Commodity Important Updates for December 27, 2016
Gold trading range for the day is 26855-27159. Gold traded in the very tight range as volumes were thin as traders prepared for a long weekend. Bullion sentiments slightly improved as the dollar retreated from this weeks 14-year high. Some buyers were tempted to take advantage of prices near a 10-month low after six weeks of decline.
Silver trading range for the day is 38111-38941. Silver dropped as sentiments still remain weak in the short term as the Fed hikes rates more aggressively. Prices have fallen sharply as a soaring U.S. dollar, rising Treasury yields and a record-breaking rally on Wall Street have damped its appeal. The outlook for bullion remains cloudy in the near-term, given expectations for higher U.S. interest rates in the months ahead.
Crudeoil trading range for the day is 3567-3643. Crudeoil traded in tight range as the market waits to see how OPEC manages its planned output cuts with Libya expecting to boost production. Over the past few weeks, the OPEC and non-OPEC members agreed to lower output by almost 1.8mbpd from Jan. 1. While major OPEC producers including Saudi and Iraq have told customers that supply will be cut in line with the OPEC deal
Copper trading range for the day is 362.7-374.5. Copper dropped on concerns about demand growth in China as the government continues a crackdown on soaring house prices and pollution. Investors raised concerns about Chinas property market, pointing to moves to limit property speculation in 2017. Technically market is under long liquidation as market has witnessed drop in open interest by -1.34% to settled at 14598
Zinc trading range for the day is 164-176.4. Zinc settled down by -1.81% as prices continued its weak trend on profit-taking and book-squaring towards year-end weighing on prices. Glencore set its target for zinc concentrate production at 1.19 million tonnes in 2017, according to sources. Zinc mine supply in China will grow by 4.9% in 2017 from 2016 while supply outside China will rise 6.6% year-on-year
Nickel trading range for the day is 666.5-714.7. Nickel on MCX settled down -1.95% on concerns about demand growth in China. News of a government probe into several futures brokerages over their compliances also weighed on prices. Nickel daily stocks at Shanghai exchange came down by 1181 tonnes.
Menthaoil trading range for the day is 1000.4-1042. Mentha oil spot at Sambhal closed at 1115.80 per 1kg. Spot prices is down by Rs.-8.10-. Mentha oil dropped driven by easing demand in the spot market against adequate stocks position. Total production of mentha oil during the current season is 32,000-34,000 tonnes against preliminary estimates of around 40,000 tonnes. Unfavourable weather conditions during harvesting period led to the drop in production.
Soyabean trading range for the day is 2966-3088. Soyabean prices ended with gains on account of good crushing demand from the mills. Total availability in 2016 is expected to remain at 11.932 million tons including the carry over stock of 441,000 tons from the previous year. NCDEX accredited warehouses soyabean stocks gained by 1344 tonnes to 136206 tonnes. At the Indore spot market in top producer MP, soybean gained 19 rupee to 3002 rupee per 100 kgs.
Turmeric trading range for the day is 6662-6926. Turmeric prices ended with losses as market is expecting a good crop this season. Expectations of increasing production in coming harvesting season and lowering export demand in recent months are putting pressure. NCDEX accredited warehouses turmeric stocks dropped by 295 tonnes to 190 tonnes. In Nizamabad, a major spot market in AP, the price ended at 7666.65 rupees gained 1.95 rupees.
Jeera trading range for the day is 16620-17790. Jeera prices gained as demand for exports supported prices but good sowing progress limited the upside. As per Gujarat Govt. sowing data current year Jeera sowing completed around 256800 hectares. NCDEX accredited warehouses jeera stocks dropped by 120 tonnes to 72 tonnes. In Unjha, a key spot market in Gujarat, jeera edged up by 119.55 rupees to end at 17873.1 rupee per 100 kg.