Commodity Important Updates for October 6, 2016
Gold trading range for the day is 29600-30296. Gold prices dropped after data showed that the U.S. services sector accelerated in September to the fastest level in 11 months. Prices seen under pressure as the U.S. dollar climbed to a two-month high amid indications the Fed is getting closer to raising interestrates. The European Central Bank is said to be building an informal consensus to gradually wind down bond purchases.
Silver trading range for the day is 41566-43722.Silver dropped amid mounting concern that an improving U.S. economy will push the Federal Reserve to boost interest rates soon.Federal Reserve officials are talking up the increasing likelihood of an interest-rate rise in the U.S.Holdings at ishares silver trust dropped by 0.52% i.e. 59.05 tonnes to 11206.36 tonnes from 11265.41 tonnes.
Crudeoil trading range for the day is 3247-3367.Crude oil gained after data showed that crude supplies in the U.S. fell for the fifth week in a row.The U.S. Energy Information Administration said in its weekly report thatcrude oil inventoriesfell by 2.976 million barrels.Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 569,000 barrels last week, the EIA said.
Copper trading range for the day is 319.2-324.8.Copper prices settled flat as holidays in China muted trade, although markets kept a close watch on the U.S. dollar.Around 1,000 miners have gone on strike at Freeports Grasberg mine in Indonesia after the company said that production would not be affected. With China absent for national holidays this week, liquidity has also been thin, which has resulted in increased volatility.
Nickel trading range for the day is 658.3-686.7.Nickel gains on short covering after prices dropped as supply concerns eased amid speculation that Philippine mines could avoid shutdowns.Prices rallied 20 percent this year through the first three quarters on concern that mine disruptions in the Philippines will curb supplyInventories tracked by the London Metal Exchange fell to the lowest in almost two years.
Soyabean trading range for the day is 3167-3301.Soyabean gained on short covering after prices dropped tracking weakness in spot demand and overseas prices. The U.S. soybean harvest was 26 percent complete as of now, ahead of the trade estimates average of 25 percent.Total soybean 2016-17 output expected to be higher at 9.5 million tons as compared to 7 million tons previous year.At the Indore spot market in top producer MP, soybean dropped -12 rupee to 3198 rupee per 100 kgs.
Turmeric trading range for the day is 6992-7260.Turmeric prices dropped on expectation of higher production in the coming year due to strong sowing of turmeric in the producing belts of Karnataka.No crop damage reported for Turmeric due to recent heavy rainfall in Telangana. Telangana state is major Turmeric growing state in India.NCDEX accredited warehouses turmeric stocks dropped by 198 tonnes to 5256 tonnes.In Nizamabad, a major spot market in AP, the price ended at 7590.75 rupees dropped -9.25 rupees.
Jeera trading range for the day is 16555-17175.Jeera prices ended with losses on account of fall in domestic as well as export demand at the spot market.At Unjha market in Mehsana, sources reported arrivals at 500 quintals, down by 200 quintals from previous days arrivals.NCDEX accredited warehouses jeera stocks dropped by 99 tonnes to 3531 tonnes.In Unjha, a key spot market in Gujarat, jeera edged down by -225 rupees to end at 17695 rupee per 100 kg.