MCX Base Metal Tips | Weak physical demand bites Zinc

MCX Base Metal Tips: Zinc futures ended lower in the Indian market on Monday as investors and speculators exited positions in the industrial metal amidst soft physical demand for zinc in the Indian spot market.

Further, a sixth straight drop in China’s industrial companies’ profits in Nov raised fears over a hard landing in the world’s 2nd biggest economy, clouding the demand outlook for the base metal, given that China is the world’s biggest consumer of zinc. China’s industrial profits fell 1.4%, year on year in November 2015, data showed over the weekend.

Meanwhile, Japan’s industrial production fell for the first time in three months, down by 1 per cent in November from the previous month, raising concerns over the world’s third biggest economy, darkening the demand outlook for the base metal.

At the MCX, Zinc futures for December 2015 contract closed at Rs 100.9 per kg, down by 0.25 per cent after opening at Rs 101.05, against the last closing price of Rs 101.15. It touched the intra-day low of Rs 100.35.

Free MCX Tips | Copper retreats amidst lackluster global cues

Free MCX Tips : Copper futures ended in the red in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amid weakness in overseas market where traders resorted to profit booking after prices surged to a four-week high earlier in the week after Chinese producers signaled that they may scale back output, while thin trade ahead of the Christmas holiday also weighed on sentiment.

The losses in the base metal were curbed by upbeat US economic data which signaled that the world’s biggest economy is in strong shape to withstand higher US interest rates.

While consumer spending buoyed US economic growth in the September quarter, jobless claims hit a four-week low, paving the way for an acceleration in domestic consumption. US jobless claims fell by 5,000 to 267,000 in the week ended December 19, 2015.

Copper may retreat today as a sixth straight drop in China’s industrial companies’ profits in November raises fears over a hard landing in the world’s second biggest economy, clouding the demand outlook for copper.

Trading volumes may remain light this week as many investors have already closed books due to the holiday period, curbing liquidity in the market and increasing volatility.

At the MCX, Copper futures for February 2016 contract closed at Rs 313.3 per kg, down by 0.22 per cent after opening at Rs 312.75, against the previous closing price of Rs 314. It touched the intra-day low of Rs 312.

Commodity tips : Oil Bulls roar on US supply drop

Commodity tips : Crude oil futures soared by over 2.5 per cent in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity tracking a firm trend in the overseas market as a surprise drop in US oil storage levels last week eased concerns over a global supply glut.

US crude oil stockpiles fell by 5.9 million barrels, the biggest drop since June to 484.8 million barrels in the week ended December 18, the EIA said, against estimates of a 1.2 million barrels rise by analysts.

The number of rigs drilling for oil in the US fell by 3 to 538 this week, signaling lower production ahead.

Meanwhile, the OPEC predicted a recovery in oil prices to USD 70 per barrel in 2020 and to USD 95 per barrel in 2040 even as it slashed the demand outlook for its exports. The OPEC expects demand for its oil to fall to 30.7 million barrels per day in 2020 from 30.9 million barrels per day in 2016.

Meanwhile, mostly upbeat US economic data signaled an upbeat demand outlook for the fuel in the world’s biggest oil consuming nation.

US consumer spending rose the most in three months, up by 0.3 per cent in November, the gauge measuring consumer confidence rose to the highest level in five months to 92.6 in December from 91.3 in November, sales of new homes climbed 4.3 per cent to a 490,000 annual pace in November but capital goods orders fell 0.4 per cent in November.

Oil may extend an advance today as falling US storage levels ease concerns of oversupplies.

At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,491 per barrel, up by 2.6 per cent, after opening at 2,428, against the previous close price of Rs 2,427. It touched an intraday high of Rs 2,514.

FREE MCX TIPS | Natural Gas falls prey to profit booking

FREE MCX TIPS | Natural Gas futures slid by over 2% in the Indian market on Tuesday tracking weakness in the overseas market as traders resorted to profit booking in the energy commodity after Monday’s nearly 9 per cent surge in prices when forecasts calling for a return to cold weather in central US bolstered the demand outlook for the heating fuel.

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

However, supplies of the fuel in the US remain 14.1% higher than levels at this time a year ago and 8.4 per cent above the five-year average for this time of 365 days, weighing on sentiment.

At the MCX, Natural Gas futures for December 2015 contract closed at Rs 124.6 per mmBtu, down by 2.43 per cent, after opening at Rs 127.1, against the previous closing price of Rs 127.7. It touched an intra-day low of Rs 123.7.

COMMODITY TIPS | Bullion loses sheen on upbeat US data

COMMODITY TIPS | Gold futures ended lower in the Asian market on Tue as investors and speculators exited positions in the precious metal tracking a weak trend in the Foreign market as a surge in equities dimmed the luster for Gold as an alternative asset.

Upbeat US GDP data which showed that consumer spending boosted economic growth amidst a slowdown overseas vindicated the US Fed Reserve’s decision to raise interest rates for the first time in almost a decade last week, curbing the lure for the Bullion as a store of value.

The US economy grew at an annualized pace of 2 per cent in the September 2015 quarter, up from an estimated gain of 1.9 per cent by analysts.

The Fed last Wednesday decided to raise interest rates by 25 basis points, ending a prolonged period of uncertainty surrounding the US rate outlook, even as the world’s top central bank signaled that policy tightening will be done at a “gradual” pace.

Gold, a non-interest bearing asset, tends to lose sheen in a rising interest rate processes.

Gold may trade on a cautious note today ahead of key US worth data including durable goods orders, new home sales and consumer sentiment.

At the MCX, Gold futures for February 2016 contract closed at Rs 25,251 per 10 gram, down by 0.53 per cent after opening at Rs 25,339, against the previous closing cost of Rs 25,385. It touched the intra-day low of Rs 25,230.

FREE MCX TIPS | Natural Gas retreats on profit booking

FREE MCX TIPS | Natural Gas futures  break downed to profit booking in the domestic market in late morning trade on Tuesday following the nearly 9% surge in recent sessions when forecasts for colder weather across the US Midwest in the coming days, lifted hopes of a pickup in gas-fired heating demand at offices and homes in the world’s biggest gas consuming nation.

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

However, supplies of the fuel in the United State remain 14.1% higher than levels at this time a year ago and 8.4 per cent above the 5-year average for this time of year, weighing on sentiment.

At the MCX, Natural Gas futures for December 2015 agreement is trading at Rs 126.9/mmBtu, down by 0.63%, after opening at Rs 127.1, against the last closing price of Rs 127.7. It touched an intra-day low of Rs 126.6.

COMMODITY TIPS | Copper loses ground despite easing China fears

COMMODITY TIPS | Copper futures faltered during morning trade in the domestic market on Tuesday as investors and speculators exited positions in the industrial metal as a contraction in US national economic activity index signaled cooling growth in the world’s biggest economy, which may curb copper demand.

The Chicago Fed National Activity Index came in at -0.30 in November, compared to -0.17 in October, with a reading below 0 signaling contraction.

However, copper received some support from data showing a pickup in China’s economy as a leading index advanced at a quicker pace in November. The Conference Board said that its China leading economic index climbed 0.6 per cent in November from October, when it advanced 0.3 per cent.

At the MCX, Copper futures for February 2016 contract is trading at Rs 314.85 per kg, down by 0.79 per cent after opening at Rs 315.8, against the previous closing price of Rs 317.35. It touched the intra-day low of Rs 314.8. (At 10:52 AM).

COMMODITY TIPS | Oil surges 1% on bargain buying

COMMODITY TIPS | Crude oil futures soared by 1 per cent during morning trade in the domestic market on Tuesday as the sharp losses in recent sessions amidst worries over a worsening global supply glut offered a good bargain buying opportunity, to investors, in the fuel, at existing levels.

Fears that the OPEC’s continued aggressive strategy to defend market share, coupled with strong US production and a looming return of Iranian oil to the market may aggravate oversupplies have pegged oil back in recent sessions. The International Energy Agency expects Iran's exports to rise by half a million billion barrels per day within six-twelve months of sanctions being lifted.

Speculation of further monetary and fiscal stimulus by China, the world’s second biggest oil consumer, also powered the rally in the fuel as traders bet that policy easing may help combat a lingering economic slowdown in the country, thus lifting oil demand.

At the MCX, Crude oil futures, for the January 2016 contract, is trading at Rs 2,409 per barrel, up by 1.01 per cent, after opening at 2,398, against the previous close price of Rs 2,385. It touched an intraday high of Rs 2,411. (At 10:16 AM).

MCX GOLD TIPS | Bullion extends bullish streak

MCX GOLD TIPS | Gold futures advanced during late morning trade in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a softer dollar bolstered the appeal of the bullion as an alternative asset. Weakness in the greenback makes dollar-denominated commodities like gold cheaper for those holding other currencies, thus boosting their demand.

Concerns over the global economic recovery in the wake of US policy tightening, a lingering China slowdown and a worsening commodity rout also bolstered the safe haven demand for Gold.

Gold traders seemed to have digested the first rate hike by the US Fed since 2006 last week with the world’s top central bank signaling a gradual pace of rate tightening, positive for the bullion, a non-interest bearing asset.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,183 per 10 gram, up by 0.40 per cent after opening at Rs 25,173, against the previous closing price of Rs 25,082. It touched the intra-day high of Rs 25,212. (At 11:27 AM).

MCX GOLD TIPS | Dollar weakness boosts Yellow metal

MCX GOLD TIPS | Gold futures advanced in the Indian market on Friday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the Foreign market as a weaker dollar bolstered the appeal of gold as an alternative asset.

Softer greenback makes gold cheaper for those holding other currencies, thus bolstering the demand for the bullion.

The dollar lost ground after staging an impressive rally in the previous session as the US Federal Reserve raised interest rates for the 1st time in almost a decade but signaled a gradual pace of tightening, bringing an end to a prolonged period of uncertainty surrounding the US rate outlook. The Fed exited it’s near-zero interest rate era, raising the target of its federal funds rate to 0.25 per cent to 0.5 per cent, from 0 to 0.25 per cent previously.

While higher interest rates may limit gold’s appeal as a store of value, given that the precious metal doesn’t earn any interest, the Fed’s pledge to tighten policy at a measured pace augurs well for gold.

Gold also got a boost from plunging equities in the wake of heightened global economic uncertainty which boosted the lure for the bullion as an alternative asset.

The bullion may extend gains today amid safe haven inflows on account of worries over a global economic slowdown.

At the MCX, Gold futures for February 2016 agreement closed at Rs 25,082 per 10 gram, up by 0.97 per cent after opening at Rs 24,871, against the last closing price of Rs 24,841. It touched the intra-day high of Rs 25,228.

FREE MCX TIPS | Crude oil gains on bullish US demand

FREE MCX TIPS | Crude oil prices rose by 0.04% on Friday after the Conference Board leading economic index for the US rose more-than-expected previous month signaling improving sentiment in the region which raised the demand outlook for the fuel. In a report, The Conference Board Inc. said that US CB Leading Index rose to a seasonally adjusted annual rate of 0.4 per cent, from 0.6 per cent in the preceding month. At the MCX, crude oil futures for December 2015 contract were trading at Rs. 2,316 per barrel, up by 0.04 per cent, after opening at Rs. 2,308 against the previous closing price of Rs. 2,315. It touched the intra-day high of Rs. 2,320 till the trading. (At 12.14 PM today).

Prices also rose after the number of Americans filing for unemployment benefits previous week fell from a five-month high, suggesting sustained labor market healing that could lead to further Fed Reserve interest rate hikes next year. Initial claims for state unemployment benefits shifted dawn 11,000 to a seasonally adjusted 271,000 for the week ended Dec.12, the Labor Department said.

FREE MCX TIPS | Copper closes lower on sluggish US demand

FREE MCX TIPS | Copper prices closed lower in the Asian market on Thursday after the Federal Reserve's first rate hike in almost a decade pushed up the USD, dampening demand for raw materials. The Fed raised the target for its main short-term rate to a range of 0.25% to 0.50% from a range of 0 per cent to 0.25 per cent, as widely expected, following the conclusion of its policy meeting. Federal Chair Janet Yellen vowed that the FOMC will not be mechanical in its approach to normalize monetary policy and that future rate hikes would be gradual and data dependent. However, losses were limited due to the decline in the copper stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME copper stocks fell by three hundred metric tonnes to 231475 metric tonnes as on December 17, 2015. Copper cost may decline as investors now look ahead to upcoming US data which may determine the health of the world’s biggest worth. At the MCX, Copper futures for Feb 2016 contract closed at Rs 304.55 per 1 kg, down by 1.77% after opening at Rs 308.75 against the last closing price of Rs 310.05. It touched the intra-day low of Rs 302.75 till the closing.

MCX BASE METAL TIPS | Zinc slips 0.95% on bearish demand outlook

MCX BASE METAL TIPS | Zinc futures fell by 0.95% to Rs 99.20 per kg in futures trade today as speculators reduced positions in the midst of a weak trend overseas. Besides, low demand in domestic spot markets fuelled the downtrend. Zinc futures for December 2015 agreement, at MCX, were trading at Rs 99.20 per kg, down by 0.95 per cent after opening at Rs. 100.55 against the last closing price of Rs. 100.15. It touched the intra-day low of Rs. 98.65 till the trading. (At 4.20 PM today).

However, losses were limited because of the decline in the zinc stockpiles at the London Metal Exchange (LME) on account of the strong requirement for the commodity. LME copper stocks fell by 3875 metric tonnes to 500395 metric tonnes as on Dec 16, 2014. Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany.

COMMODITY TIPS | Crude oil drops on surge in stockpiles

COMMODITY TIPS | Crude oil prices fell by 1.27 per cent on Wednesday as an industry estimate of US stockpiles showed an unexpected gain. The US Petroleum Institute said crude inventories rose 2.3 million barrels, well above the 2.5 million barrels drop seen. Separately, Wednesday's Gov. report could show that crude stockpiles nationwide fell by 2.0 million barrels last week for the week ending on Dec. 11.

At the MCX, crude oil futures for December 2015 contract were trading at Rs. 2,487 per barrel, down by 1.27 per cent, after opening at Rs. 2,490 against the previous closing price of Rs. 2,519. It touched the intra-day low of Rs. 2,482 till the trading.

When the Federal Open Market Committee completes its two-day meeting on Wed, the United state central bank is widely expected to lift short-term interest rates for the 1st time in nearly a decade. An interest rate hike is viewed as bullish for the dollar. Dollar-denominated commodities such as crude become more expensive for overseas purchasers when the dollar appreciates.

FREE MCX TIPS | Copper closes lower on supply outlook

FREE MCX TIPS | Copper prices closed lower in the Asian market on Tuesday on expectations of fresh supply increases and as some traders trimmed holdings ahead of the Fed Reserve’s policy decision. The FOMC will meet Tuesday and Wednesday to decide whether to raise united state interest rates for the 1st time since June 2006. A rate increase would boost the dollar, making $-denominated copper more precious for holders of other currencies. Cost also fell due to the surge in the copper stockpiles at the London Metal Exchange (LME) on account of the weak requirement for the commodity. LME copper stocks raised by 450 metric tonnes to 232650 metric tonnes as on Dec 15, 2014. Copper prices may decline as investors now look ahead to upcoming United state data which may determine the health of the world’s largest economy. At the MCX, Copper futures for February 2016 agreement closed at Rs 308.90 per 1 kg, down by 2.75 per cent after opening at Rs 316.40 against the previous ending cost of Rs 317.65. It touched the intra-day low of Rs 307.45 till the closing.

COMMODITY TIPS | Castorseed surges as demand picks up

COMMODITY TIPS | Castorseed prices rose by 0.34% on Tuesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a out come of the rise in demand from consuming industries against restricted arrivals in domestic markets which in turn heartened the investors to enlarge their holdings. At the NCDEX, castor seed futures for December 2015 contract were trading at Rs. 3,849 per quintal tonnes, up by 0.34 per cent, after opening at Rs. 3,842 against the previous closing price of Rs. 3,836. It touched the intra-day high of Rs. 3,872 till the trading. (At 12.30 PM today). Castor is a non-edible oilseed crop; basically a cash crop, with average 46 per cent oil recovery.

COMMODITY TIPS | Cardamom drops 0.68% on higher supply

COMMODITY TIPS | Cardamom prices fell by 0.68 per cent on Tuesday at the Multi Commodity Exchange (MCX) due to the adequate stocks availability in the physical market on account of higher supply from the producing belts of Chandausi in Uttar Pradesh. At MCX, Cardamom futures for January 2016 agreement were trading at Rs. 734.80 per kg, down by 0.68 per cent, after opening at Rs. 732 against the previous closing price of Rs. 739.80. It touched the intra-day low of Rs. 731.60 till the trading. Sentiment weakened further as the traders booked profits at the prevailing levels in the midst of a subdued requirement for the commodity.

Kerala (70%), Karnataka (20%) and Tamil Nadu (10%) are the cardamom growing states in India while about 90% of the produce is consumed within the nation. The substantial markets for cardamom in India are   Kumily, Kumbum, Vandanmendu, Bodinayakanur, Thekkady and Pattiveeran Patti in Kerala.

FREE MCX TIPS | Crude Oil ends higher on strong euro area data

FREE MCX TIPS | Crude oil Cost closed higher in the Asian market on Monday after Industrial production in the euro zone rose more-than-expected Previous month signaling improving sentiment in the region which raised the demand outlook for the fuel. In a report, Euro stat said that European zone industrial production rose to a seasonally adjusted 0.6 per cent, from -0.3 per cent in the preceding month. However, gains were limited after the IEA warned that a global oversupply situation may persist next year as requirement slows a midst a weakening global economic recovery, and as the OEPC continues to boost production to protect market share and drive away competition from the likes of US and Russia. Also, traders are jittery ahead of the US Fed Reserve’s 2-day monetary policy meet starting on Tuesday, in which the world’s biggest central bank may raise interest rates for the 1st time since 2006, boosting the dollar, and dimming the demand for dollar-denominated commodities such as oil. At the Multi commodity Exchange, Crude oil futures, for the December 2015 contract, closed at Rs 2,453 per barrel, up by 2.08 per cent, after opening at 2,388, against the previous close price of Rs 2,403. It touched an intraday high of Rs 2,466.

COMMODITY TIPS | Bullion lower amidst pre-Fed jitters

COMMODITY TIPS | Bullion futures were trading in the red in the Asian market during noon trade on Monday as investors and speculators exited positions in the precious metal amidst heightened caution ahead of the US Federal Reserve’s two-day monetary policy meet beginning on Tuesday, in which the world’s biggest central bank is poised to raise interest rates for the first time in almost a decade.

A hike in United State interest rates from near-zero levels will be negative for Gold, which doesn’t earn any interest.

A pickup in US inflation and a rise in retail sales, in November bolstered the case for policy tightening by the Fed, dimming the lure for Gold as a store of value. While US retail sales climbed by 0.2 per cent in November 2015, the most in four months, producer prices increased the most since June, up by 0.3 per cent in November 2015 from October when they fell 0.4 per cent.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,563 per 10 gram, down by 0.45 per cent after opening at Rs 25,606, against the previous closing price of Rs 25,679. It touched the intra-day low of Rs 25,550. (At 12:08 PM).

MCX BASE METAL TIPS | Copper surges on supply cuts

MCX BASE METAL TIPS | Copper futures soared by over 2.5 per cent in the domestic market on Friday as investors and speculators booked fresh positions in the industrial metal as investors and speculators cheered the announcements from leading copper producers who said that they would cut output as demand eases in China, the world’s biggest copper consumer.

Free-port McMoRan Inc., the world’s largest listed copper mining company has said that it will reduce copper supply by 350 million pounds; a bigger cut than the lastly announced 250 million pounds.

Further, China’s lending data topped estimates as credit growth picked up in November, easing fears over an economic slowdown in the world’s biggest metals consuming nation, brightening the demand outlook for copper. New local currency loans issued by China’s banks and financial institutions came in at 709 billion Yuan in November, up from October’s 15-month low of 513.6 billion Yuan.

Copper may extend gains today as China’s industrial output, retail sales and fixed-asset investment numbers for November, came in better-than-expected, bolstering outlook.

At the MCX, Copper futures for February 2016 contract closed at Rs 318.75 per kg, up by 2.69 per cent after opening at Rs 310.7, against the previous closing price of Rs 310.4. It touched the intra-day high of Rs 321.65.