Commodity Important Updates for December 09, 2016
Crude oil on MCX regained above 3440 level as support seen after the former secretary general of the OPEC made comments supportive of non-member production cuts. Russia has so far said it would cut 300,000bpd, meaning other non-OPEC producers combined would need to pledge the same amount to lower output by the 600,000 bpd OPEC wants half the reduction OPEC is making.
Gold trading range for the day is 27644-27990.Gold dropped after the dollar rebounded on the back of a decision by the ECB to extend monthly asset purchases until next December.Investors gave the extension more weight than the ECBs unexpected decision to cut its asset buying to 60 billion euros a month from next April.SPDR gold trust holdings dropped by 0.34% i.e. 2.96 tonnes to 860.71 tonnes from 863.67 tonnes.
Silver trading range for the day is 41077-42087.Silver dropped weighed down by a stronger U.S. dollar and expectations the U.S. Federal Reserve will hike rates next week.The number of Americans filing for unemployment benefits fell from a five-month high last week.Holdings at ishares silver trust dropped by 0.90% i.e. 97.34 tonnes to 10664.32 tonnes from 10761.66 tonnes.
Crudeoil trading range for the day is 3321-3487.Crude oil gained on growing optimism that non-OPEC producers might agree to cut output following a cartel agreement to limit production.Crude oil inventories in US dropped 2.4 million barrels, compared with expectations for a draw of 1 million barrels.Stocks at the Cushing, Oklahoma, increased by a hefty 3.8 million barrels last week, the most since 2009, according to data.
Copper trading range for the day is 386.2-401.6.Copper edged lower as the dollar rebounded after ECBs decision to cut its monthly asset purchases but extend the programme until the end of 2017.Chinas copper imports surged 31 percent in November from the previous month to 380,000 tonnes, the highest since June, customs data showedChinas imports grew at the fastest pace in more than two years in November, while exports also rose unexpectedly.
Zinc trading range for the day is 176-188.8.Zinc dropped tracking weakness from LME zinc which came under renewed selling pressure although it remains up in the week to date.New zinc demand growing by 2% in 2017, 280000tn of new zinc supply needs to be introduced into what is a 14mtn a year market.The refined zinc market was in deficit of 19,900 tonnes in September, the ILZSG said, bringing the year-to-date deficit to 251,000 tonnes.
Nickel trading range for the day is 731.8-784.6.Nickel dropped as the dollar rebounded after seen supported on the back of expectations for more mining suspensions in the Philippines. The Philippines Environment and Natural Resources Secretary Regina Lopez told there will definitely be more mine suspensions.According to the data from the Mines and Geosciences Bureau, Philippine nickel production fell 16% in the third quarter of 2016, year over year.
Menthaoil trading range for the day is 938.1-979.5.Mentha oil spot at Sambhal closed at 1052.50 per 1kg. Spot prices is up by Rs.2.30-.Mentha oil ended with losses driven by sluggish demand at the spot market. Pressure also seen on prices amid ample stocks position on higher supplies from producing regions of Chandausi in Uttar Pradesh. Trade sources estimate that total area under Mentha planting has dropped by 20% to 1.75 lakh ha this season.
Soyabean trading range for the day is 3036-3104.Soyabean dropped on weak demand for the crop in export market and on expectation of higher supply in global market.Subdued weekly sales export data reported by USDA put pressure on bean prices next week.NCDEX accredited warehouses soyabean stocks gained by 3188 tonnes to 108670 tonnes.At the Indore spot market in top producer MP, soybean dropped -29 rupee to 3044 rupee per 100 kgs.
Turmeric trading range for the day is 7014-7198.Turmeric gained on late short covering after prices dropped as reports of good production from new season crops weighed on prices. The stock positions of Turmeric in the Exchange warehouses in the current season are only stock at Sangali.NCDEX accredited warehouses turmeric stocks dropped by 60 tonnes to 2108 tonnes.In Nizamabad, a major spot market in AP, the price ended at 7725 rupees dropped -4.55 rupees.