COMMODITY IMPORTANT UPDATES FOR SEPTEMBER 07, 2016
Aluminum trading range for the day is 104.3-106.1. Aluminum ended with small gains as prices recovered from the day’s low as support seen as the dollar fell after a soft US services report. Strong exports and household demand drove economic expansion in the euro zone in the second quarter, but growth slowed from previous quarters. Aluminum weekly stocks at Shanghai exchange came up by 14335 tonnes.
Natural gas trading range for the day is 177.1-186.5. Natural gas prices sank more than 2% on expectations that cooler weather would reduce demand for the fuel. Weather forecasts called for cooler temperatures in the next six to 10 days, following hot weather in the eastern U.S. in the coming week. The natural-gas market is oversupplied, with inventories 11% above the five-year average level for this time of year.
Jeera trading range for the day is 18005-18755. Jeera prices ended with gains on rising demand at the physical markets. Prices also seen supported on expectations of fresh export deals as supplies from Turkey and Syria are reportedly disrupted. NCDEX accredited warehouses jeera stocks gained by 196 tonnes to 5144 tonnes. In Unjha, a key spot market in Gujarat, jeera edged up by 75 rupees to end at 18875 rupee per 100 kg.
Turmeric trading range for the day is 6856-7100. Turmeric prices ended with gains on expectation of lower arrivals from the producing belts. Turmeric production for the current crop year (2015-16) is estimated to be around 315,000 tons. NCDEX accredited warehouses turmeric stocks gained by 31 tonnes to 7702 tonnes. In Nizamabad, a major spot market in AP, the price ended at 7605.55 rupees dropped -169.45 rupees.
Soyabean trading range for the day is 3146-3482. Soya-bean prices ended with losses due to lower export demand for soya-meal. Soya-bean sowing was recorded at 11.22 million hectare compared to 11.53 million hectare, data showed. Soybean meal and its other value added products exports dropped to 10,615 tons in August compared to 31,157 tons in the same period. At the Indore spot market in top producer MP, soybean gained 47 rupee to 3510 rupee per 100 kgs.
Menthaoil trading range for the day is 878.3-921.5. Mentha oil spot at Sambhal closed at 1034.30 per 1kg. Spot prices are up by Rs.4.10-. Mentha oil prices gained amid increase in physical demand from major consuming industries in the domestic spot market. However overall sentiments remained under pressure as per last months update exports have registered a decline. At Sambhal market total arrivals are at 125 Drums (1-drum=180kg), up by 75 Drums (1-drum=180kg) from previous trading day.
Nickel trading range for the day is 663.3-681.9. Nickel gains on fresh buying as nickel market participants await the completion of the Philippine government’s examination of its nickel mines. Suspensions already should remove about 100,000 metric tons of contained nickel production from the market, and even more production could be removed. Strong exports and household demand drove economic expansion in the euro zone in the second quarter, but growth slowed from previous quarters.
Zinc trading range for the day is 151.3-157.7. Zinc prices ended with losses as some investors closed out bullish bets on this year’s best-performing major commodity. U.S. services sector activity slowed to a 6-12-year low in August amid sharp drops in production and orders, pointing to slowing economic growth. Investors are now awaiting data from China for more direction trade data is due on Thursday ahead of CPI and PPI inflation readings on Friday.
Copper trading range for the day is 308-314.6. Copper prices settled flat as a rise in inventories offset signs of a modest pick-up in buying. Physical traders say demand is marginally increasing as the summer lull comes to an end, though volumes remain muted. Data from the U.S. CFTC showed that speculators sharply increased their net short position in copper futures and options.
Crude oil trading range for the day is 2868-3078. Crude oil dropped on receding hopes for imminent action to tackle a global supply glut. Saudi Energy Minister Khalid al-Falih said there was no need to freeze output for now. OPEC and Russia tried earlier this year to curb the glut by seeking an output freeze, but the deal collapsed in April due to tension between Saudi Arabia and Iran.
Silver trading range for the day is 45861-48567. Silver gained amid reduced expectations that the Federal Reserve will raise interest rates at its policy meeting later this month. U.S. services sector activity slowed to a 6-12-year low in August amid sharp drops in production and orders, pointing to slowing economic growth Holdings at I-Shares silver trust gained by 0.55% i.e. 62.03 tonnes to 11246.40 tons from 11189.28 tonnes.
Gold trading range for the day is 30755-31721. Gold gained as disappointing U.S. economic data reinforced speculation in the market that Fed will not raise interest rates at its September policy meeting. A top Federal Reserve official repeated his call for gradual interest rate hikes, evidently unfazed by a slowdown in U.S. job gains and sluggishness in the services sector SPDR gold trust holdings gained by 1.52% i.e. 14.25 tonnes to 952.14 tonnes from 937.89 tonnes.