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Commodity Important Updates for 22 August 2016

Commodity Important Updates for 22 August 2016

Gold trading range for the day is 31207-31591.Gold dropped after trading in tight trade as hawkish comments from U.S. Federal Reserve officials renewed bets on a U.S. rate hike this year. New York Fed President William Dudley reinforced his confidence in a possible rate hike for a second time in the week. Physical gold demand in Asia improved modestly this week as consumers returned to the market ahead of upcoming festivals in India and China. Indias gold demand may rise in the second half of 2016 after falling to the lowest in seven years in the first half.

Silver trading range for the day is 44628-46488.Silver prices slipped lower as the minutes of the Federal Reserve’s latest policy meeting continued to weigh on the greenback. Data showed that initial jobless claims decreased by 4,000 to 262,000 last week, compared to expectations for a 1,000 decline to 265,000.New York Fed President William Dudley reinforced his confidence in a possible rate hike for a second time in the week. European Central Bank rate setters agreed not to discuss any policy change at their July meeting and to keep market hopes for more stimulus in check.

Crudeoil trading range for the day is 3240-3342. Crude oil gains on speculation that Saudi Arabia and other members of OPEC will agree next month to a production freeze deal with non-OPEC producers. Nigerian oil minister Emmanuel Ibe Kachikwu said that while a cut in OPEC production is unlikely. Iran crude oil exports were flat in June at just over 2 mbpd and production at 3.610 mbpd was steady from the previous month. OPEC third-biggest producer shipped 2.005 million barrels per day in June from 2 million bpd of crude in May, data provided by the JODI showed.

Copper trading range for the day is 318.7-324.3.Copper gained after trading in the range as persistent concern about excess copper supply in the second half limited the upside. According to WBMS, global copper market was in a supply deficit of 197,000 tons in H1 2016.Chinese copper concentrate imports from Peru shot up nearly 95% year-on-year during the first half of this year, according to latest data. Warehouse stock for Copper at LME was at 210625mt that is down by -2800mt.

Zinc trading range for the day is 151.7-155.3. Zinc gained and remained supported for the week propped up by firm demand and tighter supply in top market China. As per WBMS data, the global zinc market recorded deficit of 32 kt during the initial six months of the year from January to June. Combined zinc inventories in Shanghai, Tianjin and Guangdong fell 5,900 to 298,400 tonnes in the week. Warehouse stock for Zinc at LME was at 455875mt that is down by -1175mt.

Aluminium trading range for the day is 109.9-113.1. Aluminium prices dropped on profit booking after prices hit their strongest level in 13 months propped up by firm demand and tighter supply. Global primary aluminum market has recorded a marginal deficit during the initial six months of the year, according to WBMS. As per the report, the market reported a deficit of 479,000 tons when matched with the deficit of 331,000 reported for the entire year 2015. Warehouse stock for Aluminium at LME was at 2245050mt that is down by -7100mt.

Naturalgas trading range for the day is 169.9-182.1. Natural gas prices ended with losses on expectations that the surplus of the fuel is set to persist. Weekly inventory data showed a smaller-than-expected addition to natural-gas stockpiles last week. But the market remains oversupplied, with inventories 14% above the five-year average for this time of year. U.S. stocks of natural gas are rising much more slowly than normal for this time of year as a long, hot summer spurs record air-conditioning demand.

Jeera trading range for the day is 18330-18920.Jeera settled down on the account of limited demand by stockiets. However, downside seen limited as the countries like China and Bangladesh have reported strong demand of Indian jeera in local mandies. NCDEX accredited warehouses jeera stocks gained by 27 tonnes to 5751 tonnes. In Unjha, a key spot market in Gujarat, jeera edged up by 150 rupees to end at 19100 rupee per 100 kg.

Turmeric trading range for the day is 7642-7806. Turmeric settled flat on expectation of better climatic conditions in growing areas and decrease in physical demand from upcountry buyers. The total supply for 2015-16 seen at 3.57 lakh tonnes against the consumption demand of 3.46 lakh tonnes. NCDEX accredited warehouses turmeric stocks gained by 75 tonnes to 6513 tonnes. In Nizamabad, a major spot market in AP, the price ended at 8118.05 rupees remains unchanged at0 rupees.

Soyabean trading range for the day is 3422-3542. Soyabean prices dropped on low demand for soybean meal and expectation of better than expected crop due to increase in sowing area. Good weather for crop development during July across broad swaths of the US Midwest, allowed crops to mature with relatively little stress. USDA raised its forecast for 2015-16 US soybean ending stockpiles to 330 million bushels in August.

Menthaoil trading range for the day is 874.4-897.6.Mentha oil spot at Sambhal closed at 1033.50 per 1kg. Spot prices is down by Rs.-7.20-.Mentha oil prices ended with losses amid a fall in physical demand from major consuming industries in the domestic spot market. Markets had remained weak for quite some time from lack of demand amidst reports of higher sowing activities. The preliminary mandi source suggests that production of menthol is likely to be around 34-35000 tonnes during 2016-17.

Nickel trading range for the day is 681.1-704.1.Nickel gains as support seen amid tightening global supplies because of a mining clampdown in the Philippines and rising demand. Global nickel market ended in deficit of 80,800 tonnes in January-June 2016 with apparent demand exceeding production. Nickel ore inventories at seven major Chinese ports fell in the week ending Aug. 19 after growing for three weeks in a row. Warehouse stock for Nickel at LME was at 373512mt that is down by -60mt.

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