Commodity Important Updates for Feb 06, 2017
Gold trading range for the day is 28628-29088.Gold gained as the dollar came under pressure from a U.S. payrolls report that flagged up weak wage growth last month.Gold prices rose to around 2 percent on weekly basis on worries about Donald Trumps presidential style and a lack of clarity on rate hikes.SPDR gold trust holdings gained by 0.40% i.e. 3.28 tonnes to 814.50 tonnes from 811.22 tonnes.
Silver trading range for the day is 41272-42140.Silver prices recovered from lows as a soft U.S. jobs report clouded the outlook for as many as three rate hikes this year forecast by the Fed.Data from US showed that January non-farm payrolls rose by 227,000 jobs, the largest gain in four months.The ISM report showed that activity in the U.S. service sector saw continued growth in the month of January, the pace of growth in the sector slowed slightly.
Crudeoil trading range for the day is 3561-3671.Crude oil prices traded in range as fresh sanctions on Iran imposed by the U.S. Treasury were seen as a first salvo in a wider split.Comments by Russian energy minister that oil producers had cut their output in accordance with a pact agreed in December also supporting prices.Novak also said Russian companies may cut oil production quicker than had been initially agreed with OPEC.
Naturalgas trading range for the day is 199.2-218.2.Natural gas prices dropped as investors lost faith in winters ability to drive up demand this year.Pressure may continue on prices if US President Donald Trumps feud with Mexico turns into an all-out trade war and exports to Mexico by pipeline are halted.EIA reported a decline of 87 billion cubic feet in storage, largely in line with expectations.
Nickel trading range for the day is 675-701.8.Nickel prices fell tracking LME prices dropped in heavy volumes as Chinese markets reopened after a week-long break.But prices ended with almost 7-percent weekly gain after the Philippines said it would permanently close half its nickel production.The Philippines mine closures will offset the recent Indonesian decision to lift a ban on exports of nickel that could add 150,000 tonnes of nickel to the market.
Aluminium trading range for the day is 121.4-123.6.Aluminium gained as prices remained supported tracking LME prices gained by 0.3 percent to close at $1,835 amid reversal in the dollar index.Alcoa Corp. expects the global glut of aluminum to ease this year as rising demand in China cuts into surpluses.U.S. jobs data showed a smaller than expected rise in wages last month, raising doubts about the strength of the economy.
Menthaoil trading range for the day is 988.2-1012.6.Mentha oil spot at Sambhal closed at 1117.30 per 1kg. Spot prices was up by Rs.0.40-.Mentha oil prices dropped amid muted demand in the domestic spot market.Pressure seen on prices on the speculation the area under cultivation can incerese this year resulting good production.Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year.
Soyabean trading range for the day is 3080-3120.Soyabean prices settled flat on supply worries from Brazil, and weak demand for soymeal in domestic market.However downside seen limited as harvesting pace in Brazil is likely to slow down on forecast of rainfall in some of major growing regions.NCDEX accredited warehouses soyabean stocks gained by 591 tonnes to 187216 tonnes.At the Indore spot market in top producer MP, soybean gained 13 Rupees to 3070 Rupees per 100 kgs.
Turmeric trading range for the day is 6696-6888.Turmeric dropped on late profit booking after prices seen supported due to pickup in good spot demand from the stockists.Turmeric output is seen higher at 7 million bags thanks to higher sowing and favorable weather conditions.Prevailing high prices encouraged farmers to plant more turmeric this year.In Nizamabad, a major spot market in AP, the price ended at 7450 Rupees remains unchanged at0 Rupees.
Jeera trading range for the day is 17550-17970.Jeera prices ended with losses due to weak domestic as well as export demand in the physical markets.There is a forecast of fall in jeera production by 12 % to 387,000 tons during 2016-17 due to lower acreage.The Gujarat state is estimating 212,000 tonnes of jeera production for the year 2016-17.In Unjha, a key spot market in Gujarat, jeera edged down by -150 Rupees to end at 18350 Rupees per 100 kg.