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Gold yesterday settled down by -0.42% at 48581 weighed down by upbeat U.S. data that showed a recovery in the world's largest economy was on track, while rising U.S. Treasury yields further added pressure. The U.S. economy is on a solid trajectory for growth and the inflation argument has ebbed a bit because the Federal Reserve has had some success in convincing the marketplace that it is indeed just going to be transitory. China's net gold imports via Hong Kong jumped 219% in April from the previous month, Hong Kong Census and Statistics Department data showed. Net imports stood at 52.821 tonnes in April, compared with 16.545 tonnes in March, the data showed. Total gold imports via Hong Kong rose to 55.699 tonnes from 21.766. Swiss exports of gold to mainland China surged in April to their highest since December 2019, customs data showed, as demand for gold in the world's biggest bullion consuming nation rebounded from a slump during the coronavirus pandemic. Switzerland is the world's largest gold refining centre and transit hub. Its numbers provide an insight into global market trends. Swiss customs data show exports of 40.2 tonnes of gold worth around $2.5 billion at current prices to China in April – more metal than was sent in the last 14 months combined. Technically market is under long liquidation as market has witnessed drop in open interest by -46.17% to settled at 2593 while prices down -203 rupees, now Gold is getting support at 48398 and below same could see a test of 48215 levels, and resistance is now likely to be seen at 48817, a move above could see prices testing 49053.  

Trading Ideas:            

* Gold trading range for the day is 48623-49443.

* Gold settled flat recovering from lows after data showed U.S. consumer prices surged in April and boosted bullion's appeal as an inflation hedge.

*  An inflation reading preferred by the Federal Reserve showed an acceleration in the pace of price growth but not as much as traders had feared.

* Physical gold demand in second-biggest bullion consumer India was negligible with most jewellery stores still shut by COVID-19 lockdowns

Silver           

Silver yesterday settled up by 0.43% at 71719 supported by a weaker dollar, rising inflation expectations and safe-haven bids steaming from Covid-19 in Asia. U.S. Treasury yields rose, translating into increased opportunity cost of holding non-yielding, on reports that President Joe Biden will announce on Friday a $6 trillion budget for 2022. The dollar found support amid signs the Federal Reserve is slowly but surely edging towards a discussion about tightening monetary policy. Federal Reserve Vice Chairman for Supervision Randal Quarles said that he was prepared to open talks on reducing the emergency support measures if the economy continues to power out of the health crisis. Fed officials have recently downplayed rising price pressures, but a subtle shift in tone suggested that the time to talk about policy changes might be approaching. The number of Americans filing new claims for unemployment benefits dropped more than expected last week as layoffs subsided, with companies desperate for workers to meet surging demand unleashed by a rapidly reopening economy. The economy, which in the first quarter notched its second-fastest growth pace since the third quarter of 2003, is gathering momentum, with other data on Thursday showing business spending on equipment accelerated in April. Technically market is under short covering as market has witnessed drop in open interest by -4.44% to settled at 10541 while prices up 308 rupees, now Silver is getting support at 71157 and below same could see a test of 70594 levels, and resistance is now likely to be seen at 72041, a move above could see prices testing 72362.           

Trading Ideas:            

* Silver trading range for the day is 70118-72526.

* Silver dropped but recovered from lows after data showed the increase in consumer prices in the month of April was not as severe

* An inflation reading preferred by the Federal Reserve showed an acceleration in the pace of price growth but not as much as traders had feared.

* The University of Michigan's consumer sentiment for the US was revised slightly higher to 82.9 in May of 2021 from a preliminary 82.8

Crude oil           

Crude oil yesterday settled up by 0.58% at 4851 bolstered by strong U.S. economic data that offset investors’ concerns about the potential for a rise in Iranian supplies. The number of Americans filing new claims for unemployment benefits dropped more than expected last week, according to data from the U.S. Labor Department. The U.S. economy, which in the first quarter notched its second-fastest growth pace since the third quarter of 2003, is gathering momentum, with other data showing business spending on equipment accelerated in April. Prices have been weighed by the threat of Iranian supplies re-entering the market. Iran and global powers have been negotiating since April to work out how Tehran and Washington should secure the lifting of sanctions on Iran, including its energy sector, in return for Iranian compliance with restrictions on its nuclear work. Russian oil and gas condensate output rose 2% to 10.46 million barrels per day (bpd) in April, from 10.25 million bpd in March. Under a deal agreed by the OPEC+ group of leading oil producers in March, Russia's production quota was allowed to increase by 130,000 bpd from April 1 to 9.379 million bpd, excluding the output of gas condensate, a light oil. Technically market is under fresh buying as market has witnessed gain in open interest by 13.36% to settled at 7537 while prices up 28 rupees, now Crude oil is getting support at 4790 and below same could see a test of 4730 levels, and resistance is now likely to be seen at 4883, a move above could see prices testing 4916.    

Trading Ideas:            

*  Crude oil trading range for the day is 4804-4930.

*  Crude oil settled flat as traders took some profits and looked ahead to the upcoming meeting of the OPEC and its allies.

* U.S. crude oil output jumped 14.3% to 11.2 mbpd in March from 9.8 million bpd in February, the EIA said.

* Global oil deficit is currently seen at around 1 million barrels per day, Russia's deputy prime minister Alexander Novak told

Nat.Gas           

Nat.Gas yesterday settled down by -2.27% at 214.8 following the release of a report showing a bigger-than-expected storage build last week when the amount of gas flowing to U.S. liquefied natural gas (LNG) export plants declined for mostly seasonal maintenance. That price decline came despite the forecasts for slightly more demand over the next two weeks than previously expected. The U.S Energy Information Administration (EIA) said U.S. utilities added 115 billion cubic feet (bcf) of gas into storage during the week ended May 21. Last week's injection boosted stockpiles to 2.215 trillion cubic feet (tcf), or 2.8% below the five-year average of 2.278 tcf for this time of year. Data provider Refinitiv said gas output in the Lower 48 U.S. states averaged 91.0 billion cubic feet per day (bcfd) so far in May, up from 90.6 bcfd in April. That, however, is still well below November 2019's monthly record of 95.4 bcfd. With milder weather on the horizon and the U.S. Memorial Day holiday coming this weekend, Refinitiv projected average gas demand, including exports, would ease from 83.6 bcfd this week to 82.7 bcfd next week. Those forecasts were slightly higher than Refinitiv predicted on Wednesday. Technically market is under long liquidation as market has witnessed drop in open interest by -12.52% to settled at 12840 while prices down -5 rupees, now Natural gas is getting support at 211.3 and below same could see a test of 207.8 levels, and resistance is now likely to be seen at 219.4, a move above could see prices testing 224. 

Trading Ideas:            

* Natural gas trading range for the day is 211.3-224.5.

* Natural gas rose buoyed by forecasts for warmer weather in two weeks and a projected increase in liquefied natural gas (LNG) exports.

* Higher temperatures in two weeks were expected to boost demand for fuel to power generators and keep air conditioners humming.

* Data released by Baker Hughes showed, the total active U.S. rig count, including those drilling for natural gas, climbed by 2 to 457.

Copper           

Copper yesterday settled up by 3.19% at 769.95 helped by the threat of strikes at mines in top producer Chile and an easing of fears that China, the biggest consumer, will tighten monetary policy. Miner BHP Group Ltd said it would take contingency measures after a labour union at its Escondida and Spence mines called for a strike. Escondida is the world's largest copper mine. Investors are concerned that political change in Chile and Peru will lead to tougher rules on mining. Earnings at China's industrial firms grew at a slower pace in April. The data calmed worries over policy tightening and helped lift Chinese stock markets to three-month highs. China's currency has rallied to its strongest against the dollar since 2018, making dollar-priced metals cheaper for Chinese buyers and supporting demand. U.S. inflation data on Friday could affect markets, with investors jittery about price rises and central bank moves to contain them. China's banking regulator has asked lenders to stop selling investment products linked to commodities futures to mom-and-pop buyers to curb investment losses amid volatile commodity prices. The global world refined copper market showed a 111,000 tonnes surplus in February, compared with a 20,000 tonnes surplus in January, the International Copper Study Group (ICSG) said in its latest monthly bulletin. Technically market is under short covering as market has witnessed drop in open interest by -7.14% to settled at 3748 while prices up 23.8 rupees, now Copper is getting support at 753.5 and below same could see a test of 737 levels, and resistance is now likely to be seen at 778.5, a move above could see prices testing 787.         

Trading Ideas:            

* Copper trading range for the day is 750.7-776.7.

* Copper prices dipped as investors worried about demand from China and its authorities’ action to curb commodity prices

* The Yangshan copper premium dropped to $35.50 a tonne, it’s lowest since Feb. 2016, indicating weakening demand

* Strikes at BHP’s Escondida and Spence mines in top producer Chile continue to threaten global supply.

Zinc           

Zinc yesterday settled up by 2.62% at 238.55 as support seen on reports that President Joe Biden will announce on Friday a $6 trillion budget for 2022. New orders for key U.S.-made capital goods increased more than expected in April and shipments rose solidly, suggesting strong momentum in business spending on equipment growth persisted early in the second quarter. Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, jumped 2.3% last month, the Commerce Department said. The number of Americans filing new claims for unemployment benefits dropped more than expected last week as layoffs subsided, with companies desperate for workers to meet surging demand unleashed by a rapidly reopening economy. The economy, which in the first quarter notched its second-fastest growth pace since the third quarter of 2003, is gathering momentum, with other data showing business spending on equipment accelerated in April. Activity is being boosted by the COVID-19 pandemic's easing grip and nearly $6 trillion in relief provided by the government over the past year. The pandemic situation in the US slowed down and nearly half of the people were vaccinated, which made investors optimistic about the prospects of economic recovery, and the market continued to pay attention to the prospect of currency and its impact on Fed policy. Technically market is under fresh buying as market has witnessed gain in open interest by 30.12% to settled at 2242 while prices up 6.1 rupees, now Zinc is getting support at 234.8 and below same could see a test of 230.8 levels, and resistance is now likely to be seen at 240.8, a move above could see prices testing 242.8.   

Trading Ideas:            

*  Zinc trading range for the day is 233.6-241.6.

*  Zinc dropped but recovered from lows data showed that social inventories of refined zinc ingots decreased 10,700 mt to 155,500 mt.

* The number of initial jobless claims last week in the US hit a new low since the outbreak, with strong GDP and labor market data.

* Zinc TCs in China jumped to their highest level in more than five months as power shortages in the Yunnan province left smelters facing production cuts

Nickel           

Nickel yesterday settled up by 4.21% at 1318.2 on the further signs of recovery in the US labour market and as it was reported that Biden administration is set to propose $6 trillion budget in 2022. U.S. Senate Republicans are expected to unveil a new offer that would spend about $1 trillion on roads, bridges and broadband systems. The global nickel market deficit widened to 16,100 tonnes in March from a small deficit of 600 tonnes in the previous month, data from the International Nickel Study Group (INSG) showed. Lisbon-based INSG's original estimate of the market balance for February was a 6,200 tonne surplus. During the first three months of the year, the global market saw a deficit of 18,700 tonnes, down from a surplus of 38,000 tonnes in the same period of 2020, INSG's data showed. The initial claims fell to a fresh pandemic low of 406K, well below forecasts of 425K. Other fresh data sent mixed signals about the economic recovery: Q1 GDP growth was unrevised at 6.4% but PCE prices were revised higher while both corporate profits and durables goods declined. Meanwhile, fresh inflation figures due on Friday will provide a further update on price pressures. The S&P 500 was also in the green but the Nasdaq was slightly down as Treasury yields edge higher. Technically market is under short covering as market has witnessed drop in open interest by -15.85% to settled at 1784 while prices up 53.2 rupees, now Nickel is getting support at 1272 and below same could see a test of 1225.8 levels, and resistance is now likely to be seen at 1347.2, a move above could see prices testing 1376.2.           

Trading Ideas:            

* Nickel trading range for the day is 1277.6-1349.2.

* Nickel gained buoyed by demand optimism on reports of U.S. President Joe Biden's plans to make a $6 trillion budget announcement.

* China's industrial profits logged a sharp increase in January to April period, data released by the National Bureau of Statistics revealed.

* The global nickel market deficit widened to 16,100 tonnes in March from a small deficit of 600 tonnes in the previous month

Aluminium           

Aluminium yesterday settled up by 2.91% at 196.05 as LME aluminium inventories continued to decrease, and the pandemic situation in the United States slowed down and nearly half of the people were vaccinated, which made investors optimistic about the prospects of economic recovery. Support also seen from China’s green transition policies as well as growing demand from new economy sectors such as lightweight cars and new energy. China’s supply reforms for aluminium have started to take effect in the industry since being launched in 2017, capping total aluminium capacity in China at 45 million tonnes. The domestic government has repeatedly emphasized the stability of the bulk commodity market, but due to energy consumption and power problems, the production of aluminium in China cannot be reached, the increase in supply is slow, and the domestic aluminium demand is still in the peak season. Earnings at China’s industrial firms grew at a slower pace in April, with high commodity prices and weaker performance in the consumer goods sector limiting overall profitability from manufacturing. Profits at China’s industrial firms rose 57% year-on-year in April to 768.63 billion yuan ($120.22 billion), down from year-on-year growth of 92.3% in March, data from the National Bureau of Statistics (NBS) showed. For the January-April period, industrial firms’ profits grew 106% from the same period a year earlier to 2.59 trillion yuan. Technically market is under fresh buying as market has witnessed gain in open interest by 21.54% to settled at 2223 while prices up 5.55 rupees, now Aluminium is getting support at 191.9 and below same could see a test of 187.8 levels, and resistance is now likely to be seen at 198.2, a move above could see prices testing 200.4.          

Trading Ideas:            

*  Aluminium trading range for the day is 189.8-200.

* Aluminium gained as the US economy continued to recover, employment data improved, and the market tightened the liquidity of the Fed.

* There was a situation of limited production of aluminium in Guangxi, with no hope of increment on the supply side.

* US pending home sales in the U.S. unexpectedly tumbled to their lowest level in nearly a year in the month of April.

Mentha oil           

Mentha oil yesterday settled up by 0.24% at 927.1 on some buying after prices seen pressure as arrivals have started in the mandis while the lock-down extension is impacting sentiments. Overall post-lock-down demand will be likely to improve as demand from the health industry will likely continue also as per CIMAP (Central Institute of Medicinal and Aromatic Plants) Herbal products may boost immunity to avoid infection and demand for same has improved significantly since last year. Mentha exhibits important biological activities. For that reason, it has been used through the years as a remedy for respiratory diseases like bronchitis, sinusitis, tuberculosis, and the common cold. Due to favourable wheather condition,the production of mentha in the states has improved and is at much better terms compare to last year. 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 Sambhal spot market, Mentha oil dropped by -20.3 Rupees to end at 1058.9 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 2.5% to settled at 41 while prices up 2.2 rupees, now Mentha oil is getting support at 923.8 and below same could see a test of 920.4 levels, and resistance is now likely to be seen at 930.3, a move above could see prices testing 933.4.        

Trading Ideas:            

*  Mentha oil trading range for the day is 913.5-932.3.

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

* Mentha oil prices dropped as arrivals have started while the lock-down extension is impacting sentiments.

* Overall post-lock-down demand will be likely to improve as demand from the health industry will likely continue also as per CIMAP.

* Herbal products may boost immunity to avoid infection and demand for same has improved significantly since last year.

Soyabean           

Soyabean yesterday settled down by -1.16% at 7046 as prices were pressured by crop-boosting rains in the United States. USDA report showed Soybean production in the world is likely to increase by 6% to 386 million tonnes in next season (September- 2021- August 2020) in expectation of higher crop size in US and India. Edible Oil industry cautioned the government against resorting to any knee-jerk reaction of lowering import duties to cool down domestic prices, saying it could have a 'very negative’ impact on oilseed farmers, kharif planting for which will start in the coming few weeks. Total crop size in India may stand higher by 750,000 tonnes to 11.2 Million tonnes against 10.45 Million tonnes in this season. Higher soybean prices in this season will encourage farmers in India to cover higher soybean area. China's soybean imports from Brazil surged in April from the previous month, customs data showed, as cargoes that had been delayed by poor weather cleared customs. China, the world's top importer of soybeans, brought in 5.08 million tonnes of the oilseed from top supplier Brazil in April, up from only 315,334 tonnes in March, data from the General Administration of Customs showed. At the Indore spot market in top producer MP, soybean dropped -146 Rupees to 7342 Rupees per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 1.17% to settled at 51745 while prices down -83 rupees, now Soyabean is getting support at 7006 and below same could see a test of 6967 levels, and resistance is now likely to be seen at 7110, a move above could see prices testing 7175.          

Trading Ideas:            

*  Soyabean trading range for the day is 6874-7214.

* Soyabean dropped continuing its recent weak trend due to high production prospects.

* Pressure also seen tracking weakness in overseas prices because of recent rains in the US. Midwest farms are likely to have a better soybean crop.

* Russia to reduce export tax on soybeans from July 1

*  At the Indore spot market in top producer MP, soybean gained  11 Rupees to 7353 Rupees per 100 kgs.

Ref.Soyaoil

 Ref.Soyaoil yesterday settled down by -0.46% at 1396.9 as higher soybean output could limit edible oil imports. Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021 as record high prices for the oilseed could prompt some to switch from cultivating competing commodities such as cotton and pulses, industry officials said. Increased production of India's main summer-sown oilseed could help the world's biggest vegetable oil importer trim costly purchases of palm oil, soyoil and sunflower oil from Indonesia, Malaysia, Argentina and Ukraine. 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. Edible Oil industry cautioned the government against resorting to any knee-jerk reaction of lowering import duties to cool down domestic prices, saying it could have a 'very negative’ impact on oilseed farmers, kharif planting for which will start in the coming few weeks. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1426.5 Rupees per 10 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.38% to settled at 32400 while prices down -6.4 rupees, now Ref.Soya oil is getting support at 1387 and below same could see a test of 1378 levels, and resistance is now likely to be seen at 1404, a move above could see prices testing 1412.  

Trading Ideas:            

*  Ref.Soya oil trading range for the day is 1354-1416.

*  Ref soyoil dropped as higher soybean output could limit edible oil imports.

* Indian farmers are likely to expand their soybean planting area by more than a tenth in 2021

* Edible Oil industry cautioned the government against resorting to any knee-jerk reaction of lowering import duties to cool down domestic prices

* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1416.45 Rupees per 10 kgs.

Crude palm Oil           

Crude palm Oil yesterday settled down by -0.88% at 1181.4 as market expects an increase in production and hit by demand and lockdown concerns in Malaysia. There are also concerns of stricter movement restrictions in Malaysia, which could implode consumption from the domestic hospitality, restaurants and catering sectors. Malaysia has kept its May export tax for crude palm oil at 8% but raised the reference price, a circular on the Malaysian Palm Oil Board website showed. The world's second-largest palm exporter calculated a reference price of 4,533.40 ringgit per tonne for May, up from 4,331.48 ringgit a tonne in April. The export tax structure starts at 3% for crude palm oil in a 2,250 to 2,400 ringgit-per-tonne range. The maximum tax rate is set at 8% when prices exceed 3,450 ringgit a tonne. India's palm oil imports in 2021 are set to fall for the second consecutive year as pandemic concerns continue to unfold in the country, forcing refiners to dial back production and keep stocks at a bare minimum level. India's imports of palm oil imports jumped 82% in April on the year as refiners stepped up purchases of the tropical oil to reduce imports of expensive soyoil and sunflower oil. In spot market, Crude palm oil dropped by -18 Rupees to end at 1187 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -25.11% to settled at 1038 while prices down -10.5 rupees, now CPO is getting support at 1174.8 and below same could see a test of 1168.2 levels, and resistance is now likely to be seen at 1189.5, a move above could see prices testing 1197.6.           

Trading Ideas:            

*  CPO trading range for the day is 1103.2-1166.6.

* Crude palm oil dropped as market expects an increase in production and hit by demand and lockdown concerns in Malaysia. 

* There are also concerns of stricter movement restrictions in Malaysia, which could implode consumption.

* Malaysia has kept its May export tax for crude palm oil at 8% but raised the reference price.

* In spot market, Crude palm oil dropped  by -3.6 Rupees to end at 1183.4 Rupees.

Mustard Seed         

Mustard Seed yesterday settled down by -0.55% at 7060 as 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. COOIT was against any reduction in import duties on edible oils but wanted the Centre to remove the GST of 5 per cent on mustard seed and oil as it will help farmers and consumers both. 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. 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 -2.65% to settled at 53580 while prices down -39 rupees, now Rmseed is getting support at 7007 and below same could see a test of 6954 levels, and resistance is now likely to be seen at 7109, a move above could see prices testing 7158.        

Trading Ideas:            

* Rmseed trading range for the day is 6913-7163.

* Mustard seed prices remained under pressure tracking weakness in overseas prices after the rumors of reduction in import duty was proved.

* However the decision to ban the adulteration of mustard oil from June 8, the demand for soybean degum and palmolein has weakened.

* U.S. rapeseed production is forecast to reach a record 1.8 million tons on record area and trend yield.

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

Turmeric           

Turmeric yesterday settled down by -1.02% at 7944 as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading. However downside seen limited on following export demand from Europe, Gulf countries and Bangladesh. In Nizamabad APMC in Telangana, the modal price of the finger variety turmeric was quoted at ₹6,950 a quintal. Prices are up about ₹400 since the beginning of this month. At Bangalore in Karnataka, turmeric is quoted at ₹11,500 at the APMC yard with most markets closed in the State to control the Covid-19 pandemic. In Tamil Nadu, too, the agricultural markets are closed as part of the lockdown to tackle the pandemic. Demand for exports to Bangladesh and Europe are helping turmeric prices to gain. Exporters are looking to pick up stocks from Nanded in view of its quality. Turmeric has been in demand over the last two years as it is reported to be effective in medical use, particularly in combating Covid-19. According to Spices Board data, turmeric exports during the April-December period of the last fiscal increased 34 per cent to 1.39 lakh tonnes valued at ₹1,251 crore compared with 1.03 lakh tonnes valued at ₹1,047 crore. In Nizamabad, a major spot market in AP, the price ended at 7696.25 Rupees gained 73.5 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -0.91% to settled at 9790 while prices down -82 rupees, now Turmeric is getting support at 7876 and below same could see a test of 7808 levels, and resistance is now likely to be seen at 8036, a move above could see prices testing 8128.    

Trading Ideas:            

* Turmeric trading range for the day is 7832-8128.

* Turmeric prices gained on following export demand from Europe, Gulf countries and Bangladesh.

* However upside seen limited as the curbs and lockdowns announced to control the second wave of Covid-19 pandemic affected trading.

*  At least 50 per cent of the crop cultivated in the Maharashtra growing regions are estimated to have arrived at the terminal agricultural markets.

* In Nizamabad, a major spot market in AP, the price ended at 7726.65 Rupees gained 30.4 Rupees.

Jeera           

Jeera yesterday settled up by 0.62% at 13855 recovered on some buying after prices dropped 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 -5 Rupees to end at 13975 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -2.52% to settled at 6033 while prices up 85 rupees, now Jeera is getting support at 13770 and below same could see a test of 13690 levels, and resistance is now likely to be seen at 13940, a move above could see prices testing 14030.      

Trading Ideas:            

* Jeera trading range for the day is 13730-13940.

* Jeera prices traded in range as lockdown restrictions increased against rising Covid cases

*  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 -5 Rupees to end at 13975 Rupees per 100 kg.

Cotton           

Cotton yesterday settled up by 1.23% at 23070 after CAI has revised higher Indian cotton export estimates for 2020-21 season at 65 lakh bales against 60 lakh bales projected till last month. Cotton production in Haryana is expected to decline by 27 percent to 1.8 million bales in 2020-21 (July-June) season due to yield loss. India’s cotton output in the 2020-21 (October-September) market year is seen at 38 million bales, up 4 percent on the year. The country’s cotton exports are likely to be 20 percent higher at 1.02 million tonnes in 2020-21 (October-September) backed by competitive pricing in the global markets and an improvement in international cotton consumption, said Care Rating. Higher exports along with a recovery in domestic cotton demand will help reduce the surplus availability of cotton in the nation despite higher supply, the rating agency said in a note. Cotton farmers from various states are planning to increase the area under cultivation in the coming 2021-22 Kharif season. Indian textile mills have reduced production due to lower domestic demand and labour shortage. The government has allowed mills to operate but markets are closed so mills are facing a cash crunch. Textiles mills dealing in exports are still going strong as Indian yarn prices are attractive. In spot market, Cotton gained by 150 Rupees to end at 22970 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 0.5% to settled at 7100 while prices up 280 rupees, now Cotton is getting support at 22830 and below same could see a test of 22580 levels, and resistance is now likely to be seen at 23240, a move above could see prices testing 23400.      

Trading Ideas:            

* Cotton trading range for the day is 22920-23400.

* Cotton prices gained due to the further possibility of higher exports.

* Cotton production is estimated at 36.49 million bales for the season 2020-21.

* USDA sales report showed net sales of 171,200 Running Bales for the 2020/2021 marking year, 59% higher than the prior week.

* In spot market, Cotton gained  by 50 Rupees to end at 23020 Rupees.

Chana           

Chana yesterday settled up by 1.46% at 5228 as pulses acreage could witness a decline during the forthcoming kharif season 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. The current COVID-19 crisis has led to localized partial lockdown in many parts of the country and has raised the concerns over supply disruptions in the forthcoming months. The Chana crop production in Rajasthan and Madhya Pradesh may be on lower side compared to the last year. Chana import for 2020-21 (Apr-Jan) stood at 2.76 lakh tonnes as against 3.48 lakh tonnes imported during the corresponding period of the previous year. Import and export in month of January 2021 reported 0.41 lakh tonne and 0.10 lakh tonnes, respectively. According to the latest report of Australian department of Agriculture (ABARES), Australian Bengal gram acreage is forecasted to increase by 93% to 5.08 Lakh hectares in 2020-21. Bengal gram production is forecasted at 7.55 lakh tonnes in 2020-21, 169% higher than last year’s production of 2.81 Lakh tonnes. In Delhi spot market, chana gained by 76.35 Rupees to end at 5200 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -9.24% to settled at 106440 while prices up 75 rupees, now Chana is getting support at 5174 and below same could see a test of 5119 levels, and resistance is now likely to be seen at 5265, a move above could see prices testing 5301.          

Trading Ideas:            

* Chana trading range for the day is 5184-5330.

* Chana prices seen supported after update that India’s supply of Kabuli chickpea is expected to plunge 32 percent to 396,000 tonnes.

* Even with that injection of supplies, India will end the year with 36,000 tonnes of kabulis, which is a far cry from the 200,000 tonnes it needs

* Govt. raised Bengal Gram production estimate by 10 lakh mt to 12.61 lakh mt for 2020-21

* In Delhi spot market, chana gained  by 46.35 Rupees to end at 5246.35 Rupees per 100 kgs.

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