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Commodity Important Updates for 24 June 2016

Commodity Important Updates for 24 June 2016



Latest Reuter’s calculation: Remain 51.3%, Leave 48.7%; based on 75 areas and partial BBC Northern Irish figures.

BIG DAY FOR FINANCIAL MARKET BREXIT: Gold Jumps 1% as Markets Process First UK Referendum Results. The safe-haven commodity recovered from multi-week lows, as traders absorbed first results from UK referendum. Shock was felt on the commodity market after unexpected Brexit sentiment swept in after Sunderland results.

Aluminium trading range for the day is 109-110.6.Aluminium gained as opinion polls indicating that Britons favor staying in the European Union boosted sentiment Aluminium smelters in China could cut output if prices fall below 12,000 Yuan ($1,826) and towards 11,500 Yuan. Output cuts by Chinas major Aluminium producers would be offset by expansion in the collective output of the country’s many smaller players. Warehouse stock for Aluminium at LME was at 2421500mt that is down by -6450mt.

Naturalgas trading range for the day is 173.5-187.5.Naturalgas recovered from the day’s low on forecasts of higher than normal temperatures across most of the United States. EIA reported that U.S. natural gas stocks increased by 62bcf for the week ending June 17. Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning. Stockpiles are about 25% above their levels of a year ago and 28% above the five-year average.

Menthaoil trading range for the day is 827.7-847.5.Mentha oil spot at Sambhal closed at 925.70 per 1kg. Spot prices is down by Rs.-6.10-.Mentha oil prices dropped despite limited stock positions following restricted arrivals from major growing regions. The preliminary mandi source suggests that production of menthol is lily to be around 34-35000 tonnes during 2016-17.At Chandausi mart sources reported arrivals at 25 Drums (1-drum-180kg), lower by 5 Drums (1-drum-180kg) as against previous day.

Jeera trading range for the day is 17215-18065.Jeera prices gained on anticipation of improved export demand in coming months. In Rajasthan, jeera output expected to be lower this year, compared to last year due to hot weather and lower acreage. Industrial buyers have already sourced sufficient quantity for the domestic requirements but the export demand may pick up In Unjha, a y spot mart in Gujarat, jeera edged up by 112.5 rupees to end at 17612.5 rupee per 100 kg.

Turmeric trading range for the day is 8010-8350.Turmeric gained on expectation of weak supplies in the physical mart. Farmers are holding good quality stocks hoping prices to go up in the coming months. Producers are releasing their lower or medium grade Turmeric and holding premium quality in the anticipation of better return In Nizamabad, a major spot mart in AP, the price ended at 8394.1 rupees dropped -14.7 rupees.

Soyabean trading range for the day is 3763-3871.Soyabean dropped due to inconsistent demand for soybean meal, especially in Madhya Pradesh and Maharashtra. Pressure also seen on prices on hope of higher supply in domestic mart following reports of improved rains. NCDEX accredited warehouses soyabean stocks dropped by 251 tonnes to 23268 tonnes. At the Indore spot mart in top producer MP, soybean dropped -5 rupee to 3910 rupee per 100 kgs.

Zinc trading range for the day is 135.1-139.1.Zinc prices dropped after LME data showed inflows of nearly 20,000 tonnes into LME warehouses. U.S. home resale’s rose in May to a more than nine-year high amid low mortgage rates, pointing to housing mart strength. The number of Americans filing for unemployment benefits fell last week to near a 43-year low, suggesting labor mart resilience. Warehouse stock for Zinc at LME was at 413675mt that is up by 18600mt.

Crudeoil trading range for the day is 3270-3418.Crude rallied while volatility seen as investors braced for a narrow win for either side of the U.K. referendum to Remain or Leave the EU. Initial results in the U.K.s referendum on membership of the EU shook marts earlier conviction that the Remain camp was on the way to victory. Crude production fell by 39,000 barrels per day to 8.677mbpd, falling for the 21st time over the last 22 weeks. EIA said that crude inventories fell by 0.9mbls last week for the week ending on June 17, defying expectations for a 5.22mbl draw by the API.

Silver trading range for the day is 40591-41829.Silver fell after the last sweep of opinion polls before Britain’s referendum on EU membership began gave the campaign to stay in the bloc a slight edge. The number of Americans filing for unemployment benefits fell last week to near a 43-year low, suggesting labor mart resilience. Holdings at ishares silver trust dropped by 0.26% i.e. 26.61 tonnes to 10333.02 tonnes from 10359.63 tonnes. Recent polls indicated that remain campaign was in the lead, spurring risk-on sentiment across the globe and dampening demand for safe-haven assets.

Gold trading range for the day is 29647-30323.Gold prices dropped as investors bet the U.K. will vote to remain in the European Union in the closely watched Brexit referendum. New home sales are seen declining by 8.7% in May to a seasonally adjusted annual rate of 560,000, following a sharp jump the prior month. Comments this week by Federal Reserve Janet Yellen were seen to have played down the chances of a U.S. rate hi in July. SPDR gold trust holdings gained by 0.39% i.e. 3.57 tonnes to 915.90 tonnes from 912.33 tonnes.

Gold soared nearly 8% on Friday and reached levels last seen in July 2014, trading at $1,350 heading into London trading hours. Investors were heavily selling all riskier and higher yielding assets, with capital fleeing into the US dollar, yen, gold and bonds – the classic instruments in trouble times.

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