Silver on MCX settled down -1.44% at 40834 as investors become increasingly certain that U.S. interest rates will rise this month. Strong U.S. economic data and comments by Federal Reserve officials have reinforced expectations of a March U.S. rate hike. Prices struggled to take advantage of a pull-back in the dollar, after initial jobless claims missed analysts’ forecasts while investors’ expectations of a March rate hike grew ahead of key non-farm payrolls report due to be released on Friday. U.S. Department of Labor said Thursday, initial jobless claims increased by 20,000 to 243,000 in the week ending March 4 from the previous week’s total of 223,000.
Gold on MCX settled down -0.64% at 28446 amid increasing confidence the Federal Reserve will raise interest rates at its upcoming policy meeting next week. The ADP National Employment Report showed its biggest increase in over a year in February, suggesting the U.S. economy remains on solid ground. The number of Americans filing for unemployment benefits last week rebounded from a near 44-year low, but the labour market continues to tighten amid a sharp drop in job cuts in February. Markets dramatically adjusted expectations for U.S. interest rate hikes this year following hawkish comments from several top Fed officials last week. Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.32 percent on Thursday.
Cotton on MCX settled up by 0.42% at 21550 due to improved supplies from major growing regions. Besides, exports to China may slow down due to reserve stocks auctions, also fuelled the downtrend. In addition to this, China sold 30,169 ton in the its auction, indicating strong demand. Arrivals in local mandis were estimated at 180,000 bales including 45,000 from Gujarat and 67,000 from Maharashtra. The Cotton Corporation of India (CCI) sold nearly 1,100 bales of cotton through e-auction on Monday, said source. The government agency offered 3,600 bales for sale. CCI sold cotton at Rs 44,500-44,600 per candy from its godowns in Maharashtra, Telangana and Karnataka. A huge volume of cotton stocks in China is set to be sold via auctions from March 6th to the end of August 2017.
Cardamom on MCX settled up by 2.01% at 1434.3 on account of good buying support from both exporters and upcountry buyers. Supply continued to show a shrinkage following the continued dry spell. Harvesting is nearly complete and hence arrivals are unlikely to pick up. Exporters and north Indian dealers have slowed down because of the higher prices. Exports of small cardamom during April-September 2016 have dropped by 20 per cent in volume and 22 per cent in value realisation from that of the same period the last fiscal. Shipments during the first six months of the current financial year stood at 1,625 tonnes valued at Rs. 139.25 crore against 2,026 tonnes valued at Rs. 179.32 crore in the corresponding period in 2015-16, according to Spices Board sources.
Maize on NCDEX settled down by -0.28% at 1431 tracking weakness in spot demand and overseas prives as expectations for bumper South American production weighed. Good rains and prospects for a bumper crop have pulled South African maize prices to 2-1/2 year lows. Corn prices dropped after the government Crop Estimates Committee forecast a 2017 harvest of 13.918 million tonnes, 79 percent more than in 2016. That forecast was 6 percent higher than expectations of 13.11 million tonnes. Cold weather, rains and resilient genetically-modified crops (GMO) have also limited the damage caused by an armyworm outbreak. The region offers potential export markets. Neighbouring Zimbabwe has been hit by the fall armyworm, an invasive South American species, denting crop output. The U.S.
Jeera on NCDEX settled down by -0.29% at 16920 on heavy arrivals from the producing belts. Though, some losses were capped on expectation of rising exports demand at the spot market. Jeera output during 2017 is estimated up at 5.83 million bags of 55 kilogram each from 4.21 million bags a year ago. Though jeera output may rise but prices are likely to decline due to higher export demand, opined most of the traders in the seminar. Jeera export in next fiscal is estimated around 100,000 ton. Reports showed that 9,901 tons of jeera arrived during February 27-March 4 compared to 6,273 tons in the previous week.
Turmeric on NCDEX settled down by -0.3% at 6624 as the supplies are adequate in the physical market. Though, some losses were capped on rising domestic as well as exports demand at the spot market. On the export front, country exported about 82,115 tons during April-December period, up by 28% compared to last year exports of 64,105 tons. The turmeric arrivals in the country increase to 54,641 tons during February 27- March 4 compared to
Mustard Seed on NCDEX settled up by 0.73% at 3866 tracking firmness in spot demand despite of oversupply woes. Mustard Oil Producers Association (MOPA) in its 38th All India Rabi Oil Trade and Industry Seminar held in Raipur hiked its mustard seed 2016-17 output forecast by 19.31%. India's mustard seed output during 2016-17 is estimated at 6.92 million ton as against 5.8 million ton on thanks to higher acreage and favourable weather, said MOPA. India's mustard output is estimated to rise to 6.9 mln tn in 2016-17 (Jul-Jun), from 5.8 mln tn a year ago, due to better yield and favourable weather, a survey done by the Central Organisation for Oil Industry and Trade and Mustard Oil Producers Association showed.
Crude palm Oil on MCX settled up by 0.56% at 534.2 on short covering after prices dropped amid weak spot market on sluggish demand. Malaysia palm oil exports during Feb 1-28 fell by 14.2% compared to a month earlier on subdued demand from China, European Union, India & Subcontinent and Middle East, data showed. Malaysia's palm oil exports India during Feb 1-28 slumped by 18.11% to 181,860 tons as compared to 222,100 tons imported during Jan 1-31. However, investors kept close watch on Palm and Lauric Oil Prices Outlook Conference & Exhibition (POC). World palm oil output is forecast to climb 11% to 65 million tonnes this year from 58.3 mln tonnes a year ago as near-perfect weather boosts yields, a senior industry official said.
Ref.Soyaoil on NCDEX settled up by 0.53% at 651.2 on short covering after prices dropped amid higher supply in global market. However upside seen limited on demand worries as soybean crushing disparity were at Rs 600 per tons due to higher prices in last month which refrains buying activity by crushers. However, market participants expected demand in spot market to rise in coming days on account of holi festivals. India's agriculture department in second advance estimates pegged 2016-17 soybean crops at 14.125 million tons as compared to 8.570 million tons reported in the previous year. Pricse were also under pressure tracking globla cues amid higher Brazilean bena production forecast.
Soyabean on NCDEX settled down by -0.69% at 2880 due to weak demand against ample supplies in the domestic markets. Further, lower soyabean prices in international markets with expectations of silo-bursting Brazilian supplies too added pressure on domestic prices. Though, increase in exports of soybean meal capped some losses. The reports from SOPA stated that, soymeal exports rose over sevenfold to 207,977 tonnes in February 2017, compared to 29,951 tonnes in February 2016 showing 7-fould increase in exports. US soybean crushers crushed higher than the market expectations in January, third highest January crush on record, said National Oilseed Processors Association.
Mentha oil on MCX settled down by -0.99% at 1026.5 tracking muted demand from consuming industries at the spot market. Further, higher supplies from major producing belts of Chandausi in Uttar Pradesh also fuelled the downtrend. Pressure also seen on prices on the speculation the area under cultivation can increase this year resulting good production. China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. Exports of mint products stood at 21,150 tonne in FY16 valued at RS. 2,577.59 crore against 25,750 tonne valued at RS. 2,689.25 crore in FY15.
Aluminium on MCX settled down -0.2% at 125 while recovered from the day's low as support seen from the LME Aluminium prices which ended up 0.1 percent at $1,877 holding well above recent support levels. Aluminium prices got support in recent past and prices on LME hit a two-year high of $1,957 a tonne last week as China pressed on with plans to cut output by 30 percent over the winter heating season. Now support also seen after Aluminium stocks at three major Japanese ports fell slightly from the previous month to 273,100 tonnes at the end of January, but were down from 368,100 tonnes a year ago.
Nickel on MCX settled down -4.5% at 678.90 as selling triggered by a higher dollar and sentiments remain weak for prices which hit a two-week low on expectations the Philippines may soften mine closure plans. ShFE nickel ended Wednesday's session down 3.3 percent. Nickel prices to ease over a three-to-nine month horizon, as Indonesia resumes exports and as major nickel mines in the Philippines, the world's top exporter, manage to maintain production. Although environmental policies in the Philippines have threatened the closure of up to 20 nickel mines, market remain confident that there will not be any significant output declines in the Philippines in 2017 compared to 2016 as most major miners will avoid the regulatory crackdown.
Zinc on MCX settled up 0.33% at 180 as support seen on short covering after fresh update that a 3-1/2-week strike at Noranda Income Fund's zinc processing facility in Quebec is showing no signs of ending, union officials said on Wednesday, with no talks set between workers and management. The two sides met with a Quebec government-appointed mediator last Friday but no progress was made in settling a dispute over pension cuts and no further meetings arranged, United Steelworkers of America Local 6486 President Manon Castonguay said. The market is keeping a close eye on the strike as zinc prices have more than doubled since the beginning of last year due to a shortage tied to mine closures and shutdowns. The price of zinc gained 0.6 percent to $2,710 a tonne on Wednesday.
Copper on MCX settled down -0.37% at 385.35 traded with weakness as fresh selling seen in yesterday's session and prices slipped on Wednesday to a one-month low on selling triggered by a higher dollar, lower imports of the metal by top consumer China and rising inventories. Growing expectations the U.S. Federal Reserve will hike rates next week have boosted the U.S. currency which could mean weaker demand. Copper prices have been dragged down by a surge in exchange inventories that has fanned concern about demand strength in Asia. LME copper stocks have jumped by one-third in the past week to the highest since late January at about 262,000 tonnes.
Naturalgas on MCX settled up 3.96% at 196.80 on short covering and amid of bullish technical signals just one day before the US EIA is scheduled to release its weekly inventory update. The inventory data will be closely watched in the aftermath of the EIA’s report of a historic build in natural gas stocks in the week ended Feb. 24. This was only the second time since the EIA began collecting data that there has been an inventory injection in the high demand period of December-January. Another bearish fundamental for natural gas, the EIA on Tuesday reduced its 2017 price forecast for Henry Hub spot prices by 12% due to a warmer winter. The EIA is expecting natural gas demand in February to be its lowest for the month in eight years.
Crudeoil on MCX settled down -3.74% at 3425 after a report showed U.S. crude inventories rose for a ninth straight week. Oil prices added to losses sustained in the previous session, after the Energy Information Agency (EIA) reported a much larger increase than expected in U.S. crude inventories. The EIA said that crude oil inventories rose by 8.209 million compared to estimates of an increase of 1.967 million barrels. Gasoline inventories decreased by 6.555 million against expectations for a draw of 1.4 million barrels while distillate stockpiles fell by 2.676 million barrels, compared to expectations of a 0.9 million decline.
Silver on MCX settled down -1.22% at 41430 after data showed companies in the U.S. added jobs at a blistering pace in February. Payroll processing firm ADP said nonfarm private employment rose by 298,000 payrolls in February, well above forecasts for an increase of 190,000. The big number could cause economists to adjust their expectations for Friday's key nonfarm payrolls number. The market currently expects the report to show growth of about 190,000 jobs. The upbeat report added to already strong expectations that the Federal Reserve will raise rates at its upcoming policy meeting next week. The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Gold on MCX settled down -0.42% at 28629 as the dollar gathered strength on the prospect of a U.S. interest rate hike. Markets dramatically adjusted expectations for U.S. interest rate hikes this year following hawkish comments from several top Fed officials last week. The ADP National Employment Report showed its biggest increase in more than a year in February, suggesting the U.S. economy remains on solid ground. Investors are awaiting February non-farm payrolls data on Friday as a barometer of the U.S. economy after Federal Reserve Chair Janet Yellen said last week the central bank was poised to lift rates provided jobs and inflation data held up. Her comments were seen as cementing plans for an increase at the Fed's March 14-15 meeting.