Commodity Important Updates for January 31, 2016
Gold trading range for the day is 28249-28697.Gold prices edged up on a weaker dollar and as uncertainty over U.S. policy under President Donald Trump stoked safe-haven demand.The upturn in safe-haven buying comes at a time when physical demand has been sapped due to the Lunar New Year holiday in AsiaEconomic growth in the country slowed sharply in the fourth quarter as a plunge in shipments of soybeans weighed on exports, the data showed.
Silver trading range for the day is 41107-41757.Silver dropped after prices seen supported earlier as political uncertainty created by U.S. Presidents move to ban people from seven Muslim-majority countries.Lackluster U.S. fourth-quarter growth figures also weighed on the greenback as it dampened expectations for a faster rate of interest rate hikes this year.The market for the precious metal has also been supported by sluggish U.S. economic data released on Friday.
Crudeoil trading range for the day is 3520-3672.Crude oil dropped as news of another weekly increase in U.S. drilling activity spread concern over rising output.IEA does not expect oil demand to peak any time soon due to rising consumption in developing economies, Director Fatih Birol said.U.S. oil production has been rising, with the International Energy Agency forecasting total U.S. output growth of 320,000 bpd in 2017.
Naturalgas trading range for the day is 214.5-230.9.Natural gas dropped to test 220 level following a warmer than normal forecast by the NOAA.The weather is expected to be mild over the next 8-14 days for most of the United States.Market participants looked ahead to weekly storage data which is expected to show a draw in a range between 83 and 94bcf in the week.
Copper trading range for the day is 388.9-409.5.Copper prices dropped as optimism over U.S. President Donald Trumps capacity to drive economic growth faded.Copper last week neared the $6,000 a tonne mark, supported by a drawdown in LME inventories this year.Hedge funds and money managers added to their net long positions in copper futures and options in the latest week, data from the U.S. CFTC showed.
Zinc trading range for the day is 186-190.6.Zinc gained as prices remained supported underpinned by supply concerns and a softer dollar.The ILZSG revealed a significant increase in Chinese output while the worlds zinc mine production fell overall by 1.2%.Global refined zinc metal production over the first eleven months of 2016 was at the same level as the corresponding period of 2015.
Nickel trading range for the day is 638.2-667.4.Nickel gained as some buying return as investors judged the recent selloff over the reversal of the Indonesian export ban overdone.Indonesian mines may export up to 5.2 million tonnes of nickel ore a year under the countrys new rules, the mining minister said.Global financial markets will be busy with central bank meetings in the week ahead, with policy decisions due in the U.S., U.K. and Japan.
Aluminium trading range for the day is 120.6-125.Aluminium dropped on profit booking as Chinas week-long Lunar New Year holiday drained the markets of liquidity and direction.For aluminium supply risks have moved back into focus, he added, although a lot of good news is already priced in.Traders reported subdued activity because of some nervousness before the Federal Reserves two-day meeting on monetary policy starting on Tuesday.
Menthaoil trading range for the day is 1008.8-1030.2.Mentha oil spot at Sambhal closed at 1126.40 per 1kg. Spot prices was down by Rs.-0.80-.Mentha oil dropped 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.This implies that export demand for the complete financial year can be between 27000 and 29000 MT quite cheaper.
Soyabean trading range for the day is 3010-3056.Soyabean prices dropped due to ample supplies in the market as production during kharif is higher.Further pressure seen on prices tracking lower prices in international markets as prospects for higher supply crop improved in South America.NCDEX accredited warehouses soyabean stocks gained by 4928 tonnes to 177825 tonnes.At the Indore spot market in top producer MP, soybean gained 5 Rupees to 3031 Rupees per 100 kgs.