Gold rallied to eight week highs to test 28577 in the morning session as the US dollar weakened on strong euro zone economic data and hopes for a Greek debt settlement but finally settled at 28419 as pressure on MCX seen after rupee firmness. Driving the dollar lower thus gold higher, the ISM’s mfg index climbed to 54.1 in January from 53.1 in December. 50 is the dividing line between economic growth and contraction. Manufacturing also increased in China with the official PMI growing to 50.5 in January from 50.3 in December, beating the consensus forecast for a sub 50 reading. News from the Greek debt talks indicates that progress is being made in terms of a sweetener tied to a revival in economic growth that would soften the blow of lower bond interest rates. Investors are awaiting additional details. Earlier, Greek newspaper Kathimerini reported that the head of the IMF`s mission to Athens said talks on a new loan program for the island country will wrap up in several days. Now technically market is trading in the range as RSI for 18days is currently indicating 54.66, where as 50DMA is at 28172 and gold is trading above the same and getting support at 28342 and below could see a test of 28264 level, And resistance is now likely to be seen at 28537, a move above could see prices testing 28654.

Trading Ideas:

Gold trading range is 28264-28654.

Gold rallied to eight week highs international but rupee firmness checking the prices on MCX.

Driving the dollar lower thus gold higher, the ISM’s mfg index climbed to 54.1 in January from 53.1 in December

Greek newspaper Kathimerini reported that the head of the IMF`s mission to Athens said talks on a new loan program

 

 

Silver prices rose by nearly 0.72% as surprisingly robust manufacturing figures out of the US, Europe and China sparked hopes that green shoots of recovery were sprouting in the global economy, which wetted an appetite for risk that sent the greenback falling and silver rising. The ISM’s U.S. mfg index jumped to 54.1 vs 53.1 in Dec, and while slightly below some market expectations, the figure did break even further away from the 50 mark, the boundary between economic growth and contraction. The Markit Economics mfg data based on a survey of PMI in the euro region rose to 48.8 in Jan from 46.9 in Dec. Positive output figures in Germany, the UK and China emerged as well, fueling the risk-on session. Mfg figures prompted investors to sell their dollar positions and go long on stocks and currencies worldwide, thus ditching greenback positions in the process. Since bullion often trades inversely with the dollar, the risk-on session prompted a run to the silver throughout the early portions of the day. Some market watchers warned, however, that the silver  rally could cool. Now technically market is trading in the range as RSI for 18days is currently indicating 61.59, where as 50DMA is at 53970 and silver is trading above the same and getting support at 56404 and below could see a test of 55974 level, And resistance is now likely to be seen at 57216, a move above could see prices testing 57598.

Trading Ideas:

Silver trading range is 55974-57598.

Silver prices rose as surprisingly robust manufacturing figures out of the U.S., Europe and China sparked hopes.

The ISM’s U.S. mfg index jumped to 54.1 vs 53.1 in Dec, and while slightly below some market expectations

Positive output figures in Germany, the UK and China emerged as well, fueling the risk-on session

 

 

Crude oil once again dropped by -1.36% to settled at 4861 as data indicated that US supplies advanced more than expected and weaker than forecast US economic numbers. Crude prices fell from their highs on US supply data stating crude oil inventories climbed by 4.2mbls in the week ended Jan 27, beating expectations for a 3.0mbl increase. Total crude oil inventories stood at 338.9mbls as of last week, booking the highest level since the week ended Nov 4. Adding to the bearish oil environment, the ISM’s US mfg index climbed to 54.1 in January from 53.1 in Dec. 50 is the dividing line between economic growth and contraction. Payroll processing firm, ADP reported that non farm private payrolls climbed to a seasonally adjusted 170k in Jan, missing expectations for an increase of 190k. Strong mfg data from the euro zone and China worked to support oil prices earlier in the session. Oil traders continue to watch Iranian and Sudanese tensions very closely due to supply disruption concerns. Now technically market is trading in the range as RSI for 18days is currently indicating 31.69, where as 50DMA is at 5187.86 and crude is trading below the same and getting support at 4834 and below could see a test of 4806 level, And resistance is now likely to be seen at 4910, a move above could see prices testing 4958.

Trading Ideas:

Crude trading range is 4806-4958.

Crude oil dropped as data indicated that supplies advanced more than expected and weaker than forecast numbers.

Oil traders continue to watch Iranian and Sudanese tensions very closely due to supply disruption concerns.

EIA’s weekly crude oil report showed U.S. commercial crude oil inventories rose 4.20 million barrels

 

 

Copper yesterday traded with the positive node and settled 0.37% up at 418.7 regained strength after the release of data showing slowing contraction in euro zone mfg activity, while renewed optimism over talks between Greece and its bondholders provided further support. The euro zone’s PMI rose to 48.8 in Jan, compared to a preliminary reading of 48.7 and up from 46.9 in Dec. Germany PMI’s came in at 51.0, indicating expansion and above an earlier estimate of 50.9. Meanwhile, the dollar came under pressure after Greek newspaper Kathimerini reported that the head of the IMF mission to Athens said talks on a new loan program for the country will conclude within a matter of days. Inthe other story workers of one union at Teck Resources Ltd's Chilean Quebrada Blanca mine, which produced 86,200 tonnes of copper in 2010, ratified strike action after contract negotiations with the firm broke down, a union leader said late on Tuesday night. However, a separate report from HSBC indicated that Chinese mfg activity contracted for the third consecutive month. For today's session market is looking to take support at 415.1, a break below could see a test of 411.6 and where as resistance is now likely to be seen at 420.7, a move above could see prices testing 422.7.

Trading Ideas:

Copper trading range is 411.6-422.7.

Copper settled up regained strength after the release of data showing slowing contraction in euro zone mfg activity

Workers at Teck Resources Ltd's Chilean mine, ratified strike action after contract negotiations with the firm broke down

Copper daily stocks at Shanghai exchange came up by 1402 tonnes

 

 

Zinc yesterday traded with the positive node and settled 0.19% up at 104.7 yesterday LME zinc prices once dipped to USD 2,070/mt ahead of manufacturing PMI for major economies was better than expected, with European economic data showing the manufacturing activity is improving. Meanwhile, US economic data shows that the employees in US private sector grew steadily, and construction spending increased as well. As a result, LME zinc prices climbed gradually to above the 10dma, with prices finally closing at USD 2,117.5/mt, up USD 12.5/mt. January PMI announced by global major economies was better than market expectation, indicating that global economy is recovering. The US PMI announced by ISM was 54.1, and the PMI was 50.5 from China, 51.0 from Germany, indicating expansion of manufacture activities. In addition, the US private sector payrolls for January increased by 170,000, in line with market expectation. The global manufacture data and the US employment data both advanced, boosting market expectation over demand for industrial commodities and risk appetite. For today's session market is looking to take support at 103.4, a break below could see a test of 102 and where as resistance is now likely to be seen at 105.7, a move above could see prices testing 106.6.

Trading Ideas:

Zinc trading range is 102-106.6.

Zinc gained with European economic data showing the manufacturing activity is improving

US economic data shows that employees in US private sector grew steadily, and construction spending increased as well

Workers at Peruvian miner Milpo's El Porvenir zinc and lead unit ended a strike after six days off the job

 

 

Nickel yesterday traded with the positive node and settled 0.31% up at 1042.7 tracking LME nickel which opened at USD 20,710/mt and closed at USD 21,039/mt overnight, up by USD 302/mt from a day earlier, with the highest price at USD 21,150 mt and the lowest price at USD 20,549/mt. China’s PMI for January was above 50, but market was less encouraged by the data and LME nickel prices still fluctuated during Asian trading hours. However, LME nickel prices advanced to certain extent and finally closed at USD 21,039/mt from positive PMI from Germany, the UK and the US. Upbeat PMI from major economies boosted market. However, the unclear trend of debt sales in the euro zone and lingering Greek debt crisis significantly dampened upward momentum of LME nickel prices.  Meanwhile, US economic data shows that the employees in US private sector grew steadily, and construction spending increased as well.In yesterday's trading session nickel has touched the low of 1023.5 after opening at 1036, and finally settled at 1042.7. For today's session market is looking to take support at 1029.5, a break below could see a test of 1016.3 and where as resistance is now likely to be seen at 1049.9, a move above could see prices testing 1057.1.

Trading Ideas:

Nickel trading range is 1016.3-1057.1.

Nickel prices advanced and closed above 1040 level as support from positive PMI from Germany, the UK and the US.

Upbeat PMI from major economies boosted market, however, the unclear trend of debt sales in the euro zone linger.

China’s PMI for January was above 50, but market was less encouraged by the data

 

 

Guarseed yesterday we have seen that market has moved 3.24% on buying by exporters and traders expectation of further rise in prices. Government data shows guar gum export is growing at very good rate and is likely to keep prices firm for short term. Guar gum exports from India rose more than 75 percent to 348,000 tonnes from April to October 2011, the government data showed. The exports nearly doubled to 403,000 tonnes in the financial year ended in March 2011. Good demand from the U.S. and Europe for guar gum, a guar seed by-product that is mostly used as a controlling agent in crude oil drilling, and a lower harvesting are pushing the prices up. The prices have more than doubled since November. Lower production prospects, moderate arrivals and any further strength in Dollar are likely to support the market Fundamentals later on though some more corrections in the short term cannot be ruled out. After harvesting a record 15 lakh tonnes of Guar crop in Rajasthan in 2010-11season (Oct 10- Sep 11), output in the current season has declined to around 12.09 lakh tonnes. In Jodhpur guarseed prices gained 421.15 rupees to 12593.95 rupees per 100 kg. Market has opened at 12200 & made a low of 12115 versus the day high of 12648. The total volume for the day was at 29850 lots and the open interest was at 44000.Now support for the guarseed is seen at 12237 and below could see a test of 11910. Resistance is now likely to be seen at 12770, a move above could see prices testing 12976.

Trading Ideas:

Guarseed trading range is 11910-12976.

Guarseed rose on buying by exporters and traders expectation of further rise in prices

Guar gum exports from India rose more than 75 percent to 348,000 tonnes from April to October 2011

NCDEX accredited warehouses guarseed stocks dropped by 280 tonnes to 62444 tonnes.

In Jodhpur guarseed prices gained 421.15 rupees to 12593.95 rupees per 100 kg.

 

 

Pepper February delivery dropped Rs 175 and settled at Rs 29300/quintal on subdued export demand and on expectations fresh arrivals from the new season crop will improve in coming days. Supplies from the new season crop have started arriving in small quantities in southern Kerala and Karnataka states. Local supplies are expected to improve in coming days. New crop arrivals from Vietnam is also likely to start by Feb. end or March. However with Indian production expected lower due to ad-verse weather, lower acreage and a fall in productivity, any rise in exports could support the prices at these lower levels. There are expectations of some more corrections in the short term as higher production estimates are keeping pressure on the market sentiments. Medium term trend however looks positive on expected rise in export demand. As per IPC latest estimates, global Pepper production expected to rise to 3,20,000 tonnes in 2012 vs 2,98,000 tonnes this year a rise of 7.2%. Global exports expected to rise to 2.46 lakh tonnes vs 2.42 lakh tonnes in 2011. Spot pepper dropped -136.2 rupees to 30861.15 rupees per 100 kg in Kochi market. The contract touched the intra day high of Rs 29800/quintal while low of Rs 28880/quintal. Now support for the pepper is seen at 28853 and below could see a test of 28407. Resistance is now likely to be seen at 29773, a move above could see prices testing 30247.

Trading Ideas:

Pepper trading range is 28407-30247.

Pepper dropped on subdued export demand and on expectations fresh arrivals from new season crop will improve

New crop arrivals from Vietnam is also likely to start by Feb. end or March

NCDEX accredited warehouses pepper stocks dropped by 26 tonnes to 4032 tonnes.

Spot pepper dropped -136.2 rupees to 30861.15 rupees per 100 kg in Kochi market.

 

 

Menthaoil February contract dropped Rs 21.1 and settled at Rs 1577 on intraday profit booking though good demand from the International markets and the domestic pharmaceutical Industries was noted. Traders expect an overall Bullish trend to prevail in the markets as arrivals in the mandis remained moderately low. The trend is likely to remain volatile in the short term as the higher levels too have not been sustainable. But medium term sentiments look positive on an expected pick up in demand in coming weeks. Rise in demand in the mandis on the domestic and the export front from European countries and China continued to support the rates. On 31th January total stock of mentha oil at MCX-monitored warehouses at Chandausi was 62,933 kg of which 53,584 kg was physical stock and demat stock was 9,349 kg. At Barabanki, the total stock was 7, 38,248 kg of which, physical stock accounted for 5, 96, 755 and demat stock was 1, 41,493 kg. The contract made intraday low of Rs 1571.6 a kg and high of Rs 1619 a kg with the volume of 10609 and total open interest for the same contact was at 4086.Now support for the menthol is seen at 1559.4 and below could see a test of 1541.8. Resistance is now likely to be seen at 1606.8, a move above could see prices testing 1636.6.

Trading Ideas:

Menthaoil trading range is 1541.8-1637.

Menthaoil spot is at 1652/-.Spot market is up by Rs.7/-.

Mentha oil prices dropped on profit booking though good demand from the International markets

The trend is likely to remain volatile in the short term as the higher levels too have not been sustainable

On 31th January total stock of mentha oil at MCX warehouses at Barabanki was 7, 38,248 kg

 

 

Soyabean yesterday we have seen that market has moved 0.24% on short covering amid estimates of lower production in South America following a severe drought. Soybean prices in spot markets started declining from mid-week on rupee appreciation against the US dollar. Reports of ban on Indian oilmeal imports by China also adversely affected the Indian market. Across Madhya Pradesh, biggest soybean producing state in India, arrivals in the beginning of the week were 125,000 bags. Arrivals in Rajasthan and Maharashtra started the week with 80,000 and 40,000 bags respectively. At the Indore spot market in top producer MP, soybean gained 11 Rs to 2477Re per 100 kgs. Market has opened at 2460 & made a low of 2453 versus the day high of 2479. The total volume for the day was at 77070 lots and the open interest was at 206910.Support for soyabean is at 2447 below that could see a test of 2437. Resistance is now seen at 2473 above that could see a resistance of 2489.

Trading Ideas:

Soyabean trading range is 2437-2489.

Soybean rose on short covering amid estimates of lower production in South America

Reports of ban on Indian oilmeal imports by China also adversely affected the Indian market

NCDEX accredited warehouses soyabean stocks gained by 1003 tonnes to 47827 tonnes.

At the Indore spot market in top producer MP, soybean gained 11 Rs to 2477Re per 100 kgs.

 

 

Chana gained Rs 48 and settled at Rs 3233 per quintal on buying by local traders, who expect lower harvest in the current season. The government data shows chana harvest could fall in Maharashtra, Karnataka and Rajasthan, and this is providing support to prices. Chana sowing has declined 4 percent in ongoing rabi (winter sowing) season to 8.9 million hectares as of Jan 27, government data showed. Lesser winter rain in key growing areas has impacted the yields and this could result in a decline in overall harvesting of the pulse. Lower Pulses production prospect reports kept supporting prices while lack of significant demand prevented a major uptrend. Reports of decline in Pulses production especially Tur from states like AP, Maharashtra and Karnataka due to reported lower rainfall activities there, could support Chana rates in medium term but short term trend looks weak. As per IPGA latest reports, Pulses production during current fiscal is expected to fall by 5-7% from 18.3 million tonnes in 2010-11 due to inadequate rains in some growing areas. The total daily arrivals of chana were hovering at the levels of around 100000 bags in the entire major mandies. In Delhi spot market, chana jump up by 84.4 rupee to end at 3300 rupee per 100 kgs. The volume was noted at 85250 lots. Support for chana is at 3192 below that could see a test of 3150. Resistance is now seen at 3270 above that could see a resistance of 3306.

Trading Ideas:

Chana trading range is 3150-3306.

Chana rose on buying by local traders, who expect lower harvest in the current season

The government data shows chana harvest could fall in Maharashtra, Karnataka and Rajasthan

NCDEX accredited warehouses chana stocks dropped by -2284 tonnes to 23496 tonnes.

In Delhi spot market, chana jump up by 84.4 rupee to end at 3300 rupee per 100 kgs.

 

 

Turmeric yesterday we have seen that market has moved 1.51% as overseas demand for the new season crop outweighed fresh supplies and estimates of higher output. Buying is good from the overseas and local buyers. Fresh supplies have started coming in spot but it is not weighing on sentiment because of high moisture content. Supplies from the new season crop have started coming in the spot market in small quantities and are likely to improve in coming days. Turmeric cultivation in India usually starts by the end of May and continues until August and a lengthy harvesting season begins in January. Higher production prospects and better stocks could however keep pressure on the market sentiments as markets trade with high volatility. Good Monsoon reports in AP has reportedly keeping the sowing activities proper. The area sown would however depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc. In Nizamabad, a major spot market in AP, the price ended at 4733.35 rupees gained by 25.9 rupees. Market has opened at 4638 & made a low of 4610 versus the day high of 4736. The total volume for the day was at 5390 lots and the open interest was at 10525.Support for turmeric is at 4625 below that could see a test of 4555. Resistance is now seen at 4751 above that could see a resistance of 4807.

Trading Ideas:

Turmeric trading range is 4555-4807.

Turmeric rose as overseas demand for new season crop outweighed fresh supplies

Fresh supplies have started coming in spot but it is not weighing on sentiment because of high moisture content

Supplies from the new season crop have started coming in the spot market in small quantities

In Nizamabad, a major spot market in AP, the price ended at 4733.35 rupees gained by 25.9 rupees.

 

 

Jeera February contract dropped Rs 305 and settled at Rs 14440 per quintal due to expectations of higher production in 2012 on a rise in area under cultivation top producer Gujarat state. Production is expected to increase by 15-20 percent this year due to higher area and good weather. Traders expect fresh supplies from the new season crop to further weigh on prices. Jeera is cultivated during winter from October to December and harvesting starts from February. Latest sowing data from Gujarat indicates as on 27th Dec, sowing completed in ~2.82 lakh ha vs 2.38 lakh ha last year. As per Rajasthan Agricultural Minis-try, the sowing area till 20th Dec had been reported at 3.03 lakh ha vs 3.30 lakh ha same period last year. Productivity of crops in both states however expected to fall due to adverse weather conditions as per reports. The better crop expectations from Gujarat and Rajasthan could be hampered by reports of adverse weather conditions in growing areas that could affect the productivity to some extent as per traders. The total arrivals of jeera jumped to Rs 5,000 bags from 4,000 bags on Tuesday. In Unjha, a key spot market in Gujarat, jeera dropped -64.7 rupees to end at 15300 rupees per 100 kg. The contract made intraday low of Rs 14390 a kg and high of Rs 14865 a kg. Support for jeera is at 14265 below that could see a test of 14090. Resistance is now seen at 14740 above that could see a resistance of 15040.

Trading Ideas:

Jeera trading range is 14090-15040.

Jeera ended down due to expectations of higher production in 2012 on a rise in area under cultivation

Production is expected to increase by 15-20 percent this year due to higher area and good weather

NCDEX accredited warehouses jeera stocks gained by 46 tonnes to 7378 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -64.7 rupees to end at 15300 rupees per 100 kg.

 

 

Natural gas yesterday traded with the negative node and settled -4.7% down at 119.5 in the line of expectation as US over supply concerns and a mild winter continue to weigh on the heating fuel. Natural gas prices have dropped nearly 17% since Monday. Yesterday, prices booked the largest January loss in three years spiking down 7.8% on forecasts of continued mild winter weather and increased production levels signaled no end to the supply glut. Industry weather group, MDA EarthSat stated that it forecasts colder than normal temperatures throughout the US east coast and southern states over the next 11 to 15 days, resulting in a short lived rally. Earlier, adding to the bearish environment, US NOAA stated that it expects the warmer than normal winter temperatures on the East Coast, Midwest and much of the Southwest to continue through mid February adding to the long term bearish sentiment. Official data last week indicated that US gas supplies fell by 192 bcf. The drawdown was above the 184bcf withdrawn in the same week a year earlier.Traders are anticipating EIA`s weekly report on natural gas stockpiles to ascertain current conditions. For today's session market is looking to take support at 116.7, a break below could see a test of 113.8 and where as resistance is now likely to be seen at 123.3, a move above could see prices testing 127.

Trading Ideas:

Natural Gas trading range is 113.8-127.

Natural gas settled  down as US over supply concerns and a mild winter continue to weigh on the heating fuel.

Despite this significant drop, inventories remain at their highest level ever for this time of year.

Today natural gas storage: EXP: -129B PREV: -192B.Actual is at 9.00PM

 

 

Aluminium yesterday traded with the positive node and settled 0.09% up at 111.3 support by the gains in January manufacturing indexes of China, Europe and the US boosted market confidence and in turn dragged the US dollar index below 79 overnight, helping LME aluminum breaking through the 5-dma and closing USD 23/mt or 1.02% higher at USD 2,271/mt. LME aluminum prices have been volatile this week as the European debt crisis remains unsolved and US employments, which are expected to considerably trail estimate, may erode support from gains in PMI data of major economies. The US and European markets continued to digest positive manufacturing figures out of China, Germany and the euro zone area Wednesday. The first growth in German manufacturing in four months and an unexpected expansion in China's manufacturing sector in January boosted investor risk appetites. However, market attention at the tail of trading shifted to Friday's US non-farm payrolls, which were expected to be pessimistic since the ADP employment data came in softer than markets anticipated. For today's session market is looking to take support at 110.1, a break below could see a test of 109 and where as resistance is now likely to be seen at 112.2, a move above could see prices testing 113.2.

Trading Ideas:

Aluminium trading range is 109-113.2.

Aluminium yesterday traded with the positive node support by the gains in January manufacturing indexes of China

Japan Aluminum Association announced Japanese rolled aluminum output decreased by 3.4% to 1.989mts.

Aluminium daily stocks at Shanghai exchange came up by 149 tonnes

 

 

Ref Soyaoil yesterday traded with the positive node and settled 0.27% up at 685 due to short covering tracking firmness in spot market demand. As per SEA of India, India imported 654,714 tons edible oil in Dec, down 21% from the month of Nov 2011. In the first 2 months of the current oil year (Nov- Dec), edible oil imports were at 14.82 lakh tons against 13.82 lakh tons a year ago. Beijing halted imports of oilmeals from India from Jan. 1 after it found a hazardous chemical in the product last year, an Indian trade body said last week, threatening about half of India's rapeseed exports. At the Indore spot market soyoil edged up by 2.05 rupee to 689.8 rupees 10 kgs. In yesterday's trading session Ref Soyaoil has touched the low of 682.5 after opening at 684.9, and finally settled at 685. For today's session market is looking to take support at 682.5, a break below could see a test of 680.1 and where as resistance is now likely to be seen at 687.4, a move above could see prices testing 689.9.

Trading Ideas:

Ref soyaoil trading range is 680.1-689.9.

Ref soyaoil ended with good gains due to short covering tracking firmness in spot market demand

India imported 654,714 tons edible oil in Dec, down 21% from the month of Nov 2011

Edible oil imports were at 14.82 lakh tons against 13.82 lakh tons a year ago

At the Indore spot market soyoil edged up by 2.05 rupee to 689.8 rupees 10 kgs.

 

 

Crude Palm oil yesterday traded with the positive node and settled 0.29% up at 518.7 as investors covered shorts and expectations of lower production growth in January supported bullish sentiment. Palm oil is down 6% so far this year. It may fall further in coming weeks as Malaysia's palm oil exports may continue to decline in February due the Malaysian government's delay in issuing tax-free export quotas. Shipment data by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. showed sharp declines in January exports, raising the likelihood that end-month stocks will remain above 2 million tons. End-December stocks totaled 2.04 million tons, data from the Malaysian Palm Oil Board showed. Intertek pegged January outbound sales at 1.32 million tons, a decline of 11% from December. SGS said January shipments fell 13% to 1.29 million tons. Both cited reduced orders from major vegoil consumers China and India as well as the European Union. In yesterday's trading session Crude Palm oil has touched the low of 517.6 after opening at 519.3, and finally settled at 518.7. For today's session market is looking to take support at 516.9, a break below could see a test of 515.2 and where as resistance is now likely to be seen at 521.1, a move above could see prices testing 523.6.

Trading Ideas:

Crude Palm Oil trading range is 515.2-523.6.

Crude palm oil gained as investors covered shorts on expectations of lower production growth in January

Data by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. showed sharp declines in January exports

Both cited reduced orders from major vegoil consumers China and India as well as the European Union

Crude palm oil prices in spot market gained by 2.50 rupees and settled at 514.90 rupees.

 

 

Wheat yesterday traded with the positive node and settled 0.24% up at 1255 on some buying support but higher stocks with the government and increase in area under cultivation in the current winter sowing season limited the gains. Government agencies such as Food Corporation of India buys wheat from farmers at pre-agreed rates for distribution among poor at lower than market rates. India's Jan. 1 wheat stocks in the government warehouses stood at 25.7 million tonnes, more than three times the official target for the quarter ending March 31, government data showed. Harvesting of the grain in India could rise this year as sowing has increased though there are some concerns regarding yields due to recent decline in temperature, which could adversely impact plant growth. Wheat sowing in India has been completed in 29.53 million hectares, up from 29.16 million hectares in the previous year, farm ministry data showed. In Delhi wheat prices gained1.35 rupee to end at 1240.75 rupees per 10 kg.In yesterday's trading session Wheat has touched the low of 1250 after opening at 1250, and finally settled at 1255. For today's session market is looking to take support at 1251, a break below could see a test of 1247 and where as resistance is now likely to be seen at 1258, a move above could see prices testing 1261.

Trading Ideas:

Wheat trading range is 1247-1261.

Wheat gained on some buying support but higher stocks with the government limited the gains

Wheat sowing in India has been completed in 29.53 million hectares, up from 29.16 million hectares

India's Jan. 1 wheat stocks in the government warehouses stood at 25.7 million tonnes

In Delhi wheat prices gained1.35 rupee to end at 1240.75 rupees per 10 kg.

 

 

Mustardseed yesterday traded with the negative node and settled -0.03% down at 3295 as downside remained flat shrugging off arrivals of new crop rapeseed. Arrivals of rapeseed from the new crop in Rajasthan, the biggest producer of the oilseed in the country, are expected to pick up in the coming weeks. Oil industry in Madhya Pradesh appears to be divided over pricing of mustard oil. While a section of oil traders presume a bearish sentiment as arrival of mustard seeds in the State mandis will pick up in coming days. At the same time, another section of traders foresee bullish future in the mustard oil with a distinct shortfall in production this year as compared with the previous year. According to the recent estimate, production of mustard seeds in the country is expected to be around 55 lakh tonnes as against 70 lakh tonnes last year. The total arrivals of mustard seed decreased by 3000 bags at 76000 bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged down by -13.75 rupee to 3338.75 rupees per 20 kgs. In yesterday's trading session Mustardseed has touched the low of 3281 after opening at 3300, and finally settled at 3295. For today's session market is looking to take support at 3280.3, a break below could see a test of 3265.7 and where as resistance is now likely to be seen at 3310.3, a move above could see prices testing 3325.7.

Trading Ideas:

Mustard Seed trading range is 3265.7-3325.7.

Mustardseed settled flat as downside remained flat shrugging off arrivals of new crop rapeseed

Arrivals of rapeseed from the new crop in Rajasthan are expected to pick up in the coming weeks

The total arrivals of mustard seed decreased by 3000 bags at 76000 bags in major mandies.

In the Sri Ganganagar spot market in Rajasthan the price edged down by -13.75 rupee to 3338.75 rupees per 20 kgs.

 

 

 

Regards,  
AMIT GUPTA
KEDIACOMMODITY
India's Premium Research House
Mumbai | India | 421301 | India
Cell: +91 9619551022
Email:  amit.gupta@kediacommodity.com
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