking the total to 87,275 tonnes from 74,225 tonnes Dec. 6.

* The premium for the cash over the three-month contract has reversed into a discount.
 

Zinc

Zinc yesterday settled down by -0.99% at 276 as stocks of zinc in LME-registered warehouses rose 26,475 tonnes to 190,900 tonnes, up about 25% since last week. Rising inventories have eased worries about zinc supplies and helped to narrow the premium for cash metal over the three-month contract. In China, the ore supply tightened, and TCs are expected to move down further. The supply of zinc fell short. Also, due to an environmental protection incident, the operating rates of galvanising plants in the north were restricted, and some infrastructure construction projects were also postponed until next year. The Asian Development Bank trimmed its growth forecasts for developing Asia for this year and next to reflect risks and uncertainty brought on by the new Omicron coronavirus variant. The Manila-based lender now sees 2021 gross domestic product (GDP) growth of 7.0% for developing Asia, down from 7.1%, and 2022 growth of 5.3%, down from 5.4% in September. "COVID-19 has receded in developing Asia, but rising infections worldwide and the emergence of a fast-spreading variant suggest that the pandemic will take time to play out," the ADB said in a supplement to its Asian Development Outlook report. Technically market is under long liquidation as market has witnessed drop in open interest by -1.69% to settled at 1802 while prices down -2.75 rupees, now Zinc is getting support at 274.5 and below same could see a test of 273 levels, and resistance is now likely to be seen at 278.6, a move above could see prices testing 281.2.

Trading Ideas:

* Zinc trading range for the day is 273-281.2.

* Zinc prices dropped as stocks of zinc in LME-registered warehouses rose about 25% since last week

* Rising inventories have eased worries about zinc supplies and helped to narrow the premium for cash metal over the three-month contract.

* Due to an environmental protection incident, the operating rates of galvanising plants in the north were restricted

Nickel

Nickel yesterday settled down by -0.51% at 1541.3 as the market turned cautious ahead of the FOMC meeting and the uncertainties brought on by omicron COVID variant also haunted the market. The fundamentals saw marginal weakening in nickel demand, and the spot transaction in the stainless steel and ferronickel sectors were light, hence nickel prices moved down. The nickel sulphate market weakened as well, unable to offer strong upside momentum. On the macro front, market still expects faster tapering of bond purchase in the US, and was cautious ahead of the FOMC meeting. The domestic refined nickel output stood at 15,200 mt in November, up 4.86% or 706 mt month-on-month. The average monthly operating rate stood at 69%. The increase in refined nickel output in November was mainly contributed by the ramped up production in Gansu, which is likely to pull back to normal level in December. The output of refined nickel is expected to stand at around 14,500 mt in December. Domestic smelters’ production activities are relatively stable at the moment. Domestic NPI output increased 3.74% month on month to 32,200 mt (nickel content) in November 2021. The monthly output slumped 20.87% year-on-year, indicating that this year’s production has been much worse than last year. Technically market is under long liquidation as market has witnessed drop in open interest by -0.92% to settled at 1509 while prices down -7.9 rupees, now Nickel is getting support at 1532.9 and below same could see a test of 1524.5 levels, and resistance is now likely to be seen at 1549.8, a move above could see prices testing 1558.3.

Trading Ideas:

* Nickel trading range for the day is 1524.5-1558.3.

* Nickel dropped as the market turned cautious ahead of the FOMC meeting and the uncertainties brought on by omicron COVID variant also weighed.

* The fundamentals saw marginal weakening in nickel demand, and the spot transaction in the stainless steel and ferronickel sectors were light.

* On the macro front, market still expects faster tapering of bond purchase in the US, and was cautious ahead of the FOMC meeting.

Aluminium

Aluminium yesterday settled down by -0.44% at 215.6 after inventories in London Metal Exchange-registered warehouses jumped, though losses were limited by expectations of robust demand and tight supplies in top producer China. Aluminium has come off a lot compared with other base metals, it looks cheap given healthy demand globally. Chinese supplies may rise if the government puts growth before the environment, but not by enough to significantly alleviate shortages. Prices of aluminium, used in the transport, packaging and construction industries have dropped 18% since hitting 13-year highs of $3,229 a tonne in October. Aluminium stocks rose 67,750 tonnes to 977,400 tonnes, while cancelled warrants -- metal earmarked for delivery -- have fallen to 15% of the total from 35% at the end of November. Receding worries about aluminium supply on the LME market has also narrowed the premium for the cash over the three-month contract to around $8 a tonne from Monday's close at $16.20 a tonne. China's aluminium production has fallen this year due to power shortages and curbs on heavily polluting industries. The Asian Development Bank trimmed its growth forecasts for developing Asia for this year and next to reflect risks and uncertainty brought on by the new Omicron coronavirus variant. Technically market is under long liquidation as market has witnessed drop in open interest by -6.41% to settled at 1518 while prices down -0.95 rupees, now Aluminium is getting support at 214.9 and below same could see a test of 214 levels, and resistance is now likely to be seen at 217.1, a move above could see prices testing 218.4.

Trading Ideas:

* Aluminium trading range for the day is 214-218.4.

* Aluminium prices fell after inventories in London Metal Exchange-registered warehouses jumped.

* Though losses were limited by expectations of robust demand and tight supplies in top producer China.

* Aluminium has come off a lot compared with other base metals, it looks cheap given healthy demand globally.

Mentha oil

Mentha oil yesterday settled down by -0.88% at 948.1 as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil gained by 18.6 Rupees to end at 1076.5 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -0.71% to settled at 834 while prices down -8.4 rupees, now Mentha oil is getting support at 942.3 and below same could see a test of 936.6 levels, and resistance is now likely to be seen at 956.7, a move above could see prices testing 965.4.

Trading Ideas:

* Mentha oil trading range for the day is 936.6-965.4.

* In Sambhal spot market, Mentha oil gained  by 18.6 Rupees to end at 1076.5 Rupees per 360 kgs.

* Mentha oil prices dropped as demand from consumer side is extremely weak

* Prices got support in last few weeks as due to crop failure and low recovery of oil

* Availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season.

Soyabean

Soyabean yesterday settled down by -2.49% at 6277 on profit booking tracking weakness in overseas prices as wetter weather in South America raised prospects of higher production. The U.S. Department of Agriculture (USDA) trimmed its global supply outlook despite market expectations for an increase. In a monthly report, the USDA projected 2021/22 marketing year U.S. ending stocks at 340 million bushels, unchanged from a month earlier but below the average trade forecast for 352 million. Global ending stocks were seen at 102 million tonnes, below the average trade estimate for 104.13 million. Private exporters reported sales of 130,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year. China's Ag Min lowered 21/22 soybean production to 16.4MMT down from November forecast at 18.65MMT, & -16.3% lower than yr earlier crop of 19.6MMT. Brazil's CONAB projected the country's 2021/22 soybean crop at 142.789 million tonnes, up from the prior estimate for 142.009 million and 137.321 million tonnes in the 2020/21 season. In a weekly report, the USDA said net U.S. soybean exports in the week ended Dec. 2 rose to a five-week high of 1,637,888 tonnes, near the high end of a range of analyst estimates. China, Egypt and Spain were top buyers. At the Indore spot market in top producer MP, soybean dropped -221 Rupees to 6363 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -1% to settled at 72070 while prices down -160 rupees, now Soyabean is getting support at 6171 and below same could see a test of 6065 levels, and resistance is now likely to be seen at 6392, a move above could see prices testing 6507.

Trading Ideas:

* Soyabean trading range for the day is 6065-6507.

* Soyabean dropped on profit booking tracking weakness in overseas prices as wetter weather in South America raised prospects of higher production.

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

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

* At the Indore spot market in top producer MP, soybean dropped  -221 Rupees to 6363 Rupees per 100 kgs.


 

Soyaoil

Ref.Soyaoil yesterday settled down by -1.4% at 1165.9 as soyoil imports more than doubled and India's vegetable oil imports in November rose 11% from a year earlier to 1.17 million tonnes. According to the Solvent Extractors’ Association of India (SEA) data, the country imported 4.74 lakh tonnes (lt) of crude soyabean oil in November against 2.16 lt in October — up 118.58 per cent. Argentina and Brazil contributed a major share of the total soyabean oil imports to the country. India imported 3.19 lt of soyabean oil from Argentina in November 2021 against 2.35 lt in November 2020; and 1 lt (nil) from Brazil. Some quantities of soyabean oil were also imported from Egypt, Turkey and Ukraine during the period. As on December 1, the stock of edible oils at various ports was estimated at 7.04 lt and pipeline stock at 9.50 lt with a total stock of 16.54 lt. Mehta said the total stock has decreased by 51,000 tonnes to 16.54 lt as on December 1 from 17.05 lakh tonnes as on November 1. Overall import of vegetable oils (which includes edible oil and non-edible oil) 11.73 lt in November when compared to 10.60 lt in October, and 11.02 lt in November 2020. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1194.4 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 8.32% to settled at 33065 while prices down -16.5 rupees, now Ref.Soya oil is getting support at 1158 and below same could see a test of 1150 levels, and resistance is now likely to be seen at 1177, a move above could see prices testing 1188.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1150-1188.

* Ref soyoil prices dropped as soyoil imports more than doubled in November.

* The stock of edible oils at various ports was estimated at 7.04 lt and pipeline stock at 9.50 lt with a total stock of 16.54 lt. Mehta

* Overall import of vegetable oils 11.73 lt in November when compared to 10.60 lt in October, and 11.02 lt in November 2020.

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1194.4 Rupees per 10 kgs.

Crude palm Oil

Crude palm Oil yesterday settled down by -1.27% at 1087.4 as India's vegetable oil imports in November rose 11% from a year earlier to 1.17 million tonnes. Import of crude palm oil (CPO) came down during November compared with October as rising palm oil prices reduced the discount it had been enjoying in the global market. The country’s palm oil import came down to 4.77 lt in November against 6.26 lt in October. The CIF import price of CPO increased to $1,432 a tonne ($1,369). However, the import of RBD palmolein marginally increased from 58,212 tonnes in October to 58,267 tonnes in November. The CIF import price of RBD palmolein was at $1,395 a tonne ($1,349). During November, India imported 2.44 lt of CPO and 7,500 tonnes of RBD palmolein from Malaysia, and 1.92 lt of CPO and 50,767 tonnes of RBD palmolein from Indonesia. BV Mehta, Executive Director of SEA of India, said the total palm oil (which includes CPO and RBD palmolein) imports sharply decreased to 5.39 lt in the first month of the oil year 2021-22 (November-October) from 6.18 lt in the corresponding month of the oil year 2020-21. The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated production during Dec. 1-10 fell 2.8% from the same period in November. In spot market, Crude palm oil dropped by -6.7 Rupees to end at 1100.8 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -8.33% to settled at 4150 while prices down -14 rupees, now CPO is getting support at 1081.2 and below same could see a test of 1074.9 levels, and resistance is now likely to be seen at 1096.6, a move above could see prices testing 1105.7.

Trading Ideas:

* CPO trading range for the day is 1074.9-1105.7.

* Crude palm oil dropped as India's vegetable oil imports in November rose 11% from a year earlier to 1.17 million tonnes.

* Import of CPO came down during November compared with October as rising palm oil prices reduced the discount.

* SPPOMA estimated production during Dec. 1-10 fell 2.8% from the same period in November.

* In spot market, Crude palm oil dropped  by -6.7 Rupees to end at 1100.8 Rupees.
 

Turmeric

Turmeric yesterday settled down by -1.29% at 8708 as pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric. However, downside seen limited due to heavy rainfall, the minimum crop damage has gone to 40% to 50% in producing parts of Maharashtra, Telangana and Andhra. Support also as the demand from exporters is good. Spices Board has set a target of 33 per cent increase in turmeric exports to 183000 tonnes on a year-on-year basis in the financial year 2020-21. At the same time, the government estimates that turmeric production may be 1.11 million tonnes in 2020-21, which was 1.15 million tonnes a year ago. Turmeric all India production for 2022 is estimated at 4.89 lakh MT. Last year’s production was 4.46 lakh MT, up by 9.64% from last year. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. Exports of jeera during Apr-Sep declined 14% on year to 139,295 tn, from 162,033 tn a year ago. There were also reports of export demand from Europe, Gulf countries and Bangladesh. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. In Nizamabad, a major spot market in AP, the price ended at 7900 Rupees gained 66.65 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 0.48% to settled at 5285 while prices down -114 rupees, now Turmeric is getting support at 8650 and below same could see a test of 8590 levels, and resistance is now likely to be seen at 8780, a move above could see prices testing 8850.

Trading Ideas:

* Turmeric trading range for the day is 8590-8850.

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

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

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

* In Nizamabad, a major spot market in AP, the price ended at 7900 Rupees gained 66.65 Rupees.

Jeera

Jeera yesterday settled up by 1.09% at 16205 as domestic demand is now picking up also the export inquiries to support price. Cumin exports declined by 1.4% year-on-year to 1.39 lakh tonnes in April-September but are expected to improve in the coming months. Pressure also seen as adequate stock with traders and farmers may keeping prices under pressure at higher levelsThe area under cumin in Gujarat is only 1.71 lakh hectares as against 3 lakh hectares in the same period last year, while in Rajasthan, cumin was sown in 3.20 lakh hectares. Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India. In terms of value, exports rose 3% to 154.6 bln rupees. India exported 77,245 tn of turmeric in Apr-Sep, down 26% on year. During last two months, the prices were higher compared to last year despite sufficient stocks with traders. Sowing can see drop as farmers preferred to have other crop against Jeera. Weather in key sowing area will be crucial in next few months. The export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. In Unjha, a key spot market in Gujarat, jeera edged down by -158.3 Rupees to end at 15908.35 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 3.81% to settled at 9474 while prices up 175 rupees, now Jeera is getting support at 15990 and below same could see a test of 15775 levels, and resistance is now likely to be seen at 16330, a move above could see prices testing 16455.

Trading Ideas:

* Jeera trading range for the day is 15775-16455.

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

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

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

* In Unjha, a key spot market in Gujarat, jeera edged down by -158.3 Rupees to end at 15908.35 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled up by 0.16% at 31470 after reports that China's 2021 cotton output fell 3% to 5.73 million tonnes, said the National Bureau of Statistics. Planted acreage for the fibre fell by 4.4% to 3.03 million hectares but yields increased slightly during the period. Arrivals of cotton in spot markets were at 166,500 bales, higher by 21.97% than 136,500 bales. Of the total quantity, around 12,000 bales arrived in Haryana, 3,500 in Punjab, and 19,000 bales in Rajasthan. Arrivals were pegged at 40,000 bales in Gujarat, around 15,000 bales in Madhya Pradesh, and 35,000 bales in Maharashtra. Nearly 15,000 bales arrived in Karnataka, 2,000 in Odisha, and 25,000 bales in Telangana and Andhra Pradesh combined. The USDA also lowered cotton global production and ending stocks estimates for the 2021/22 crop year in its monthly supply-demand report. The December World Agricultural Supply and Demand Estimates (WASDE) report, which forecast global ending stocks at 85.73 million bales for the 2021/22 crop year, about 1.2 million bales lower than the previous month, citing lower output and slightly higher consumption. But the report also slightly raised its U.S. production estimate to 18.28 million bales, while ending stocks estimates were unchanged at 3.40 million bales. In spot market, Cotton gained by 30 Rupees to end at 31640 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -6.77% to settled at 3799 while prices up 50 rupees, now Cotton is getting support at 31290 and below same could see a test of 31110 levels, and resistance is now likely to be seen at 31580, a move above could see prices testing 31690.

Trading Ideas:

* Cotton trading range for the day is 31110-31690.

* Cotton prices gains after reports that China's 2021 cotton output fell 3% to 5.73 million tonnes

* India's 2021/22 cotton production seen at 28 mln bales – USDA

* China's 2021 cotton output fell 3% to 5.73 million tonnes, said the National Bureau of Statistics.

* In spot market, Cotton gained  by 30 Rupees to end at 31640 Rupees.

 

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