Copper on MCX settled up 0.51% at 383.85 while traded in the range near one-week lows on news that operations at the world's top producing copper mine in Chile would resume. LME Copper ended 0.2 percent higher at $5,825 a tonne, after briefly touching a session low of $5,768. It hit the lowest since March 10 at $5,715 the previous session. Traders are eyeing on the fresh update from the workers at BHP Billiton's Escondida mine agreed to go back to work on Saturday, ending a 43-day stoppage. The striking union and BHP Billiton are meeting to resume conversations. Also, the union received approval from its rank-and-file to invoke certain provisions of Chile’s labor code that would halt the current negotiation process and maintain the benefits of the current contract for 18 months.
Naturalgas on MCX settled down -0.3% at 197.60 as prices turned lower after data showed that natural gas supplies in storage in the U. S. fell broadly in line with market expectations. The U. S. Energy Information Administration said in its weekly report that natural gas storage in the U. S. declined by 150 billion cubic feet in the week ended March 17, matching forecasts. That compared with a withdrawal of 53 billion cubic feet in the preceding week, a build of 15 billion a year earlier and a five-year average drop of 21 billion cubic feet. Total natural gas in storage currently stands at 2.092tcf, according to the US EIA, 16% lower than levels at this time a year ago but 12.7% above the five-year average for this time of year.
Crudeoil on MCX settled down -0.66% at 3143 because of investor concerns that OPEC-led supply cuts were not yet reducing record U. S. crude inventories. Traders said the slight lift in prices came as a report that Saudi Arabia's crude exports to the United States in March would fall by around 300,000 barrels per day (bpd) from February, in line with OPEC's agreement to reduce supply. The United States imported about 1.3 million bpd of Saudi oil in February, according to U. S. Energy Information Administration data. In the United States, overseas oil suppliers like Saudi Arabia have to compete against rising shale drilling, which has pushed up U. S. oil production by over 8 percent since mid-2016 to more than 9.1 million bpd.
Silver settled flat as dollar steadied, amid a mixed batch of U. S. economic data, ahead of a key House vote on a healthcare bill to repeal and replace Obamacare. San Francisco Federal Reserve President John Williams said Thursday that the economy is in a good place and that the U. S. central bank should continue to raise interest rates this year as fast as or faster than it has signaled it would. Dallas Federal Reserve Bank President Robert Kaplan said the U. S. central bank should be moving "deliberately but patiently" to remove monetary policy accommodation, as long as the economy continues to make progress toward the Fed's goals.
Gold on MCX settled down -0.29% at 28800 amid a firmer dollar as markets waited to see if U. S. President Donald Trump will face hurdles on his economic agenda. Dallas Federal Reserve Bank President Robert Kaplan said Thursday that the U. S. central bank should be moving "deliberately but patiently" to remove monetary policy accommodation, as long as the economy continues to make progress toward the Federal Reserve's goals. In a talk at the Chicago Council on Global Affairs, Kaplan reiterated his economic forecast for above 2 percent growth for this year, and said the U. S. labor market is relatively tight and the economy is making reasonable progress toward the Fed's 2-percent goal. U. S.
Cotton on MCX settled up by 1.37% at 21450 due to expectation of export demand to China. Though, some gains were limited on good arrivals from major producing belts. The cotton trade body maintains a higher crop size of 34.1 against 33.8 million bales, prices are unlikely to cool off in the near future. With an opening stock of about 4.5 million bales at the beginning of the 2016-17 season, the Cotton Association of India (CAI) has projected a total demand of 29.5 million bales for the year, against 38.2 million bales last year. CAI's estimates put available the surplus at 11.2 million bales. However, looking at the trends in cotton arrivals at mandis, as much as 70 per cent of the crop is believed to have already hit the market.
Cardamom on MCX settled up by 1.35% at 1389.5 on good buying amid a squeeze in supply at auctions held in Kerala and Tamil Nadu. Upcountry dealers as well as exporters were covering as it has become clear that no arrival of fresh cardamom will take place till the next season picking begins, by mid-June. This sentiment has prompted all stakeholders to become active in the market. Consequently, prices moved up by Rs. 20-30 a kg last week. Quality of the capsules arriving were not up to the mark and there was a shrinkage in supply. Arrivals last week stood at 295 tonnes as against 390 tonnes the previous week. Though the south-west monsoon was declared “normal” last year after two consecutive years of drought, the cardamom growing areas received poor rains.
Jeera on NCDEX settled up by 1.5% at 17220 on reports of lower production estimates in the producing belts of Gujarat. Lower carryover stock coupled with higher export demand may push up jeera prices, as traders fear tight supply conditions in the coming months. The carryover stock has dipped to about 2 lakh bags (each of 55 kg) as against the normal 20-25 lakh bags, thereby reducing the availability even as the demand for exports and domestic consumption remains firm, trader sources said. Turkey and Syria, India’s key competitors in the international market, are less likely to add supplies as the production in these countries is believed to hover at around 12,000 tonnes and 20,000 tonnes, respectively.
Turmeric on NCDEX settled down by -1.39% at 6260 due to increasing in the face of weak domestic and weak export buying. Tight money market and reports of increased production the back of favorable weather may pressurize prices. Arrivals are increasing on weekly basis and higher than last year as a result of higher production. India's Apr-Dec turmeric output grew 6% to 68,500 ton. Turmeric output is expected to be bumper as not only the acreage was higher but weather remained favourable. At Nizamabad market estimated market supply was at 16000 quintals, lower by 2000 quintals from previous day’s arrivals. At Erode market total arrivals are at 7000 quintals, up by 3000 quintals from previous trading day.
Mustard Seed on NCDEX settled up by 1.41% at 3955 on supply worries following reports of unfavourable weather. Prices of seed were up as the rainfall activity along with localized hailstorms has disturbed harvesting of rabi crops over the parts of Rajasthan and Madhya Pradesh. India is expected to produce around 6.5-7 million tonnes (mt) of rape mustard seeds in 2016-17 as compared to 5.8 mt produced in 2015-16 due to higher acreage and improving productivity. The carry- forward stock from the previous season was around 0.15 mt. The Ministry of Agriculture expects 8.5 mt of mustard seeds to be produced in the current rabi season against 6.8 mt a year ago, as per its 4th advanced estimates.
Crude palm Oil on MCX settled down by -0.13% at 535.2 tracking weakness in spot demand and weak international prices. However downside seen limited as supply shortage worries from Indonesia following speculation of returning of el-nino will support prices . Palm oil stockpiles in Indonesia slumped in January after production in the world's largest oil producer, declined and exports increased. Reserves fell to 2.86 million tons from a revised 3.75 million tons in December, according to data released by the Indonesian Palm Oil Association. Gapki also revised its December figure from 1.07 million tons as it collected more data from producers, the group said.
Ref. Soyaoil on NCDEX settled down by -0.18% at 647.4 on profit booking after price seen supported amid hopes of strong demand for festivals and wedding season. Pressure also seen amid higher imports of edible oil in Feb and cut in base import prices for edible oil. According to data released by the Solvent Extractors' Association of India (SEA), India's edible oil imports rose 15.8% on year to 1.23 mt in February. The government has cut the base import price of soyoil by $9 per tonnes for second half of March. The base import price of crude soyoil is now at $805 from $879 during Feb first half. India imported 17 per cent more vegetable oil in February 2017 at 1,270,443 tonnes, compared to 1,082,009 tonnes in the corresponding month last year.
Soyabean on NCDEX settled up by 0.72% at 2918 on account of lower supplies at the spot market. However, weak cues from international markets following reports of bumper crops, capped some gains. The supplies have been lower due to lower prevailing prices. There is steady domestic as well as export demand at lower levels. Soybean exports during Oct-Feb were estimated at 112,000 tonnes, compared with 80,186 tonnes in the year-ago period, as per SOPA press release. Arrivals during February fell to 650,000 tons as compared to 900,000 tons in January. U. S. soybean futures closed little higher on Tuesday on bargain buying after prices fell for 10 of the previous 11 sessions. The expectations for the huge South American harvest may check upward movement.
Mentha oil on MCX settled down by -2.19% at 967.4 on fresh selling after the speculation that sowing activity had been inceresed in key production area. Mentha oil prices also dropped on account of muted demand from major consuming industries in the domestic spot market. Further, ample stocks position on higher supplies from major producing belts of Chandausi in Uttar Pradesh, too influenced mentha oil prices. The weather looked good and everything seemed fine as of now as farmers are still under stress, as they have already suffered a lot because of demonetization. As cash is the primary mode of transaction in agriculture sector which contributes 15% to India’s total output.
Aluminium on MCX settled up 0.08% at 125.4 as prices recovered from lows as support seen after substantial increases in cancelled warrants. Prices also seen supported amid renewed calls for an appropriate response to overproduction in China’s aluminium sector. Total cancelled warrants are now their highest since July last year at 895,255 tonnes, of which almost 225,000 tonnes were booked this week. Cancellations account for 45.5% of the 1,964,600 tonnes of stocks. On- warrant or available metal at 1,069,375 tonnes is at its lowest since July 2008. Outside of the regional premium arbitrage and warehouse games, the flurry of cancellations has also created a bottleneck in PGS warehouses in Busan and Port Klang.
Nickel on MCX settled down -0.78% at 658.4 tracking LME prices falling 1.4 percent to end at $10,020, pulled down by losses in Chinese steel futures. Prices also remained under pressure on concerns that U. S. President Trump had yet to implement mooted tax cuts and infrastructure spending. The INSG estimates that global nickel market was in a small deficit of 1,130 tonnes in January 2017 after recording a deficit of 41,520 tonnes in the whole of 2016. The INSG expects a deficit of 66,000 tonnes this year amid growing demand from the stainless steel sector. Nickel experienced upside earlier in the month when Philippine President Rodrigo Duterte threatened to stop all mining in the world’s biggest exporter of nickel.
Zinc on MCX settled up 1.5% at 186.65 as support seen after the update that Brazilian group Votorantim has halted operations at its zinc smelter Cajamarquilla in Peru as a precaution amid flooding and mudslides that have disrupted transportation and restricted running water in the Andean country. The company told that it was carrying out maintenance work to restart operations as soon as weather conditions allow. It declined further comment. Peru, the world's third- biggest producer of zinc and second-largest copper producer, is bracing for another month of flooding after a sudden warming of Pacific waters off Peru's coast unleashed deadly downpours in recent weeks.
Copper on MCX settled up 0.73% at 381.90 edged higher reversing losses that led prices to trade at a one-week low, as stocks recovered slightly and investors closed out short positions. Support seen after London Metal Exchange copper edged up 0.1 percent to $5,818 a tonne adding to a 0.6 percent gain from the previous session when prices plumbed their lowest since March 10 at $5,715 a tonne as broader investor sentiment revived. In Peru, a 1,300-worker strong strike at Freeports' Cerro Verde mine which recently underwent a massive expansion is set to end on Thursday on government orders, but the union vowed to down tools again on Friday.
Naturalgas on MCX settled down -1.29% at 198.20 on profit booking pulled back from the strongest level since February as traders continued to monitor shifting early-spring weather forecasts. Warm to mild conditions will dominate most of the U. S. this weekend, even as a spring-like weather system with heavy showers and thunderstorms impacts the central U. S. Next week will be mostly mild to warm across the country with limited demand for heating or cooling besides the far northern U. S., according to forecasters at NatGasWeather. com. Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw of 147 billion cubic feet in the week ended March 17.
Crudeoil on MCX settled down -0.13% at 3164 prices were a bit lower as recovered from steep early losses after government data showed gasoline stockpiles continued to fall last week. Yesterday the EIA said that crude oil inventories rose by 5 million barrels to 533.1mbls compared to estimates of an increase of only 2.8mbls. Gasoline inventories dipped by 2.811 million against expectations for a draw of 2.008mbls while distillate stockpiles fell by 1.910 million barrels, compared to expectations of a 1.386 million decline. While Crude have slid for a third straight day, as fears grew that a ramp up in U. S. crude and shale oil production may dampened OPEC’s efforts to rebalance supply and demand in the industry.