COMMODITY MARKET UPDATES FOR JANUARY 09, 2016
Gold trading range for the day is 27740-28056.Gold dropped as the dollar strengthened lifted by U.S. non-farm payrolls data that showed a slowing in hiring last month but an increase in wages.Non-farm payroll data showed that US added 156,000 jobs in December, less than expected, but a rebound in wages pointed to sustained labour market momentum.Gold demand in Asia gathered some steam on wedding season purchases in India, with prices swinging to a premium there for the first time in over a month.
Silver trading range for the day is 39359-41029.Silver dropped as strength in the U.S. dollar and equities in the wake of the monthly domestic jobs report dulled investment demand for the precious metal.The Labor Department reported that 156,000 jobs were added in December to cap off the sixth straight year.Fed policymakers emphasized their considerable uncertainty about future economic policy changes.
Crudeoil trading range for the day is 3607-3737.Crude oil gained as output cuts by OPEC members met with lingering concern that other producers could try to shirk their share of planned decreases.Production cuts by OPEC kingpin Saudi Arabia and signs that it plans further trims have helped buoy the market.The Kingdom cut oil output in January by at least 486,000 bpd to 10.058 million bpd, fully implementing an agreement by OPEC.
Naturalgas trading range for the day is 215-232.4.Natural gas gains recovering some of its losses on short covering after prices dropped in the week as mild weather replaced predictions of severe cold.Natural gas is used to heat half of the homes in the U.S., and is largely influenced by changes in weather expectations.EIA reported an inventory decline of 49 billion cubic feet for the week ended Dec. 30, which fell short of expectations for a larger withdrawal from storage.
Copper trading range for the day is 376.4-387.6.Copper prices ended with gains as investors squared positions after a strong U.S. payrolls report.The International Copper Study Group (ICSG) expects global copper ore output to be 19.90 million tonnes in 2017, flat at 2016s.Workers at Escondida, the worlds largest open-pit copper mine, have rejected the companys initial wage offer as collective talks begin.
Zinc trading range for the day is 173.3-180.7.Zinc prices recovered from lows despite of stronger dollar in the wake of strong manufacturing data from China.Miners remain cautious about the market, and the market is expected to finish 2016 in deficit, demand expectations for 2017 are murky.Chinas infrastructure spending programs have been a major boost to zinc demand and these programs will wind down in the second-half of the year.
Aluminium trading range for the day is 114.7-117.9.Aluminium gained tracking LME aluminium prices ended up 0.7 percent at $1,713 a tonne as traders covered their short positions on weekend.Chinas foreign exchange reserves fell for a sixth straight month in December to the lowest since early 2011, but held just above the critical $3 trillion level.LME aluminium cancelled warrants were down 5,350 tonnes to 663,000 tonnes.
Menthaoil trading range for the day is 1024.6-1073.4.Mentha oil spot at Sambhal closed at 1133.50 per 1kg. Spot prices is up by Rs.7.00-.Mentha oil gained on the back of pick-up in demand at the spot market.Besides, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also supported.At Sambhal market estimated market supply was at 60 Drums(1-drum=180kg), down by 40 Drums(1-drum=180kg) from previous trading day.
Soyabean trading range for the day is 3036-3094.Soyabean prices seen under pressure on expectation of higher supply in global market and on weak demand.Prices of the bean were down on oversupply woes as rainfall resume in major growing region of Brazil.NCDEX accredited warehouses soyabean stocks gained by 579 tonnes to 146854 tonnes.At the Indore spot market in top producer MP, soybean dropped -8 rupee to 3069 rupee per 100 kgs.
Turmeric trading range for the day is 6694-6790.Turmeric prices ended with gains on anticipation of rising physical demand at the spot market.However upside seen limited as new season turmeric crop has now entered into the markets in South India.The price of the turmeric is stable for the past two days, prices fluctuated based on the quality of turmeric.In Nizamabad, a major spot market in AP, the price ended at 7395.85 rupees dropped -54.15 rupees.