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Commodity Important Updates for 18 May 2016

Commodity Important Updates for 18 May 2016

Gold trading range for the day is 29730-30300.Gold prices rose, reversing earlier losses after a weaker dollar and falling stock markets spurred safe-haven buying of the precious metal. Feds Kaplan said the U.S. economy is strong enough to justify an interest-rate hike in the not too distant future, but increases will be very gradual. SPDR gold trust holdings gained by 0.56% i.e. 4.76 tonnes to 855.89 tonnes from 851.13 tonnes. Assets of SPDR Gold Trust, the world’s top gold ETF, have been rising steadily this year and are at their highest since November 2013.

Crude oil trading range for the day is 3153-3261.Crude oil prices gained supported by supply outages in Nigeria, Canada and other producers that are eroding a persistent glut. Goldman added that the fall in supply happened more quickly than expected, though they expect supply to rebound in 2017.U.S. shale oil has been declining and is expected to fall in June for an eighth consecutive month, according to a U.S. government forecast. Data from the CFTC shows hedge funds reduced bullish U.S. crude oil bets for a second straight week last week, driven by a one-third increase in short selling.

Zinc trading range for the day is 124.7-127.7.Zinc prices gained marginally as the US dollar eased a bit and on the hopes of Chinese stimulus this week. News that Chinese banks cut new lending sharply in April after a record first-quarter credit spree reinforced the idea that the country’s leaders are more cautious. Zinc daily stocks at Shanghai exchange came down by 150 tonnes. Warehouse stock for Zinc at LME was at 389475mt that is down by -575mt.

Chana trading range for the day is 5846-6106.Chana prices crosses 6000 level mark on expectation of tight supplies in coming months amid lower production and expensive imports. In the third advance estimates, chana production is revised downwards to 7.5 mt from 8 mt forecasted in 2nd estimate. The Maharashtra government demanded the Centre to release 10,000 tonnes of tur dal immediately from the buffer stock. In Delhi spot market, chana gained by 271.6 rupee to end at 6200 rupee per 100 kgs.

Jeera trading range for the day is 16135-16655.Jeera prices dropped on profit booking after gaining due to limited arrivals from growing regions. In Rajasthan, jeera output expected to be lower this year, compared to last year due to hot weather and lower acreage. NCDEX accredited warehouses jeera stocks gained by 62 tonnes to 4163 tonnes. In Unjha, a key spot market in Gujarat, jeera edged down by -128 rupees to end at 16838 rupee per 100 kg.

Turmeric trading range for the day is 8022-8254.Turmeric prices gained on account of increasing demand from traders and stockiest at the spot market. Though, some gains were capped on anticipation of good sowing in next season on forecast of good rains at the producing regions. NCDEX accredited warehouses turmeric stocks dropped by 20 tonnes to 4610 tonnes. In Nizamabad, a major spot market in AP, the price ended at 8712.5 rupees remains unchanged at0 rupees.

Soyabean trading range for the day is 3920-4098.Soyabean prices ended with losses on profit booking after prices gained on speculation that a late start to the monsoon might delay sowing. Chinese soybean imports surged 33 percent higher in April from a year ago, setting a monthly record. NCDEX accredited warehouses soyabean stocks gained by 207 tonnes to 46849 tonnes.

Mentha oil trading range for the day is 859.2-881.4.Mentha oil spot at Sambhal closed at 1004.50 per 1kg. Spot prices is up by Rs.0.10-.Mentha oil settled flat as sentiments remains weak as this season the farmers are seen getting more interested in sowing mentha. Markets had remained weak for quite some time from lack of demand amidst reports of higher sowing activities. Total area under Mentha planting has dropped by 25% to 1.70 lakh ha this season resulting into a proportionate fall

Nickel trading range for the day is 574.8-595.8.Nickel gains as investors looked for further Chinese measures to cement a recovery after tepid economic growth in April. Russias Norilsk Nickel told that the nickel market might remain weak throughout 2016.Nickel daily stocks at Shanghai exchange came up by 492 tonnes. Warehouse stock for Nickel at LME was at 405858mt that is down by -606mt.

Naturalgas trading range for the day is 134.1-141.3.Natural Gas gained nearly 1% as bounce off from lows and summer temperatures seem to remain near the low end of the cycle. Overall, the market remains oversupplied and there is the potential that if producers input a large amount of gas into storage that next winter could disappoint, again. Market players warn that storage tanks and caverns could run out of room to hold gas by the fall. Natural gas producers typically inject natural gas in the low demand periods, and this stockpiled natural gas is used during the peak-demand.

Aluminium trading range for the day is 102.4-104.6.Aluminium dropped on profit booking after gaining earlier on signs that Chinese smelters have curtailed production, paring a ballooning surplus. Official data showed Chinas output in April fell 1.2 percent on the year to to 2.57 million tonnes. Aluminium stocks at three major Japanese ports stood at 324,800 tonnes at the end of April, down 6 percent from a month earlier. Warehouse stock for Aluminium at LME was at 2575725mt that is down by -2050mt.

Copper trading range for the day is 305.9-316.7.Copper ended with small losses as data from Chinas manufacturing sector dampened hopes of stronger demand growth in the top consumer. U.S. consumer prices recorded their biggest increase in more than three years in April, pointing to a steady inflation build-up. A U.S. Fed policymaker said that he will push for an interest rate hike in June or July and two others still see up to three rate increases this year Warehouse stock for Copper at LME was at 156750mt that is down by -2275mt.

Silver trading range for the day is 40494-41712.Silver gained as U.S. consumer prices showed little signs of building inflationary pressure last month, potentially delaying the timing of Feds next interest rate hike. Two Fed officials said that the U.S. central bank could raise short-term interest rates at its meeting next month. The U.S. government reported that consumer prices recorded their biggest increase in more than three years in April. Markets will get to hear more from the US central bank on Wednesday when the April meeting minutes are released.

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