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Commodity Important Updates for 1 August 2016

Commodity Important Updates for 1 August 2016

Silver trading range for the day is 46695-48037. Silver gained as the U.S. Dollar fell sharply amid subdued GDP data and a soaring Yen after the Bank of Japan approved modest stimulus measures. US inflation accelerated during the second quarter, the preliminary data showed, with the core gauge easing from the Federal Reserve’s target. Japan’s Central Bank took some action by upping the level of ETF purchases from ¥3.3 to 6 trillion, the BOJ largely fell short of expectations for further interest rate cuts. The U.S. Bureau of Economic Analysis (BEA) said that preliminary GDP for the second quarter rose by 1.2%, far below consensus estimates of 2.6%.

Menthaoil trading range for the day is 886.1-938.1. Mentha oil spot at Sambhal closed at 1040.10 per 1kg. Spot prices is down by Rs.-20.60/-. Mentha oil prices ended with losses due to muted physical demand from major consuming industries in the domestic spot market. Overall mentha oil output for 2016-17 is now revised upwards at 34,000 tonnes. At Barabanki market estimated market supply was at 450 Drums (1-drum-180kg), lower by 50 Drums(1-drum-180kg) as compared to previous day.

Aluminium trading range for the day is 107-111.2. Aluminium prices gained as aluminum stocks in China’s five major markets are still on the decline even after touching 7-year low. Stocks of Aluminium registered with the London Metal Exchange (LME), have fallen by 577,275 tonnes, or almost 20 percent, so far this year. Disappearing LME stocks are no indicator of physical market balance with an expectation of a global 267,500-tonne surplus this year. Warehouse stock for Aluminium at LME was at 2303450mt that is down by -8825mt.

Naturalgas trading range for the day is 188.4-197.6.Natural gas dropped on profit booking after gained in last session after data showed that the build in the gas inventories last was the lowest for a summer week since 2006.The U.S. Energy Information Administration (EIA) said that working gas in storage increased by 17 billion cubic feet (bcf) to 3,294 bcf. Total U.S. natural gas storage stood at 3.294 tcf, 13.2% higher than levels at this time a year ago and 15.9% above the five-year average for this time of year. The latest forecasts also suggest that conditions in the week will be even hotter, which will trigger additional demand.

Jeera trading range for the day is 19045-20615. Jeera prices ended with gains on account of tight supplies from the producing belts. Moreover, dwindling supplies with stockiest may further push Jeera prices higher during the off-season. NCDEX accredited warehouses jeera stocks gained by 168 tonnes to 5610 tonnes. In Unjha, a key spot market in Gujarat, jeera edged up by 215.7 rupees to end at 19455 rupee per 100 kg.

Turmeric trading range for the day is 7984-8272. Turmeric gained amid pickup in demand at the spot market despite weather in the turmeric-growing regions is expected to remain good. Turmeric sowing in Telangana marginally down at 30,068 hect until Jul 27 vs 31,279 hect year ago At Nizamabad market total arrivals are at 1500 quintals, higher by 200 quintals from previous day’s arrivals. In Nizamabad, a major spot market in AP, the price ended at 8426.3 rupees gained 10.4 rupees.

Soyabean trading range for the day is 3498-3658. Soyabean prices ended with losses as good monsoon progress has raised hopes for better than expected harvest this year. At Indore market arrivals were reported at 25000 Bags, down by 5000 Bags from previous trading day. NCDEX accredited warehouses soyabean stocks dropped by 101 tonnes to 3225 tonnes. At the Indore spot market in top producer MP, soybean dropped -26 rupee to 3782 rupee per 100 kgs.

Copper trading range for the day is 323.5-334.7. Copper prices recovered from lows boosted by a lower dollar, which fell after data showed US grew at a slower pace than expected in the second quarter while recent data on China’s copper imports also boosted optimism over strong demand. Refined Copper production from scrap increased 5.5% year on year to 1.307 million tons in the opening four months of 2016, as per ICSG report. Warehouse stock for Copper at LME was at 209450mt that is up by 725mt.

Nickel trading range for the day is 696.8-725. Nickel fell as funds and traders squaring their books reversed bets on higher prices and the market fretted from rally based on worries about supplies. Stocks at LME approved warehouses have fallen more than 17 percent since the middle of January to 373,074 tonnes. But exchange stocks including the 105,000 tonnes in warehouses monitored by the Shanghai Futures Exchange account for about a quarter of global demand this year Warehouse stock for Nickel at LME was at 373074mt that is down by -1524mt.

Zinc trading range for the day is 145.5-153.1.Zinc gained as prices were benefiting from higher demand coming from China which is being reflected in the surge in Chinese imports this year. Chinese-owned MMG Ltd. is seeking new zinc mines in Peru after a dearth of global exploration in past decades led to an output crunch. The global market for refined zinc metal was in deficit by 64,000 mt from January to May 2016 with total reported inventories falling by 24,000 mt. Warehouse stock for Zinc at LME was at 432625mt that is down by -1400mt.

Crudeoil trading range for the day is 2705-2831.Crude oil prices gained supported by some short-covering but bringing the monthly decline to nearly 15 percent fuelled by a persistent global supply glut. OPECs oil output is likely in July to reach its highest in recent history, a survey showed, as Iraq pumps more and Nigeria manages to export additional crude.Top OPEC exporter Saudi Arabia has kept output close to a record high, the survey found, as it meets seasonally higher domestic demand.The glut has taken the edge off supply disruptions in Libya and Nigeria, particularly as high stocks of oil products had cast doubt on refinery demand.

Gold trading range for the day is 31130-31854.Gold closed higher after much slower-than-expected U.S. economic growth weighed on the dollar.U.S. Commerce Department reported that GDP grew at an annual rate of 1.2 percent in the second quarter, far less than estimates of 2.6 percent growth.SPDR gold trust holdings gained by 0.40% i.e. 3.86 tonnes to 958.09 tonnes from 954.23 tonnes. The Federal Reserve stopped short of indicating that a further increase in U.S. interest rates is on the cards for later this year.

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