Upbeat physical Demand Powers Zinc Rally

Zinc futures rallied during noon trade in the domestic market on Monday as investors and speculators booked fresh positions in the industrial metal amid a pickup in physical demand for Zinc in the domestic spot market.
 

However, the gains in the metal were capped by fears that a worsening economic slowdown in China, the world’s biggest metals consumer, may curb demand for Zinc as a renewed slide in stock markets in China threatened to signal deep-rooted problems in the world’s second biggest economy.
 

Following nearly a 10 per cent combined gain in the past two trading sessions, China’s benchmark index, the Shanghai Composite, skid by 0.80 per cent on Monday amid speculation that the government may end its intervention to prop up stock markets.
 

At the MCX, Zinc futures for August 2015 contract closed at Rs per 121.30 per 1 kg, up by 0.46 per cent after opening at Rs 120.25, against the previous closing price of Rs 120.75. It touched the intra-day high of Rs 121.50.

 

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Troubles in China to spell disaster for the Indian steel Industry

Troubles within China are expected to spell disaster for the Indian steel industry as desperate Chinese manufacturers would dump their products more rigorously abroad, having already registered a growth of 232 per cent in their shipments to Indian ports, an ASSOCHAM study has cautioned.

“China has got 400 million tons of surplus capacity against a demand of 741 million tons which is more than 50 per cent of its requirement. Excessive capacity of China is four times the total capacity of India and in 2014, steel exports from China were 93 million tons in total, increasing by 50.5% year-on-year,” the ASSOCHAM paper said.

India’s steel imports have increased by over 71 per cent in 2014-15 (v/s 2013-14) and trade deficit only in terms of steel has widened by USD 3.66 billion. Specifically, China’s steel imports coming into Indian in 2014-15 surged by over 232 per cent and the trade deficit with China alone widened by USD 2.66 billion.

India’s imports of defective steel and seconds increased by 30 per cent in 2014 -15. Such imports of HR alone witnessed a sharp rise of 99 per cent along with CR rising by 81 per cent.

Further with further devaluation in Yuan, the impact is being felt on Australian, Taiwanese and Japanese currencies as well. This would make Chinese exports cheaper creating more room for their surplus steel in growing markets like India, it said.

Moreover, defective and second steel is being dumped into India to the detriment of our construction and health of people.

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Copper futures Ended Higher in the Domestic Market

Copper futures ended higher in the domestic market Thursday as investors and speculators returned to bullish mode after a stock rebound in China, the world’s biggest metals consumer, stemmed fears over a deepening gloom surrounding the Asian economic powerhouse, bolstering the demand prospects for Copper. China’s benchmark index, the Shanghai Composite which plunged a massive 23 per cent over the past five trading sessions, bounced back today registering a gain of more than 2 per cent amidst value buying and confidence over the impact of the latest interest rate cut move by the People's Bank of China that may help spur a recovery. However, gains were curbed due to the surge in the copper stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME copper stocks rose by 1400 metric tonnes to 370425 metric tonnes as on August 27, 2015. Copper prices may rise as traders keep an eye on upcoming global data. At the MCX, Copper futures for August 2015 contract closed at Rs. 339.85 per 1 kg, up by 3.27 per cent after opening at Rs. 330.70 against the previous closing price of Rs. 329.10. It touched the intra-day high of Rs. 341.45 till the closing. China’s benchmark index, the Shanghai Composite which plunged a massive 23 per cent over the past five trading sessions, bounced back today registering a gain of more than 2 per cent amidst value buying and confidence over the impact of the latest interest rate cut move by the People's Bank of China that may help spur a recovery. Investor focus today will shift to key US economic data including jobless claims, pending home sales and revised Q2 GDP data which will offer more cues over the health of the world’s biggest economy. At the MCX, Copper futures for August 2015 contract is trading at Rs 335 per 1 kg, up by 1.79 per cent after opening at Rs 330.70, against the previous closing price of Rs 329.10. It touched the intra-day high of Rs 335.20 (At 12:38 PM).

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Natural Gas futures jumped more than 1%

Natural Gas futures jumped more than 1 per cent in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity as forecasts for warmer weather across key gas consuming regions in the US bolstered the demand outlook for the power plant fuel which is used to fire up air conditioners at offices and homes.
 

Latest weather forecasting models have called for hot weather in the Midwest and Eastern US, lifting the need for gas fired cooling.
 

About 49 per cent of US households use natural gas for cooling purposes.Demand for gas from power plants jumped 8.7 per cent this week through Wednesday, according to LCI Energy Insight in El Paso, Texas.
 

At the MCX, Natural Gas futures for August 2015 contract closed at Rs 178 per 1 kg, up by 1.19 per cent after opening at Rs 176.90, against the previous closing price of Rs 175.90. It touched the intra-day high of Rs 179.50 till the closing.

 

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Traders Continued To Shun Oil which tumbled by over 1.2 %

Traders continued to shun oil which tumbled by over 1.2 per cent in the domestic market on Tuesday amid speculation that a worsening rout in Chinese equities which marked the biggest four-day slide since 1996 may spread to other parts of the world’s second biggest economy, reducing the demand for oil.China is the world’s second biggest oil consumer, accounting for nearly one-tenth of global oil demand.

China’s Shanghai Composite which recorded the steepest one-day percentage drop since 2007 on Monday, declining 8.5 per cent, tumbled 7.6 per cent on Tuesday, as the benchmark fell below the 3,000 mark for the first time in eight months.

Oil failed to find relief from fresh stimulus by China’s central bank aimed at reviving the sagging world’s second biggest economy. The People’s Bank of China late Tuesday cut interest rates by 0.25 per cent, the fifth cut since last November and lowered the amount of cash to be kept aside by banks by 0.50 per cent.

Meanwhile, mixed US data clouded the demand outlook for the fuel in the world’s biggest economy as new home sales jumped in July and consumer confidence soared to the second highest level in eight years in August, but a regional manufacturing gauge tumbled this month while services growth eased slightly.

Sales of new US homes climbed 5.4 per cent to a 507,000 annual pace in July, the consumer confidence index jumped to 101.5 in August from 91 in July, a US services gauge dropped to 55.2 from 55.7 in July while the Richmond Fed Manufacturing index plunged to the no-change mark of 0 in August from 13 in July.

Oil may rebound today after an industry report showed a bigger than expected drawdown of 7.3 million barrels in US inventories last week, easing fears over a widening supply glut.

At the MCX, Crude oil futures, for the September 2015 contract, closed at Rs 2,607 per barrel, down by 1.21 per cent, after opening at Rs 2,628, against the previous close price of Rs 2,639. It touched an intraday low of Rs 2,600.

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Natural Gas futures closed higher in the domestic market

Natural Gas futures closed higher in the domestic market on Monday as the sharp losses in the previous session when prices tanked 2.5 per cent as forecasts for mild weather across the US threatened to cut demand for the power plant fuel , offered traders a good bargain buying opportunity, in the fuel at existing levels.

About 49 per cent of US households use natural gas for cooling purposes.

Meanwhile, a lower than expected inventory injection in the week ended August 14 also boosted sentiment as supplies climbed 53 billion cubic feet, against expectations for a 58 billion cubic feet injection and following a 65 billion cubic feet increase in the prior week.

At the MCX, Natural Gas futures for August 2015 contract closed at Rs 178.70 per 1 kg, up by 0.45 per cent after opening at Rs 177.10, against the previous closing price of Rs 177.90. It touched the intra-day high of Rs 180.60 till the closing.

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Gold prices Rose by 0.33 % on Monday as Markets

Gold prices rose by 0.33 per cent on Monday as markets looked ahead to remarks by a key Federal Reserve policymaker. Ahead on Monday, Federal Reserve Bank of Atlanta President Dennis Lockhart is to speak; his comments will be closely watched. Gold futures for October 2015 contract, at MCX, were trading at Rs. 27,330 per 10 grams, up by 0.33 per cent, after opening at Rs. 27,300, against the previous closing price of Rs 27,239. It touched an intra-day high of Rs 27,417 till the trading. (At 11.43 AM today).Last week, gold futures rallied to a more than six-week high on Friday, as steep losses in global equity markets and receding expectations that the Federal Reserve will raise U.S. interest rates next month boosted demand for the yellow metal.

                                                 Gold also benefited from fast rising expectations of a delayed Fed rate hike given the turbulence in financial markets, China slowdown jitters, slowing global growth and muted inflation, bolstering its lure as a store of value. Gold may extend a charge today as global stocks take a further pounding, bolstering the safe haven demand for the bullion. At the MCX, Gold futures for October 2015 contract closed at Rs 27,239 per 10 gram, up by 1.45 per cent after opening at Rs 27,145, against the previous closing price of Rs 26,849. It touched the intra-day high of Rs 27,330.

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Oil resumes steep slide on US, China fears

Crude oil futures plunged by more than 1 per cent in the domestic market on Friday as investors and speculators exited positions in the energy commodity amid fears of a further boost in US storage levels as American refineries shut down for seasonal maintenance, limiting fuel demand in the world’s biggest oil consumer.

Further, a leading US economic index surprisingly fell last month, raising concerns over the health of the world’s biggest economy. The Conference Board said that it’s leading index for the US economy declined by 0.2 per cent in July from June, when it climbed 0.6 per cent.

Adding to the gloom, a Chinese private manufacturing gauge contracted at the fastest pace since March 2009, coming in at 47.1 in August, with a reading below 50 signaling contraction, stoking more fears over the health of the world’s second biggest economy.

At the MCX, Crude oil futures, for the September 2015 contract, is trading at Rs 2,716 per barrel, down by 1.38 per cent, after opening at Rs 2,735, against the previous close price of Rs 2,754. It touched an intraday low of Rs 2,702. (At 11:09 AM).

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Bears grip Natural Gas on weather outlook

Natural Gas futures extended a slide in the domestic market on Monday as investors and speculators exited positions in the energy commodity as forecasts for unseasonably cool weather across the north-central US threatened to curb demand for the fuel which is used for firing up air conditioners as cooling need arises at offices and homes. About 49 per cent of American households use natural gas for cooling purposes.

Meanwhile, above average stockpile injections signal that supplies of the energy commodity remain ample in the US, weighing on sentiment. US gas stockpiles probably rose 70 billion cubic feet in the week ended August 14th, topping the five-year average gain of 54 billion cubic feet, the EIA may say on Thursday.

At the MCX, Natural Gas futures for August 2015 contract closed at Rs 178.80 per 1 kg, down by 2.13 per cent after opening at Rs 182.30, against the previous closing price of Rs 182.70. It touched the intra-day low of Rs 178.40 till the closing.

 

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Todays Freshly Commodity Update of Chana N Barely

Barley prices closed lower by 0.27 per cent on Friday at the National Commodity & Derivatives Exchange Limited (NCDEX) as the investors booked profits at the higher on account of the weak physical markets and also due to the fall in the demand from beer and cattle-feed makers. At the NCDEX, barley futures for June 2014 contract closed at Rs. 1,127 per quintal, down by 0.27 per cent, after opening at Rs. 1,128 against the previous closing price of Rs. 1,130. It touched the intra-day low of Rs. 1,127.Sentiment weakened further on account of a surge in the arrivals of the commodity along with the sluggish demand on higher levels.Barley is a cereal grain derived from the annual grass Hordeum vulgare. This widely adaptable crop is popular in temperate areas where it is grown as a summer crop and tropical areas where it is sown as a winter crop

                     

  Chana prices closed higher 0.51 per cent on Friday at the National Commodity & Derivatives Exchange Limited (NCDEX) as the traders enlarged their holdings in the commodity on account of the good demand in the market. At the NCDEX, chana futures for April 2014 contract closed at Rs. 4,571 per quintal, up by 0.51 per cent, after opening at Rs. 4,564 against the previous closing price of Rs. 4,548. It touched the intra-day high of Rs. 4,584.
Moreover, the restricted arrivals of the commodity in the physical market due to lower estimated output also influenced the chana prices.India is the largest producer of chickpea followed by Pakistan, Turkey and Iran. India produces around 6 to 8 million tonnes and contributes around 70 per cent of the total world production.

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Crude Oil ends lower on weak demand prospects

Crude Oil futures ended lower in the domestic market on Thursday as the U.S. dollar rallied after strong economic data increased the likelihood that the Federal Reserve would raise interest rates in September. The U.S. Commerce Department said retail sales increased by 0.6 per cent last month, beating expectations for a gain of 0.5 per cent while Core sales in June increased 0.4 per cent, whose figure was revised from a previously reported decline of 0.1 per cent. Sentiment weakened further as investors weighed gloomy demand prospects from China as a third straight devaluation of the Yuan by the Chinese central bank pushed the currency to a four-year low against the dollar, threatening to curb Chinese consumer buying power. Meanwhile, Euro area industrial output fell 0.4 per cent in June from the previous month, signaling a faltering recovery in the 19-member economy, darkening the demand outlook for the fuel. At the MCX, Crude oil futures, for the August 2015 contract, closed at Rs 2,758 per barrel, down by 2.23 per cent, after opening at Rs 2,816, against the previous close price of Rs 2,821. It touched an intraday low of Rs 2,746.

 

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Jeera closes higher on limited supplies

Jeera prices closed higher by 3.48 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as the investors increased their holdings in the commodity in the midst limited arrivals from growing regions. At the NCDEX, jeera futures for August 2015 contract closed at Rs. 15,300 per quintal, up by 3.48 per cent, after opening at Rs. 14,805 against the previous closing price of Rs. 14,785. It touched the intra-day high of Rs. 15,375.

Sentiment improved further as a result of reduced domestic supplies in the physical markets and some export inquiries.

Global output of Jeera is around 2.2 lakh MT per year, of which India produces about 1.5 lakh MT per year. India exports Jeera mainly to the US, UK, UAE, Japan, Brazil, Bangladesh, Singapore and many other countries. Other Major exporters are Syria and Turkey.

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Natural Gas extends rally on weather outlook

Natural Gas futures extended an advance in the domestic market on Tuesday as investors and speculators booked fresh positions in the energy commodity as forecasts for warmer weather across the southern and central parts of the US through August 15 bolstered the demand outlook for the power plant fuel that is used in firing up air conditioners at offices and homes.

About 49 % of US households use natural gas for cooling purposes.

However, total storage levels at 2.912 trillion cubic feet are 22.5 per cent above year ago levels and 2.2 % higher than the five-year average, a sign that the market remains more than adequately supplied, trimming gains in the fuel.
 

At the MCX, Natural Gas futures for August 2015 contract closed at Rs 183 per 1 kg, up by 0.49 % after opening at Rs 182, against the previous closing price of Rs 182.10. It touched the intra-day high of Rs 183.70 till the closing.

 

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Cardamom rises 0.33% on firm demand

Cardamom prices rose by 0.33 per cent on Tuesday at the Multi Commodity Exchange (MCX) on account of good buying support from both exporters and upcountry buyers and also on hopes of improved export demand. At MCX, Cardamom futures for August 2015 contract were trading at Rs 811.70 per kg, up by 0.33 per cent, after opening at Rs. 813 against the previous closing price of Rs. 809. It touched the intra-day high of Rs. 814.70 till the trading. (At 10.40 AM today). Sentiment improved further as a result of firm demand in the market against restricted arrivals from producing belts of Chandausi in Uttar Pradesh.

Kerala (70 per cent), Karnataka (20 per cent) and Tamil Nadu (10 per cent) are the cardamom growing states in India while about 90 per cent of the produce is consumed within the nation. The important markets for cardamom in India are ,Kumbum, Bodinayakanur, Thekkady, Kumily, and Vandanmendu,Pattiveeran Patti in Kerala.

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Crude Oil closes lower on oil rig build

Crude Oil prices ended lower in the domestic market on Friday as a modest build in oil rigs last week provided fresh concerns of the bearish effects of an increasing glut of oversupply on dwindling oil prices. Oil services firm Baker Hughes said in its weekly rig count on Friday that US oil rigs rose by six to 670 for the week that ended on July 31, marking the third consecutive week of weekly builds. Oil rigs nationwide have now moved higher in five of the last six weeks, following more than 25 weeks of weekly draws. Last fall, the US oil rig count peaked above 1,500. Elsewhere, the dollar moved broadly higher amid solid US jobs figures for the month of July. A stronger dollar reduced the demand for crude oil as an alternative asset. Stronger greenback makes the commodity expensive for those holding other currencies, thus reducing demand. At the MCX, Crude oil futures, for the August 2015 contract, closed at Rs 2,824 per barrel, down by 0.81 per cent, after opening at Rs 2,857, against the previous close price of Rs 2,847. It touched an intraday low of Rs 2,815.

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Copper Bears remain in command

On Tuesday, Prices of Copper were trading lower in the native market as investors and speculators exited positions in the industrial metal as a slowdown in US manufacturing activity clouded the demand outlook for copper.The ISM US Manufacturing PMI fell to 52.7 in July from 53.5 in June, with a reading above 50 signaling expansion. US consumer spending rose at the slowest pace since February, up 0.2 % in June from May when it elevated 0.7 per cent.China’s benchmark index, the Shanghai Composite surged over 1 per cent on Tuesday, snapping a three-day losing streak, after the country’s officials unveiled more measures to stem the steep stock market rout including curbs on short selling forcing traders to hold for at least a day, easing worries over the demand outlook in the world’s biggest metals consumer, trimming losses in Copper.
Copper futures for August 2015 contract at MCX is trading at Rs 332.20 per 1 kg, down by 0.40 per cent after opening at Rs 333.15, against the previous closing price of Rs 333.55. It reached the intra-day low of Rs 332.15. At 10 O' Clock.

 

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Natural gas plunged 2 % in the domestic market

Natural gas plunged more than 2 per cent in the domestic market on Friday as investors and speculators cut risky bets in the energy commodity as forecasts for mild weather across parts of the US in the coming days threatened to curb the demand for the power plant fuel as need for air conditioning at homes and offices reduces.
 

Latest weather forecasting models have called for mostly average temperatures across most parts of the US in the coming two weeks.

About 49 5% of American house holds use natural gas for cooling purposes.

At the MCX, Natural Gas futures for August 2015 contract closed at Rs 174.80 per 1 kg, down by 2.24 per cent after Cracking at Rs 179.40, against the previous ending price of Rs 178.80. It touched the intra-day low of Rs 174.50 till the closing.

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