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Gold

Gold yesterday settled down by -0.79% at 47164 as the dollar ticked up from its lows and investors showed caution in the run-up to the release of a key U.S. jobs report later in the week. Powell said tapering of the U.S. central bank's bond-buying program could happen this year but gave no indication as to the exact timeline for the Fed to start cutting its asset purchases, sending gold higher. Physical gold demand in India was subdued as jewellers held off purchases, hoping for a dip in prices, but top consumer China saw a slight uptick in activity. Dealers in India were charging a premium of up to $2 an ounce over official domestic prices, inclusive of 10.75% import and 3% sales levies, compared to last week's $3 premiums. Jewellers went on strike to oppose the government's mandate to hallmark gold jewellery and artefacts from mid-June. China's net gold imports via Hong Kong fell 28.6% in July from the previous month, Hong Kong Census and Statistics Department data showed. Net imports stood at 22.056 tonnes in July compared with 30.887 tonnes in June, the data showed. Total gold imports via Hong Kong fell to 26.406 tonnes from 37.226 tonnes. China is the world's top gold consumer. Technically market is under long liquidation as market has witnessed drop in open interest by -0.42% to settled at 11268 while prices down -374 rupees, now Gold is getting support at 47042 and below same could see a test of 46919 levels, and resistance is now likely to be seen at 47391, a move above could see prices testing 47617.

Trading Ideas:

* Gold trading range for the day is 46919-47617.
* Gold eased as the dollar ticked up from its lows and investors showed caution in the run-up to the release of a key U.S. jobs report later in the week.
* Dollar index up 0.1% after hitting nearly two-week low
* Asia Gold: Jewellers delay purchases in India; China interest ticks up

Silver

Silver yesterday settled down by -0.74% at 63587 as the greenback attempted to recover from Friday's drop on comments from U.S. Federal Reserve Chair Jerome Powell that were interpreted as dovish. Powell struck a dovish tone on monetary policy, signaling that the central bank is in no rush to raise rates. Lower interest rates decrease the opportunity cost of holding non-yielding bullion. Contracts to purchase previously owned U.S. homes declined for the second consecutive month in July in step with limited supply that’s been unable to keep up with demand from potential homebuyers. The National Association of Realtors (NAR) said its Pending Home Sales Index, based on contracts signed last month, fell 1.8% after dropping a revised 2.0% in June. Pending home contracts are seen as a forward-looking indicator of the health of the housing market because they become sales one to two months later. Investors began to turn their focus to Friday's U.S. payrolls report, which will provide more insight into the Fed's likely policy path. Expectations are for non-farm payrolls to increase by 750,000 in August, with the unemployment rate forecast to dip to 5.2% from 5.4%. Other data likely to be eyed this week include inflation figures from Europe as well as gauges of the U.S. and Chinese manufacturing sectors. Technically market is under fresh selling as market has witnessed gain in open interest by 20.52% to settled at 10442 while prices down -476 rupees, now Silver is getting support at 63293 and below same could see a test of 63000 levels, and resistance is now likely to be seen at 64022, a move above could see prices testing 64458.

Trading Ideas:
* Silver trading range for the day is 63000-64458.
* Silver prices dropped as the greenback attempted to recover from drop on comments from U.S. Federal Chair Powell that were interpreted as dovish.
* Powell said tapering could begin this year, but the central bank was in no hurry to raise interest rates.
* Contracts to purchase previously owned U.S. homes declined for the second consecutive month in July in

Crude oil

Crude oil yesterday settled up by 0.18% at 5071 as hurricane Ida has weakened into a tropical storm over southwestern Mississippi, the U.S. National Hurricane Center (NHC) said. "Additional rapid weakening is forecast during the next day or so, and Ida is expected to become a tropical depression by this evening," the NHC added. OPEC+ is likely to keep its oil output policy unchanged when the group meets on Wednesday and continue with its planned modest production increase told. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, will meet on Sept. 1 to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months. Kuwait oil minister Mohammad al-Fares told that this week OPEC+ would discuss whether it would continue with its planned increase or reconsider it and halt the rise adding that economies of East Asian countries and China were still affected by COVID-19 and caution should be exercised. A report from Baker Hughes shows the number of active U.S. rigs drilling for oil increased by five to 410, marking the fourth weekly increase in a row. The total active U.S. rig count climbed by five to 508. Technically market is under fresh buying as market has witnessed gain in open interest by 12.25% to settled at 4930 while prices up 9 rupees, now Crude oil is getting support at 4996 and below same could see a test of 4922 levels, and resistance is now likely to be seen at 5112, a move above could see prices testing 5154.

Trading Ideas:

* Crude oil trading range for the day is 4922-5154.
* Crude oil prices settled flat as hurricane Ida has weakened into a tropical storm over southwestern Mississippi.
* OPEC+ likely to keep oil output policy from September unchanged
* OPEC+ will meet on Sept. 1 to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months.

Natural gas

Nat.Gas yesterday settled down by -1.8% at 315.7 on projections for lower temperatures in the immediate term, and as Tropical Storm Ida quickly weakened after making landfall on the U.S. Gulf Coast. Storms typically lead to temporary price spikes due to impacts to production in the Gulf of Mexico, but they lead to lower temperatures, "causing demand destructions as well. Traders also noted that near record gas prices in Europe and Asia continued to boost U.S. gas futures on expectations U.S. liquefied natural gas (LNG) exports will rise to all-time peaks in coming months. Even though data provider Refinitiv said preliminary gas output in the U.S. Lower 48 states fell over 1 billion cubic feet per day (bcfd) on Friday due mostly to reductions in the Gulf of Mexico as producers shut-in wells ahead of Storm Ida, total U.S. production was still up to an average of 92.1 bcfd so far in August, versus 91.6 bcfd in July. With the coming of seasonally cooler weather, Refinitiv projected average U.S. gas demand, including exports, would slide from 94.3 bcfd this week to 93.6 bcfd next week and 88.8 bcfd in two weeks as power generators burn less of the fuel with air conditioning demand easing. Technically market is under long liquidation as market has witnessed drop in open interest by -20.71% to settled at 14211 while prices down -5.8 rupees, now Natural gas is getting support at 306.8 and below same could see a test of 297.8 levels, and resistance is now likely to be seen at 328, a move above could see prices testing 340.2.

Trading Ideas:

* Natural gas trading range for the day is 297.8-340.2.
* Natural gas dropped on projections for lower temperatures in the immediate term, and as Tropical Storm Ida quickly weakened after making landfall on the U.S. Gulf Coast.
* Storms typically lead to temporary price spikes due to impacts to production in the Gulf of Mexico, but they lead to lower temperatures, "causing demand destructions as well.
* Near record gas prices in Europe and Asia continued to boost U.S. gas futures on expectations U.S. LNG exports will rise to all-time peaks in coming months.

Copper 

Copper yesterday settled up by 0.61% at 723.35 amid an upbeat sentiment after U.S. Federal Reserve Chairman Jerome Powell struck a more dovish tone in a long-awaited speech. Powell's wait-and-see approach gave investors and market participants some reassurance that the central bank's extraordinary efforts to prop up the economy were likely to support riskier assets a while longer. Support also seen as cancelled warrants of LME copper inventories, metals earmarked for delivery, hitting their highest since July 2020 to 84,500 tonnes. Profit growth at China’s industrial firms in July grew at its slowest clip this year, as elevated raw material prices and supply chain constraints from extreme weather as well as sporadic coronavirus cases weighed on the manufacturing sector. Industrial firms’ profits increased 16.4% on an annual basis in July to 703.67 billion yuan ($108.51 billion), data from the National Bureau of Statistics (NBS) showed. China’s economy has staged an impressive recovery from a coronavirus-battered slump, but the expansion is losing steam as businesses grapple with higher costs and supply bottlenecks, and as consumers remain cautious with spending. In the first seven months of the year, industrial firms’ profits grew a hefty 57.3% on year, due to base effects, although growth slowed from the 66.9% surge in first half of 2021. Technically market is under short covering as market has witnessed drop in open interest by -1.31% to settled at 4066 while prices up 4.35 rupees, now Copper is getting support at 709.6 and below same could see a test of 695.9 levels, and resistance is now likely to be seen at 732.9, a move above could see prices testing 742.5.

Trading Ideas:

* Copper trading range for the day is 695.9-742.5.
* Copper prices rose amid an upbeat sentiment after U.S. Federal Reserve Chairman Jerome Powell struck a more dovish tone in a long-awaited speech.
* Support also seen as cancelled warrants of LME copper inventories, metals earmarked for delivery, hitting their highest since July 2020 to 84,500 tonnes.
* Profit growth at China’s industrial firms in July grew at its slowest clip this year
 

Zinc

Zinc yesterday settled up by 0.45% at 246.3 as support seen amid Social inventories of zinc ingots across seven major markets fell 4000 mt from Monday August 23 or down 200 mt from Friday August 27 to 126000 mt. Over the weekend, inventories in Shanghai declined the most due to scarce inflows of imported zinc; and market arrivals also fell in light of shipment issues at some smelters. Inventories in Guangdong continued to rise as market arrivals climbed after power curtailment and production restriction was eased among smelters. Tianjin also saw increase in inventories amid slightly rising market arrivals and downstream purchases on rigid demand. On the macro front, Fed Chair Powell expressed that dialling-back of bond purchase could start as early as this year, but the Fed would not rush to interest rate hike. Fed governor Waller said that interest rate hike set a much higher threshold than tapering. While Cleveland Fed Chair Mester believed that tapering shall begin by end of this year and complete by mid-2022. The global zinc market was undersupplied by 20,200 tonnes in June following a revised deficit of 23,500 tonnes in May, data from the International Lead and Zinc Study Group (ILZSG) showed. Technically market is under fresh buying as market has witnessed gain in open interest by 2.84% to settled at 1051 while prices up 1.1 rupees, now Zinc is getting support at 245.3 and below same could see a test of 244.3 levels, and resistance is now likely to be seen at 247.1, a move above could see prices testing 247.9.

Trading Ideas:

* Zinc trading range for the day is 244.3-247.9.
* Zinc prices gained as support seen amid Social inventories of zinc ingots across seven major markets fell 4000 mt
* Fed Chair Powell expressed that dialling-back of bond purchase could start as early as this year
* Market sentiment was more dovish as tapering was not a signal for early interest rate hike, pulling up metals.

Nickel

Nickel yesterday settled up by 1.99% at 1444.3 as inventories of the industrial metals fell for a fourth straight week and downstream demand picked up. US FDA has approved the Pfizer's COVID-19 vaccine, which may lead to a rapid increase in the number of vaccinations in US, and the market pessimism has eased. The supply of NPI and nickel ore is expected to remain tight, but the prices of ferrochrome has dropped, and the stainless steel costs has been falling. Nickel briquette stocks decreased on the week as downstream purchase increased at lower prices, but the premiums of nickel briquette shrank. If the inventories continue to fall, the premiums may rise back to over 1,000 yuan/mt. The production of new energy vehicles is expected to be low due to the serious shortage of chips. On the data front, US personal expenditures in July decelerated while price index rose. Consumer Confidence Index was still sluggish approaching end of August. Inflation and the COVID-19 have both brought down market expectations for an early tapering decision. The global nickel market deficit narrowed to 20,100 tonnes in June compared a shortfall of 23,600 tonnes in May, data from the International Nickel Study Group (INSG) showed. Technically market is under short covering as market has witnessed drop in open interest by -4.03% to settled at 1547 while prices up 28.2 rupees, now Nickel is getting support at 1426 and below same could see a test of 1407.7 levels, and resistance is now likely to be seen at 1454.8, a move above could see prices testing 1465.3.

Trading Ideas:
* Nickel trading range for the day is 1407.7-1465.3.
* Nickel gained as inventories of the industrial metals fell for a fourth straight week and downstream demand picked up.
* US FDA has approved the Pfizer's COVID-19 vaccine, which may lead to a rapid increase in the number of vaccinations in US, and the market pessimism has eased.
* The supply of NPI and nickel ore is expected to remain tight, but the prices of ferrochrome has dropped, and the stainless steel costs has been falling.

Aluminium

Aluminium yesterday settled up by 0.83% at 211.9 boosted by Chinese supply worries. Support also seen amid an upbeat sentiment after U.S. Federal Reserve Chairman Jerome Powell struck a more dovish tone in a long-awaited speech. A prefecture in China's Xinjiang region has imposed output limits on five aluminium smelters starting from August as part of efforts to stamp out illegal production. The move followed several aluminium output disruptions due to power curbs in China earlier this year. China's state planner, the National Development and Reform Commission, said on Friday it would encourage aluminium smelters in the country to increase their use of non-hydropower forms of renewable energy, such as wind and solar power, potentially disrupting a trend to move to hydropower-rich regions such as Yunnan. Powell's wait-and-see approach in his address on Friday gave investors and market participants some reassurance that the central bank's extraordinary efforts to prop up the economy were likely to support riskier assets a while longer. The National Reserve Bureau disclosed that the third batch of government reserves are scheduled to be released soon with an amount of 70000 mt, slightly lower than the previous round of 90000 mt. The news come out one month and 6 days after the second batch was announced. Technically market is under fresh buying as market has witnessed gain in open interest by 4.06% to settled at 1972 while prices up 1.75 rupees, now Aluminium is getting support at 210.5 and below same could see a test of 209 levels, and resistance is now likely to be seen at 214, a move above could see prices testing 216.

Trading Ideas:
* Aluminium trading range for the day is 209-216.
* Aluminium prices rose boosted by Chinese supply worries.
* Support also seen amid an upbeat sentiment after U.S. Federal Reserve Chairman Jerome Powell struck a more dovish tone in a long-awaited speech.
* A prefecture in China's Xinjiang region has imposed output limits on five aluminium smelters starting from August as part of efforts to stamp out illegal production

Mentha oil 

Mentha oil yesterday settled up by 0.74% at 938.5 on low level buying after prices dropped as average yield in Barabanki is improved by 5-6 kgs per acre due to better weather. Pressure seen arrivals likely to increase due to favourable weather conditions. Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days. Last week, prices rallied. The Lucknow-based Central Institute of Medicinal and Aromatic Plants estimates that this adverse effect of rains on the crop is expected to reduce production by 30% in the last two weeks. The crop is prone to rain because the leaves of the crop start falling due to waterlogging in the field. Most of the farmers have planted Mentha crops and this rain is not less than acid for 50 percent of Mentha crop. Last month, support seen due to the rotting of the crop due to stagnant water in the field. The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting. Due to drowning in the water, the rows have started to wither. With the harvesting of the crop, oil extraction work has also started. In Sambhal spot market, Mentha oil dropped by -28.1 Rupees to end at 1019.3 Rupees per 360 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.16% to settled at 1218 while prices up 6.9 rupees, now Mentha oil is getting support at 933.1 and below same could see a test of 927.6 levels, and resistance is now likely to be seen at 942, a move above could see prices testing 945.4.

Trading Ideas:
* Mentha oil trading range for the day is 927.6-945.4.
* In Sambhal spot market, Mentha oil dropped  by -28.1 Rupees to end at 1019.3 Rupees per 360 kgs.
* Mentha oil gained on low level buying after prices dropped as average yield in Barabanki improved
* Pressure seen arrivals likely to increase due to favourable weather conditions.
* The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting.

Soyabean

Soyabean yesterday settled up by 3.07% at 7993 on short covering and as in Marathwada, there were concerns about mosaic virus, as well as infestation of pink and American bollworm. Meanwhile, soybean has now overtaken cotton to become the number one crop in the state and has been sown on 44.73 lakh hectares. In recent sessions prices trading with weakness since last week after Brazil said that they will be reducing there mandatory bio-diesel blend to 10% from 12%. Brazilian Minister of Mines and Energy Bento Albuquerque announced last week a temporary reduction in the mandatory biodiesel blending level to 10% from the current 12%. The reduction will be effective for volumes negotiated in the 75th biodiesel auction, which should deliver diesel in the months of September and October 2020. Pressure also seen amid weakness in overseas prices as rains across a key U.S. growing region tempered fears about global supplies. The U.S. Department of Agriculture reported daily export sales 133,000 tonnes of soybeans to China and 132,150 tonnes of soybeans to unknown destinations, all for delivery in the 2021/22 marketing year. India has relaxed import rules to allow shipments of 1.2 million tonnes of genetically modified (GMD) soymeal, the government said, a move that could help the poultry industry after animal feed prices tripled in a year. At the Indore spot market in top producer MP, soybean gained 466 Rupees to 9974 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -9.26% to settled at 17190 while prices up 238 rupees, now Soyabean is getting support at 7798 and below same could see a test of 7602 levels, and resistance is now likely to be seen at 8125, a move above could see prices testing 8256.

Trading Ideas:

* Soyabean trading range for the day is 7602-8256.
* Soyabean gained on short covering and as in Marathwada, there were concerns about mosaic virus, as well as infestation of pink and American bollworm.
* In recent sessions prices trading with weakness since last week after Brazil said that they will be reducing there mandatory bio-diesel blend to 10% from 12%.
* USDA reported daily export sales 133,000 tonnes of soybeans to China and 132,150 tonnes of soybeans to unknown destinations, all for delivery in the 2021/22 marketing year.
* At the Indore spot market in top producer MP, soybean gained  466 Rupees to 9974 Rupees per 100 kgs.
 

Soyaoil 

Ref.Soyaoil yesterday settled down by -0.36% at 1399.2 amid profit booking after prices seen supported by lingering concerns over tight supply. The Government has reduced the import duty of Soyadegum oil to 7.50 percent from 15 percent earlier. Edible oil prices are likely to remain elevated till the arrival of new crop in the October-November period, industry officials said. The rates are unlikely to come down anytime soon as India meets more than half of domestic demand through imports, BV Mehta, executive director, Solvent Extractors Association of India (SEA) said. The soybean oil price has surged due to efforts of making renewable bio-diesel fuel from it in the US, Brazil and other countries. Total oilseeds production in the country during 2020-21 is estimated at record 36.10 million tonnes which is higher by 2.88 million tonnes than the production during 2019-20. Further, the production of oilseeds during 2020-21 is higher by 5.56 million tonnes than the average oilseeds production of 30.55 million tonnes. India's imports of sunflower oil could rise to a record in 2021/22 as potential bumper crops in Russia and Ukraine pull prices below rival soyoil, making it lucrative for price-sensitive buyers from the subcontinent, industry officials said. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1420 Rupees per 10 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 1.54% to settled at 26370 while prices down -5 rupees, now Ref.Soya oil is getting support at 1394 and below same could see a test of 1388 levels, and resistance is now likely to be seen at 1408, a move above could see prices testing 1416.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1388-1416.
* Ref soyoil dropped amid profit booking tracking weakness in soyabean prices and other oilseed counters
* The Government has reduced the import duty of Soyadegum oil to 7.50 percent from 15 percent earlier.
# Edible oil prices are likely to remain elevated till the arrival of new crop in the October-November period, industry officials said.
# At the Indore spot market in Madhya Pradesh, soyoil was steady at 1420 Rupees per 10 kgs.

Crude palm Oil 

Crude palm Oil yesterday settled down by -0.09% at 1142.1 on slow export shipments and industry estimates of an increase in August output. Exports of Malaysian palm oil products for Aug. 1-25 fell 13.1 percent to 999,668 tonnes from 1,150,452 tonnes shipped during Jul. 1-25, cargo surveyor Societe Generale de Surveillance said. Indonesia's plans to raise the mandatory bio-content in its palm oil-based biodiesel to 40% may face further delays, after the high price of the vegetable oil has made the programme too costly, a senior government official told. Indonesia set its crude palm oil (CPO) export reference price 13% higher in September, Musdhalifah Machmud, the deputy minister for food and agriculture, told. September's CPO is set at $1,185.26 per tonne, up from $1,048.62 a month earlier. This means that the export tax for the edible oil has jumped from $93 per tonne in August to $166 in September. Export levies for CPO, however, remain the same at $175 per tonne. Malaysia's average crude palm oil prices are expected to rise to 3,600 ringgit ($859.19) a tonne this year compared with 2020 due to slower output growth and higher prices of rival soyoil, the nation's palm oil board said. In spot market, Crude palm oil gained by 2 Rupees to end at 1196.5 Rupees.Technically market is under long liquidation as market has witnessed drop in open interest by -1.45% to settled at 3937 while prices down -1 rupees, now CPO is getting support at 1135.4 and below same could see a test of 1128.7 levels, and resistance is now likely to be seen at 1149.4, a move above could see prices testing 1156.7.

Trading Ideas:
* CPO trading range for the day is 1128.7-1156.7.
* Crude palm oil dropped on slow export shipments and industry estimates of an increase in August output.
* Indonesia Sept crude palm oil export reference price, export tax set higher
* Slow palm oil output growth to lift Malaysia's 2021 average prices to 3,600 rgt/T – MPOB
* In spot market, Crude palm oil gained  by 2 Rupees to end at 1196.5 Rupees.

Mustard Seed
Mustard Seed yesterday settled up by 1.59% at 8121 as USDA estimates Canada rapeseed production for marketing year 2021/22 at 16.0 million metric tons (mmt), down 4.2 mmt (21 percent) from last month, 3.0 mmt (16 percent) from last year, and 20 percent below the 5-year average. Harvested area is estimated at 8.7 million hectares, down 3 percent from last month, but 4 percent above last year, and roughly equivalent to the 5-year average. The month-to-month decrease in area is due to the expectation of weather-related abandonment with prospects for hay being the best use. Yield is estimated at 1.84 metric tons per hectare, down 18 percent from last month and 20 percent below the 5-year average. There were reports that the U.S. Environmental Protection Agency (EPA) will recommend lowering the nation's biofuel blending mandates. A European Union Oilseeds and Protein Crops market situation report estimates that the EU will import 6 million metric tons of canola/rapeseed from third countries in 2021-22, 200,000 mt higher than the previous crop year. However, mustard arrivals in its major producing states i.e. Rajasthan, Madhya Pradesh, Uttar Pradesh and Gujarat improved. Production in Canada in 2021 expected to drop by 1.7 million tons to 16.9 million tons. In Alwar spot market in Rajasthan the prices gained 25.75 Rupees to end at 8123.25 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -8.4% to settled at 22890 while prices up 127 rupees, now Rmseed is getting support at 8056 and below same could see a test of 7992 levels, and resistance is now likely to be seen at 8167, a move above could see prices testing 8214.

Trading Ideas:
* Rmseed trading range for the day is 7992-8214.
# Mustard seed gained as USDA estimates Canada rapeseed production down as drought in the Prairies intensifies.
# There were reports that the U.S. Environmental Protection Agency (EPA) will recommend lowering the nation's biofuel blending mandates.
# EU weekly rapeseed imports jumped by 70% to 127k mt, total at 414k mt
# In Alwar spot market in Rajasthan the prices gained 25.75 Rupees to end at 8123.25 Rupees per 100 kg.

Turmeric

Turmeric yesterday settled up by 0.12% at 8122 as support seen on following export demand from Europe, Gulf countries and Bangladesh. Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains. India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough, and ensure that the most important crops for the kharif season have normal sowing. This is good news for agricultural production and food prices. Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices. Mandi arrivals of Turmeric, at all-India level, more than doubled in June 2021 compared to the previous month supported by substantial increase in arrivals in Maharashtra and Telangana. Mandi arrivals had remained sluggish in April and May due to closure of mandis in many regions on account of festival season and Covid related lockdown restrictions. According to the statistics of the Department of Commerce, Government of India, the highest number of 1.84 lakh tonnes of turmeric was exported during the last financial year 2020-21. In Nizamabad, a major spot market in AP, the price ended at 7592.5 Rupees gained 42.5 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -3.3% to settled at 11270 while prices up 10 rupees, now Turmeric is getting support at 7916 and below same could see a test of 7710 levels, and resistance is now likely to be seen at 8312, a move above could see prices testing 8502.

Trading Ideas:
* Turmeric trading range for the day is 7710-8502.
* Turmeric gained as support seen on following export demand from Europe, Gulf countries and Bangladesh.
* Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains.
* India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough.
* In Nizamabad, a major spot market in AP, the price ended at 7592.5 Rupees gained 42.5 Rupees.

Jeera

Jeera yesterday settled up by 0.41% at 14660 due to the forecast of drought in Gujarat-Rajasthan by Skymet. With Gujarat and Rajasthan being the only producers of cumin in the country, the most impact of Skymet's forecast is visible on the cumin market. 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. However, the freight of container-vessels has increased and the shortage of containers is increasing continuously. Despite this, exporters are now exporting by bargaining at FOB price and in some cases the freight of both side containers is being settled. The export of cumin seeds from Turkey and Syria was visible in the international market in July-August every year, due to which the export of Indian cumin decreased after July-August, but due to the very bad condition of cumin crop exports cannot be dome from these two countries in the current year. On the contrary, importers from Syria and Turkey are currently buying cumin seeds from India. There is a lack of rainfall in the cumin growing centers of Rajasthan and Gujarat and due to higher prices of other commodities than cumin in Rabi season, there is a perception that the sowing of cumin is low. In Unjha, a key spot market in Gujarat, jeera edged up by 491.4 Rupees to end at 14754.55 Rupees per 100 kg.Technically market is under short covering as market has witnessed drop in open interest by -3.98% to settled at 5205 while prices up 60 rupees, now Jeera is getting support at 14450 and below same could see a test of 14245 levels, and resistance is now likely to be seen at 14850, a move above could see prices testing 15045.

Trading Ideas:
* Jeera trading range for the day is 14245-15045.
* Jeera prices gained due to the forecast of drought like conditions in Gujarat-Rajasthan.
* India's cumin exports will increase due to less supply from Afghanistan-Syrian
* Export of cumin is expected to reach a record level of 2.50 to 2.75 lakh tonnes in the current year
* In Unjha, a key spot market in Gujarat, jeera edged up by 491.4 Rupees to end at 14754.55 Rupees per 100 kg.

Cotton yesterday settled down by -1.6% at 25770 as cotton production will still be high because of good rains and may touch 350-360 lakh bales despite the area under coverage has gone down by 6-8%, from 133 lakh hectares last year to 125 lakh hectares in the current season. In the domestic market prices are capped as higher supplies in the Gujarat & Maharashtra spot markets due to easing lockdown. Weather may impact soyabean, cotton, sugarcane and paddy crops. High-value and sensitive crops such as soyabean, cotton, sugarcane, and paddy have been affected, he said. In Madhya Pradesh, soyabean crop could be 20 percent in some areas. Cotton sowing is progressing across India for the coming 2021-22 season. Cotton sowing across India has reached 116.17 lakh hectares compared to previous season sowing at 116.38 lakh hectares during the same time. Global Cotton stock for the 2021-22, has been revised lower by 50,000 bales. In the other estimates for 2021-22, as largely offsetting changes in production and consumption do little to offset lower estimated beginning stocks. Egyptian cotton production and exports may rise in marketing year (MY) 2021-22 as the country’s area under cotton harvest is likely to increase to 85,000 hectares, a 30.77 per cent growth over previous MY’s area of 65,000 hectares. The expected increase in cotton production coupled with the rising demand across the world will boost the country’s exports. In spot market, Cotton dropped by -150 Rupees to end at 26970 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 7.51% to settled at 1488 while prices down -420 rupees, now Cotton is getting support at 25510 and below same could see a test of 25240 levels, and resistance is now likely to be seen at 26120, a move above could see prices testing 26460.

Cotton

Cotton yesterday settled down by -1.6% at 25770 as cotton production will still be high because of good rains and may touch 350-360 lakh bales despite the area under coverage has gone down by 6-8%, from 133 lakh hectares last year to 125 lakh hectares in the current season. In the domestic market prices are capped as higher supplies in the Gujarat & Maharashtra spot markets due to easing lockdown. Weather may impact soyabean, cotton, sugarcane and paddy crops. High-value and sensitive crops such as soyabean, cotton, sugarcane, and paddy have been affected, he said. In Madhya Pradesh, soyabean crop could be 20 percent in some areas. Cotton sowing is progressing across India for the coming 2021-22 season. Cotton sowing across India has reached 116.17 lakh hectares compared to previous season sowing at 116.38 lakh hectares during the same time. Global Cotton stock for the 2021-22, has been revised lower by 50,000 bales. In the other estimates for 2021-22, as largely offsetting changes in production and consumption do little to offset lower estimated beginning stocks. Egyptian cotton production and exports may rise in marketing year (MY) 2021-22 as the country’s area under cotton harvest is likely to increase to 85,000 hectares, a 30.77 per cent growth over previous MY’s area of 65,000 hectares. The expected increase in cotton production coupled with the rising demand across the world will boost the country’s exports. In spot market, Cotton dropped by -150 Rupees to end at 26970 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 7.51% to settled at 1488 while prices down -420 rupees, now Cotton is getting support at 25510 and below same could see a test of 25240 levels, and resistance is now likely to be seen at 26120, a move above could see prices testing 26460.

Trading Ideas:
* Cotton trading range for the day is 25240-26460.
* Cotton dropped as cotton production will still be high because of good rains and may touch 350-360 lakh bales
* Cotton sowing across India has reached 116.17 lakh hectares compared to previous season sowing at 116.38 lakh hectares during the same time.
* Exports are 200,000 bales lower than in July, and ending stocks are 300,000 bales lower, equating to 17% of expected use, the same as in 2020/21.
* In spot market, Cotton dropped  by -150 Rupees to end at 26970 Rupees.

Chana

Chana yesterday settled down by -2.3% at 5189 as demand is likely to recover in the second half of 2021, as festivals and weddings are likely to boost retail purchases in the fourth quarter. Also from 15th August many states in India are facing long-awaited relaxations from Independence Day on Sunday. Malls can now reopen, while restaurants, gyms, salons and spas are permitted to function at 50% capacity till 10pm, helping ease livelihoods. Meanwhile support also seen after the release of all India pulses sowing data on Friday, revealed that all India, about 126.98 lakh ha area coverage has been reported compared to corresponding week’s 127.40 lakh ha. Thus 0.42 lakh ha less i.e 0.33% area has been covered compared to last year. Last week PM Narendra Modi released the ninth installment of financial benefit under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), enabling the transfer of more than Rs 19,500 crore to more than 9.75 crore beneficiaries which will raise the sentiments among the Farmers. In Delhi spot market, chana gained by 5.4 Rupees to end at 5317.9 Rupees per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -6.32% to settled at 61780 while prices down -122 rupees, now Chana is getting support at 5135 and below same could see a test of 5080 levels, and resistance is now likely to be seen at 5270, a move above could see prices testing 5350.

Trading Ideas:
* Chana trading range for the day is 5080-5350.
* Chana gained as demand is likely to recover in the second half of 2021, as festivals and weddings are likely to boost retail purchases
* The production of pulses has been increasing during the last three years and the target for 2021-2022 has been set at 23 LMT
* India is likely to receive an average amount of rainfall in August and September, the state-run weather office said
* In Delhi spot market, chana gained  by 5.4 Rupees to end at 5317.9 Rupees per 100 kgs.

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