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Commodity Important Updates for 20 May 2016

Commodity Important Updates for 20 May 2016

Silver trading range for the day is 38855-41355.Silver dropped as market players continued to price in the improved chances of multiple rate increases from the Federal Reserve this year Downward pressure briefly increased after U.S. data showed the number of Americans filing for unemployment aid fell last week Feds Dudley noted that it could be appropriate to raise interest rates in June or July if U.S. GDP continues to pick up following a weak first quarter. Upbeat U.S. economic data on Thursday supported views of a rate hike next month.

Copper trading range for the day is 305.5-314.1.Copper dropped weighed down by a stronger dollar, the potential for a U.S. interest rate increase next month and worries about lackluster demand. Demand weakness was indicated by an increase in LME copper inventories, which rose by 1,750 tonnes and are up 10 percent since the end of March. Chinese consumers are mixed on coppers demand growth prospects in the second half and expect any forays above $5,000 per tonne to be short-lived. Warehouse stock for Copper at LME was at 158600mt that is up by 1750mt.

Nickel trading range for the day is 569.3-586.1.Nickel dropped as more downside impetus after U.S. weekly jobless claims showed the biggest drop since February. A global nickel market deficit widened to 8,200 tonnes in March from a month earlier, led by a surge in demand from China. INSG showed Chinas desire to hold up headline growth figures may increase longer-term risks for the world’s second-largest economy. Warehouse stock for Nickel at LME was at 405660mt that is up by 1482mt.

Natural gas trading range for the day is 130.9-142.5.Natural gas recovered from the day’s low after data showed that natural gas supplies in storage in the U.S. rose broadly in line with market expectations last week. EIA said in its weekly report that natural gas storage in the U.S. in the week ended May 13 rose by 73 billion cubic feet, compared to expectations for a gain of 78 billion. U.S. weather model called for mild temperatures over the next two weeks, which should reduce heating demand during that time. Unless intense summer heat boosts demand from power plants, stockpiles will test physical storage limits of 4.3 trillion cubic feet at the end of October.

Jeera trading range for the day is 16360-16790.Jeera prices ended with losses on higher arrivals in physical market from the producing regions. However expectation of good export demand on reports of good quality jeera production this year limited the downside. NCDEX accredited warehouses jeera stocks dropped by 116 tonnes to 4071 tonnes. In Unjha, a key spot market in Gujarat, jeera edged up by 50 rupees to end at 16914.45 rupee per 100 kg.

Turmeric trading range for the day is 7778-8294.Turmeric prices dropped on profit booking amid higher arrivals from the producing belts Turmeric growers are bringing very limited stock for sale due to poor upcountry demand. NCDEX accredited warehouses turmeric stocks gained by 160 tonnes to 4998 tonnes. In Nizamabad, a major spot market in AP, the price ended at 8500 rupees dropped -212.5 rupees.

Chana trading range for the day is 5819-6053.Chana prices dropped due to profit booking after prices gained on account of strong buying from millers and stockiest. Further, lower arrivals due to lower output from the major producing belts and expensive imports limited the downside. NCDEX accredited warehouses chana stocks dropped by 70 tonnes to 3269 tonnes. In Delhi spot market, chana dropped by -47.1 rupee to end at 6152.9 rupee per 100 kgs.

Soyabean trading range for the day is 3867-3973.Soyabean prices dropped on supply hope following easing worries about delay monsoon rains in domestic market. United States Forecast for Brazil, 2016-17 output hiked at 103 million tons compared to 99 million tons in the same period a year ago. NCDEX accredited warehouses soyabean stocks gained by 117 tonnes to 47109 tonnes. At the Indore spot market in top producer MP, soybean dropped -29 rupee to 4047 rupee per 100 kgs.

Menthaoil trading range for the day is 880.1-900.1.Mentha oil spot at Sambhal closed at 1018.60 per 1kg. Spot prices is up by Rs.3.10-.Mentha oil prices dropped amid sluggish demand from consuming industries at the domestic spot market. Sentiments remain weak which will cap the gains 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.

Aluminium trading range for the day is 102.8-105.4. Aluminium settled with positive node as prices gleaned some support from signs of improvement in China housing sector. The number of Americans filing for unemployment aid fell from a 14-month high last week, the latest sign the economy was picking up speed in the second quarter Aluminum daily stocks at Shanghai exchange came down by 7992 tonnes. Warehouse stock for Aluminium at LME was at 2566125mt that is down by -5000mt.

Zinc trading range for the day is 123.7-126.7.Zinc prices dropped undermined by a firmer dollar as better U.S. economic data boosted bets of a June rate hike Goldman Sachs has raised its price forecast for zinc due to expectations of a tightening supply because of its high exposure to a pick-up in Chinese infrastructure. Zinc will get a boost as China spends more on infrastructure, two major mines were depleted and some producers cut supply. Warehouse stock for Zinc at LME was at 387350mt that is down by -1125mt.

Crude oil trading range for the day is 3173-3349.Crude oil dropped pressured by a surprise increase in U.S. crude inventories served as a reminder that supply remains ample despite output problems. Supply losses in Canada and Nigeria have lent support, but cooler weather was expected to help firefighters battling Canadian wildfires. Despite the outages and falling U.S. output, OPEC production is at its highest in year’s thanks in part to higher Iranian exports. OPEC meets on June 2 to set output policy and is not expected to decide on any measures to limit supplies.

Gold trading range for the day is 29485-30073.Gold dropped after the minutes of the Federal Reserve’s latest policy meeting suggested a rate hike could come in June. The U.S. economy could be strong enough to warrant an interest rate increase in June or July, New York Federal Reserve President William Dudley said. SPDR gold trust holdings gained by 0.52% i.e. 4.45 tonnes to 860.34 tonnes from 855.89 tonnes. Fed was likely to raise rates in June if economic data points to stronger second-quarter growth as well as firming inflation and employment.

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