Turmeric trading range for the day is 7704-8384 - Kedia Advisory
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Gold
Gold yesterday settled up by 0.48% at 44860 as a pullback in U.S. Treasury yields and worries over lockdowns across the euro zone lifted demand for the safe-haven metal, although a stronger dollar limited bullion's upside. European stocks hit a two-week low as renewed lockdowns across the euro zone and a row over the supply of COVID-19 vaccines dented sentiment. U.S. Treasury Secretary Janet Yellen told lawmakers that future tax hikes will be needed to pay for infrastructure projects and other public investments, while Federal Reserve Chairman Jerome Powell reassured that inflation would not spiral out of control. Atlanta Federal Reserve president Raphael Bostic expects the U.S. central bank will be able to start lifting its interest rates in 2023. In an interview, Bostic added that he expected the U.S. economy to grow 6% and inflation to overshoot the Fed’s target this year. The consumer confidence indicator in the Euro Area rose by 4 points to -10.8 in March of 2021, from the previous month's figure of -14.8 and well above market expectations of -14.5. It was the highest reading since February 2020 before the Covid-19 shutdown. Considering the European Union as a whole, consumer sentiment increased by 3.6 points to -12.1. Technically market is under short covering as market has witnessed drop in open interest by -7.8% to settled at 7155 while prices up 214 rupees, now Gold is getting support at 44723 and below same could see a test of 44587 levels, and resistance is now likely to be seen at 44945, a move above could see prices testing 45031.
Trading Ideas:
* Gold trading range for the day is 44587-45031.
* Gold prices rose as a pullback in U.S. Treasury yields and worries over lockdowns across the euro zone lifted demand for the safe-haven metal
* U.S. Treasury Secretary Janet Yellen told lawmakers that future tax hikes will be needed to pay for infrastructure projects and other public investments
* Fed's Bostic expects U.S. central bank to lift rates in 2023
Silver
Silver yesterday settled up by 0.42% at 65245 as U.S. Treasury yields continued to ease from recent highs on coronavirus-related worries. U.S. Treasury yields were poised for a third day of declines and Germany's benchmark 10-year bond yield fell to a five-week low on doubts about the progress of the global economic reopening. In the first joint appearance Tuesday, both Yellen and Powell sounded optimistic about growth but emphasized that the U.S. recovery from the pandemic is far from complete. Powell reassured markets that inflation would not spiral out of control. The US Federal Reserve Chairman Powell played down concerns about possible excessive inflation in his speech. He expects that the inflation rate will rise this year, but it will not get out of control. U.S. factory activity picked up in early March amid strong growth in new orders, but supply chain disruptions because of the COVID-19 pandemic continued to exert cost pressures for manufacturers, which could keep inflation fears in focus. Data firm IHS Markit said its flash U.S. manufacturing PMI increased to 59 in the first half of this month from a final reading 58.6 in February, when activity took a step back after a cold snap hit large parts of the country. Technically market is under short covering as market has witnessed drop in open interest by -5.16% to settled at 11405 while prices up 273 rupees, now Silver is getting support at 64991 and below same could see a test of 64738 levels, and resistance is now likely to be seen at 65564, a move above could see prices testing 65884.
Trading Ideas:
* Silver trading range for the day is 64738-65884.
* Silver prices gained as U.S. Treasury yields continued to ease from recent highs on coronavirus-related worries.
* U.S. Treasury yields were poised for a third day of declines and Germany's benchmark 10-year bond yield fell to a five-week low
* The US Federal Reserve Chairman Powell played down concerns about possible excessive inflation in his speech.
Crude oil
Crude oil yesterday settled up by 5.06% at 4447 as support seen after the news that the Suez Canal has been blocked after one of the world’s largest container ships. The Paris-based IEA cut its forecast for crude demand in 2021 by 2.5 million barrels per day, while the EIA forecast global oil supply would surpass demand in the second half of 2021. U.S. crude oil stocks rose and gasoline inventories fell in the most recent week, according to data from industry group the American Petroleum Institute. Crude inventories jumped by 2.9 million barrels in the week to March 19, compared with expectations for a decline of about 300,000 barrels. Gasoline stocks fell by 3.7 million barrels, compared with expectations for a build of 1.2 million barrels. Distillate fuel inventories, which include diesel and heating oil, rose by about 246,000 barrels, versus expectations for a draw of 100,000 barrels. Oil prices are unlikely to mount a dramatic and sustained surge despite vaccines expected to boost demand later this year, the International Energy Agency (IEA) said, with the world still awash in oil. "Oil’s sharp rally to near $70 a barrel has spurred talk of a new supercycle and a looming supply shortfall. Our data and analysis suggest otherwise," the IEA said in its monthly report. Technically market is under short covering as market has witnessed drop in open interest by -8.31% to settled at 4378 while prices up 214 rupees, now Crude oil is getting support at 4280 and below same could see a test of 4113 levels, and resistance is now likely to be seen at 4547, a move above could see prices testing 4647.
Trading Ideas:
* Crude oil trading range for the day is 4113-4647.
* Crude prices gains as support seen after the news that the Suez Canal has been blocked after one of the world’s largest container ships.
* U.S. crude oil stocks rose and gasoline inventories fell in the most recent week
* Oil supercycle unlikely due to ample stocks and supply, IEA says
Nat.Gas
Nat.Gas yesterday settled down by -0.05% at 183.1 despite of near-record LNG exports and forecasts for cooler weather and higher heating demand over the next two weeks than previously expected. Traders also noted that price declines over the past four weeks have prompted power generators to burn more gas and less coal to produce electricity. Over the past five years, utilities have pulled on average 51 billion cubic feet (bcf) of gas from storage during the week ended March 19 while pulling 24 bcf during the week ended March 26. Data provider Refinitiv said output in the Lower 48 U.S. states averaged 91.1 billion cubic feet per day (bcfd) so far in March, up sharply from a 28-month low of 86.5 bcfd in February, when extreme weather froze gas wells and pipes in Texas. That, however, was still much lower than the record monthly high of 95.4 bcfd in November 2019. Refinitiv projected average gas demand, including exports, would ease from 97.6 bcfd this week to 97.5 bcfd next week. The forecast for next week was higher than Refinitiv projected on Tuesday due to expectations that power generators will burn more gas and less coal. The amount of gas flowing to U.S. LNG export plants, meanwhile, averaged 10.6 bcfd so far in March. Technically market is under long liquidation as market has witnessed drop in open interest by -12.52% to settled at 5798 while prices down -0.1 rupees, now Natural gas is getting support at 181.7 and below same could see a test of 180.3 levels, and resistance is now likely to be seen at 184.7, a move above could see prices testing 186.3.
Trading Ideas:
* Natural gas trading range for the day is 180.3-186.3.
* Natural gas settled flat despite of near-record LNG exports and forecasts for cooler weather and higher heating demand over the next two weeks than previously expected.
* Traders also noted that price declines over the past four weeks have prompted power generators to burn more gas and less coal to produce electricity.
* Falling demand and rising output over the past month caused utilities to pull less gas from storage in recent weeks.
Copper
Copper yesterday settled down by -0.28% at 668.75 amid a stronger dollar, sanctions between China and the West and new coronavirus lockdowns in Europe rattled sentiment. Investors grew concerned about a surge in COVID-19 cases and a sluggish vaccination campaign in Europe, which led to fresh lockdowns and delayed expectations of a global economic rebound. Workers at Antofagasta's Los Pelambres copper mine in Chile have accepted a contract offer and abandoned the threat of a strike, the union said. The global world refined copper market showed a 24,000 tonnes surplus in December, compared with a 93,000 tonnes deficit in November, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 12 months of the year, the market was in a 559,000 tonnes deficit compared with a 383,000 tonnes deficit in the same period a year earlier, the ICSG said. World refined copper output in December was 2.11 million tonnes , while consumption was 2.09 million tonnes. Still, upbeat data from top metals consumer China has capped much of the downward momentum. The Chinese factory and retail sector activity surged in the first two months of 2021, easily beating market expectations, as the economy consolidated its recovery from the coronavirus blow. Technically market is under fresh selling as market has witnessed gain in open interest by 20.29% to settled at 2751 while prices down -1.85 rupees, now Copper is getting support at 665 and below same could see a test of 661.1 levels, and resistance is now likely to be seen at 675.4, a move above could see prices testing 681.9.
Trading Ideas:
* Copper trading range for the day is 661.1-681.9.
* Copper dropped amid a stronger dollar, sanctions between China and the West and new coronavirus lockdowns in Europe rattled sentiment.
* Workers at Antofagasta's Los Pelambres copper mine in Chile have accepted a contract offer and abandoned the threat of a strike, the union said.
* The global world refined copper market showed a 24,000 tonnes surplus in December, compared with a 93,000 tonnes deficit in November
Zinc
Zinc yesterday settled down by -0.73% at 216.95 amid concerns over the world's recovery from the pandemic weighed on investor sentiment. The global zinc market was oversupplied by 11,700 tonnes in January after a revised surplus of 23,500 tonnes in December, data from the International Lead and Zinc Study Group (ILZSG) showed. For 2020, the surplus in the roughly 13.5 million tonne a year market was 536,000 tonnes, according to the ILZSG. The third round of COVID-19 outbreak in Europe aggravated the market's cautious sentiment. Yesterday, Germany and the Netherlands successively announced an extension of the blockade period. The vaccine supply and vaccination progress in Europe worried the market. At night, US Treasury Secretary Yellen and Powell said that the pandemic crisis still existed in the economy, and reiterated that inflation will rise this year but will not get out of control, but the market reacted little to this speech. At night, the three major US stock indexes closed down, and oil prices fell sharply due to demand concerns. US 10-year Treasury bonds led the gains, while the US dollar index hit a two-week high. Technically market is under long liquidation as market has witnessed drop in open interest by -2.14% to settled at 1787 while prices down -1.6 rupees, now Zinc is getting support at 215.8 and below same could see a test of 214.7 levels, and resistance is now likely to be seen at 218.9, a move above could see prices testing 220.9.
Trading Ideas:
* Zinc trading range for the day is 214.7-220.9.
* Zinc prices dropped amid concerns over the world's recovery from the pandemic weighed on investor sentiment.
* However downside seen limited as Global zinc market surplus shrank in January
* For 2020, the surplus in the roughly 13.5 million tonne a year market was 536,000 tonnes, according to the ILZSG.
Nickel
Nickel yesterday settled up by 0.96% at 1172.9 as support seen after data showed Germany Manufacturing PMI jumped to 66.6 in March of 2021 from 60.7 in February, well above forecasts of 60.8, flash estimates showed. The reading pointed to a record growth in factory activity amid a record output rise and rising sales to Asia (particularly China), Europe and the US. Many manufacturers highlighted difficulties keeping up with demand, which was reflected in an unprecedented rise in factory backlogs of work. Employment also returned to growth for the first time in more than 2 years. Also, price pressures intensified and input prices rose the most in 121 months and charged prices rose at a record pace. Finally, manufacturers remained strongly upbeat about the year-ahead outlook for output. However upside seen limited due to concerns over a third COVID-19 wave in Europe, potential U.S. tax hikes and escalating tensions between the West and China sapped risk appetite. Global nickel market surplus shrank to 8,400 tonnes in January from a revised surplus of 14,700 tonnes in the previous month, data from the International Nickel Study Group (INSG) showed. Last year, the roughly 2.4 million tonne a year global market saw a surplus of 122,800 tonnes compared with a deficit of 32,200 tonnes in 2019, according to the Lisbon-based INSG. Technically market is under fresh buying as market has witnessed gain in open interest by 52.13% to settled at 1824 while prices up 11.2 rupees, now Nickel is getting support at 1165.1 and below same could see a test of 1157.2 levels, and resistance is now likely to be seen at 1179.4, a move above could see prices testing 1185.8.
Trading Ideas:
* Nickel trading range for the day is 1157.2-1185.8.
* Nickel prices gained as support seen after data showed Germany Manufacturing PMI jumped to 66.6 in March of 2021 from 60.7 in February
* However upside seen limited due to concerns over a third COVID-19 wave in Europe, potential U.S. tax hikes and escalating tensions between the West and China.
* Global nickel market surplus shrank to 8,400 tonnes in January from a revised surplus of 14,700 tonnes in the previous month
Aluminium
Aluminium yesterday settled up by 1.63% at 177.7 as traders worried that Chinese efforts to reduce smelter pollution will restrict output and supply will fall short of demand. China accounts for around 60% of global aluminium output but the government is expected to curtail capacity growth, with Inner Mongolia ordering some smelter closures this month. Soaring shipping costs, booming demand and tight supplies of primary and scrap aluminium are likely to fuel further price rises, particularly in importing countries such as the United States and Europe. China Hongqiao Group, a big producer, will this year publish targets for lower carbon emissions and an action plan on how to reach them, its chairman said. Speculative investors are rebuilding a bullish position in LME aluminium with a net long equal to 7.8% of open contracts as of Thursday. On-warrant aluminium inventories in LME-registered warehouses surged from 1.1 million tonnes to a five-year high of 1.7 million tonnes earlier this month but have quickly fallen back to around 1.2 million tonnes. China's scrap metal and refined aluminium imports rose sharply year-on-year in January and February. Technically market is under fresh buying as market has witnessed gain in open interest by 62.45% to settled at 1246 while prices up 2.85 rupees, now Aluminium is getting support at 175.4 and below same could see a test of 172.9 levels, and resistance is now likely to be seen at 179.1, a move above could see prices testing 180.3.
Trading Ideas:
* Aluminium trading range for the day is 172.9-180.3.
* Aluminium prices rose as traders worried that Chinese efforts to reduce smelter pollution will restrict output and supply will fall short of demand.
* China’s government is expected to curtail capacity growth, with Inner Mongolia ordering some smelter closures this month.
* Speculative investors are rebuilding a bullish position in LME aluminium with a net long equal to 7.8% of open contracts
Mentha oil
Mentha oil yesterday settled down by -0.05% at 951.8 amid weak demand from cosmetics and toiletries sector in India. 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. Support also seen on the expectation that India’s fragrance industry which had been slow, now slowly gaining the positive momentum post the COVID unlock down. Headed towards a new decade, the fragrance industry has received a much needed boost with the acceptance of trendy dhoop sticks and dhoop cones which has seen an increased 20% demand day by day. The global aroma chemicals market is likely to record a steady CAGR of about 4% during the assessment period of 2020-2030. Growing demand for aroma chemicals in the food & beverage and fragrance industry will underpin the growth of the market. Strict regulations in relation to artificial flavours are complimenting to the expansion of natural aroma chemicals in the food sector. Out of India's total mentha oil exports, nearly 55% goes to China while 16% goes to the US and around 5% goes to Singapore. In Sambhal spot market, Mentha oil dropped by -17.6 Rupees to end at 1071.5 Rupees per 360 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 17.86% to settled at 33 while prices down -0.5 rupees, now Mentha oil is getting support at 951.2 and below same could see a test of 950.7 levels, and resistance is now likely to be seen at 952.2, a move above could see prices testing 952.7.
Trading Ideas:
* Mentha oil trading range for the day is 950.7-952.7.
* In Sambhal spot market, Mentha oil dropped by -17.6 Rupees to end at 1071.5 Rupees per 360 kgs.
* Mentha oil dropped in amid weak demand from cosmetics and toiletries sector in India.
* 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 global aroma chemicals market is likely to record a steady CAGR of about 4% during the assessment period of 2020-2030.
Soyabean
Soyabean yesterday settled up by 1.12% at 5706 after reports that increasing feed demand has boosted China’s soybean import outlook. Support also seen after update in Madhya Pradesh thunderstorm and rain likely for next three to four days and weather will deteriorate again. Farmers are suffering a lot due to unseasonal rains. In many parts, the rains have caused heavy damage to many crops. The USDA estimates China’s soybean imports for the 2021-22 marketing year is expected to hit a record high of 100 million tonnes. Recovering feed demand is forecast to lift China’s soybean crush volume to 99 million tonnes in the 2021-22 marketing year compared to 97.5 million tonnes in the 2020-21 marketing year. The USDA reported export inspections of 489,405 tonnes of soybeans for the week ended March 18, down 10.8% from the week prior and 16.7% lower than the same week a year ago. China's soybean imports from Brazil fell sharply in the first two months of 2021 compared to the same period last year, customs data showed, as rain delayed some shipments from the top exporter. Improved crop weather in South America following recent dryness in Argentina and excessive rains in key parts of Brazil added pressure. New-crop futures have been limited by an expected increase in U.S. plantings this spring. At the Indore spot market in top producer MP, soybean dropped -18 Rupees to 5877 Rupees per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -8.31% to settled at 106485 while prices up 63 rupees, now Soyabean is getting support at 5644 and below same could see a test of 5581 levels, and resistance is now likely to be seen at 5759, a move above could see prices testing 5811.
Trading Ideas:
* Soyabean trading range for the day is 5581-5811.
* Soyabean prices gained after reports that Chinese soybean imports forecast to hit record high
* Support also seen after update in Madhya Pradesh thunderstorm and rain likely for next three to four days and weather will deteriorate again.
* The USDA estimates China’s soybean imports for the 2021-22 marketing year is expected to hit a record high of 100 million tonnes.
* At the Indore spot market in top producer MP, soybean dropped -18 Rupees to 5877 Rupees per 100 kgs.
Ref.Soyaoil
Ref.Soyaoil yesterday settled down by -0.74% at 1282.5 on reports the government may lower import duty on edible oil to reduce prices, which are at record high levels currently, a senior government official told. Cabinet minister Piyush Goyal said in parliament government is watching edible oils and may take step to control high prices. India's vegetable oil imports dropped nearly 25% on year to around 838,607 tn in February. Export of oilmeals jumped 205% year-on-year in February to 393,309 tonne, compared with 128,761 tonne, according to data compiled by the Solvent Extractors’ Association of India (SEA). The overall export of oilmeals during April 2020 to February 2021 recovered sharply and stood at 3,358,649 tonne provisionally, against 2,256,614 tonne during the same period of the previous year, up by 49%, according to the association. The export of soybean meal jumped mainly because of better realisations, thanks to lesser supply from Argentina and Brazil, coupled with good demand of non-GMO soybean meal from the US and Europe, the association said in a statement. Support also seen due to tightening global supplies. However upside seen limited due to better crop weather in drought-hit South America. The U.S. soybean crush was well below trade expectations in February, sinking to the lowest in 17 months, according to data released by the National Oilseed Processors Association (NOPA). At the Indore spot market in Madhya Pradesh, soyoil was steady at 1299.25 Rupees per 10 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.63% to settled at 49140 while prices down -9.6 rupees, now Ref.Soya oil is getting support at 1275 and below same could see a test of 1268 levels, and resistance is now likely to be seen at 1290, a move above could see prices testing 1298.
Trading Ideas:
* Ref.Soya oil trading range for the day is 1268-1298.
* Ref soyoil prices dropped on reports the government may lower import duty on edible oil to reduce prices
* Cabinet minister Piyush Goyal said in parliament government is watching edible oils and may take step to control high prices.
* India's vegetable oil imports dropped nearly 25% on year to around 838,607 tn in February,
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1299.25 Rupees per 10 kgs.
Crude palm Oil
Crude palm Oil yesterday settled down by -1.11% at 1132.9 as demand concerns and expectations of higher production further weighed on the market. Pressure also seen after reports that cabinet minister Piyush Goyal said in parliament government is watching edible oils and may take step to control high prices. European Union palm oil imports in the 2020/21 season were at 3.97 million tonnes by March 21, from 4.13 million a year ago, data published by the European Commission showed. Exports of Malaysian palm oil products for March 1-20 rose between 5% and 7% from the same period in February, cargo surveyors said. Favorable weather, increased use of fertilizer and surging prices are expected to push Indonesia's palm oil production and exports to record highs in 2021/22, U.S. Department of Agriculture's Foreign Agricultural Service post in Jakarta said in a report. Palm oil supply is tight as end-February inventories fell more than expected while production declined to its lowest in five years. Traders are anticipating a double-digit growth in production after industry groups forecast a sharp rise in output during March 1-15. Malaysia has kept its April export duty for crude palm oil at 8%, though it raised the reference price, a circular on the Malaysian Palm Oil Board website showed. In spot market, Crude palm oil dropped by -10 Rupees to end at 1146 Rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -8.04% to settled at 3193 while prices down -12.7 rupees, now CPO is getting support at 1119 and below same could see a test of 1105.2 levels, and resistance is now likely to be seen at 1145.5, a move above could see prices testing 1158.2.
Trading Ideas:
* CPO trading range for the day is 1105.2-1158.2.
* Crude palm oil prices dropped as demand concerns and expectations of higher production further weighed on the market.
* Pressure also seen after reports that cabinet minister Piyush Goyal said in parliament government is watching edible oils and may take step to control high prices.
* March production is likely to increase between 25% and 30%, and the market is also expecting double-digit growth in April
* In spot market, Crude palm oil dropped by -10 Rupees to end at 1146 Rupees.
Mustard Seed
Mustard Seed yesterday settled down by -0.9% at 5729 on profit booking after Madhya Pradesh government had postponed the procurement of crop due to bad weather. The Ministry of Agriculture Department has announced a new date for the production of gram and mustard crop in the agricultural produce mandis of Madhya Pradesh and the procurement work is scheduled to be started from 27-03-2021. There is good news for the farmers of the state. Procurement of mustard in Rajasthan will start from April 1. According to Cooperative Minister Udayalal Anjana, a target has been set to purchase 12 lakh 22 thousand 775 metric tons of mustard. Mustard will be purchased from farmers at the rate of Rs. 4650 per quintal. According to the assessment of the industry organization, Rajasthan, the country's largest mustard producing state, has a mustard crop on about 25 lakh hectares this year. The weather is favorable this year during the Rabi season and farmers taking interest in mustard cultivation has increased the area under sowing and the yield per hectare has also increased, so this year in the country Mustard records are expected to be produced. Uttar Pradesh is estimated to produce 1.5 million tonnes of mustard. Canada’s Canola seed exports to China are strong despite China continuing to block Canada’s two largest canola exporters, and China maintaining a restrictive dockage requirement of one percent on its canola imports. In Alwar spot market in Rajasthan the prices dropped -20 Rupees to end at 5780 Rupees per 100 kg. Technically market is under long liquidation as market has witnessed drop in open interest by -0.45% to settled at 44530 while prices down -52 rupees, now Rmseed is getting support at 5688 and below same could see a test of 5648 levels, and resistance is now likely to be seen at 5783, a move above could see prices testing 5838.
Trading Ideas:
* Rmseed trading range for the day is 5648-5838.
* Mustard prices dropped on profit booking after Madhya Pradesh government had postponed the procurement of crop due to bad weather.
* Rajasthan: Mustard to be purchased on MSP from April 1
* Mustard will be purchased from farmers at the rate of Rs. 4650 per quintal.
* In Alwar spot market in Rajasthan the prices dropped -20 Rupees to end at 5780 Rupees per 100 kg.
Turmeric
Turmeric yesterday settled down by -3.26% at 7950 as demand declined at higher levels and arrivals increased in Nizamabad and Erode. Prices seen pressure as sentiments again drown down after the Central government clarified that a turmeric board would not be set up in Nizamabad as the existing spices board was already handling 50 spices including turmeric. In Nizamabad Mandi, there has been no change in the prices of all varieties of turmeric and 25,000 bags of turmeric were arrived compare to 20,000 bags in the previous season. Around 32,000 bags have arrived in Sangli Mandi against the arrival of 30,000 bags in the previous season. Pressure also seen as no demand for shipments at current prices of around ₹9,000 and export prospects of turmeric have been affected. The arrival of dry goods in the coming days, the quality will also start to improve. The arrival of new goods has started in Telangana and Sangli Mandi in Maharashtra. But due to less sowing this year, the production is also less likely than last year. In recent sessions, prices were up in the spot due to lack of stock and arrivals of new goods in the month of February. Further new goods arrived in the turmeric auction held in Sangli Mandi, Maharashtra in the beginning of the week but due to moisture and quality turmeric trade was low. In Nizamabad, a major spot market in AP, the price ended at 7577.8 Rupees dropped -28.1 Rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -1.82% to settled at 8075 while prices down -268 rupees, now Turmeric is getting support at 7828 and below same could see a test of 7704 levels, and resistance is now likely to be seen at 8168, a move above could see prices testing 8384.
Trading Ideas:
* Turmeric trading range for the day is 7704-8384.
* Turmeric dropped as demand declined at higher levels and arrivals increased in Nizamabad and Erode.
* Prices seen pressure after the Central government clarified that a turmeric board would not be set up in Nizamabad
* Around 32,000 bags have arrived in Sangli Mandi against the arrival of 30,000 bags in the previous season.
* In Nizamabad, a major spot market in AP, the price ended at 7577.8 Rupees dropped -28.1 Rupees.
Jeera
Jeera yesterday settled down by -0.67% at 14825 due to rise in arrivals seen in the market ahead of Holi and Financial closure, as mandis will remained closed in Gujarat and Rajasthan, and will re-open only after April 2. The supply of cumin in the current year will be good for the entire year due to carry forward 17 to 20 lakh bags. Also the yield of cumin is normal, there is no major deficiency in it. Due to high amount of heat in the atmosphere, the arrival of cumin will be faster this year, but the picture of arrival of cumin coming from behind is still uncertain. The production of cumin is estimated to decline by 10 to 15% and the crop of zora will not exceed 75 lakh sacks. In the current year, Gujarat's cumin crop has good color quality, but the weight of yield cumin seeds is low. Whereas in Rajasthan's cumin crop, the color quality, weight and weight of cumin seeds is very much visible. Recently in the Merta Mandi of Rajasthan, there was an arrival of 20 thousand sacks in a single day because the arrival of cumin is accelerated due to heat. At one time the ratio of cumin arrivals will be as much as 90 lakh sacks, but in reality it will be the effect of heat. In Unjha, a key spot market in Gujarat, jeera edged up by 75.45 Rupees to end at 14316.65 Rupees per 100 kg. Technically market is under long liquidation as market has witnessed drop in open interest by -4.28% to settled at 4227 while prices down -100 rupees, now Jeera is getting support at 14725 and below same could see a test of 14630 levels, and resistance is now likely to be seen at 14935, a move above could see prices testing 15050.
Trading Ideas:
* Jeera trading range for the day is 14630-15050.
* Jeera dropped due to rise in arrivals seen in the market ahead of Holi and financial closure, as mandis will remained closed in Gujarat and Rajasthan
* The supply of cumin in the current year will be good for the entire year due to carry forward 17 to 20 lakh bags
* In the Merta Mandi of Rajasthan, there was an arrival of 20 thousand sacks in a single day as arrival is accelerated due to heat.
* In Unjha, a key spot market in Gujarat, jeera edged up by 75.45 Rupees to end at 14316.65 Rupees per 100 kg.
Cotton
Cotton yesterday settled down by -1.86% at 21090 after Cotton Corporation of India (CCI) reduced the selling price of cotton as a “one-time correction.” Cotton farmers in the country have taken advantage of higher global price for the natural fibre this season (October 2020-September 2021), resulting in at least 80 per cent of the production being sold till now. As a result, most of the ginning mills in north and western parts of the country that process kapas (raw cotton) into ginned cotton are likely to shut operations from April this year. According to an estimate by the Cotton Association of India, a body of traders, arrivals this year since October 1 were 298.89 lakh bales (of 170 kg). The arrivals are against CAI’s projection of the cotton crop production at 358.50 lakh bales against 360 lakh bales last season. The Committee on Cotton Production and Consumption (CCPC), a body representing all stakeholders in the textile industry including government officials, has estimated this season’s crop at 371 lakh bales (358.50 lakh bales last season). Arrivals have been higher despite record carryover stocks from last season. While CAI has pegged the carryover stocks at 115 lakh bales, the CCPC has estimated it at 97.95 lakh bales. In spot market, Cotton dropped by -170 Rupees to end at 21630 Rupees. Technically market is under fresh selling as market has witnessed gain in open interest by 4.64% to settled at 7708 while prices down -400 rupees, now Cotton is getting support at 20970 and below same could see a test of 20860 levels, and resistance is now likely to be seen at 21260, a move above could see prices testing 21440.
Trading Ideas:
* Cotton trading range for the day is 20860-21440.
* Cotton prices dropped after Cotton Corporation of India (CCI) reduced the selling price of cotton as a “one-time correction.”
* Cotton farmers in the country have taken advantage of higher global price resulting in at least 80 per cent of the production being sold till now.
* According to an estimate by CAI, arrivals this year since October 1 were 298.89 lakh bales.
* In spot market, Cotton dropped by -170 Rupees to end at 21630 Rupees.
Chana
Chana yesterday settled down by -1.27% at 4908 as the Centre has pegged chana output at 11.6 mln tn in 2020-21 (Jul-Jun) against 11.1 mln tn last year. Procurement of gram in Rajasthan will start from April 1. According to Cooperative Minister Udayalal Anjana, a target has been set to purchase 6 lakh 14 thousand 900 metric tons of gram. Gram will be purchased from farmers at the rate of Rs. 5100 per quintal. Madhya Pradesh government had postponed the procurement of crop due to bad weather. The Ministry of Agriculture Department has announced a new date for the production of gram and mustard crop in the agricultural produce mandis of Madhya Pradesh and the procurement work is scheduled to be started from 27-03-2021. This time, all the crops coming in the Kharif and Rabi season are sitting low in the form of productivity, due to which all the pulses and oilseeds crops are seeing a rapid growth. All states had almost the same amount as last year, at present, Rajasthan and Madhya Pradesh crops are coming and in Rajasthan, there are a few small ones because the crop being ready, the effect of the heat of February and March has resulted in a huge decrease in productivity in summer. In Delhi spot market, chana dropped by -50 Rupees to end at 4850 Rupees per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -7.26% to settled at 68310 while prices down -63 rupees, now Chana is getting support at 4879 and below same could see a test of 4850 levels, and resistance is now likely to be seen at 4960, a move above could see prices testing 5012.
Trading Ideas:
* Chana trading range for the day is 4850-5012.
* Chana prices dropped as the Centre has pegged chana output at 11.6 mln tn in 2020-21 (Jul-Jun) against 11.1 mln tn last year.
* Rajasthan: Chana to be purchased on MSP from April 1
* Gram will be purchased from farmers at the rate of Rs. 5100 per quintal.
* In Delhi spot market, chana dropped by -50 Rupees to end at 4850 Rupees per 100 kgs.
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