Oil Extends slide On Oversupply fears

Crude oil Updates - Crude oil futures plunged in the domestic market during noon trade on Monday as investors and speculators exited positions in the energy commodity after the IEA warned that a global oversupply situation may persist next year as demand slows amidst a weakening global economic recovery, and as the OEPC continues to boost production to protect market share and drive away competition from the likes of US and Russia.
 

Also, traders are jittery ahead of the US Federal Reserve’s two-day monetary policy meet startin

g on Tuesday, in which the world’s biggest central bank may raise interest rates for the first time since 2006, boosting the dollar, and dimming the demand for dollar-denominated commodities such as oil.
 

At the MCX, Crude oil futures, for the December 2015 contract, is trading at Rs 2,382 per barrel, down by 0.87 per cent, after opening at 2,388, against the previous close price of Rs 2,403. It touched an intraday low of Rs 2,380.

Zinc Soars On Physical Demand In Domestic Market

Base Metal Zinc - Zinc futures soared by over 1.5 per cent in the domestic market on Friday as investors and speculators booked fresh positions in the industrial metal amidst a pickup in physical demand for zinc in the domestic spot market. 

Further, upbeat US retail sales and consumer sentiment data signaled a pickup in the recovery in the world’s biggest economy, lifting the demand outlook for industrial metals. US retail sales climbed by 0.2 per cent in November 2015 from the previous month, the biggest advance in four months, the Commerce Department reported on Friday. Further, the gauge measuring consumer sentiment climbed to the highest level in four months at 91.8 in December from 91.3 in November.

 

At the MCX, Zinc futures for December 2015 contract closed at Rs 103.6 per kg, up by 1.57 per cent after opening at Rs 102.4, against the previous closing price of Rs 102. It touched the intra-day high of Rs 104.35.

Lead prices Rose by 0.83 per cent on Friday

Base Metal lead - Lead prices rose by 0.83 per cent on Friday at the domestic markets due to the decline in the lead stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME lead stocks fell by 250 metric tonnes to 131500 metric tonnes as on December 11, 2015. At the MCX, Lead futures, for the December 2015 contract, is trading at Rs 115 per kg, up by 0.83 per cent, after opening at Rs 114.15, against a previous close of Rs 114.05. It touched an intra-day high of Rs 115.15 till the trading. 

 

 

Prices also rose due to high demand from battery-makers and other consuming industries at the domestic spot market as well as a strong trend at the global market.at the domestic markets due to the decline in the lead stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME lead stocks fell by 250 metric tonnes to 131500 metric tonnes as on December 11, 2015. At the MCX, Lead futures, for the December 2015 contract, is trading at Rs 115 per kg, up by 0.83 per cent, after opening at Rs 114.15, against a previous close of Rs 114.05. It touched an intra-day high of Rs 115.15 till the trading.

Gold Updates - Gold in Reverse Gear on Fed Caution

Gold Update - Gold futures ended lower in the domestic market on Thursday as investors and speculators resorted to a cautious stance ahead of the US Federal Reserve’s two-day monetary policy meet next week in which the world’s top central bank is almost certain to raise interest rates for the first time since 2006, dimming the lure for the yellow metal as a store of value.

 

Fed officials recently have all expressed satisfaction with the US labour market recovery, and have signaled that the world’s biggest economy is ready to withstand the impact of monetary tightening.
 

Gold, a non-interest bearing asset, tends to lose sheen in a rising interest rate scenario.  Weak cues from the overseas market also weighed on domestic sentiment as a stronger dollar and a rebound in equities curbed the lure for gold as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
 

Gold may extend losses today as traders stay cautious ahead of US retail sales and producer prices data which may show a strengthening recovery in the US economy.
 

At the MCX, Gold futures for February 2016 contract closed at Rs 25,418 per 10 gram, down by 0.72 per cent after opening at Rs 25,515, against the previous closing price of Rs 25,602. It touched the intra-day low of Rs 25,391.

Zinc slips on weak Global Trend

Zinc Tips - Zinc futures fell by 0.49 per cent to Rs 101.75 per kg today as speculators reduced positions in the midst of a weak trend globally. Besides, low demand in domestic spot markets fuelled the downtrend. Zinc futures for December 2015 contract, at MCX, were trading at Rs 101.75 per kg, down by 0.49 per cent after opening at Rs. 101.90 against the previous closing price of Rs. 102.25. It touched the intra-day low of Rs. 101.50 till the trading. (At 4.08 PM today). However, losses were limited due to the decline in the zinc stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME zinc stocks fell by 3600 metric tonnes to 517050 metric tonnes as on December 10, 2015.
 

Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany.

Mustard Seed Ends Lower On Sluggish Demand

Free commodity tips -  Mustard Seed prices closed lower by 1.5 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the profit booking by the traders on account of the weak crushing and export demand of mustard meal. At the NCDEX, Mustard Seed futures for December 2015 contract closed at Rs. 4,608 per quintal, down by 1.5 per cent, after opening at Rs. 4,680 against the previous closing price of Rs. 4,678. It touched the intra-day low of Rs. 4,596. 

Sentiment weakened further due to the sluggish export demand as a result of the weak demand for the commodity.
 

EU-27 accounts to about 34 per cent of worlds RM seed production, others major producers are China (23 per cent), Canada (19 per cent), India (14 per cent), Australia (3 per cent), Ukraine (2 per cent). India produces 5.5 million MT to7 million MT annually.

Lead Rises 0.40% on High Demand From Consumers

Base metal Lead - Lead prices rose by 0.40 per cent on Wednesday at the domestic markets due to high demand from battery-makers and other consuming industries at the domestic spot market as well as a strong trend at the global market. At the MCX, Lead futures, for the December 2015 contract, is trading at Rs 114.25 per kg, up by 0.40 per cent, after opening at Rs 113.50, against a previous close of Rs 113.80. It touched an intra-day high of Rs 114.50 till the trading.

However, gains were limited due to the surge in the lead stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME lead stocks rose by 4350 metric tonnes to 131850 metric tonnes as on December 9, 2015.