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Gold

Gold yesterday settled flat at 47421 buoyed by persistent inflation concerns, with further gains in bullion clipped by expectations that the Federal Reserve may hasten its monetary tightening to tame rising prices. A growing number of Fed policymakers indicated they would be open to speeding up the elimination of their bond-buying program if high inflation held and move more quickly to raise interest rates, minutes of the central bank's last policy meeting showed. In the wake of strong economic data from the U.S., including a sharp drop in weekly jobless claims, calls for a faster taper are expected to rise when the Fed meets next on Dec. 14-15. China's net gold imports via Hong Kong jumped 56% in October from the previous month, Hong Kong Census and Statistics Department data showed. Net imports stood at 54.262 tonnes in October compared with 34.786 tonnes in September, the data showed. Total gold imports via Hong Kong rose to 57.804 tonnes from 41.877 tonnes. Gold imports from Switzerland to mainland China in October were also higher than in any month since June 2018, customs data showed. Premiums were charged on physical gold in China throughout October, a month that started with the country's Golden Week holiday. Technically market is under long liquidation as market has witnessed drop in open interest by -23.08% to settled at 3102 while prices down -17 rupees, now Gold is getting support at 47290 and below same could see a test of 47159 levels, and resistance is now likely to be seen at 47572, a move above could see prices testing 47723.

Trading Ideas:

* Gold trading range for the day is 47159-47723.

* Gold steadies but Fed's hawkish stance limits advance

* A growing number of Fed policymakers indicated they would be open to speeding up the elimination of their bond-buying program if high inflation held

* Fed's inflation outlook was revised upward

Silver

Silver yesterday settled up by 0.82% at 63150 as the dollar slipped from a 17-month high as traders react to strong U.S. economic data released and the minutes from the Fed's meeting held in early November. The minutes showed members were concerned about inflation and willing to tighten policy if inflation continues to run high. Federal Reserve officials debated whether the bank should be prepared to taper asset purchases and raise interest rates quicker than they once expected as inflation spiked. Minutes from the Nov. 2-3 meeting of the FOMC, the Fed’s monetary policy panel, showed growing concern among some members about the bank’s impact on rising price growth. Fed officials warned against shifting course too quickly as supply chains and the economy at large continued to work through pandemic-related constraints and pressures. “Various participants noted that the Committee should be prepared to adjust the pace of asset purchases and raise the target range for the federal funds rate sooner than participants currently anticipated if inflation continued to run higher than levels consistent with the Committee's objectives,” the minutes read. In European government debt markets, German bund yields dipped slightly after Social Democrat and former finance minister Olaf Scholz struck a three-way coalition deal that will see him replace Angela Merkel at the helm of Europe's largest economy. Technically market is under short covering as market has witnessed drop in open interest by -18.72% to settled at 4912 while prices up 515 rupees, now Silver is getting support at 62859 and below same could see a test of 62568 levels, and resistance is now likely to be seen at 63385, a move above could see prices testing 63620.

Trading Ideas:

* Silver trading range for the day is 62568-63620.

* Silver gained as the dollar slipped from a 17-month high as traders react to strong U.S. economic data released and the minutes from the Fed's meeting

* The minutes showed members were concerned about inflation and willing to tighten policy if inflation continues to run high.

* Federal Reserve officials debated whether the bank should be prepared to taper asset purchases and raise interest rates quicker

Crude oil

Crude oil yesterday settled down by -0.41% at 5837 as investors eyed how major producers respond to the U.S.-led emergency oil release designed to cool the market and with OPEC now expecting the release to swell inventories. The Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, together known as OPEC+, are monitoring whether oil markets are balanced to take decisions during the December meeting, Iraq's oil minister Ihsan Abdul Jabbar said. Speaking to reporters during an energy event in Baghdad, the minister said that OPEC+ aims to achieve balanced oil markets by gradual production increases. He added that total Iraqi oil exports are to reach 3.2 mln bpd in November, excluding the semi-autonomous Kurdistan regional government exports. The advisory body of the Organization of the Petroleum Exporting Countries expects that a release of oil stockpiles by the United States and other consuming nations will expand a projected global surplus of oil early next year. OPEC's Economic Commission Board projects that the excess in world crude oil markets would grow by 1.1 million barrels per day to 2.3 million bpd in January and 3.7 million bpd in February if consumer nations enacted their promised releases during those months. Technically market is under fresh selling as market has witnessed gain in open interest by 1.23% to settled at 3789 while prices down -24 rupees, now Crude oil is getting support at 5812 and below same could see a test of 5786 levels, and resistance is now likely to be seen at 5863, a move above could see prices testing 5888.

Trading Ideas:

* Crude oil trading range for the day is 5786-5888.

* Crude oil prices fell as investors eyed how major producers respond to the U.S.-led emergency oil release designed to cool the market

* OPEC+ is monitoring market balance to take decisions at December meeting – Iraqi Oil Minister

* OPEC panel estimates SPR releases will swell global oil surplus in Q1
 

Nat.Gas

Nat.Gas yesterday settled down by -1.16% at 382.9 on forecasts for milder than normal weather and lower demand over the next two weeks than previously expected. Prices also slumped on near record U.S. output, healthy U.S. stockpiles and a decline in European gas futures. The U.S. Energy Information Administration (EIA) said utilities pulled 21 billion cubic feet (bcf) of gas from storage during the week ended Nov. 19, which was the first withdrawal of the 2021-2022 winter season. Last week's withdrawal cut stockpiles to 3.623 trillion cubic feet (tcf), or 1.6% below the five-year average of 3.681 tcf for this time of year. Data provider Refinitiv said output in the U.S. Lower 48 states averaged 96.2 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 rise from 111.4 bcfd this week to 112.9 bcfd next week as the weather turns seasonally colder and homes and businesses crank up their heaters. The amount of gas flowing to U.S. LNG export plants averaged 11.2 bcfd so far in November, up from 10.5 bcfd in October as the sixth train at Cheniere Energy Inc's Sabine Pass plant in Louisiana started producing LNG. Technically market is under long liquidation as market has witnessed drop in open interest by -3.32% to settled at 3781 while prices down -4.5 rupees, now Natural gas is getting support at 377.3 and below same could see a test of 371.8 levels, and resistance is now likely to be seen at 386.3, a move above could see prices testing 389.8.

Trading Ideas:

* Natural gas trading range for the day is 371.8-389.8.

* Natural gas dropped on forecasts for milder than normal weather and lower demand over the next two weeks than previously expected.

* Prices also slumped on near record U.S. output, healthy U.S. stockpiles

* EIA said utilities pulled 21 bcf of gas from storage during the week ended Nov. 19, which was the first withdrawal of the 2021-2022 winter season.



Copper

Copper yesterday settled down by -0.39% at 745.6 as the global world refined copper market showed a 52,000 tonnes surplus in August, compared with a 39,000 tonnes deficit in July, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 8 months of the year, the market was in a 107,000 tonnes deficit compared with a 97,000 tonnes deficit in the same period a year earlier, the ICSG said. World refined copper output in August was 2.09 million tonnes, while consumption was 2.04 million tonnes. However, downside seen limited helped by China's efforts to bolster its cash-strapped property sector and on concerns over tight global supply. The U.S. economy is accelerating, but surging coronavirus infections threaten German growth. On-warrant LME copper inventories have slumped to 62,225 tonnes, down nearly 74% from 238,725 tonnes in August. China’s copper cathode output stood at 789,400 mt in October, down 1.7% month on month and 3.9% year on year. The production of many copper smelters across the country was restricted by the power rationing in October, especially in Shandong, Jiangsu, Zhejiang, Guangxi, and Yunnan. Some smelters in Henan, Jiangxi, and Guangdong were slightly affected by the power rationing. The power rationing has been eased since late October. Technically market is under long liquidation as market has witnessed drop in open interest by -5.48% to settled at 5575 while prices down -2.95 rupees, now Copper is getting support at 740.3 and below same could see a test of 735.1 levels, and resistance is now likely to be seen at 752.5, a move above could see prices testing 759.5.

Trading Ideas:

* Copper trading range for the day is 735.1-759.5.

* Copper prices dropped as the global world refined copper market showed a 52,000 tonnes surplus in August

* However, downside seen limited helped by China's efforts to bolster its cash-strapped property sector and on concerns over tight global supply

* On-warrant LME copper inventories have slumped to 62,225 tonnes, down nearly 74% from 238,725 tonnes in August.
 

Zinc

Zinc yesterday settled up by 0.25% at 276.5 as the zinc market was still reacting to the production cuts on overseas energy crisis and production suspension of Tara Mine due to an accident. The production activities of galvanising companies in Tangshan were restricted by around 50% amid orange alert regarding heavy air pollution in the region. The initial jobless claims dropped to a historical low since 1969, while the inflation gauge also set the fastest YoY growth in 30 years. The November consumer confidence index plunged to the lowest in the past decade. US San Francisco Federal Reserve Bank CEO Daly said that if the inflation stood high and the employment market remained positive, she will hold an open mind to accelerating the tapering of Fed’s bond purchases, which heightened market estimate of interest rate hike. The global zinc market deficit widened to 44,000 tonnes in September from a downwardly revised shortfall of 14,000 tonnes in August, data from the International Lead and Zinc Study Group (ILZSG) showed. Previously, the ILZSG had reported a deficit of 14,900 tonnes in August. During the first nine months of 2021, ILZSG data showed a deficit of 93,000 tonnes versus a surplus of 457,000 tonnes in the same period of 2020. Technically market is under short covering as market has witnessed drop in open interest by -6.65% to settled at 1460 while prices up 0.7 rupees, now Zinc is getting support at 274.6 and below same could see a test of 272.8 levels, and resistance is now likely to be seen at 278.3, a move above could see prices testing 280.2.

Trading Ideas:

* Zinc trading range for the day is 272.8-280.2.

* Zinc gained zinc market was still reacting to the production cuts on overseas energy crisis and production suspension of Tara Mine

* The production activities of galvanising companies in Tangshan were restricted by around 50%

* The U.S. economy is accelerating, but surging coronavirus infections threaten German growth.

 

Nickel

Nickel yesterday settled down by -0.3% at 1581.1 as the production capacity of high-grade nickel matte in Indonesia will increased by 40,000 mt, and the total capacity in Indonesia is expected to reach 300,000 mt (Ni content). Weiming Group and Indigo signed a strategic cooperation framework agreement on November 24 for the joint development and construction of a 40,000 mt high-grade nickel matte project in Indonesia. However, downside seen limited as low inventories pointed to tight supply while Chinese efforts to support its economy bolstered the demand outlook. China has announced measures to support its debt-ridden property sector. On-warrant nickel inventories in LME-registered warehouses have fallen to 62,304 tonnes from more than 200,000 tonnes in April. Tight supply has pushed cash nickel's premium over the three-month LME contract to $194 a tonne, the highest since 2019. Hochschild Mining said that two Peruvian mines threatened with closure would continue to operate. The global nickel market deficit narrowed to 5,200 tonnes in September from a shortfall a month earlier of 14,600 tonnes, data from the International Nickel Study Group (INSG) showed. During the first nine months of the year, the nickel market saw a deficit of 174,900 tonnes compared with a surplus of 88,000 tonnes in the same period last year, Lisbon-based INSG added. Technically market is under long liquidation as market has witnessed drop in open interest by -4.77% to settled at 2236 while prices down -4.7 rupees, now Nickel is getting support at 1565.6 and below same could see a test of 1550 levels, and resistance is now likely to be seen at 1599.4, a move above could see prices testing 1617.6.

Trading Ideas:

* Nickel trading range for the day is 1550-1617.6.

* Nickel prices dropped as production capacity of high-grade nickel matte to increase 40,000 mt in Indonesia

* However, downside seen limited as as low inventories pointed to tight supply

* Chinese efforts to support its economy bolstered the demand outlook.
 

Aluminium

Aluminium yesterday settled up by 0.49% at 217.2 amid supply disruption concerns. Meanwhile, Japan and the US agreed to start discussions on removing additional tariffs on Japanese steel and aluminum imports. The US already agreed to remove tariffs on certain quantities of steel and aluminum from the European Union, imposed by President Trump in 2018. China produced 3.16 million mt of aluminium in October, down 2.55% on the year. The daily output averaged 102,000 mt, down 1,600 mt/day on the month. The output totalled 32.24 million mt from January to October, an increase of 5.1% on the year. The operating capacities in Shanxi, Henan, and Guizhou declined further due to the power rationing and production restriction in the heating season. No existing capacity was resumed, nor were there new capacities put into production in October. Data showed that China’s alumina output was 6.29 million mt in October, including 6.05 million mt of metallurgical grade alumina. The daily average output of metallurgical grade alumina was 195,200 mt, down 2.2% on the month but up 1.8% on the year. China produced 59.70 million mt of metallurgical grade alumina from January to October, a year-on-year increase of 7.1%. Technically market is under fresh buying as market has witnessed gain in open interest by 5.03% to settled at 1982 while prices up 1.05 rupees, now Aluminium is getting support at 215.7 and below same could see a test of 214 levels, and resistance is now likely to be seen at 218.9, a move above could see prices testing 220.4.

Trading Ideas:

* Aluminium trading range for the day is 214-220.4.

* Aluminium gained amid supply disruption concerns.

* China produced 3.16 million mt of aluminium in October, down 2.55% on the year.

* Data showed that China’s alumina output was 6.29 million mt in October

 

Mentha oil

Mentha oil yesterday settled up by 0.18% at 941 on low level buying after prices dropped as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil dropped by -8.8 Rupees to end at 1057 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.88% to settled at 923 while prices up 1.7 rupees, now Mentha oil is getting support at 938.7 and below same could see a test of 936.5 levels, and resistance is now likely to be seen at 942.8, a move above could see prices testing 944.7.

Trading Ideas:

* Mentha oil trading range for the day is 936.5-944.7.

* In Sambhal spot market, Mentha oil dropped  by -8.8 Rupees to end at 1057 Rupees per 360 kgs.

* Mentha oil gained on low level buying after 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 3.92% at 6845 amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages. USDA's November monthly report showed soyabean production in India has grown 8% month-on-month to 11.9 million tonnes. 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's October soybean imports from the United States fell sharply from the previous year, customs data showed Sunday, hit by poor demand and limited exports. China brought in 775,331 tonnes of U.S. soybeans in October, down 77% from 3.4 million tonnes a year earlier, according to data released from the General Administration of Customs. Soybean shipments from the United States usually pick up in the fourth quarter of the year when the U.S. harvest gets underway and American beans dominate the market. Poor crush margins and price competitive Brazilian beans, however, have curbed Chinese crushers' appetite for American cargoes. At the Indore spot market in top producer MP, soybean gained 120 Rupees to 6745 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -8.56% to settled at 56980 while prices up 258 rupees, now Soyabean is getting support at 6607 and below same could see a test of 6370 levels, and resistance is now likely to be seen at 6994, a move above could see prices testing 7144.

Trading Ideas:

* Soyabean trading range for the day is 6370-7144.

* Soyabean gained amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages.

* USDA's November monthly report showed soyabean production in India has grown 8% month-on-month to 11.9 million tonnes.

* China's Oct. soy imports from U.S. slump due to weak demand, hurricane

* At the Indore spot market in top producer MP, soybean gained  120 Rupees to 6745 Rupees per 100 kgs.

 

Soyaoil

Ref.Soyaoil yesterday settled down by -0.03% at 1245.2 on profit booking after reports that global production of the top four vegetable oils – palm, sunflower, soy and rapeseed oils – is likely to rise the highest in four years. The production of the four oils is estimated to rise by 6.3-6.8 mln tonnes in the 2021/2022 crop year altogether, after two years of a global production deficit. 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. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1260.75 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -6.13% to settled at 41290 while prices down -0.4 rupees, now Ref.Soya oil is getting support at 1241 and below same could see a test of 1236 levels, and resistance is now likely to be seen at 1250, a move above could see prices testing 1254.

Trading Ideas:

* Ref.Soya oil trading range for the day is 1236-1254.

* Ref soyoil dropped on profit booking after reports that global production of top veg oils to jump most in 4 years

* The production of the four oils is estimated to rise by 6.3-6.8 mln tonnes in the 2021/2022 crop year altogether

* Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected.

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1260.75 Rupees per 10 kgs.
 

 

Crude palm Oil

Crude palm Oil yesterday settled down by -0.4% at 1140.3 amid an outlook of better vegetable oil production next year. Southern Peninsula Palm Oil Millers' Association's (SPPOMA) production data had cushioned the fall in CPO prices. SPPOMA revealed the Nov 1-20 production data was lower by 2.4%, compared to the same period last month. Indonesia's total palm oil exports are expected to fall for a second year by 0.34% in 2021 from a year earlier, the vice chairman of the country's palm oil association said. Indonesia's crude palm oil exports, meanwhile, are expected to plummet by 60.5% this year compared to 2020, vice chairman Togar Sitanggang told. Global production of the top four vegetable oils – palm, sunflower, soy and rapeseed oils – is likely to rise the highest in four years, up by 6.3 million to 6.8 tonnes in the 2021/2022 crop year altogether. 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. In spot market, Crude palm oil dropped by -5.9 Rupees to end at 1142.5 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -17.33% to settled at 2876 while prices down -4.6 rupees, now CPO is getting support at 1137.2 and below same could see a test of 1134.2 levels, and resistance is now likely to be seen at 1144.1, a move above could see prices testing 1148.

Trading Ideas:

* CPO trading range for the day is 1134.2-1148.

* Crude palm oil dropped amid an outlook of better vegetable oil production next year.

* Indonesia 2021 total palm oil exports seen down 0.34%

* 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

* In spot market, Crude palm oil dropped  by -5.9 Rupees to end at 1142.5 Rupees.
 

Turmeric

Turmeric yesterday settled up by 0.08% at 7628 amid less area in Telangana due to unseasonal rains, also expectations of better export demand supporting the prices. However upside seen limited amid poor demand for old stocks as traders wait for the new season of turmeric. 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. 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 7443.2 Rupees gained 43.2 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 0.66% to settled at 9135 while prices up 6 rupees, now Turmeric is getting support at 7562 and below same could see a test of 7494 levels, and resistance is now likely to be seen at 7702, a move above could see prices testing 7774.

Trading Ideas:

* Turmeric trading range for the day is 7494-7774.

* Turmeric gained amid less area in Telangana due to unseasonal rains, also expectations of better export demand supporting the prices.

* However upside seen limited amid poor demand for old stocks as traders wait for the new season of turmeric.

* 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 7443.2 Rupees gained 43.2 Rupees.
 

Jeera

Jeera yesterday settled down by -2.35% at 15975 as adequate stock with traders and farmers may keeping prices under pressure at higher levels. However downside seen limited as domestic demand is now picking up also the export inquiries to support price. 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 down by -154.15 Rupees to end at 15933.35 Rupees per 100 kg.Technically market is under long liquidation as market has witnessed drop in open interest by -8.04% to settled at 9021 while prices down -385 rupees, now Jeera is getting support at 15810 and below same could see a test of 15650 levels, and resistance is now likely to be seen at 16240, a move above could see prices testing 16510.

Trading Ideas:

* Jeera trading range for the day is 15650-16510.

* Jeera dropped as adequate stock with traders and farmers may keeping prices under pressure at higher levels.

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

* India's cumin exports will increase due to less supply from Afghanistan-Syrian

* In Unjha, a key spot market in Gujarat, jeera edged down by -154.15 Rupees to end at 15933.35 Rupees per 100 kg.
 

Cotton

Cotton yesterday settled up by 1.55% at 32820 in anticipation of a possible fall in production, and the remaining cotton stock is also low, while import demand from China remains high. 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. 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 gained by 130 Rupees to end at 31890 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 5.32% to settled at 4888 while prices up 500 rupees, now Cotton is getting support at 32390 and below same could see a test of 31970 levels, and resistance is now likely to be seen at 33060, a move above could see prices testing 33310.

Trading Ideas:

* Cotton trading range for the day is 31970-33310.

* Cotton gained in anticipation of a possible fall in production.

* However upside seen limited as selling pressure intensified after demand from China eased.

* 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

* In spot market, Cotton gained  by 130 Rupees to end at 31890 Rupees.