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Commodity Important Updates for 25 August 2016

Commodity Important Updates for 25 August 2016

Gold trading range for the day is 30813-31473.Gold dropped as the dollar strengthened and markets looked ahead to a speech by Federal Reserve Chair Janet Yellen. Data showed new U.S. single-family home sales unexpectedly rose in July, reaching their highest level in nearly nine years as demand increased broadly. Fed Chair Yellen may provide fresh clues on the timing of the next U.S. rate hike at a speech during an annual meeting of central bankers in Jackson Hole on Friday. According to the WGC, demand for the yellow metal rose 15% year-on-year during the second quarter of 2016.

Crudeoil trading range for the day is 3080-3252.Crude oil tumbled after an unexpectedly large inventory build in the world’s biggest oil consumer renewed worries about oversupply. The U.S. Energy Information Administration (EIA) said crude inventories rose 2.5 million barrels last week. Chinas oil demand may be cut by 250,000 barrels a day in the third quarter as the country limits pollution from factories before a Group of 20 Summit in early September. Saudi Arabias oil production hit a record in July, according to published statistics, and is likely to hit another in August, according to industry sources.

Copper trading range for the day is 304.2-316.6.Copper prices ended with losses as the highest stockpiles in almost seven months suggest the market is amply supplied. After rising as much as 9.1 percent by March, copper has now lost almost all its gains in 2016 as investors anticipate supply will outpace demand. The total net long position of funds trading copper on the London Metal Exchange fell to 39,717 lots on August 19 from 41,656 lots a week earlier Warehouse stock for Copper at LME was at 254700mt that is up by 14625mt.

Zinc trading range for the day is 151.1-156.5. Zinc dropped tracking other metals and update that Chinas imports of zinc slumped on the month in July. Pressure also mounted as the dollar marked time ahead of Friday speech by Federal Reserve Chair Janet Yellen at the global central bankers meeting. Meanwhile the latest statistics published by the ILZSG indicates that global refined zinc market was in deficit of 138,000 tonnes Warehouse stock for Zinc at LME was at 455275mt that is up by 175mt.

Nickel trading range for the day is 651.4-696.6. Nickel prices ended with losses as fears fade over a wholesale halt to Philippine ore exports. China’s imports of nickel ore and refined metal dropped in July, while overseas purchases of an intermediate form of the raw material surged. Nickel daily stocks at Shanghai exchange came up by 1572 tonnes. Warehouse stock for Nickel at LME was at 373206mt that is down by -342mt.

Soyabean trading range for the day is 3433-3507. Soyabean dropped amid report of good production, higher edible oil imports and lower export demand for soymeal. The US soybean crop is reported to be setting pod at 89% compared to 85% during the corresponding period last year and 5 year average. USDA raised its forecast for 2015-16 US soybean ending stockpiles to 330 million bushels in August compared to 290 million bushels in the previous month At the Indore spot market in top producer MP, soybean dropped -7 rupee to 3706 rupee per 100 kgs.

Turmeric trading range for the day is 7302-7546. Turmeric prices dropped on anticipation of better climatic conditions in growing areas. Besides, decrease in physical demand from up-country buyers also weighed on turmeric prices. NCDEX accredited warehouses turmeric stocks dropped by 20 tonnes to 7561 tonnes. In Nizamabad, a major spot market in AP, the price ended at 7890.45 rupees dropped -40.5 rupees.

Aluminium trading range for the day is 108.7-112.1. Aluminium dropped on evidence of mounting supply and headwinds from a stronger dollar. Rusal expects global Aluminium demand to rise by 5.4 percent to 59.5 million tonnes in 2016, helped by housing and automotive growth. Aluminum daily stocks at Shanghai exchange came down by 450 tonnes. Warehouse stock for Aluminium at LME was at 2259100mt that is up by 24575mt.

Naturalgas trading range for the day is 182.8-192.2. Natural gas rallied to settle above 188 level on increased concerns that a storm could hit the Gulf of Mexico. A tropical wave in the Atlantic Ocean has a 60% chance of developing into a tropical storm in the next 48 hours Demand tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity. Market players looked ahead to weekly supply data due on Thursday, which is expected to show +24bcf in the week ended August 19.

Jeera trading range for the day is 18015-18555.Jeera prices gained on expectation of pickup in export demand at the spot market. At Unjha market in Mehsana total arrivals are at 700 quintals, lower by 300 quintals as compared to previous day. NCDEX accredited warehouses jeera stocks dropped by 47 tonnes to 5626 tonnes. In Unjha, a key spot market in Gujarat, jeera edged down by -25 rupees to end at 18900 rupee per 100 kg.

Menthaoil trading range for the day is 889.8-914.2.Mentha oil spot at Sambhal closed at 1048.20 per 1kg. Spot prices is up by Rs.3.20-.Mentha oil prices dropped as export and domestic demand are not picking up as per last month’s update exports have registered a decline in volume terms. China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint products exports Overall mentha oil output for 2016-17 is now revised upwards at 34,000 tonnes.

Silver trading range for the day is 43186-44838.Silver traded in a narrow range as investors waited for clues on whether the U.S. Federal Reserve would hike interest rates this year. Slowed by frustratingly low inventory levels, existing-home sales lost momentum in July and decreased year-over-year since November 2015.Chinas silver imports fell 36 percent year-on-year in July, official customs data showed. Investors have flocked to the metal in recent months, with hedge funds expanding their bullish bets on silver to an all-time high in May.

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