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.

Commodity Trading Tips: Bullish supplies data lifts Natural Gas

Commodity Trading Tips: Natural Gas futures surged by over 1 per cent in the domestic market on Thursday tracking a firm trend in the overseas market as a bigger than expected dip in US gas supplies last week signaled a pickup in demand for the heating fuel in the world’s biggest economy.

The EIA said that US gas stockpiles fell by 211 billion cubic feet to 3.086 trillion cubic feet in the week ended January 22, 2016.

Analysts expected a 206 billion cubic feet withdrawal in stockpiles last week.

About 49% of US households use natural gas for heating purposes. November to March is the peak United state gas heating season.

At the MCX, Natural Gas futures for February 2016 contract closed at Rs 149.1 per mmBtu, up by 1.02 per cent, after opening at Rs 147, against the previous closing price of Rs 147.6. It touched an intra-day high of 150.

Commodity Trading Tips: Natural Gas extends rally on frigid weather

Commodity Trading Tips: Natural Gas futures surged by more than 1.5% in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity as forecasts for colder temperatures across parts of the US in the next two weeks bolstered the demand outlook for the heating fuel in the world’s biggest economy.

Updated weather forecasting models called for cooler weather in the US through the middle of February, boosting demand for gas-fired heating at offices and homes.

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

The focus today will on the release of the weekly US storage data by the EIA which may show a 206 billion cubic feet withdrawal in stockpiles in the week ended January 22, 2016. At the MCX, Natural Gas futures for February 2016 contract closed at Rs 147.6 per mmBtu, up by 1.51 per cent, after opening at Rs 146.5, against the previous closing price of Rs 145.4. It touched an intra-day high of 151.2.

Crude Oil Tips: Oil Bears return as prices skid over 2%

Crude Oil Tips: Crude oil futures pulled back after Friday’s impressive rally as prices of the energy commodity slipped by over 2.5 per cent in the domestic market on Monday tracking losses in the overseas market amidst concerns that the weekend’s massive snowstorm which rocked the US East Coast may sap the demand for the fuel.

Prices had surged over 5 per cent on Friday as the European Central Bank (ECB) signaled stepping up its easing program in March, bolstering the demand outlook for the fuel.

A sharp contraction in US regional manufacturing activity triggered fears over a slowdown in the world’s biggest economy, clouding the demand outlook for the fuel. The Dallas Fed’s general business activity index, a gauge measuring manufacturing activity in the region tumbled to the lowest level since April 2009, down by 13 points to -34.6 in January, with a reading below zero signaling contraction.

Oil may rebound today amidst speculation of co-operation between OPEC and Non-OPEC members to cut output and support prices. However, the gains in the fuel may be curbed by rising US storage levels as the API showed an 11.4 million barrels jump in crude stockpiles last week.

At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,100 per barrel, down by 2.69 per cent, after opening at 2,170, against the previous close price of Rs 2,158. It touched an intraday low of Rs 2,075.

Commodity Trading Tips: Yellow metal regains sheen ahead of Fed verdict

Commodity Trading Tips: Gold futures advanced in the domestic and Foreign market on Monday as investors eyed the US Federal Reserve’s monetary policy verdict with the world’s top central bank likely to hold off further interest rate tightening, bolstering the lure for the precious metal as a store of value.

Heavy global headwinds which have fueled an American factory slump have raised speculation that the Fed may keep interest rates unchanged at the end of a two-day meet that concludes on Wednesday. The FOMC undertook a maiden interest rate hike since 2006 in December.

Investors will also focus on cues from the central bank over further lift-off in borrowing costs this year amidst heightened global economic uncertainty. Gold, a non-interest bearing asset benefits from easy money policies.

Losses in US equities and falling oil prices bolstered the safe haven appeal of the bullion while a weaker dollar boosted the appeal of Gold as an alternative asset. Weaker greenback makes Bullion cheaper for those holding other currencies, thus boosting demand.

Gold may trade on a cautious note today ahead of the Fed’s monetary policy decision.

At the MCX, Gold futures for February 2016 contract closed at Rs 26,387 per 10 gram, up by 0.87 per cent after opening at Rs 26,247, against the previous closing price of Rs 26,160. It touched the intra-day high of Rs 26,442.

Commodity Trading Tips: Oil extends rebound on stimulus hopes

Commodity Trading Tips: Crude oil futures advanced by 5 per cent on Friday in the domestic market while notching up its biggest two-day rally since 2008 in the overseas market as hopes of global central bank stimulus bolstered the demand outlook for the fuel.

Speculation grew that the Bank of Japan will step up stimulus while the European Central Bank (ECB) also hinted at further monetary easing as soon as March as policymakers step up efforts to combat depressed inflation amidst a rout in commodities.

A drop in US rig count last week signaled lower production ahead in the world’s biggest economy, buoying sentiment. Baker Hughes said that the no of rigs drilling for oil in the US fell by 5 to 510 in the week ended January 22, 2016.

Mostly upbeat US data which showed that sales of previously owned homes surged in December that helped the housing market mark its best year since 2006 and a rebound in manufacturing from a 38-month low in January signaled a strengthening recovery in the American economy, auguring well for fuel demand.

US existing home sales climbed by a record 14.7% to a 5.46 million annual pace in December while the gauge measuring manufacturing climbed to 52.7 this month from 51.2 in December, with a reading above 50 signaling expansion. However, a gauge of US leading indicators declined for the first time in three months in December 2015, down by 0.2 per cent from the prior month.

Oil may extend gains today as the recent plunge in the energy commodity continues to offer an excellent bargain buying opportunity, for investors, in the fuel, at existing levels.

At the Multi Commodity Exchange, Crude oil futures, for the January 2016 contract, closed at Rs 2,158 per barrel, up by 5 per cent, after opening at 2,040, against the previous close price of Rs 2,055. It touched an intraday high of Rs 2,168.

MCX GOLD TIPS: Gold logs slim gains on ECB stimulus hint

MCX GOLD TIPS: Gold futures posted a mild advance during noon trade in the domestic market on Friday as traders weighed the European Central Bank’s (ECB) comments in which it hinted at the possibility of an expansion in its monetary easing program in March, bolstering the lure for the yellow metal, which is a hedge against the inflationary risk of monetary stimulus.

ECB chief Mario Draghi vowed to take policy action in March, adding that there are “no limits” on how far the Frankfurt-based central bank is willing to deploy measures within its mandate. The ECB maintained its deposit rate at -0.3 per cent while the benchmark lending rate or the main refinancing rate was left untouched at 0.05 per cent.

The gains in the bullion were curbed by renewed risk appetite as stocks across Asia rebounded smartly tracking overnight gains at Wall Street with oil scripting a bounce back, lowering the appeal of safe haven assets.

At the MCX, Gold futures for February 2016 contract is trading at Rs 26,205 per 10 gram, up by 0.06 per cent after opening at Rs 26,281, against the previous closing price of Rs 26,190. It touched the intra-day high of Rs 26,281.

Commodity Trading Tips: Oil roars back on bargain buying; Libya fears

Commodity Trading Tips: Crude oil futures soared by over 7% in the domestic market on Thursday, nudging towards the USD 30 per barrel park overseas as a recent rout in the energy commodity when worries that an influx of Iranian crude following the lift-off of sanctions against the Islamic Republic may worsen a supply glut & a slowing global economy may curb demand, paved the way for bargain buying in the fuel, by investors & speculators, at existing levels.

An attack on Libyan oil terminals signaled renewed risks to supplies from the oil-rich Middle East region. According to media reports, Islamic State militants attacked key oil terminals in northern Libya in a bid to seize control of export terminals, lowering the possibility of the country increasing its exports in the near-term.

Investors shrugged off a hefty increase in US storage levels last week. The EIA reported a 4 million barrels rise in US crude stockpiles to 486.5 million barrels in the week ended January 15, 2016. Supplies at Rushing, the biggest US oil storage hub, climbed 191,000 barrels last week.

Traders cast aside weak US labor and regional factory data as the number of Americans who sought to claim jobless benefits soared to a six-month high last week while manufacturing activity in the Philadelphia region shrank for the fifth month on the trot in January, clouding the demand outlook for the fuel in the world’s biggest economy.

US jobless claims climbed by 10,000 to 293,000 in the week ended January 16. The gauge measuring Philadelphia manufacturing came in at -3.5 this month, compared to -10.2 in December, with a reading below 0 signaling contraction.

Oil may extend gains today as prospects of central bank stimulus from Japan to the Euro area bolsters demand outlook.

At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,055 per barrel, up by 7.09 per cent, after opening at 1,934, against the previous close price of Rs 1,919. It touched an intraday high of Rs 2,069.

FREE MCX TIPS | Crude oil gains on global demand outlook

FREE MCX TIPS: Crude oil prices rose by 0.80 per cent on Friday after the number of people who filed for unemployment assistance in the US fell less than expected, but remained in territory usually associated with a firming labor market which raised the demand outlook for the fuel. The US Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 1 decreased by 10,000 to a seasonally adjusted 277,000 from the previous week’s total of 287,000, which was the highest since mid-July. At the MCX, crude oil futures for December 2015 contract were trading at Rs. 2,272 per barrel, up by 0.80 per cent, after opening at Rs. 2,262 against the previous closing price of Rs. 2,254. It touched the intra-day high of Rs. 2,276 till the trading. (At 11.45 PM today).

Sentiment improved further after the euro zone’s unemployment rate fell to the lowest level in more than four years in November, fueling optimism over the health of the region's economy. Eurostat said that the euro zone’s unemployment rate fell to a seasonally adjusted 10.5 per cent from 10.6 per cent in October. This is the lowest rate recorded in the euro area since October 2011.

COMMODITY TRADING TIPS | Gold Bulls roar on safe haven appeal

COMMODITY TRADING TIPS: The yellow metal was high in demand on Thursday as heightened geopolitical tensions and the China Bear Bug forced investors to turn risk averse and seek shelter in the safety of the yellow metal, pushing up domestic Gold futures by over 1 per cent while prices hit a nine-week high in the overseas market.

China’s move to weaken its currency for an eighth day running, and that too, to the lowest level since March 2011 stocked further concerns over the health of the world’s second largest economy, pushing global financial markets into a tailspin, bolstering the safe haven appeal of the bullion.

Weakness in global equities as markets from Asia & Europe to US crashed; bolstered the lure for gold as an alternative asset. Trading in China’s stock bourses was suspended for a second time this week after the benchmark index slid 7%, triggering an automatic circuit breaker, as officials accelerated the depreciation of the Yuan.

Wall Street plunged on Thursday with benchmark S&P 500 marking its worst-ever four-day start to a year as the China rout spread across the globe, wiping out more than USD 2 trillion from global equities this year with billionaire George Soros warning that a bigger crisis could be in the offing. The Dow Jones Industrial Average plunged 2.32 per cent; the Nasdaq Composite dropped 3.03 per cent while S&P 500 fell 2.37 per cent.

A weaker dollar also bolstered the lure for the Gold as an alternative asset. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering demand.

Heightened geopolitical tensions amidst fears of a fresh sectarian crisis in the Middle East due to the Saudi-Iran diplomatic row, and North Korea’s successful testing of a hydrogen bomb also boosted safe haven inflows into the precious metal.

Bullion may trade on a cautious note today ahead of the monthly US payrolls data which may show that the world’s biggest economy probably added 200,000 jobs in December, signaling strength in the country’s labour market recovery, bolstering the case for the US Fed to keep lifting interest rates this year, dimming the lure for Gold as a store of value.

At the MCX, Gold futures for Feb 2016 contract is trading at Rs 26,100 per 10 gram, up by 1.39 per cent after opening at Rs 25,800, against the previous closing price of Rs 25,741. It touched the intra-day high of Rs 26,123.

MCX GOLD TIPS | China rout sparks Gold’s safe haven lure

MCX GOLD TIPS: Gold futures advanced during noon trade in the domestic market on Thursday as China’s move to weaken its currency stocked further concerns over the health of the world’s second biggest economy, pushing global financial markets into a tailspin, bolstering the safe haven appeal of the yellow metal.

The People’s Bank of China on Thursday lowered the value of its currency by 0.51 per cent to 6.5646 against the US dollar, the weakest level since March 2011, raising fears that the slowdown in the country’s economy was more severe than previously thought.

The China currency move rattled stock markets across Asia with the Shanghai Composite falling over 7 per cent, triggering an automatic circuit breaker, leading to a trading suspension for the second time this week.

Heightened geopolitical tensions amidst fears of a fresh sectarian crisis in the Middle East amidst the Saudi-Iran diplomatic row, and North Korea’s successful testing of a hydrogen bomb also boosted safe haven inflows into the precious metal.

At the MCX, Gold futures for February 2016 contract is trading at Rs 26,005 per 10 gram, up by 1.03 per cent after opening at Rs 25,800, against the previous closing price of Rs 25,741. It touched the intra-day high of Rs 26,021. (At 12:04 PM).

FREE MCX TIPS | Mentha Oil dips on profit-booking

FREE MCX TIPS: Mentha Oil futures fell during noon trade in the domestic market on Thursday as investors and speculators resorted to profit-booking in the agri-commodity amidst tepid physical demand from the major consuming industries for Mentha Oil in the domestic spot market.

More than adequate supplies in the market amidst higher arrivals from the major Mentha Oil producing region in Uttar Pradesh also exerted downward pressure on Mentha Oil prices in the domestic market.

At the MCX, Mentha Oil futures, for the January 2016 contract, is trading at Rs 886 per kg, down by 0.66 per cent, after opening at Rs 891.4, against a previous close of Rs 891.9. It touched an intra-day low of Rs 885.1 (At 13:13 PM).

MCX GOLD TIPS | Gold regains sheen ahead of Fed minutes

MCX GOLD TIPS: Gold futures were trading on a positive note during noon trade in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal ahead of the release of the US Federal Reserve’s minutes from its December policy meet in which the world’s top central bank raised interest rates for the first time since 2006.

The minutes may reaffirm the Fed’s intent to undertake a gradual pace of interest rate tightening this year as a global slowdown hits US shores, bolstering the appeal of the bullion as a store of value. The fastest pace of contraction in US manufacturing in more than six years in December 2015 signaled a slowdown in the world’s biggest economy, bolstering the case for the Fed to go easy on further rate hikes.

Traders will also be eying US factory, services, exports and employment data today.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,530 per 10 gram, up by 0.56 per cent after opening at Rs 25,469, against the previous closing price of Rs 25,388. It touched the intra-day high of Rs 25,535. (At 12:06 PM).

COMMODITY TRADING TIPS | Bullion ends flat on profit-booking

COMMODITY TRADING TIPS: Gold futures ended tad lower in the domestic market on Tuesday as investors and speculators resorted to profit-booking after Monday’s stellar rally when prices advanced over 1.7 per cent as heightened tensions in the Middle East amidst a Saudi-Iran diplomatic spat and a China stock rout that sent global financial markets into a tailspin boosted the safe haven demand for the bullion.

Gold traders are also focused on the US Federal Reserve interest rate outlook for 2016 with recent disappointing factory data which showed a slowdown in the world’s biggest economy boosting the Fed’s pledge to stick to a gradual pace of monetary policy tightening, supporting the bullion’s appeal as a store of value.

Gold futures ended higher in the overseas market on Tuesday as tensions between Iran and Saudi Arabia which threatened to escalate into a sectarian crisis in the already fragile Middle –East region, and a China equity slump prompted traders to seek shelter in the safety of the yellow metal.

However, the gains in the bullion were trimmed by a stronger dollar which 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 trade on a cautious note today ahead of US factory, services, trade and employment data.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,388 per 10 gram, down by 0.04 per cent after opening at Rs 25,336, against the previous closing price of Rs 25,397. It touched the intra-day low of Rs 25,318.

MCX BASE METAL TIPS | Zinc bites the dust on China factory gloom

MCX BASE METAL TIPS: Zinc futures shed nearly 2 per cent in the domestic market on Monday as investors and speculators exited positions in the industrial metal amidst weak physical demand for zinc in the domestic spot market.

Further, manufacturing activity in China shrank at a faster pace in December, marking a tenth straight month of contraction, signaling a worsening economic growth outlook in the world’s largest metals consuming nation, darkening the demand prospects for Zinc. The Caixin China General Manufacturing PMI fell to 48.2 in Dec from 48.6 in November, with a reading below 50 signaling contraction.

Investors cast aside data which showed a strengthening recovery in the 19-member Euro area economy as a gauge measuring manufacturing climbed to 53.2 in December from 52.8 in November.

At the MCX, Zinc futures for January 2016 contract closed at Rs 104.5 per kg, down by 1.97 per cent after opening at Rs 105.7, against the previous closing price of Rs 106.6. It touched the intra-day low of Rs 103.3.

MCX BASE METAL TIPS | Bears grip Copper on China factory gloom

MCX BASE METAL TIPS: Copper futures tumbled by more than 1.6 per cent in the domestic market on Monday as investors and speculators exited positions in the industrial metal amidst weak physical demand for copper in the domestic spot market.

Further, manufacturing activity in China contracted at a sharper rate in December, signaling a worsening economic growth outlook in the world’s biggest metals consuming nation, darkening the demand prospects for Copper.

The Caixin China General Manufacturing PMI fell to 48.2 in December from 48.6 in November, with a reading below 50 signaling contraction.

At the MCX, Copper futures for February 2016 contract is trading at Rs 310.75 per kg, down by 1.75 per cent after opening at Rs 315.7, against the previous closing price of Rs 316.3. It touched the intra-day low of Rs 310.55. (At 11:58 AM).

FREE MCX TIPS | Natural Gas Bulls roar on demand outlook

FREE MCX TIPS: Natural Gas futures ended on a positive note in the domestic market on the first day of the New Year, Friday as investors and speculators booked fresh positions in the energy commodity as forecasts for extremely cold temperatures across parts of the US this month bolstered the demand outlook for the heating fuel.

Updated weather forecasting models called for much colder weather across the central and eastern US in January, particularly in the first week of the ongoing month, bolstering the need for gas-fired heating at offices and homes in the world’s biggest economy.

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

At the MCX, Natural Gas futures for January 2016 contract closed at Rs 156.9 per mmBtu, up by 0.64 per cent, after opening at Rs 155.3, against the previous closing price of Rs 155.9 .It touched an intra-day high of Rs 157.9.