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Gold

Gold yesterday settled up by 0.31% at 47198 as rising inflation fears cut risk appetite and boosted demand for the safe-haven metal. A global energy crunch has threatened the economic outlook and fanned inflation fears, driving some investors toward safe-haven assets. The Democratic-controlled U.S. House of Representatives is expected to give final approval to a Senate-passed bill temporarily raising the government’s borrowing limit to $28.9 trillion, putting off the risk of default until early December. Democrats, who control the House by a mere four-vote margin, were expected to maintain party discipline and pass the hard-fought, $480 billion debt limit increase, only to face another deadline within weeks for avoiding both a historic debt default and a temporary government shutdown. The Senate's vote last week to raise the limit - often a routine step - turned into a partisan brawl , with Republicans trying to link the measure to President Joe Biden's goal of passing a multitrillion-dollar pair of bills with spending to bolster infrastructure and social services while fighting climate change. Focus is on minutes of the Fed’s Sept. 21-22 policy meeting and the consumer price index, both due on Wednesday. Technically market is under short covering as market has witnessed drop in open interest by -0.93% to settled at 13149 while prices up 147 rupees, now Gold is getting support at 47016 and below same could see a test of 46834 levels, and resistance is now likely to be seen at 47400, a move above could see prices testing 47602.

Trading Ideas:
* Gold trading range for the day is 46834-47602.
* Gold prices rose as rising inflation fears cut risk appetite and boosted demand for the safe-haven metal.
* A global energy crunch has threatened the economic outlook and fanned inflation fears, driving some investors toward safe-haven assets.
* U.S. House expected to pass bill to hike debt ceiling, avert default


Silver

Silver yesterday settled down by -0.26% at 61586 as the dollar held firm on expectations that the Federal Reserve will announce a tapering of its bond purchases next month. U.S. job openings fell in August, but remained significantly high amid labor shortages that are crimping employment growth. Job openings, a measure of labor demand, dropped 659,000 to 10.4 million on the last day of August, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report. Persistent supply chain disruptions and pricing pressures are constraining the global economy's recovery from the COVID-19 pandemic, the International Monetary Fund said as it cut growth outlooks for the United States and other major industrial powers. In its World Economic Outlook, the IMF trimmed its 2021 global growth forecast to 5.9% from the 6.0% forecast it made in July. It left a 2022 global growth forecast unchanged at 4.9%."This modest headline revision, however, masks large downgrades for some countries," the IMF said in the report. The Democratic-controlled U.S. House of Representatives is expected to give final approval to a Senate-passed bill temporarily raising the government’s borrowing limit to $28.9 trillion, putting off the risk of default until early December. Technically market is under fresh selling as market has witnessed gain in open interest by 3.25% to settled at 10768 while prices down -158 rupees, now Silver is getting support at 61153 and below same could see a test of 60719 levels, and resistance is now likely to be seen at 62079, a move above could see prices testing 62571.

Trading Ideas:
* Silver trading range for the day is 60719-62571.
* Silver settled down as the dollar held firm on expectations that the Federal Reserve will announce a tapering of its bond purchases next month.
* U.S. job openings fall to a still-high 10.4 million in August
* IMF cuts global growth outlook as supply bottlenecks hobble pandemic recovery


Crude oil

Crude oil yesterday settled down by -0.21% at 6094 as the IMF trimmed its 2021 global growth forecast to 5.9% from the 6.0% forecast it made in July. It left a 2022 global growth forecast unchanged at 4.9%. Meanwhile, with demand growing as economies recover from pandemic lows, the Organization of the Petroleum Exporting Countries and allied producers, collectively known as OPEC+, are sticking to plans to restore output gradually rather than boost supply quickly. The White House stands by its calls for oil-producing countries to "do more" to support the global economic recovery, an official said, as crude prices hit multi-year peaks. The official said the administration was closely monitoring the cost of oil and gasoline and "using every tool at our disposal to address anti-competitive practices in U.S. and global energy markets to ensure reliable and stable energy markets." Citigroup Inc. said oil prices may hit $90 a barrel at times this winter as gas-to-oil switching drives stockpiles lower. Power prices have risen to records in recent weeks as a rebound in global demand contributed to energy shortages in Asia, Europe and the United States. Technically market is under long liquidation as market has witnessed drop in open interest by -21.08% to settled at 8244 while prices down -13 rupees, now Crude oil is getting support at 6011 and below same could see a test of 5928 levels, and resistance is now likely to be seen at 6168, a move above could see prices testing 6242.

Trading Ideas:
# Crude oil trading range for the day is 5928-6242.
# Crude oil dropped as the IMF trimmed its 2021 global growth forecast to 5.9% from the 6.0% forecast it made in July.
# Energy crunch stokes inflation, economic recovery concerns
# White House stands by calls for OPEC+ to do more on oil prices –official

Nat.Gas

Nat.Gas yesterday settled up by 2.12% at 414.3 after the forecast called for cooler weather and higher heating demand than expected earlier in the day. Warmer-than-normal weather over the past four weeks has already allowed U.S. utilities to stockpile more gas than usual. The European Union is looking at different ways to ensure Ukraine has a steady supply of natural gas this winter and is not exposed to any reduction in Russian output. European Commission President Ursula von der Leyen said reverse flows could come from Slovakia, which since September 2014 has had a special interconnection point with Ukraine. Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to an average of 92.2 billion cubic feet per day (bcfd) so far in October from 91.1 bcfd in September. That compares with a monthly record of 95.4 bcfd in November 2019. Refinitiv projected average U.S. gas demand, including exports, would rise from 84.1 bcfd this week to 85.1 bcfd next week as the weather turns seasonally cooler and more homes and businesses turn on their heaters. Those forecasts, however, were lower than Refinitiv projected. With gas prices near $29 per mmBtu in Europe and $33 in Asia , versus just over $5 in the United States, traders said buyers around the world will keep purchasing all the LNG the United States could produce. Technically market is under short covering as market has witnessed drop in open interest by -15.02% to settled at 3983 while prices up 8.6 rupees, now Natural gas is getting support at 398.6 and below same could see a test of 382.8 levels, and resistance is now likely to be seen at 423.1, a move above could see prices testing 431.8.

Trading Ideas:
* Natural gas trading range for the day is 382.8-431.8.
* Natural gas gained after the forecast called for cooler weather and higher heating demand than expected earlier in the day.
* Warmer-than-normal weather over the past four weeks has already allowed U.S. utilities to stockpile more gas than usual.
*Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to an average of 92.2 bcfd so far in October from 91.1 bcfd in September


Copper

Copper yesterday settled down by -0.78% at 734.95 as soaring energy costs prompted concern that the global economic recovery will be derailed, but signs that supply is tightening kept a lid on losses. Logistics bottlenecks have helped drive copper stocks to “historically low” levels in regions that use the metal. China Evergrande Group missed its third round of bond payments in three weeks, intensifying market fears over contagion. On warrant copper inventories in LME-registered warehouses have fallen to 65,500 tonnes from almost 240,000 in August. Stocks in Shanghai Futures Exchange (ShFE) warehouses at 50,062 tonnes are near 12-year lows and inventories in Chinese bonded warehouses have almost halved since July. The premium for cash copper over the three-month contract on the LME shot to nearly $70 a tonne, the highest since 2015. A premium points to tight supply of metal. Chile's state miner Codelco will produce 2%-3% more copper this year than it had previously expected, despite a strike at its Andina operation, Juan Benavides, chairman of the world's largest copper producer, told. Record high copper prices this year have seen revenues at mining companies soar and unions in Chile pushing for more lucrative contracts, creating tense negotiations that risk strike action and loss of production. Technically market is under long liquidation as market has witnessed drop in open interest by -18.17% to settled at 3622 while prices down -5.8 rupees, now Copper is getting support at 727.8 and below same could see a test of 720.6 levels, and resistance is now likely to be seen at 742.6, a move above could see prices testing 750.2.

Trading Ideas:
* Copper trading range for the day is 720.6-750.2.
* Copper prices fell as soaring energy costs prompted concern that the global economic recovery will be derailed
* Codelco to produce more copper than expected, despite strike
* On warrant copper inventories in LME-registered warehouses have fallen to 65,500 tonnes from almost 240,000 in August.


Zinc

Zinc yesterday settled down by -0.2% at 268.65 amid the stronger expectations of Fed’s tapering the debt purchase. Howeevr, the impacts of the power rationing policy varied in different regions and industries. The global lead and zinc markets will be slightly oversupplied this year and next, the International Lead and Zinc Study Group (ILZSG) said. On the macro front, the China government has issued notice to emphasis the stable supply of electricity related to people’s livelihood and the agriculture industry, which is likely to push up the industrial production costs. On the fundamentals, there has been no signs of intensifying power rationing policy across China, and the zinc prices may stay high amid the comparatively low social inventories. The social inventory of zinc ingots stood at 119,800 mt as of September 30, which has been falling after set a record high at March 15, 2021. China released 150,000 tonnes of industrial metals from its state reserves in the fourth round of sales this year as it continues a campaign to ease supply tightness and tame high commodity prices. The world's top metals consumer offered processors and manufacturers the chance to bid for 30,000 tonnes of copper, 70,000 tonnes of aluminium and 50,000 tonnes of zinc reserves on online platforms operated by state-run China Minmetals Corp and Norinco. Technically market is under long liquidation as market has witnessed drop in open interest by -13.18% to settled at 1541 while prices down -0.55 rupees, now Zinc is getting support at 266.1 and below same could see a test of 263.5 levels, and resistance is now likely to be seen at 271.5, a move above could see prices testing 274.3.

Trading Ideas:
* Zinc trading range for the day is 263.5-274.3.
* Zinc prices dropped amid the stronger expectations of Fed’s tapering the debt purchase.

 *There has been no signs of intensifying power rationing policy across China, and the zinc prices may stay high amid the comparatively low social inventories.
*The global lead and zinc markets will be slightly oversupplied this year and next, the International Lead and Zinc Study Group (ILZSG) said.


Nickel

Nickel yesterday settled down by -0.71% at 1472.7 as supply of nickel sulphate has been sufficient, weighing on prices. However supply worries deepened on the back of Chinese power shortages and rising electricity costs in Europe amid falling inventory levels of the metal. Widespread power shortages in China and higher electricity prices in Europe have dampened production in some sectors of those economies. Kosovo’s sole ferro-nickel producer Newco Ferronikeli said it was shutting down production because of the increase in energy prices. In China, there were concerns that nickel smelters will be forced to curtail output amid power shortages, and a hike in electricity prices is expected to dent margins for many producers, potentially reducing supply. LME nickel inventories fell to 149,412 tonnes, their lowest since December 2019. ShFE stocks were last at 6,422 tonnes, hovering near a record low of 4,455 tonnes. On the fundamentals, domestic nickel ore inventory has been rose slowly, and the supply of raw materials remained tight. Meanwhile, the ferronickel plants were also affected by the power rationing. The tight supply of ferronickel have boosted the demand for nickel plate as an alternative. The output in October is likely to stay stable though the downstream production has been dragged down by production reduction policies. Technically market is under long liquidation as market has witnessed drop in open interest by -13.6% to settled at 1404 while prices down -10.5 rupees, now Nickel is getting support at 1462.7 and below same could see a test of 1452.7 levels, and resistance is now likely to be seen at 1490.5, a move above could see prices testing 1508.3.

Trading Ideas:
* Nickel trading range for the day is 1452.7-1508.3.
* Nickel prices dropped as supply of nickel sulphate has been sufficient, weighing on prices
* Widespread power shortages in China and higher electricity prices in Europe have dampened production in some sectors of those economies.
* Citi lowers nickel 0-3 month target to $17,000/t, with $18,300/t average for 4Q'21


Aluminium

Aluminium yesterday settled up by 0.84% at 244.9 as the supply of domestic aluminium is likely to fall amid multiple factors. First, the operating rates in Qinghai and Ningxia may fall in the month, with almost zero new or resumed operation activities. The recent heavy rainfall in Shanxi has blocked the transportation. Several cities in Henan also implemented the orderly use of power. The power rationing is likely to affect the demand side as well, suppressing the demand in the seasonal high. The inventory of social aluminium ingot is likely to rise slightly to around 850,000 mt by the end of October. Generally speaking, the domestic supply and demand of aluminium will stay weak in the short term. But the supply side will take longer time to recover. Bottlenecks in transportation and energy supply are pushing up costs for global miners but this should be temporary, the head of Antofagasta Minerals said. The city of Harbin announced measures to support property developers and their projects, reassuring investors fearing a damaging debt crisis in China's construction sector. China released 150,000 tonnes of industrial metals from its state reserves in the fourth round of sales this year as it continues a campaign to ease supply tightness and tame high commodity prices. Technically market is under short covering as market has witnessed drop in open interest by -12.28% to settled at 2215 while prices up 2.05 rupees, now Aluminium is getting support at 241.5 and below same could see a test of 238.1 levels, and resistance is now likely to be seen at 247.8, a move above could see prices testing 250.7.

Trading Ideas:
* Aluminium trading range for the day is 238.1-250.7.
* Aluminium prices rose as the supply of domestic aluminium is likely to fall amid multiple factors.
* First, the operating rates in Qinghai and Ningxia may fall in the month, with almost zero new or resumed operation activities.
* The inventory of social aluminium ingot is likely to rise slightly to around 850,000 mt by the end of October.



Mentha oil

Mentha oil yesterday settled down by -1.07% at 921.1 as demand from consumer side is extremely weak and industrial demand is also not picking up. Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts. China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil dropped by -20.7 Rupees to end at 1041.9 Rupees per 360 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -1.29% to settled at 1221 while prices down -10 rupees, now Mentha oil is getting support at 914.4 and below same could see a test of 907.6 levels, and resistance is now likely to be seen at 931.6, a move above could see prices testing 942.

Trading Ideas:
* Mentha oil trading range for the day is 907.6-942.
* In Sambhal spot market, Mentha oil dropped  by -20.7 Rupees to end at 1041.9 Rupees per 360 kgs.
* Mentha oil prices dropped as demand from consumer side is extremely weak and industrial demand is also not picking up.
* Prices got support in last few weeks as due to crop failure and low recovery of oil
* Availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season.


Soyabean

Soyabean yesterday settled up by 0.46% at 5410 supported by strong demand for U.S. supplies of the oilseed. However upside seen limited on the expectation that soon arrival will hit mandi. Support also seen on the news of damages due to rain in key sowing area. Soybean in Indore mandi is at 5787 while 6252 in Kota and 6020 in Nagpur, the soyabean crop is good in the Malwa region of Madhya Pradesh besides some other areas in the State. It is good in Rajasthan and Maharashtra, too as per physical trader. Support also seen in soybean futures by signs of strong exports as more recently harvested supplies became available. The average soybean production estimate was 4.415 billion bushels, up from USDA's September view of 4.374 billion. The USDA said that export sales of soybeans totalled 1.042 million tonnes. The government also said that private exporters reported a sale of 261,264 tonnes of soybeans to Mexico. At the Indore spot market in top producer MP, soybean gained 57 Rupees to 5458 Rupees per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 6.61% to settled at 74160 while prices up 25 rupees, now Soyabean is getting support at 5296 and below same could see a test of 5183 levels, and resistance is now likely to be seen at 5481, a move above could see prices testing 5553.

Trading Ideas:
* Soyabean trading range for the day is 5183-5553.
* Soyabean gains supported by strong demand for U.S. supplies of the oilseed.
* However upside seen limited on the expectation that soon arrival will hit mandi.
* The average soybean production estimate was 4.415 billion bushels, up from USDA's September view of 4.374 billion. The
* At the Indore spot market in top producer MP, soybean gained  57 Rupees to 5458 Rupees per 100 kgs.

Ref.Soyaoil

Ref.Soyaoil yesterday settled flat at 1319.1 as the Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022. This decision has been taken to soften the prices of edible oils in the country and provide relief to consumers. The Ministry said that the stock limits will be decided by the respective state governments depending on local conditions. It has however decided to give exemption to importers and exporters subject to conditions. Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected by the patchy rains in the key producing States of Gujarat and Madhya Pradesh, respectively. Favorable weather over the weekend boosted U.S. harvest, while exports remain capped by terminals on the U.S. Gulf Coast that continue to struggle with power outages and hurricane-led damage as the country heads into its busiest export season. India's vegetable oil imports are likely to contract for the second straight year, the Solvent Extractors' Association of India (SEA) said. Imports in 2020/21 marketing year ending Oct. 31 could fall to 13.1 million tonnes, the lowest in six years, from last year's 13.2 million, B.V. Mehta, SEA executive director, said in a virtual conference. At the Indore spot market in Madhya Pradesh, soyoil was steady at 1364.4 Rupees per 10 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 4.43% to settled at 28260 while prices up 0.1 rupees, now Ref.Soya oil is getting support at 1313 and below same could see a test of 1307 levels, and resistance is now likely to be seen at 1326, a move above could see prices testing 1333.

Trading Ideas:
* Ref.Soya oil trading range for the day is 1307-1333.
* Ref soyoil prices settled flat as Govt. has decided to impose stock limits on edible oils and oilseeds up to March 31, 2022.
* Oilseeds output is also expected to be down a tad at 23.38 mt as soyabean production was affected.
* India’s Sept edible oil stocks at ports and pipelines rose 3.24 percent mom: SEA
* At the Indore spot market in Madhya Pradesh, soyoil was steady at 1364.4 Rupees per 10 kgs.


Crude palm Oil

Crude palm Oil yesterday settled down by -0.22% at 1157.4 as a slump in early October exports outweighed support from tightening inventories. Exports of Malaysian palm oil products for Oct. 1-10 fell 7.5% to 500,381 tonnes from the same period in September, according to AmSpec Agri Malaysia. Exports in October and November are unlikely to sustain the surge seen last month as key buyer India enters the winter season. Importers usually switch to other edible oils during winter as palm oil solidifies at lower temperature. Malaysia's end-September palm oil stocks fell more sharply than expected, down nearly 7% from the month before, as export demand surged while production stayed flat, Malaysian Palm Oil Board data showed. Post is adjusting its MY 2021/22 crude palm oil (CPO) production forecast down 1.5 million metric tons (MT) from the USDA Official estimate to 18.2 million MT. Acute COVID-19 related labor issues are expected to negatively impact the Malaysian palm oil industry as the Government of Malaysia (GoM) has not finalized a decision to allow foreign workers to work in the sector. As the price of CPO is expected to stabilize in 2022, CPO export is forecast to recover slightly to 16.5 million tons, though this recovery will continue to be restrained by production limitations. In spot market, Crude palm oil dropped by -5 Rupees to end at 1207 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 0.54% to settled at 4865 while prices down -2.6 rupees, now CPO is getting support at 1153.4 and below same could see a test of 1149.4 levels, and resistance is now likely to be seen at 1162, a move above could see prices testing 1166.6.

Trading Ideas:
* CPO trading range for the day is 1149.4-1166.6.
* Crude palm oil dropped as a slump in early October exports outweighed support from tightening inventories.
* Exports of Malaysian palm oil products for Oct. 1-10 fell 7.5% to 500,381 tonnes from the same period in September
* Importers usually switch to other edible oils during winter as palm oil solidifies at lower temperature.
* In spot market, Crude palm oil dropped  by -5 Rupees to end at 1207 Rupees.

Turmeric

Turmeric yesterday settled up by 0.05% at 7354 following export demand from Europe, Gulf countries and Bangladesh. However upside seen limited amid prospects of better crop this kharif season along with tepid demand. The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. 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. 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 the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year, but could be higher in the coming months. In Nizamabad, a major spot market in AP, the price ended at 7046.45 Rupees dropped -65.4 Rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 14.05% to settled at 9580 while prices up 4 rupees, now Turmeric is getting support at 7306 and below same could see a test of 7260 levels, and resistance is now likely to be seen at 7418, a move above could see prices testing 7484.

Trading Ideas:
* Turmeric trading range for the day is 7260-7484.
* Turmeric gained following export demand from Europe, Gulf countries and Bangladesh.
* However upside seen limited amid prospects of better crop this kharif season along with tepid demand.
* The areas where turmeric has been sown have received adequate rainfall and are expected to produce well.
* In Nizamabad, a major spot market in AP, the price ended at 7046.45 Rupees dropped -65.4 Rupees.


Jeera

Jeera yesterday settled up by 1.27% at 14795 as 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 upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels. With the forecast of normal rains in the western region during September to November, the sowing of cumin seeds in Gujarat and Rajasthan may increase. In 2021 (January-June), the country has exported more than 1.50 lakh tonnes of cumin as compared to 1.3 lakh tonnes in the same period last year. Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year. Recent estimates state that cumin production has slumped by 60% in Iran’s Razavi Khorasan Province due to severe drought and unusually cold weather coupled with an early spring. Rainfall ranges 63% lower than last year this season so far. Temperatures ranged 3.1-0.4C (37.58-32.72F) lower between October 2020 and April 2021 than in the same period in 2019/2020 according to official statistics. Extensive crop losses seen, the early onset of spring in February also caused serious damage to production. In Unjha, a key spot market in Gujarat, jeera edged up by 173.35 Rupees to end at 14440 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 9.25% to settled at 6165 while prices up 185 rupees, now Jeera is getting support at 14560 and below same could see a test of 14320 levels, and resistance is now likely to be seen at 15100, a move above could see prices testing 15400.

Trading Ideas:
* Jeera trading range for the day is 14320-15400.
* Jeera gained as the export of cumin is increasing continuously and in the coming days there are signs of increasing the export.
* However upside seen limited as adequate stock with traders and farmers may keeping prices under pressure at higher levels.
* India's cumin exports will increase due to less supply from Afghanistan-Syrian
* In Unjha, a key spot market in Gujarat, jeera edged up by 173.35 Rupees to end at 14440 Rupees per 100 kg.


Cotton

Cotton yesterday settled up by 0.26% at 30550 due to huge demand of the cotton from China, which is the largest importer of the cotton crop, as well as from the local spinning industry. Prices rose amid farmers expecting the lowest production of cotton in the past five years due to the attack of pink bollworm pest in some parts, surplus rain in Haryana’s cotton belt in August and September months and overall less area under cotton crop in the region this year. According to the Cotton Corporation of India (CCI) and the Indian Cotton Association Limited (ICAL), this year cotton was sown on total of 16.99 lakh hectares (LH) in north region, including 3.03 LH in Punjab, which has witnessed an increase of around 52,000 hectares this year against last year, 6.88 LH in Haryana, which is 49,000 hectares less than the last year, and 7.08 LH in Rajasthan, including 3.44 LH and 3.64 LH in upper and lower Rajasthan, respectively. After the attack of pink bollworm in several parts of the cotton belt of the three states, damage due to rain, the expected production from these three states is around 52.89 lakh bales this year which would be around 10 lakh bales less than last year. In spot market, Cotton gained by 300 Rupees to end at 28860 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -3.15% to settled at 2092 while prices up 80 rupees, now Cotton is getting support at 30170 and below same could see a test of 29800 levels, and resistance is now likely to be seen at 30950, a move above could see prices testing 31360.

Trading Ideas:
* Cotton trading range for the day is 29800-31360.
* Cotton prices gained due to huge demand of the cotton from China, which is the largest importer of the cotton crop, as well as from the local spinning industry. Prices
* Prices rose amid farmers expecting the lowest production of cotton in the past five years due to the attack of pink bollworm pest in some parts
* Due to dip in production, local industry too wants to purchase as much cotton is available in the mandis.
* In spot market, Cotton gained  by 300 Rupees to end at 28860 Rupees.