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Commodity Important Updates for 7 June 2016

Commodity Important Updates for 7 June 2016

Global markets update :- Asia stocks rise as Yellen green-lights risk : -MSCI ex Japan extends gains as investors hunt for bargains -Inflows rise into Asia-focused equity funds -Corporate debt shines; government bond yields fall

Jeera trading range for the day is 15840-17010.Jeera prices ended with gains due to lower arrivals from the producing regions. As per third advance estimate of Gujarat State for 2015-16, production is pegged at 213,000 ton. NCDEX accredited warehouses jeera stocks dropped by 101 tonnes to 3676 tonnes. In Unjha, a key spot market in Gujarat, jeera edged up by 260.85 rupees to end at 16723.35 rupee per 100 kg.

Crude Oil trading range for the day is 3248-3370.Crude settled up as fresh supply outages in Nigeria helped temporarily ease concerns related to persistent supply glut on global energy markets. The production disruptions in Nigeria have helped narrow the wide supply-demand imbalance on global markets. Tropical Storm Colin picked up speed over the Gulf of Mexico on Monday as it headed toward Florida’s northwest coast, unleashing thunderstorms and flooding U.S. crude oil production has fallen by 5.4 percent since January and by almost 10 percent since mid-2015 to 8.74 million barrels per day.

Turmeric trading range for the day is 7748-8340.Turmeric gained on increasing demand from traders and stockiest at the spot market. Turmeric production for the current year, is estimated to be around 315,000 tons compared to previous year production of 324,000 tons. Though 2015-16 output was lower overall availability was comfortable because of higher carry forward stocks. In Nizamabad, a major spot market in AP, the price ended at 8366.65 rupees gained 30.55 rupees.

Chana trading range for the day is 6179-6657.Chana prices gained as arrivals have been lower and there is every chance of supply crunch in coming months. Moreover, increase of MSP for kharif pulses also extends support to chana. NCDEX accredited warehouses chana stocks dropped by 162 tonnes to 1799 tonnes. In Delhi spot market, chana gained by 188.35 rupee to end at 6538.35 rupee per 100 kgs.

Soyabean trading range for the day is 3849-3991.Soyabean prices dropped on profit booking after prices gained taking clues from spot demand and international markets. There will lower acreage in M.P and Maharashtra as farmers may switch to pulses and other cash crop as prices have been lower. NCDEX accredited warehouses soyabean stocks dropped by 1529 tonnes to 32746 tonnes. At the Indore spot market in top producer MP, soybean gained 20 rupee to 4012 rupee per 100 kgs.

Zinc trading range for the day is 133.7-137.1.Zinc prices climbed on persistent concern about declining supplies Zinc is by far the best performing LME metal this year, rallying 25 percent on forecasts that tightening supplies will cause shortages. But high prices are weighing on physical demand in China, where premiums have dropped to $115 for bonded material from $135 in late May. Warehouse stock for Zinc at LME was at 379875mt that is down by -950mt.

Mentha Oil trading range for the day is 845.3-877.1.Mentha oil spot at Sambhal closed at 982.20 per 1kg. Spot prices is down by Rs.-28.40-.Mentha oil dropped driven by sluggish demand from consuming industries in the spot market. Further, rising arrivals from major producing regions of Chandausi in Uttar Pradesh also weighed on mentha oil prices. Sentiments still remain weak as this season the farmers are seen getting more interested in sowing mentha in the major growing area of Barabanki.

Naturalgas trading range for the day is 158.8-168.4. Natural gas rose to a five-month high on Monday, on forecasts for continued above-normal temperatures across most parts of the US. Demand to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning. Gains can be capped amid concerns over record-high storage levels. Total U.S. natural gas storage stood at 2.907tcf as of last week. Unless intense summer heat boosts demand from power plants, stockpiles will test physical storage limits of 4.3tcf at the end of October.

Aluminium trading range for the day is 102.8-105.Aluminium prices gained tracking firmness in other base metals after the dollar slid. Federal Reserve Chair Janet Yellen said a rate hike was on the horizon but did not specify when. A flurry of data from China in coming weeks is expected to reinforce views that the world’s second-largest economy is slowly steadying but not gaining momentum. Warehouse stock for Aluminium at LME was at 2501625mt that is down by -6600mt.

Nickel trading range for the day is 571.1-591.7.Nickel had it’s the biggest advance in three weeks closed above 580 level amid concern about potential disruptions to supply. The main union at South32 Ltd.s Cerro Matoso, the world’s second-biggest ferro-nickel mine, said it will press ahead with plans to strike starting June 14. There’s concern that nickel may enter a deficit if the Philippines stops providing ore to China for nickel pig iron production Warehouse stock for Nickel at LME was at 395760mt that is down by -1356mt.

Copper trading range for the day is 310.2-319.8.Copper settled flat paring all gains due to rise heavy rise in LME stocks after a shock miss in Mays U.S. jobs data pushed back expectations for a rate hike. Copper production in Democratic Republic of Congo, Africa’s top miner of the metal, dropped 20 percent in the first quarter of 2016.Hedge funds and money managers trimmed their net short position in COMEX copper contracts in the week to May 31, U.S. CFTC data showed. Warehouse stock for Copper at LME was at 174400mt that is up by 20725mt.

Silver trading range for the day is 38875-39577.Silver gained after Feds Yellen omitted any reference to the timing of the U.S. central banks next interest rate hike.Yellen said interest rate hikes were likely because positive economic forces have outweighed the negative for US, though the weak jobs report bears watching. Data showed that the U.S. economy created the fewest number of jobs in more than 5-12 years in May. Yellen also devoted a significant portion of her speech addressing broad areas of uncertainty within the global economy at large.

Gold trading range for the day is 29273-29587.Gold edged up, holding steady after Federal Reserve chair Janet Yellen said she still expected gradual U.S. rate increases. The Fed said that its index on labour market conditions fell to its lowest since May 2009, reinforcing a perception of slowing job growth Holdings in SPDR Gold Trust, fell 0.03 percent to 881.15 tonnes on Monday. Hedge funds and money managers reduced their bullish position in COMEX gold contracts in the week to May 31, government data showed.

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