Commodity Important Updates for November 07, 2016
Gold trading range for the day is 30266-30770.Gold gained as investors weighed the need for a haven before American presidential election against expectations of higher U.S. interest ratesNonfarm payrolls increased by 161,000 jobs last month amid gains in construction, healthcare and professional and business services.Gold prices in India swung to a discount as a rally in prices dampened retail demand and prompted jewellers to reduce purchases.
Silver trading range for the day is 42713-43973.Silver steadied as jitters over U.S. election offset a solid payrolls report that shored up expectations for a U.S. interest rate.U.S. job gains in October were solid, and showed continued stable progress towards the Federal Reserves monetary policy goals.The U.S. trade deficit shrunk in September, according to new government data released.
Crudeoil trading range for the day is 2869-3035.Crude oil dropped as signs of tensions resurfaced between Saudi Arabia and Iran that could scupper a key supply cut pact.U.S. crude oil exports rose to about 692,000 barrels per day in September, the highest on record, from about 657,000 bpd in the previous monthAt a meeting of OPEC experts last week, Riyadh threatened to raise oil output steeply to bring prices down if Tehran refused to limit its production.
Copper trading range for the day is 329-338.Copper continued to gain amid the weaker dollar and demand signals from China.Global demand for copper is expected to broadly meet supply in 2016 and 2017, while there is chance of stronger-than-expected consumption in China.Premiums for copper stored in Shanghai bonded climbed $5 to $90-$100 this week, the highest since March, reflecting a pick up in demand.
Zinc trading range for the day is 161.3-166.3.Zinc slipped from five year highs as funds reversed bets on higher prices ahead of a key report on the health of the U.S. economy.A third quarter report from Glencore showed its zinc output down 30 percent year-on-year, reflecting the cuts that took place in October last year.Zinc stocks in LME approved warehouses at 449,350 tonnes and inventories outside of exchanges stand at around 1.4 million tonnes.
Nickel trading range for the day is 691.9-706.7.Nickel prices dropped after U.S. data reinforced expectations interest rates will rise in December.The U.S. trade deficit narrowed to $36.4 billion in September compared to $40.5 billion seen in August.The US non-farm employment change for October showed the American economy added 161,000 jobs, below the 174,000 forecast.
Menthaoil trading range for the day is 917.1-993.1.Mentha oil spot at Sambhal closed at 1071.30 per 1kg. Spot prices is up by Rs.12.90-.Mentha oil prices gained due to rising demand and falling arrivals the physical markets.Amid fear of lower output this year and rising demand, stockists have started hoarding of mentha oil to manipulate prices.Exports of mint products stood at 21,150 tonne in FY 2016 as against 25,750 tonne (valued at Rs 2,689.25 crore) in FY 2015.
Soyabean trading range for the day is 3094-3186.Soyabean prices dropped amid oversupply woes and on weak demand for soymeal in export market.A bumper harvest, along with sharp drop in soy seed demand due to a global slump in prices and a record drop in meal exports, have hit farmers hard.NCDEX accredited warehouses soyabean stocks gained by 5819 tonnes to 29771 tonnes.At the Indore spot market in top producer MP, soybean gained 5 rupee to 3067 rupee per 100 kgs.
Jeera trading range for the day is 17445-18245.Jeera prices gained on account of rising domestic as well as exports demand at the spot market.Prices also seen supported due to reports of dwindling physical supplies and slow start to the new season sowing in Gujarat and Rajasthan.NCDEX accredited warehouses jeera stocks dropped by 22 tonnes to 1475 tonnes.In Unjha, a key spot market in Gujarat, jeera remains unchanged at0 rupees to end at 17466.65 rupee per 100 kg.
Naturalgas trading range for the day is 181.6-190.6.Natural gas prices ended with losses as warm-weather forecasts and soft demand weighed on the market.High production all year, combined with a glut leftover from last winter and softer demand this autumn pushing storage levels to record highs.The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 54 billion cubic feet .
Aluminium trading range for the day is 113.9-115.9.Aluminium prices dropped on profit booking amid expectations of large surpluses this year after prices on LME crossed above $1,700 a tonne.Stocks of aluminium in LME-approved warehouses have fallen more than 60 percent to 2.14 million tonnes from a record high of 5.49 million tonnes in January 2014.Global aluminium stocks estimated at around 15 million tonnes are expected to increase due to rising output in top producer China.