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Commodity Important Updates for 5 August 2016

Commodity Important Updates for 5 August 2016

Crudeoil trading range for the day is 2681-2883.Crude oil gained on short-covering and after a modest stockpile drop at the delivery hub for U.S. crude futures. Middle East output reached an eight-year high in June, while production in the US continues to shrink, the IEA said. The EIA said gasoline inventories shrank by about 3.26 million barrels over the week to July 29, far more than estimates of a 640,000 barrel fall. Adding to the positive picture, US crude oil production fell below 8.5 million barrels per day over the measured week.

Menthaoil trading range for the day is 912.9-955.9. Mentha oil spot at Sambhal closed at 1071.50 per 1kg. Spot prices is up by Rs.4.50/-. Mentha oil gained dropped amid a fall in physical demand from major consuming industries in the domestic spot market. Indias mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year. At Chandausi market total arrivals are at 15 Drums (1-drum-180kg), down by 5 Drums (1-drum-180kg) from previous days arrivals.

Jeera trading range for the day is 19225-20245. Jeera prices ended with gains driven by uptick in domestic as well as exports demand in the spot market. Further, lower arrivals from the producing belts also added support to jeera prices uptrend. NCDEX accredited warehouses jeera stocks gained by 126 tonnes to 6293 tonnes. In Unjha, a key spot market in Gujarat, jeera edged up by 12.5 rupees to end at 19300 rupee per 100 kg.

Turmeric trading range for the day is 8064-8244. Turmeric prices dropped as weather in the turmeric-growing regions is expected to remain good for the season. Turmeric acreage in Telangana as on now was around 41,000 hectares as compared to 36,000 hectares last year. As per data, turmeric exports in April- May 2016 increased by 31% compared to last year at 21,256 tonnes. In Nizamabad, a major spot market in AP, the price ended at 8434.05 rupees dropped -29 rupees.

Soyabean trading range for the day is 3571-3695. Soyabean prices ended with losses due to expectation of better harvest and good sowing progress in the country. In Maharashtra, acreage was higher by 10.3% on year to 3.48 million hectare. The US Department of Agriculture rated 72% of the US soybean crop as good to excellent, up from 71% the previous week. At the Indore spot market in top producer MP, soybean dropped -19 rupee to 3812 rupee per 100 kgs.

Naturalgas trading range for the day is 185.9-196.1.Natural gas dropped to close at 191 while swinging between gains and losses even after the US EIAs report. EIA reported natural gas stocks decreased by 6bcf, the first time in a decade that there has been an inventory decline in the summer. Gas producers have been cutting production in an effort to reduce the amount of gas in storage when the heating season begins in November. Stockpiles remain about 13% above their levels of a year ago and about 16% above the five-year average.

Aluminium trading range for the day is 107.3-110.5.Aluminium prices dropped after recent data global growth has worsened over the last few weeks. Pessimistic sentiment has overtaken the market after US factory orders at -1.5 percent beat expectations of -1.8 percent. Attention now turns to Fridays official US employment report, which has taken on extra importance following weak second quarter data Warehouse stock for Aluminium at LME was at 2271475mt that is down by -6775mt.

Nickel trading range for the day is 690.8-724.2.Nickel dropped on profit booking after prices gained on worries about a crackdown in ore supply from Philippines. The Philippine government has suspended the operations of a seventh nickel miner, Claver Mineral Development Corp, a minister said. Skittish global investors may be reassured by fairly steady growth expected in a flurry of Chinese data in coming weeks. Warehouse stock for Nickel at LME was at 371748mt that is down by -630mt.

Zinc trading range for the day is 149.5-153.3.Zinc dropped 1% while prices are locked in a tug-of-war situation between demand from China & shortages by mine closures. Support seen from the shortages created by the mines closures, recent closures include the giant Century mine & Lisheen mine in Ireland. Stocks held in LME warehouses have slipped 10% since the beginning of the year and currently stand around 430,000 tonnes. Warehouse stock for Zinc at LME was at 430075mt that is down by -550mt.

Copper trading range for the day is 316.8-328.Copper dropped as traders cut positions ahead of a U.S. jobs report and on the prospects of rising supply. Chinas copper demand is improving with solid growth of about 15 percent across grid and substation spending Still, there are some signs producers are responding to low prices by cutting back production. Warehouse stock for Copper at LME was at 209300mt that is up by 1950mt.

Silver trading range for the day is 46548-48494.Silver settled flat as gains were muted by strength in the dollar after the previous day’s upbeat U.S. jobs data. BOE cut interest rates to next to nothing and unleashed billions of pounds of stimulus to cushion the economic shock from Britain’s vote to leave the European Union. Data showed that the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly to 269,000.The global economic outlook has become more uncertain after Brexit vote, ECB said, reaffirming its readiness to act if needed to support euro zone inflation.

Gold trading range for the day is 31393-32063.Gold prices turned higher after the Bank of England cut interest rates for the first time since 2009.The ADP report raised speculation that the U.S. non-farm payrolls may be strong enough to revive expectations for Fed interest rate hike. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.37 percent to 973.21 tonnes Chicago Federal Reserve Bank President Charles Evans offered a lukewarm endorsement of an interest rate increase later this year.

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