mtechtips commodity market news 2

7/29/2019 Mtechtips Commodity Market News 2

1/8

MTECHTIPS COMMODITY MARKET NEWS 2

MTECHTIPS:-NCDEX Wheat to sustain upside near term; resistance at

1470

Wheat on the NCDEX for April delivery is positive and more upside is

expected in near term for the commodity. Resistance for the

commodity is likely to be at 1470 level, as per our analyst.Trend of

wheat for April delivery is looking positive and more upside is

expected for the commodity in near term. Support is likely to be at

1380 and resistance is at 1470 level,World wheat output will climb 4.3

percent to 690 million metric tons, about 10 million tons short of the

all-time high set two years ago, according to the United Nations

estimates.The Australian Bureau of Agricultural and Resource

Economics and Sciences predicts that the global inventories will

increase by 2 million tons to 176 million tons.On February 1, the Food

Corporation of India had 30.7m tons of wheat in central pool storage,

up from 23.4m tons a year earlier.

MTECHTIPS:-'India 2013 Gold consumption may touch 865- 960 tons'

India's gold consumption for the current year may total 865 metric

tons to 960 tons, according to Somasundaram P.R., managing director

of the World Gold Council for India.Imports should be higher this

year according to initial estimates based on the trend in the fourth

quarter of last year and as the economy grows, Somasundaram said

to Bloomberg. There is a sense of optimism in the economy and we

can feel it.For 2012, India's gold consumption stood at 864.2 tons.He

was optimistic that the gain in import volumes would match the

climbing demand for the yellow metal. The nation, last year imported


2/8

860 tons.Meanwhile, India's gold production for January this year

stands at 130 kilogram a jump of 13.3% year-over-year, according to

official data. In December the figure stood at 150 kilogram.Back in

January, India raised import duty on gold from 4% to 6% to rein in theCurrent Account Deficit. The nation also more than doubled the

import duty on gold dore bars and ores to 5%.While the current-

account deficit is a serious issue, increasing the duty and trying to

stop gold demand is not the positive way and is not going to yield

results, Somasundaram said.

MTECHTIPS:-NCDEX Cotton Seed Oil Cake range bound; 1470-1540

Cotton seed oil cake futures for April delivery on India's National

Commodity and Derivatives Exchange (NCDEX) is range bound and the

may trade 1470-1540 range for the day according to our

analyst.Technically the commodity looks negative for the day and it

is expected to bounce back in the after noon, said Milan Shah

Research Analyst at Commodity Online.Break out of either side of

the expected trade range 1470-1540 may give clear picture for further

movement in futures, he added.NCDEX cotton seed oil cake prices

for April delivery was down by 1.06 percent at Rs.1492 per 100 kg as

of 11.04 AM IST on Thursday.Cotton seed oil cake price movement is

highly depended upon the prices of kapas. Cotton seed oil cake is a

by-product of cotton seed and is used as cattle feed, mostly for dairy

animals in Northern India.Lower kapas/cotton production estimates

are likely to support cotton seed oil cake futures movement on NCDEX

in both medium and long term

MTECHTIPS:-Gold down as trades gloss over Fed talk


3/8

Gold futures are trading lower in Asia Thursday after snapping a four-

day winning streak during Wednesdays U.S. as traders appear to

glossing over comments from the Federal Reserve that it will leave

interest rates low for the foreseeable future.On the Comex division ofthe New York Mercantile Exchange, gold futures for April delivery fell

0.22% to USD1,604 per troy ounce in Asian trading Thursday after

settling down 0.37% at USD1,605.40 a troy ounce in U.S. trading on

Wednesday.

Gold futures were likely to test support USD1,590.80 a troy ounce,

Monday's low, and resistance at USD1,614.60, Tuesday's

high.Meanwhile the Federal Reserve left interest rates unchanged atnear zero and made no changes to its monthly USD85 billion bond-

buying program known as quantitative easing. Traders also took

profits as fears ebbed regarding the situation in Cyprus. The Cypriot

parliament on Tuesday rejected calls to tax banking accounts holding

at least EUR20,000 to help come up with EUR5.8 billion needed to

qualify the country for a EUR10 billion multilateral bailout

package.Cyprus is in talks with Russia, which provides Cyprus with

some of its largest bank deposits, regarding the extension of a EUR2.5

billion loan package, but those talks produced little in the way of

results Wednesday. Still, there is speculation that Cyprus could turn to

Russia for a bailout in an effort to dodge another vote on a deposit

tax, a move that would assuredly rankle policymakers from the

European union in the process.

MTECHTIPS:-Oil falls following U.S. production news

Oil futures are trading lower during Thursdays Asian session, due in

part to reports out of the U.S. Wednesday that the worlds largest oil

consumer is getting closer to shedding its status as a net import of the


4/8

commodity.On the New York Mercantile Exchange, light, sweet crude

futures for May delivery fell 0.28% to USD93.24 per barrel in Asian

trading Thursday after modestly rising during Wednesdays U.S.

session on the back of supportive comments from the FederalReserve. The Federal Reserve left interest rates unchanged at near

zero and made no changes to its monthly USD85 billion bond-buying

program known as quantitative easing. In other news, according to

the U.S. Energy Information Administration's Short-Term Energy

Outlook. U.S. oil production will outpace imports by 2 million barrels

per day by 2014. By some accounts, the U.S. was a net oil exporter

last year for the first time in two decades, but the EIA report confirmswhat many industry observers and market participants already

expected.Bolstered by soaring production at shale formations in Texas

and North Dakota, the U.S. could tilt its trade balance in its favor with

steadily increasing oil output. Still, the country is a long way from

being entirely energy independent. Production is currently about 7

million barrels per day, but consumption averaged about 18.5 million

barrels per day last year.

MTECHTIPS:-NCDEX Turmeric positive; resistance at 6950

On the NCDEX, turmeric for April delivery looks positive and further

upside is expected for the commodity for near term. Resistance for

the commodity is likely to be at 6950, according to our analyst.The

contract was trading on a positive note at Rs. 6790, a gain of 2.6% as

of 12.04PM IST, Thursday.Trend in turmeric for April delivery is

looking positive and further upside is expected in near term,Support

for the commodity is likely to be at 6480 while resistance at 6950. Buy

on dips is advised to the traders, he added.India's turmeric

production in 2012-13 is expected around 50 lakh bags. Production in


5/8

Nizamabad is expected around 12 lakh bags. In 2011-12 the

production is projected at historical high of 10.62 lakh tn. It is

estimated that next years carryover stocks would be around 10 lakh

bags.

MTECHTIPS:-NCDEX Jeera range bound at 12800-13400 Thursday

On India's NCDEX, jeera for April delivery is looking range bound. The

commodity's trading range is likely to be between 12800-13400,

according to our analyst.The contract was trading on a positive note

at Rs.13102.5, a gain of 0.29% as of 11.54 AM IST, Thursday.Trend in

jeera for April delivery is looking range bound and may fare at 12800-13400. Either side break out will give clear direction to the prices, Rise

in domestic demand ahead of the festive season and improved export

queries are supporting the prices in the market to some extent.Better

crop expectations and high arrivals in the market may turn the trend

in near term. Good sowing reports from Gujarat and Rajasthan keeps

the production prospects good.The trend in Medium to long term

trend looks bullish as exports are expected to pick up in coming

months amidst lower production reports in Turkey and Syria.

MTECHTIPS:-Gold futures little changed with Fed stimulus in focus

Gold futures were little changed near a three-week high during early

European trade on Thursday, after the Federal Reserve reaffirmed its

commitment to leave interest rates unchanged near zero and

continue buying USD85 billion in debt each month.Uncertainty

remained over the situation in Cyprus, where the countrys

parliament rejected a proposed bank deposit tax, which formed part

of a EUR10 billion international bailout deal.On the Comex division of

the New York Mercantile Exchange, gold futures for April delivery


6/8

traded at USD1,607.90 a troy ounce during European morning trade,

nearly flat on the day.Prices held in a tight USD5-trading range

between USD1,603.70 a troy ounce, the daily low and a session high

of USD1,608.90. Comex gold prices rose to USD1,614.60 a troy ounceon Tuesday , the strongest level since February 26.Gold prices were

likely to find support at USD1,560.60 a troy ounce, the low from

March 8 and near-term resistance at USD1,619.40, the high from

February 26.Sentiment on the precious metal remained upbeat after

the Federal Reserve reiterated its commitment to its asset purchase

program despite signs of a strengthening U.S. economy.

MTECHTIPS:-Crude oil futures fall to session low following downbeat

euro zone PMIs

Crude oil futures fell to the lowest level of the session during

European morning hours on Thursday, as investors sold growth-linked

assets following the release of disappointing euro zone manufacturing

data.On the New York Mercantile Exchange, light sweet crude futures

for delivery in May traded at USD92.88 a barrel during European

morning trade, down 0.7% on the day.New York-traded oil fell by as

much as 0.8% earlier in the session to hit a daily low of USD92.80 a

barrel.Market research group Markit said that its preliminary euro

zone manufacturing purchasing managers index fell to a seasonally

adjusted 46.6 in March from a final reading of 47.9 in

February.Analysts had expected the index to ease up to 48.2 in

March.Meanwhile, Germanys manufacturing purchasing managers

index fell to a seasonally adjusted 48.9 in March from a final reading

of 50.3 in February, indicating contraction. Analysts had expected the

index to tick up to 50.5.The report also showed that service sector

activity in Germany expanded at the slowest rate in four months in


7/8

March, with the services PMI falling to 51.6 from 54.7 in February.The

data came after a report showing that the French manufacturing PMI

came in at 43.9 in March, unchanged from Februarys reading.Service

sector activity in France fell to a 49-month low of 41.9 in March from afinal reading of 43.7 in February.Meanwhile, in Cyprus, negotiations

aimed at finding an alternative solution on a bailout deal for the tiny

island continued after the countrys parliament rejected a

controversial bank deposit tax in a vote on Tuesday.

MTECHTIPS:-Copper futures erase gains following weak euro zone

PMI data

Copper futures erased earlier gains to trade little changed during

European morning hours on Thursday, as appetite for riskier assets

weakened following the release of disappointing German and French

manufacturing data.Concerns over the handling of the financial

situation in Cyprus also weighed.On the Comex division of the New

York Mercantile Exchange, copper futures for May delivery traded at

USD3.445 a pound during European morning trade, nearly flat on the

day.New York-traded copper prices rose by as much as 1.3% earlier in

the day to hit a session high of USD3.492 a pound.Copper prices came

under pressure after market research group Markit said that its

preliminary euro zone manufacturing purchasing managers index fell

to a seasonally adjusted 46.6 in March from a final reading of 47.9 in

February.Analysts had expected the index to ease up to 48.2 in

March.Germanys manufacturing purchasing managers index fell to a

seasonally adjusted 48.9 in March from a final reading of 50.3 in

February, indicating contraction. Analysts had expected the index to

tick up to 50.5.The report also showed that service sector activity in


8/8

Germany expanded at the slowest rate in four months in March, with

the services PMI falling to 51.6 from 54.7 in February.

mtechtips commodity market news 2

Documents