COMMODITY MARKET UPDATES FOR JAN 04, 2017
Gold trading range for the day is 27311-28057.Gold prices rose as early gains in stocks and other assets perceived as risky gave up gains and investors fled to save-haven bullion.Gold fell sharply in the wake of Donald Trumps victory in the U.S. presidential election in November, sliding more than 12 percent in the fourth quarter.SPDR gold trust holdings dropped by 1.01% i.e. 8.30 tonnes to 813.87 tonnes from 822.17 tonnes.
Silver trading range for the day is 38710-41350.Silver prices rallied reversing losses from a rising U.S. dollar amid renewed investor interest in the New Year.U.S. factory activity accelerated to a two-year high in December amid a surge in new orders and rapidly rising raw material prices.Data showed U.S. construction spending hit a 10-12-year high in November, providing a boost to a fourth-quarter economic growth estimate.
Crudeoil trading range for the day is 3413-3869.Crude oil slid more than 2 percent knocked off 18-month highs as the U.S. dollar rallied to its highest level since 2002 and traders took profits.Investors will be watching OPEC very closely to see whether the groups members keep their promises to reduce production.Libya, one of two OPEC countries exempt from the output cuts, has increased its production to 685,000 bpd, from around 600,000 bpd in December.
Naturalgas trading range for the day is 208.8-259.4.Natural gas dropped as forecasts for warmer weather and lighter heating demand through the first two weeks of January dragged down prices.Prices tumbled after updated weather forecasting models pointed to above normal temperatures throughout large portions of the southern and eastern U.S. through January 16.Market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 72 and 83 billion cubic feet.
Copper trading range for the day is 371-387.Copper dropped as a stronger dollar outweighed expectations of solid consumption in the United States and China, where economic data showed signs of improvement.Copper stocks were down 10,400 tonnes to 311,825 tonnes due to declines in Asia this marked the eighth day of declines.Some participants have been surprised by the decreases as there had been talk of large arrivals into LME sheds by the end of 2016.
Zinc trading range for the day is 169-177.4.Zinc prices ended with losses reversing its gains after the U.S. dollar hit a 14-year high.Chinas factory activity picked up more than expected in December as demand accelerated, with output reaching a near six-year high.Zinc cancelled warrants were 4,700 tonnes higher at 110,850 tonnes due to freshly cancelled material in New Orleans on-warrant availability is now at a multi-year low.
Nickel trading range for the day is 666.8-710.4.Nickel prices dropped on profit booking after prices gained as business picked up as market participants returned from the seasonal holidays.Chinas official manufacturing PMI for December was 51.4, marking the second-highest level for 2016 though lower than 51.7 for November.The Caixin manufacturing PMI for December hit 51.9, beating market expectations of 50.9 while also reaching its highest level since January 2013.
Aluminium trading range for the day is 114.2-116.6.Aluminium dropped tracking weakness in LME prices which touched its lowest in more than two months at $1,676 a tonneEconomic sentiment remained bullish for the worlds largest economy on prospects of rising U.S. interest ratesChinas economic growth could slow to 6.5 percent this year from about 6.7 percent in 2016, a government-run think tank said.
Menthaoil trading range for the day is 1033.9-1080.5.Mentha oil spot at Sambhal closed at 1139.70 per 1kg. Spot prices is down by Rs.-12.00-.Mentha oil prices dropped on profit booking amid downtick in demand in the domestic spot market.Further, ample stocks position on higher supplies from producing regions of Chandausi in Uttar Pradesh, too influenced mentha oil prices.Total production of mentha oil during the current season is 32,000-34,000 tonnes against preliminary estimates of around 40,000 tonnes.
Soyabean trading range for the day is 3056-3144.Soyabean prices dropped on profit booking after prices gained on expectation of strong demand for soymeal amid lower arrivals.Soybean arrivals in the country totalled at 200,000 bags against 250,000 bags on previous session.NCDEX accredited warehouses soyabean stocks gained by 2276 tonnes to 145072 tonnes.At the Indore spot market in top producer MP, soybean gained 5 rupee to 3096 rupee per 100 kgs.