Commodity Research Report Ways2Capital 12 March 2018
Added: (Mon Mar 12 2018)
Pressbox (Press Release) -
Gold prices gained on Friday recouping from the lowest levels of the year as the prospect of a global trade war pressured the dollar lower and boosted safe haven demand for the precious metal the US dollar index which measures the green backs strength against a basket of six major currencies was down 0.31% to close at 89.99 on Friday. A weaker dollar makes dollar denominated gold more attractive for overseas buyers.Expectations for higher interest rates are typically bearish for gold as the precious metal struggles to compete with yield bearing assets such as Treasuries when borrowing costs rise.
Oil prices finished higher on Friday but still suffered their first losing week in three as investors weighed indications of rising US production against OPEC's ongoing efforts to rid the market of excess supplies.That came after data on Wednesday showed US oil production driven by shale extraction rose to an all-time high of 10.28 million barrels per day (bpd) staying above Saudi Arabia's output levels and within reach of Russia the world's biggest crude producer.
Natural gas futures ratcheted higher last week as weather model guidance came in more supportive while government storage data came in near expectations. For the last week prices at MCX surged by 1.84 per cent.
Base metals traded on the London Metal Exchange are for the most part weaker this morning Friday March 9. The exception is nickel, where prices are up by 0.2%, while the rest are lower Zinc (-1%), aluminium (-0.5%), lead (-0.3%) and copper prices are off by 0.5% at $6,792 per tonne.
Markets found immediate support for Jeer after the recent dips. Better sowing reports amidst lack of strong demand however could still prevent strong recovery as of now. No strong bullish sentiments have emerged for now.
As the new crop arrivals gradually come down with harvesting season getting over the demand for the new crop started poring in and supporting the falling market sentiments. Technically the daily charts are now strongly oversold. Traders expect export and domestic demand to rise in coming weeks but new crop arrivals have kept up trend limited in recent months.
Soya oil failed to hold firm amid lack of any fresh bullish cue from Thursday USDA report. As indicated from the report the big piles of U.S. Soy bean stocks are not getting reduced with such speed hence CBOT soy complex were also under selling pressure.
Soft trend in soy meal and overnight weakness in CBOT kept sentiments eased but no major fall in prices was being indicated from the published data. In future bullish tone in soy meal shall continue offering helping prices to bounce from support levels.
Prices hovered near the psychological 9000 mark as lack of strong export demand with falling crude oil prices amidst reports of higher stocks kept pressure on the prices. Reports of higher carry forward stock kept up trend limited even as rising crude oil prices are likely to provide fillip to the export demand in coming weeks.
Moderately firm trend was noted for Cotton/Kapas on bullish reports from the USDA. Moderate firm trend was noted Prospects of a fall in Indian production due to crop damage amidst firmness in International markets supported prices.
RM seed traded firm initially amid lower arrival but weakening trend in palm oil and soy bean during later hours prompted some profit taking by longs. The harvest operations continue while there are estimations of ample inventory with the stockists hence futures are constantly facing resistance in moving up in near term.
The primary trend of Chana is negative and market is continuously trading below the important psychological number at 4000. Currently Chana is in strong down trend supported by the Open Interest. Cautious point is selling at lower levels seems increasing.The oscillator is showing sell signal. For short term investor can sell Chana and can hold for short term basis. Support for the Chana is 3650 while resistance place at. 3770.
Overall trend of the Guarseed10 is bearish for medium to long term basis and from last couples of trading weeks market is moving in range, making lower highs and lower lowa indicating negative trend in coming session.The oscillator is showing sell signal .In last 1 month vitality is very less. The oscillator is showing sell signal for short term Guarseed10 is in hold short position. Support for the Guarseed10 is 4199 while Resistance placed at the level of 4350.
Last week JPYINR Mar Futures started the week on positive not and made a high of 61.9900, however till the end of the week all of its earlier gains were erased and it closed at 61.1950 with the overall loss 0.11% on weekly basis. Technically for this week, we can expect downside movement in it as it was unable to break major psychological level of 62 last week. For this week, if it breaks the level of 61.0600 then it can test the level of 60.4625 during the week. One can make sell position in it by maintaining a SL 61.4625
Last week EURINR Mar Futures started the week on positive not and made a high of 81.0500, however till the end of the week most of its earlier gains were erased and it closed at 80.3525 with the overall gain 0.73% on weekly basis. Technically for this week, we can expect downside movement in it as it’s forming divergence on daily chart coupled with the negative RSI. For this week, if it breaks the level of 80.1950 then it can test the level of 79.5925 during the week. One can make sell position in it by maintaining a SL 80.6025
From last couple of trading weeks market is moving with positive sentiment as market has found enough support at the level of 167 and bounce back from lower level. Market is continuously forming higher highs and higher lows indicating positive movement in coming session. Investor can adopt the buy on lower level strategy for short term to mid term basis. Immediate resistance level placed at 180 while support level at 177
Last week, Zinc prices opened lower and prices corrected sharply for most of the week till low of 207.75. Previously prices have rallied strongly in the last month after taking strong support at its short term rising trend line. Daily RSI (14) has given a positive signal. Prices are expected to go higher from these levels towards next strong resistance zone placed around 218.
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