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Commodity Important Updates for 15 July 2016

Commodity Important Updates for 15 July 2016

Gold trading range for the day is 30496-31410. Gold dropped as global equities stayed in positive territory after the Bank of England (BoE) surprised investors by leaving interest rates unchanged. Fed’s Marker said that the central bank would likely opt for a “fairly shallow” series of U.S. interest rate hikes. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.25 percent to 962.85 tonnes on Thursday. India relaxed the rules for its tax on gold jewelry sales that was introduced earlier this year in an attempt to address concerns raised by the industry.

Crudeoil trading range for the day is 2987-3093.Crude oil gained as short covering lifted prices hammered a day ago by unusually weak U.S. demand for motor fuel during the traditionally busy summer driving season. The glut in the global oil market is persistent and is putting a lid on crude prices despite strong demand growth and steep declines in non-OPEC production, the IEA said. Surging crude stocks have pushed floating storage to seven-year highs, the IEA said. Crude stockpiles in the United States were down less than expected last week, while distillate inventories rose the most since January.

Silver trading range for the day is 46727-48081.Silver dropped as investors departed from a bevy of safe-haven assets, following an unexpected decision from BOE to hold its key interest rate steady. The BoE said it was likely to deliver stimulus to the economy in three weeks, once it assessed how Britain’s vote to leave the European Union has affected the economy. Federal Reserve policymakers appear to be in no hurry to raise U.S. interest rates despite signs that the U.S. economy is near full employment the number of Americans filing for unemployment benefits unexpectedly held steady near a 43-year low last week, pointing to further momentum in the labor market.

Copper trading range for the day is 330.8-337.4.Copper trimmed gains after BOE failed to cut interest rates as expected, although investors still hoped for China to give more stimulus to its economy. Chinese copper smelters are likely to increase production as processing fees become more lucrative given a surplus of mine supplies. Chinas economy grew 6.7 percent in the second quarter from a year earlier, steady from the first quarter Warehouse stock for Copper at LME was at 234925mt that is up by 1875mt.

Zinc trading range for the day is 144.4-148.4.Zinc gained to close above 146 level as LME Zinc traded near a 13-month high as supply concerns mount on the outlook for mine closures. Support seen following the closure of two of the world’s largest mines, MMG Ltd. Century and Vedanta Resources Places Lisheen Prices may rise to $2,500 a metric ton over the next six months, as production trails demand, according to Goldman Sachs Group Inc. Warehouse stock for Zinc at LME was at 439075mt that is down by -125mt.

Nickel trading range for the day is 677.6-710.8.Nickel closed with marginal gains amid concerns over a supply shortfall from Philippines due to an environmental crackdown. Nickel supply could also be impacted as authorities in one area of China were also becoming tough on polluting industries. Support also seen as investors are still hoped for top metals consumer China to give more stimulus to its economy. Warehouse stock for Nickel at LME was at 378816mt that is up by 414mt.

Menthaoil trading range for the day is 844.3-880.9. Mentha oil spot at Sambhal closed at 970.20 per 1kg. Spot prices is up by Rs.1.40/-. Mentha oil prices ended with losses amid weak physical demand for Mentha Oil from major consuming industries in the domestic spot market. Further, ample supplies amid higher physical arrivals from the major producing regions also exerted downward pressure on prices. While some sources estimate that total area under Mentha planting has dropped by 25% to 1.70 lakh ha this season.

Soyabean trading range for the day is 3770-3898. Soyabean dropped on profit booking after prices gained on supply worries from India and US trims production and stock forecast of the crops. USDA trimmed 2015-16 United States soybean production forecast for July and also cut its forecast for ending stockpiles. NCDEX accredited warehouses soyabean stocks dropped by 210 tonnes to 17033 tonnes. At the Indore spot market in top producer MP, soybean gained 44 rupee to 3807 rupee per 100 kgs.

Aluminium trading range for the day is 110.9-112.9.Aluminium prices ended with gains as support seen on expectations of more stimulus by major economies. Aluminium prices are likely to hover between $1,500 and $1,700 per tonne for the latter half of this year as oversupply will cap further gains. The number of Americans filing for unemployment benefits unexpectedly held steady near a 43-year low last week. Warehouse stock for Aluminium at LME was at 2325600mt that is down by -6475mt.

Naturalgas trading range for the day is 178.9-187.7.Natural gas prices inched lower by -0.49% to settle at 183.20 after government data showed US stockpiles grew. EIA said natural-gas inventories grew by 64bcf last week, compared to the 56 bcf. Prices can see support as production coming off of record highs and the number of working gas-drilling at historic lows. Storage levels were still 19% above levels from a year ago, rising to 3.2 trillion cubic feet as of July 8, EIA said.

Turmeric trading range for the day is 7808-8140.Turmeric dropped on profit booking despite of pickup in demand from August onwards ahead of festive season in India and diminishing stocks in the physical market. In Telangana State, Turmeric sowing reported, around 17784 hectares as compared to last year same period 19682 hectares NCDEX accredited warehouses turmeric stocks gained by 30 tonnes to 5648 tonnes. In Naziabad, a major spot market in AP, the price ended at 8327.5 rupees gained 33.1 rupees.

Jeera prices look firm in today’s session after correction seen this week in wake of good export demand at lower levels. Support seen since last month as Demand from China coupled with availability of quality produce has pushed jeera exports by almost 181 per cent during the first quarter of this fiscal. International markets are eyeing ion Indian market as Geo-political tension restricted jeera supply from Turkey and Syria, thereby making India the single most preferred source of jeera supply in the world market. According to trade sources, India has exported about 45,000 tonnes jeera in first quarter of current financial year as against 16,000 tonnes in corresponding period of 2015.

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