COMMODITY TRADING TIPS: Maize closes lower on waning demand

COMMODITY TRADING TIPS: Maize prices ended lower by 1.21 per cent on Tuesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a outcome of heavy selling activity by the traders on account of higher global supplies and weak off takes from the local buyers. At the NCDEX, maize futures for Feb 2016 contract closed at Rs. 1,388 per quintal, down 1.21 per cent, after opening at Rs. 1,397 against the previous closing price of Rs. 1,405. It touched the intra-day low of Rs. 1,383.

Sentiment weakened further as a result of a decline in the demand for the commodity from bio-fuel making industries tracking the weak universal markets.

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.

Free MCX Tips: Crude Oil ends lower on weak demand

Free MCX Tips: Crude oil prices closed lower in the Indian market on Monday on dimmed hopes for demand-led growth as China showed manufacturing remains in shortening. In China the semi-official manufacturing PMI for January reached 49.4, missing the 49.6 level seen and remaining in shortening and the Caixin Manufacturing PMI index came in at 48.4, a bit above the expected 48.0. Losses were curbed amid speculation OPEC and non-OPEC producers may be edging closer to a deal to cut production in an effort to tackle one of the largest supply gluts in decades. Investors will be awaiting a flurry of survey data on manufacturing and service sector growth amid interest over the outlook for the global economy. At the MCX, Crude oil futures, for the Feb 2016 contract, closed at Rs 2,153 per barrel, down by 5.82 per cent, after opening at 2,276, against the last end price of Rs 2,286. It touched an intraday low of Rs 2,149.

Commodity Trading Tips: Gold gains after China PMIs point to weak economy

Commodity Trading Tips: Gold prices rose on Monday after mixed manufacturing and services data out of China bolstered expectations for continued easy global monetary policies. In China the semi-official manufacturing PMI for January reached 49.4, missing the 49.6 level seen and remaining in contraction and the Caixin Manufacturing PMI index came in at 48.4, a bit above the expected 48.0. 

At the MCX, Gold futures for February 2016 contract is trading at Rs 26,640 per 10 gram, up by 0.01 per cent after opening at Rs 26,700, against the previous closing price of Rs 26,638. It touched the intra-day high of Rs 26,700. (At 12.00 PM today). In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for January to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016. 

Market players will also be looking out for reports on the manufacturing sector due on Monday, amid ongoing concerns over the health of the world's economy.

MCX Gold Tips: Yellow metal loses sheen as safe haven lure ebbs

MCX Gold Tips: Gold futures retreated in the Indian market on Friday as investors and speculators exited positions in the precious metal as the Bank of Japan’s (BOJ) decision to introduce negative interest rates to help bolster Japan’s economy renewed the appetite for riskier assets, and eroded the appeal of the bullion as a safe haven asset.

The apex bank introduced a rate of minus 0.1% on certain excess holdings of cash to spur lending while maintaining its record asset purchase program which includes its 80 trillion yen annual government bond purchases.

The BOJ’s fresh policy easing move buoyed equity markets with benchmarks at Wall Street registering gains of over 2 per cent, thereby dimming the lure for Gold as an alternative asset.

However, the losses in the bullion were stemmed by soft US Q4 GDP data which pushed back bets of a near-term interest rate hike by the US Federal Reserve, bolstering the appeal of Gold as a store of value. The world’s biggest economy expanded 0.7 per cent annualized rate in the October-December 2015 quarter after a 2 per cent growth in Q3.

Gold may trade on a cautious note today ahead of US factory data which may show contraction in the country’s manufacturing activity in January.

At the MCX, Gold futures for February 2016 contract closed at Rs 26,638 per 10 gram, down by 0.27 per cent after opening at Rs 26,665, against the previous closing price of Rs 26,710. It touched the intra-day low of Rs 26,485.