COMMODITY MARKET UPDATES FOR DECEMBER 20, 2016
Gold trading range for the day is 27124-27348. Gold prices edged up as geopolitical tensions offset expectations of tighter U.S. monetary policy and a stronger U.S. dollar. Federal Reserve Chair Janet Yellen said the U.S. labor market has improved to its strongest in nearly a decade SPDR gold trust holdings dropped by 1.06% i.e. 8.89 tonnes to 828.10 tonnes from 836.99 tonnes.
Silver trading range for the day is 39144-39816. Silver dropped as prices continues to track dollar gains andthe stock markets cautious push deeper into record territory. Last weeks Feds rate increase was accompanied with signals for a more-aggressive Federal Reserve in 2017. The Bank of Japan is likely to keep monetary policy steady and give a more upbeat view of the economy on Tuesday.
Crudeoil trading range for the day is 3559-3663. Crude oil rose in anticipation of tighter crude supply going into 2017 following the decision by OPEC and other producers to cut output. OPEC and other producers led by Russia have announced cutbacks of almost 1.8 million bpd in oil production from January 2017. Saudi Arabia has stated its willingness to cut production below 10 million bpd if needed, which should limit risk to the deal.
Copper trading range for the day is 366.2-388. Copper prices ended with losses as pressure continues as inventories pile up ahead of year-end. Macquarie says sees average 2017 copper price forecast at $5,350 per tonne, sees 2018 copper outlook at $5,100 a tonne Hedge funds and money managers raised their net long position in copper futures and options to a record for the sixth straight week.
Zinc trading range for the day is 167.8-188. Zinc on MCX settled at 175.75 dropped tracking weakness on LME Zinc which slides more than 5 pct to lowest since Nov. 23 Zinc posted steep falls on profit-taking after strong fourth-quarter gains. Macquarie says sees average 2017 zinc price forecast at $2,788 per tonne (up 14.9 percent from previous forecast), sees
Nickel trading range for the day is 705-775. Nickel on MCX settled down -2.9% at 736.30 tracking weakness from LME Nickel which ended the day with 2.6 percent lower at $10,880 a tonne. The latest Metals Balances Report released by the WBMS indicates that Nickel market has ended in a small deficit during Jan-Oct 16. Global nickel market ended in deficit of 77,100 tonnes in January-October 2016 with apparent demand exceeding production.
Menthaoil trading range for the day is 997.6-1043.4. Mentha oil spot at Sambhal closed at 1093.90 per 1kg. Spot prices is up by Rs.24.70-. Mentha oil gained amid rising demand in the domestic spot market. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year. At Chandausi market estimated market supply was at 30 Drums(1-drum-180kg), down by 30 Drums(1-drum-180kg) as against previous day
Soyabean trading range for the day is 2990-3082. Soyabean prices ended with losses as pressure seen amid improving supplies in the domestic market. Soybean Processors Association of India (SOPA) forecasted soybean production in 2016-17 at 114.91 lakh tonnes against 70 lakh tonnes last year. NCDEX accredited warehouses soyabean stocks gained by 3517 tonnes to 125648 tonnes. At the Indore spot market in top producer MP, soybean dropped -9 rupee to 3036 rupee per 100 kgs.
Turmeric trading range for the day is 6662-7050. Turmeric prices dropped due to reports of increased output thanks to favourable weather and higher sowing. This year not only acreage has gone up but crop is also free from pest and disease. NCDEX accredited warehouses turmeric stocks dropped by 230 tonnes to 1142 tonnes. In Nizamabad, a major spot market in AP, the price ended at 7715.25 rupees dropped -46 rupees.
Jeera trading range for the day is 16505-17675. Jeera prices ended with losses as pressure seen on prices due to reports of higher sowing due. However downside seen limited on expectation of good demand in the physical market as supplies have been lower. NCDEX accredited warehouses jeera stocks dropped by 75 tonnes to 206 tonnes. In Unjha, a key spot market in Gujarat, jeera edged down by -206 rupees to end at 18255.55 rupee per 100 kg.