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.

Maize Ends Higher On Strong Demand

Free Commodity Tips - Maize prices closed higher by 1.44 per cent on Tuesday 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 December 2015 contract closed at Rs. 1,547 per quintal, up by 1.44 per cent, after opening at Rs. 1,532 against the previous closing price of Rs. 1,525. It touched the intra-day high of Rs. 1,547. 

 

 

USA, China and Brazil are the top 3 maize producing countries in the world while the prominent exporters of maize are USA, Argentina and Brazil. Chief importers are Japan ;EU; Indonesia ; Malaysia, Taiwan, etc.

Jeera Ends Lower on Decline in Demand

Free Commodity tips - Jeera prices closed lower by 1.65 per cent on Monday 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 December 2015 contract closed at Rs. 15,530 per quintal, down by 1.65 per cent, after opening at Rs. 15,740 against the previous closing price of Rs. 15,790. It touched the intra-day low of Rs. 15,460. 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.

Natural Gas plunged 5% On US Weather Outlook

free Share tips - Natural Gas futures plunged over 5 per cent in the domestic market on Monday as investors and speculators exited positions in the energy commodity as above-normal temperatures across the US East Coast curtailed heating demand for the fuel in the world’s biggest economy, threatening to keep stockpiles of the fuel near a record high.
 

Latest weather forecasting models called for warmer than normal weather for the US East Coast in the next ten days, threatening to limit gas-fired heating demand at offices and homes.
 

November to March is the peak heating season in the US. About 49 per cent of US households use natural gas for heating purposes.
 

At the MCX, Natural Gas futures for December 2015 contract closed at Rs 138.6 per mmBtu, down by 5.2 per cent, after opening at Rs 145.6, against the previous closing price of Rs 146.20. It touched an intra-day low of Rs 138.3.

Oil in freefall Mode as OPEC Disappoints

free Commodity updates - Crude oil futures tanked nearly 4 per cent in the domestic market on Friday as investors and speculators resorted to heavy selling after the OPEC, the cartel that accounts for about 40 per cent of global crude supplies, refused to curb production to alleviate a supply glut.
 

At Vienna, on Friday, the cartel ditched its idea of limiting output to control prices. Instead, the cartel went for a Saudi Arabia-led policy of pumping oil at continued high rates to squeeze out rivals including US shale drillers, to regain market share.
 

The cartel set aside its daily production target of 30 million barrels per day, which many members had previously ignored as they were producing close to 31.5 million barrels per day. OPEC has set a production target almost without fail since 1982.The OPEC verdict overshadowed a third straight drop in US rig count, which signaled lower US production, going ahead. Baker Hughes reported that the number of US rigs drilling for oil fell by 10 to 545 last week.
 

Strength in the US labour market bolstered hopes of a pickup in oil demand in the world’s biggest oil consumer as US jobs data trumped expectations. The world’s biggest economy added 211,000 jobs in November as the jobless rate stayed at over a seven-year low of 5 per cent while October’s payrolls gain was upwardly revised to 298,000.However, US trade gap widened 3.4 per cent to USD 43.9 billion in September amidst weaker overseas sales.
 

Oil may continue to remain in reverse gear as OPEC’s decision to abandon its production target has given the license to members to produce oil as much as they want in a bid to recapture lost market share
 

At the MCX, Crude oil futures, for the December 2015 contract, closed at Rs 2,684 per barrel, down by 3.8 per cent, after opening at 2,780, against the previous close price of Rs 2,791. It touched an intraday low of Rs 2,661.

Silver futures were trading Higher during Noon Trade

Silver updates - Silver futures were trading higher during noon trade in the domestic market on Friday as investors and speculators booked fresh positons in the precious metal as a cut in deposit rates by the European Central Bank (ECB) bolstered the appeal of the bullion as a store of value.`
 

The ECB said that it will extend its bond buying program by six months until at least March 2017 at the current pace of 60 billion euros a month and will broaden its asset purchases by including local and regional debt. The deposit rate was cut by 10 basis points to -0.3 per cent.
 

However, speculation of a Fed interest rate hike in December trimmed gains in Silver as Fed Chair Janet Yellen signaled that conditions for raising borrowing costs in the world’s biggest economy had been met.
 

At the MCX, Silver for December 2015 contract closed at Rs 33,600 per kg, up by 0.37 per cent, after opening at Rs 33,600, against the previous closing price of Rs 33,477. It touched an intraday high of Rs 33,600.

Gold Futures Ended Higher in the Domestic Market on Thursday

 

Commodity updates - Gold prospects finished higher in the residential business sector on Thursday as financial specialists and examiners booked new positions in the valuable metal following a bullish pattern in the abroad market as a weaker dollar helped the claim of the bullion as an option resource. Weaker greenback makes gold less expensive for those holding different monetary forms, along these lines reinforcing interest.

 

Further, the European Central Bank (ECB) uncovered a support to its benefit buy program and cut its store rate to shore up the 19-part Euro region economy, reinforcing the request of Gold, a fence against the inflationary danger of financial boost.
 

The ECB said that it will develop its bond purchasing system by six months until in any event March 2017 at the present pace of 60 billion euros a month and will expand its benefit buys by including neighborhood and local obligation. The store rate was sliced by 10 premise focuses to - 0.3 for every penny.
 

On the other hand, hypothesis of a Fed loan cost trek in December controlled the draw for Gold as a store of quality, trimming additions in the bullion.
 

Sustained Chair Janet Yellen flagged that conditions for bringing getting expenses up on the planet's greatest economy had been met, reinforcing the case for a lift-off in financing costs by the Fed at its up and coming two-day arrangement meet on December 15-16.
 

Yellen required the desire to raise financing costs sooner than later, with the pace of fixing prone to be slow. Gold may exchange bring down today in the midst of alert in front of US employments information which may further press the case for money related fixing.
 

At the MCX, Gold prospects for December 2015 contract shut at Rs 24,937 for every 10 gram, up by 0.39 for every penny in the wake of opening at Rs 24,804, against the past shutting cost of Rs 24,840. It touched the intra-day high of Rs 25,060.

Zinc Bites The Dust on Tepid Demand Outlook

Base Metal Zinc - Zinc futures tumbled by 2 per cent in the domestic market on Wednesday as investors and speculators exited positions in the industrial metal amidst weak physical demand for zinc in the domestic spot market.

Further, manufacturing contractions in the US and China in November signaled a gloomy demand outlook for the metal. A strengthening dollar following Fed Chair Janet Yellen’s comments who saw the case for a December rate hike also curbed the appeal of industrial metals as an alternative asset.

Meanwhile, New York manufacturing activity growth slowed as the ISM New York index fell to 60.7 in November from 65.8 in October, with a reading above 50 signaling expansion, raising fears that a factory slowdown in the US may curb demand for industrial metals.Euro area consumer inflation remained stuck near zero in November, signaling weak demand in the 19-member economy. The consumer price index for the region climbed 0.1 per cent, year on year in November 2015.

At the MCX, Zinc futures for December 2015 contract closed at Rs 103.10 per kg, down by 2 per cent after opening at Rs 104.65, against the previous closing price of Rs 105.20. It touched the intra-day low of Rs 103.

Crude Oil Gains Despite API Build Last Week

Crude oil  - Prices Rose by 0.50 per cent on Wednesday in spite of a sharp build in industry-estimated US crude oil stocks. The American Petroleum Institute said that crude stocks rose 1.6 million barrels last week, well above the fall of 1.2 million barrels seen. At the MCX, crude oil futures for November 2015 contract were trading at Rs. 2,787 per barrel, up by 0.50 per cent, after opening at Rs. 2,778 against the previous closing price of Rs. 2,773. It touched the intra-day high of Rs. 2,791 till the trading.
 

Separately, a government report on Wednesday could show that US inventories fell by 1.2 million barrels for the week ending on November 27. Last week, US crude stockpiles rose for the ninth straight week to remain at their highest level in at least the last 80 years.
 

Energy traders are mostly hesitant to make any major moves before Friday's critical OPEC meeting in Vienna, one with potential to be the most contentious in recent memory.

Jeera Ends Lower On Rise in Arrivals

 

Commodity Updates - Jeera prices closed lower by 0.66 per cent on Tuesday 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, upcoming zeera for Decr 2015 contract closed at Rs. 15,710 per quintal, down by 0.66 per cent, after Starting at Rs. 15,800 against the closing price of Rs. 15,815. It touched the intra-day low of Rs. 15,625.

 Global o/p of Jeera is around 2.2 lk 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,, Singapore and many other countries. Other Major exporters are Syria and Turkey, Bangladesh.

Silver Up As Soft US Data Signals Slow Pace of Rate Hikes

Silver tips - Silver futures were trading with smart gains during noon trade in the domestic market on Tuesday as investors and speculators booked fresh positions in the precious metal as weaker than expected US housing and manufacturing data fueled speculation that the Fed which is set to raise borrowing costs for the first time in almost a decade, in mid- December, may go easy on subsequent rate hikes, with the pace of tightening likely to be gradual, bolstering Silver’s appeal as a store of value.
 

Data on Monday showed that contracts to purchase previously owned homes in the US barely increased in October while a gauge of US business activity fell into contraction in November, signaling a cooling recovery in the world’s biggest economy.
 

At the MCX, Silver for December 2015 contract closed at Rs 33,650 per kg, up by 0.51 per cent, after opening at Rs 33,597, against the previous closing price of Rs 33,480. It touched an intraday high of Rs 33,679.