Commodity Round UP
Key highlights
Gold stays above 2-week low as investors await Fed
Pulses production may exceed 20 Mt in FY17
Copper down 1.43% on global cues, weak demand
Coriander Extend Losses On Rise in Physical Supplies In Local Mandies
Natural gas climbs to 2-week high with warm weather in focus
Bullions
Gold futures declined on MCX due to a weak trend overseas after a Federal Reserve official signalled that an increase in US interest rates is still possible this year, hurting demand for the precious metal as a safe-haven investment.
Markets in wait ahead of a speech by Federal Reserve Chair Janet Yellen later this week that could provide clues about the timing of a U.S interest rate hike. Fed Chair Janet Yellen may provide fresh clues on the timing of the next U.S. rate hike at a speech during an annual meeting of central bankers in Jackson Hole, Wyoming, on Friday. The annual Fed symposium has sometimes been used by Fed chairs to make important policy statements.
The contract for October delivery was closed at Rs 31379.00, same as its previous closing of Rs 31379.00. The open interest of the contract stood at 9519.00 lots.
Energy
Oil turns higher on report Iran may support crude-output freeze
Crude-oil turned higher on Tuesday after a report indicated that Iran has shown willingness to work with other major crude producers to support the market.
Prices had been trading lower as optimism for a production freeze faded and expectations of a ramp up in Iraqi and Nigerian production grew, but a report from Reuters sparked a reversal. Citing sources in the industry as well as at the Organization of the Petroleum Exporting Countries, the news agency reported that Iran is “sending positive signals” that it may support a joint effort to lift the oil market.
The contract for September delivery was closed at Rs 3244.00, up by 1.00% or Rs 32.00 from its previous closing of Rs 3212.00. The open interest of the contract stood at 14030 lots.
Base Metals
Base metals were trading sideways in quiet conditions during Tuesday’s LME premarket while the summer slowdown continued to affect business and as commodities fell out of favour.
Poor premiums in China continued to see material arrive into LME Asian sheds. Copper stored in listed LME sheds in Busan jumped to its highest level since January 2013, data showed on Tuesday.
Copper futures edged lower on MCX as speculators cut down their bets, amid low demand at the spot markets. Further, a weak trend in base metals pack at the London Metal Exchange (LME) and strengthening dollar sent commodities down as comments from a US Federal Reserve official bolstered speculation that borrowing costs may rise this year.
The contract for August delivery was closed at Rs 314.05, down by 1.37% or Rs 2.79 from its previous closing of Rs 318.40. The open interest of the contract stood at 30795 lots.
Agri commodity
Soyabean futures traded higher on NCDEX as speculators enlarged their positions on forecast of heavy rains in Madhya Pradesh, largest producer of soybean in the country. However, report of good production, higher edible oil imports and lower export demand for soymeal, capped some gains.
The contract for October delivery was closed at Rs 3475.00, up by 0.55% or Rs 19.00 from its previous closing of Rs 3456.00. The open interest of the contract stood at 56000lots.
Jeera futures traded higher on NCDEX due to rising demand from the countries like China and Bangladesh. Further, tight supply from the producing belts too fuelled the uptrend.
The contract for September delivery was closed at Rs 18220.00, up by 0.41% or Rs 75.00 from its previous closing of Rs 18145.00.The open interest of the contract stood at 18279 lots.
Fresh wave of heavy rain seen lashing East, Central India
The monsoon over East and adjoining Central India has received a further boost with a low-pressure area cantering its way in from over Bangladesh and parking itself over Jharkhand on Monday. This is even as a predecessor ‘low’ (erstwhile deep depression) lurks over Rajasthan, having left a trail of flooding heavy rain all the way from the East. During the 24 hours ending on Monday morning, the monsoon was ‘vigorous’ over Gangetic West Bengal and ‘active’ over East Rajasthan, hills of West Bengal, Sikkim, Bihar and Jharkhand. Heavy to very rain occurred at almost all places over Gangetic West Bengal while it was heavy at isolated places over Bihar and the hills of West Bengal. An India Met Department outlook indicated the possibility of another round of heavy to very heavy rains at a few places over East, Central and North-West India over the next three to four days. (Source: HBL)
Rains may not affect standing soybean crop in M.P.
Torrential rains that lashed parts of Madhya Pradesh since Friday may have caused flooding, but that may not affect the standing crop of soybean, which is currently at different stages of flowering or pod development at various places, maintained experts. Soybean growing regions of Madhya Pradesh and East Rajasthan have been receiving excess rains this monsoon. Heavy rains left rivers overflowing and farms flooded mostly in western Madhya Pradesh, which received heavy rainfall on Sunday registered recorded a 538 per cent increase in precipitation over the normal. (Source: HBL)
Technical Levels
Gold
Break and sustain below 31200 will take to 31130---31080---31000. Two consecutive closes below 31000 will see more downside panic till 30700---30600 mark.
30600 act as major support in Gold else it could test its resistance level of 31450---31600 mark
Trade with levels only
Silver
Three consecutive closes + weekly close below 45400 will take to 43800---43300 and then to 42300
Any sharp rise will be selling opportunity in Silver for the downside target of 42300
Hurdle and stop loss above 47300
Crude Oil
Support at 3135 and Resistance at 3220
Close above 3220 will take it to 3250--3280 and then to 3320 mark in days to come else could test its support level of 3135 again
Further downside panic will see only close above 3135 mark
Trade with levels only
Copper
Support at 313 and Resistance at 319
Looks weak below 313 we can see downside panic 310---306 marks in days to come else could test its resistance level of 319 again.
Fresh buying only above 319
Trade with levels only
Soyabean
Support at 3435 and resistance at 3550.
Two consecutive close below 3435 will take it to 3360—3310 mark in days to come else could test its resistance level of 3550.
Further upside rally only above 3550.
Economic Data
Existing Home Sales – 07:30
Crude Oil Inventories – 08:30
