Zinc Tumbles On Demand Fears

Zinc futures plunged by more than 1 % t in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amid weak physical demand for zinc from the domestic spot market.

 

Further, a gloomy demand outlook from China, the world’s biggest metals consumer, with China’s economy engulfed in the worst slowdown since the global financial crisis continued to mar sentiment.
 

Fears that policy tightening in the US may also impact demand for metals adversely from the world’s big economy also weighed on sentiment. The Fed on Wednesday signaled that it is getting ready to move to Get interest rates for the first time in almost a decade, and could do so as early as December.
 

Traders cast aside robust Euro area data which showed that a gauge measuring economic sentiment in the region soared to a four-year high at 105.9 in October.
 

At the MCX, Zinc futures for October 2015 contract closed at Rs 110.75 per 1 kg, down by 1.16 per cent after opening at Rs 112, against the previous closing price of Rs 112.05. It touched the intra-day low of Rs 110.6.

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Natural Gas plunges nearly 4% head of storage Data

Natural Gas futures sank almost 4 per cent in the domestic market on Wednesday as investors and speculators exited positions in the energy commodity tracking a bearish trend in the overseas market as traders stuck to a cautious stance ahead of the weekly storage data due on Thursday which may signal the strength of the demand for the fuel in the US, the world’s biggest gas consumer.
 

The EIA may on Thursday show 75 billion cubic feet build in storage levels in the week ended October 23, 2015.
 

Unusually warm weather readings have reduced the demand for the heating fuel at the start of the winter season. About 49 per cent of US households use natural gas for heating purposes.
 

At the MCX, Natural Gas futures for November 2015 contract closed at 149.10 Rs per mmBtu, down by 3.93 per cent, after opening at Rs 155, against the previous closing price of Rs 155.2. It touched an intra-day low of Rs 147.9.

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Chana prices closed lower by 2.43 per cent on Tuesday

Chana prices closed lower by 2.43 per cent on Tuesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the steady sowing progress of pulses along with high supplies in major producing states. At the NCDEX, chana futures for November 2015 contract closed at Rs. 4,6 89per quintal, down by 2.43 per cent, after opening at Rs. 4,806 against the previous closing price of Rs. 4,806. It touched the intra-day low of Rs. 4,614.

India is the largest producer of chickpea followed by Pakistan, Iran. Turkey . India produces around 6 to 8 million tonnes and contributes around 70 % of the total world production.

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Crude Oil Futures Slid Over 1.7 % in the Domestic Market

Crude oil futures slid over 1.7 per cent in the domestic market on Monday as investors and speculators exited positions in the energy commodity amidst fears that a slowing global economy may curb the demand for the fuel. 

 

A surprise rate cut by China on Friday and speculation that the country may be shying away from its 7 per cent official economic growth target for 2015 signaled a gloomy demand outlook for the fuel, spooking oil traders. The People’s Bank of China on Friday cut interest rates for a sixth time since November as the key lending rate was slashed by 25 basis points while the reserve requirement ratio was cut by 50 basis points. Meanwhile, sales of new homes in the US plunged to the lowest level in ten months in September while a regional factory gauge shrank, signaling a slowdown in the world’s biggest economy, darkening the demand outlook for the fuel. US new home sales slipped by 11.5 per cent to a 468,000 annualized pace in September from the prior month. The gauge measuring manufacturing activity in Dallas fell to -12.7 in October from -9.5 in September, with a reading below 0 signaling contraction. Meanwhile, a deceleration in the fall in the weekly US oil rig count signaled an end to the US production slowdown, threatening to aggravate a global supply glut. The number of rigs drilling for oil in the US fell the least in eight weeks, down by 1 to 594 in the week ended October 23, Baker Hughes said.

Oil may trade on a cautious note today ahead of key US data including durable goods orders, home prices, services PMI and consumer confidence, which may shape the demand outlook for the fuel in the world’s biggest oil consumer.

At the MCX, Crude oil futures, for the November 2015 contract, closed at Rs 2,877 per barrel, down by 1.71 per cent, after opening at Rs 2,930, against the previous close price of Rs 2,927. It touched an intraday low of Rs 2,870.

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Maize Ends Higher On Rise in Demand

Maize prices closed higher by 0.5 per cent on Friday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of a rise in the demand from exporters and poultry industries. At the NCDEX, maize futures for November 2015 contract closed at Rs. 1,420 per quintal, up by 0.5 per cent, after opening at Rs. 1,409 against the previous closing price of Rs. 1,413. It touched the intra-day high of Rs. 1,425.
USA, China and Brazil are the top three maize producing countries in the world while the prominent exporters of maize are USA, Argentina and Brazil. Chief importers are Japan, EU, Malaysia, Taiwan, Indonesia etc.

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Jeera Ends Lower On Weak Demand

Jeera prices closed lower by 1.54 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) on account of a surge in the supply from the producing regions in the midst of a decline in the export demand. At the NCDEX, jeera futures for November 2015 contract closed at Rs. 16,005 per quintal, down by 1.54 per cent, after opening at Rs. 16,290 against the previous closing price of Rs. 16,255. It touched the intra-day low of Rs. 15,820.
 

Commodity markets were closed on October 22, 2015 on account of Dussehra, also known as Vijayadashmi.
 

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, Bangladesh, Singapore and many other countries. Other Major exporters are Syria and Turkey.

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Natural Gas spikes on cold weather outlook

Natural Gas futures surged more than 1 per cent in the domestic market on Monday as investors and speculators booked fresh positions in the energy commodity tracking gains in the overseas market as forecast for a cold blast in the US Northeast signaled upbeat demand outlook for the heating fuel.
 

Latest weather forecasting models called for extremely cold temperatures to hit the northern US through October 21, bolstering the need for gas-fired heating.
 

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

At the MCX, Natural Gas futures for October 2015 contract closed at 159.9 Rs per mmBtu, up by 1.4 per cent, after opening at Rs 158.8, against the previous closing price of Rs 157.7. It touched an intra-day high of Rs 161.4.

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Chana prices closed higher 1.72 percent

Chana prices closed higher 1.72 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 October 2015 contract closed at Rs. 5,251 per quintal, up by 1.72 per cent, after opening at Rs. 5,290 against the previous closing price of Rs. 5,162. It touched the intra-day high of Rs. 5,290.


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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Jeera Ends Lower On Surge In Stocks

Jeera prices closed lower by 1.34 per cent on Thursday at the National Commodity & Derivatives Exchange Limited (NCDEX) on account of a surge in the supply from the producing regions in the midst of a decline in the export demand. At the NCDEX, jeera futures for Oct 2015 contract closed at Rs. 16,200 per quintal, down by 1.34 per cent, after opening at Rs. 16,270 against the previous closing price of Rs. 16,420. It touched the intra-day low of Rs. 16,075.
 

Global output of Jeera is around 2.2 lkh MT/ year, of which India produces about 1.5 lkh MT / year.
 

India exports Jeera mainly to the US,Bangladesh, UK,Singapore. UAE, Japan, Brazil, , and many other countries. Other Major exporters are Syria and Turkey.

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Cardamom Drops 3.78% on Adequate Arrivals on 14 of Oct

Cardamom prices fell by 3.78 per cent on Wednesday at the Multi Commodity Exchange (MCX) due to the adequate stocks availability in the physical market on account of higher supply from the producing belts of Chandausi in Uttar Pradesh. At MCX, Cardamom futures for October 2015 contract were trading at Rs. 790 per kg, down by 3.78 per cent, after opening at Rs. 790 against the previous closing price of Rs. 821. It touched the intra-day low of Rs. 790 till the trading. (At 10.45 AM today). Sentiment weakened further as the traders booked profits at the prevailing levels in the midst of a subdued demand for the commodity.

 

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 Vandanmendu, Bodinayakanur, Kumily, Thekkady, Kumbum and Pattiveeran Patti in Kerala.

 

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Crude oil futures Tanked over 4 % in the Domestic Market

Crude oil futures tanked over 4 per cent in the domestic market on Monday, registering their biggest single-day drop since September 1 in the overseas market as investors and speculators pressed the sell-off button in the energy commodity after a report showed that the OPEC, the cartel that controls around 40 per cent of global crude oil supplies, continued to pump output at swift rates despite falling prices, signaling no end to the ongoing supply glut.

OPEC’s production climbed by 109,000 barrels per day to 31.57 million barrels per day in September, signaling the reluctance on part of member nations to curb output as they bid to protect market share. However, some relief was offered in the form of a forecast for a maiden drop in US crude output in eight years in 2016.

OPEC predicted lower non-OPEC supply growth of 720,000 barrels per day in 2015, down by 600,000 barrels per day from its earlier forecast and below last year’s levels.

Oil may extend losses today after China’s imports plunged for the eleventh month on the trot, dropping 17.7 per cent, year on year in yuan terms in September, marking the longest losing streak in six years, while exports fell 1.1 per cent, signaling more pain for the world’s second biggest economy, darkening the demand outlook for the fuel.

At the MCX, Crude oil futures, for the October 2015 contract, closed at Rs 3,075 per barrel, down by 4.06 per cent, after opening at Rs 3,205, against the previous close price of Rs 3,205. It touched an intraday low of Rs 3,067.

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Gold futures Notched up Impressive Gains in the Domestic Market

Gold futures notched up impressive gains in the domestic market on Friday as investors and speculators booked fresh positions in the precious metal amidst speculation that the US Federal Reserve may push back the timetable for raising interest rates in the world’s biggest economy, for the first time in almost a decade, bolstered the lure for the bullion as a store of value.  

FOMC minutes released on Thursday signaled caution on part of policymakers over raising interest rates despite an improvement in the US economy, as spillovers from a struggling Chinese economy threaten to hit other emerging markets.  

Fed Vice Chairman Stanley Fisher said that a 2015 rate hike was an expectation, but not a commitment, with considerable uncertainties surrounding US economic outlook amidst slowing global growth which may hit exports, low investment due to a collapse in oil prices and recent dismal jobs growth data.  

A weaker dollar also boosted the demand for Gold as alternative asset. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering demand.  

Gold may extend a rally on Monday on delayed Fed policy tightening hopes as traders eye comments from two key Fed officials.
 

At the MCX, Gold futures for December 2015 contract closed at Rs 26,622 per 10 gram, up by 0.67 per cent after opening at Rs 26,424, against the previous closing price of Rs 26,446. It touched the intra-day high of Rs 26,696. 

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Jeera closes higher as traders increased holdings

Jeera prices closed higher by 0.25 per cent on Thursday 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 October 2015 contract closed at Rs. 15,830 per quintal, up by 0.25 per cent, after opening at Rs. 15,795 against the previous closing price of Rs. 15,790. It touched the intra-day high of Rs. 15,910. 

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

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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Cardamom Prices Rose by 2.05 % On Thursday

Cardamom prices rose by 2.05 per cent on Thursday 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 October 2015 contract were trading at Rs 806 per kg, up by 2.05 per cent, after opening at Rs. 818 against the previous closing price of Rs. 789.80. It touched the intra-day high of Rs. 818 till the trading. (At 10.48 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 % ), Karnataka (20 % ) and Tamil Nadu (10 % ) are the cardamom growing states in India while about 90 % of the produce is consumed within the nation. The important markets for cardamom in India are Bodinayakanur, Vandanmendu, Thekkady, Kumbum, Kumily , and Pattiveeran Patti in Kerala.
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Zinc futures Extended losses in the Domestic Market

Zinc futures extended losses in the domestic market on Tuesday as investors and speculators exited positions in the industrial metal amid weak physical demand for Zinc in the domestic spot market.

Further, a slump in German factory orders in August signaled a faltering recovery in Europe’s biggest economy, darkening the demand outlook for industrial metals. German factory orders fell by 1.8 per cent in August from the previous month when they declined a revised 2.2 per cent in July.

Meanwhile, the IMF cut its global economic growth forecast to 3.1 per cent for 2015 from 3.3 per cent earlier and to 3.6 per cent in 2016, from 3.8 per cent amid lower growth in emerging markets, darkening the demand outlook for base metals.

At the MCX, Zinc futures for October 2015 contract closed at Rs 107.9 per 1 kg, down 0.32 per cent after opening at Rs 108.7, against the previous closing price of Rs 108.25. It touched the intra-day low of Rs 107.45. 

 

 

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Mild Weather Outlook Pulls Down Natural Gas

NaturalGas futures ended lower in the domestic market on Monday as investors and speculators exited positions in the energy commodity as forecasts for mild weather in the US, the world’s biggest fuel consumer, threatened to curb gas-fired heating demand.

The MDA Weather Services predicted temperatures to remain above normal across most of the lower 48 states through October 19, 2015, reducing need for heating.

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

US gas supplies continue to top demand, with total storage levels 4.5 per cent above the five-year average in the second half of September, marking the biggest glut for this time of the year since 2012.

At the MCX, Natural Gas futures for October 2015 contract closed at Rs 160.8 per mmBtu, down by 0.68 per cent, after opening at Rs 161.5, against the previous closing price of Rs 161.9. It touched an intra-day low of Rs 159.5. 

 

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Maize Ends Higher on Rise in Demand

Maize prices closed higher by 0.2 per cent on Thursday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of a rise in the demand from exporters and poultry industries. At the NCDEX, maize futures for October 2015 contract closed at Rs. 1,473 per quintal, up by 0.2 per cent, after opening at Rs. 1,469 against the previous closing price of Rs. 1,470. It touched the intra-day high of Rs. 1,478.

Commodity markets were shut on October 2, 2015 on account of Mahatma Gandhi Jayanti, the birth anniversary of the leader of India's fight for independence from British rule.

USA, China and Brazil are the top three maize producing countries in the world while the prominent exporters of maize are USA, Argentina and Brazil. Chief importers are Japan, EU, Malaysia, Taiwan, Indonesia etc.

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