Commodity Important Updates for 30 Sep, 2016
Gold trading range for the day is 30892-31330.Gold settled up by 0.68% as support seen after rupee plunged following Indias announcement that it has conducted strategic strikes across the LoC.Comex Gold traded in the range but prices turned decisively higher as losses for major U.S. equity indexes intensified on the back of worries about European banks.Official data showed that the third estimate of U.S. second quarter gross domestic productshowed growth of 1.4%.
Silver trading range for the day is 45321-46291. Silver prices gained as a drop in stocks outweighed the impacts of a stronger U.S. dollar. Fed official Powell said the U.S. economy is in “solid shape” but that the central bank can be patient in approving any interest rate increase U.S. economic growth was less sluggish than previously thought in the second quarter as exports grew more than imports.
Copper trading range for the day is 322.9-330.3.Copper prices gained helped by positive sentiment on oil and China, the worlds largest consumer of the industrial metal.Chinas factory activity expanded in September as domestic and export orders picked up but the improvement was marginal.An increase in warehouse inventories in New Orleans could indicate that physical demand might be lacklustre.
Crudeoil trading range for the day is 3007-3331.Crude oil prices gained after OPEC membersagreed to cut oil outputin the first such deal since 2008.The OPEC agreed to cut output to 32.5-33.0 million barrels per day (bpd) from around 33.5 million bpd.Goldman Sachs slashed its fourth quarter 2016 oil price forecast by $7 per barrel, citing a mounting crude surplus that could outweigh any short-term price support.
Zinc trading range for the day is 154.7-159.3. Zinc gains on demand growth and a supply crunch, amid production cuts by Glencore and closures of mines. Demand from Chinas automakers will support continued zinc consumption growth, while more existing mines are reaching the end of operations as they are depleted. A zinc market deficit may peak this year at 434,000 tons, though prices will continue to rise through 2018.
Nickel trading range for the day is 675.1-725.9. Nickel dropped on profit booking as investors digested news about more mine suspensions in top ore exporter the Philippines. The Philippines has already halted 10 mines in an audit over the past two months aimed at punishing irresponsible miners. Disruption from the Philippines to the global market could be capped at between 15,000 to 20,000 tonnes of nickel ore
Menthaoil trading range for the day is 840.1-882.7. Mentha oil spot at Sambhal closed at 1001.10 per 1kg. Spot prices is down by Rs.-5.20/-. Mentha oil prices dropped amid muted physical demand for mentha oil from major consuming industries in the domestic spot market. Besides, sufficient stocks position on significant supplies from producing region also weighed on mentha oil prices. India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year.
Soyabean trading range for the day is 3180-3238.Soyabean prices settled flat due to improved demand for the soyabean in export market.Soyabean prices were supported by lower acreages and by higher export demand.According to USDA, weekly export sales report, for 201617 net sales were reported up 27.63% to be around 22.40 million tonsAt the Indore spot market in top producer MP, soybean gained 26 rupee to 3191 rupee per 100 kgs.
Turmeric trading range for the day is 7024-7372.Turmeric prices ended with gains due to rising demand at the spot market.Turmeric stocks are low this year because of weak output and arrivals have been falling in all the major producing centres.NCDEX accredited warehouses turmeric stocks dropped by 105 tonnes to 5639 tonnes.In Nizamabad, a major spot market in AP, the price ended at 7579.15 rupees gained 16.65 rupees.
Jeera trading range for the day is 16955-17745.Jeera prices ended with losses amid expectation of better crop next year.However downside seen limited amid poor supplies due to fag-end of the season and hopes of good export demand.NCDEX accredited warehouses jeera stocks dropped by 34 tonnes to 3941 tonnes.In Unjha, a key spot market in Gujarat, jeera edged up by 119.45 rupees to end at 18103.85 rupee per 100 kg.
Naturalgas trading range for the day is 194.8-205.Natural gas revered losses, turning higher after data showed that natural gas supplies in storage in the U.S. rose less than expected last week.The U.S. Energy Information Administration said in its weekly report thatnatural gas storagein the U.S. rose by 49 billion cubic feet.That compared with a gain of 52 billion cubic feet in the preceding week, 96 billion a year earlier and a five-year average build of 97 billion cubic feet.
Aluminium trading range for the day is 109.7-111.7.Aluminium prices rallied due to the appearance of a tighter market and demand from Europe.Semi-finished aluminium goods in China are being turned back into metal, sources say, highlighting a supply overhang.Stocks of aluminium in warehouses monitored by ShFE, have fallen nearly 70 percent since March to near 100,000 tonnes.