Commodity Research Report Ways2Capital 26 Dec 2018
Added: (Wed Dec 26 2018)
Pressbox (Press Release) -
BULLION
Gold traded on flat note on Friday after jumping more than 1 percent in the previous session boosted by a crumbling dollar and as sliding stocks prompted an influx of safe haven bids after the U.S. Federal Reserve monetary policy stance augmented concerns about slowing global economic growth. Spot gold climbed 1.38 percent to $1,259.80 per ounce by close having reached $1,265.28 earlier in the session a peak since July 9. U.S. gold futures settled up 0.9 percent at 1,267.90 per ounce.
ENERGY
Oil prices climbed on Friday after tumbling 5 percent in the last session, with OPEC production cuts that start next month seen being deeper than previously expected. Benchmark Brent crude futures were up 1.51 percent at $55.17 per barrel at the time of writing recovering from losses of $2.89 per barrel the session before.
The Energy Information Administration reported a deficit of 141 billion cubic feet in the week ending December 14 in US natural gas storage, compared to a 77 billion deficit in the previous week, while missing estimates of a 141 billion decline.
Base Metals
Copper prices edged higher in London and Shanghai in early trade on Friday, after a report from an industry study group showed a widening supply deficit. The metal is still on course to shed 1.8 percent in London this week for a fourth straight weekly loss. It is down 17 percent so far in 2018, heading for its worst year since 2015 on fears the U.S.-China trade row will hurt demand.
SPICES
Trend remains slight down for Jeer as it traded near the psychological 18000 mark with lack of strong demand amidst firmer Rupee and cooler weather in Gujarat and Rajasthan combining to keep trend weak. Reports of steps taken to improve water supply to the fields for Jeer kept pressure on prices.
Turmeric traded sideways as falling stocks supported prices. Lower rains in growing areas amidst apprehensions of falling yields could support prices for Turmeric. Reports of lower stocks in mandis amidst moderate demand at these lower levels are supporting factors.
OILSEEDS
Mentha traded moderately firm as prices found immediate support at these lower levels after the recent dips. Traders anticipate the winter season demand to gradually start rising. Overall sentiments are likely to recover during the winter season.
Soya oil January contract traded above consistently below 730 support yesterday. Positive sentiment in palm oil could not offer much support since upside was limited in domestic soy bean market. Soya oil once again found difficulty in diverting from the sideways trend.
GUAR COMPLEX
Falling crude oil prices amidst firm Rupee kept sentiments down for Guar but prices found short term support at these lower levels. Prospects of lower production from less rains received in Rajasthan supported prices. Reports of lower arrivals of new crop amidst prospects of fall in sowing area are Bullish factors.
OTHERS
Subdued selling intentions were noted in local mandis and after morning weakness futures contracts were able to recover to some extent. The current inventory seems sufficient to balance the requirements as long as the supply season does not commence.
The daily supply of this season crop is decreasing gradually while current spot prices are quite cheaper to attract considered lower. The USDA has downgraded domestic ending stock estimate in its October report.
From last couple of trading days COCUDAKL is trading with negative sentiment. Last week COCUDAKL made a low of 1860 and closed at the level of 1867 with overall marginal loss of 1.50% on weekly basis. On its daily chart COCUDAKL is forming descending triangle formation on higher side indicating negative movement in it. For this week if it is break the level of 1860 on lower side then it can test the level of 1740. One can make sell position in it with SL of 1915.
The primary trend of Soybean is bearish on chart and from last couple of trading weeks Soybean is trading below the support level of 3400. Last week Soybean made a low of 3338 and closed at the level of 3343 with overall marginal loss of 1.07% on weekly basis. On its daily chart Soybean is forming lower highs and lower lows formation indicating negative movement in it. For this week if it is break the level of 3320 on lower side then it can test the level of 3215. One can make sell position in it with SL of 3375.
Last week Zinc Dec Futures started the week on negative note and continue the same for whole week, market closed below the level of 180.00 and it closed at 177.35 with the overall loss of 3.30 per cent on weekly basis. Technically it consolidating below the major psychological support level of 180.00 with the negative RSI and for this week, we can expect further downside movement in it.
For this week, if it breaks the level of 177.50 on the lower, then it can test the level of 174.50 during the week. One can make sell position in it by maintaining a SL 178.55
From last couple of trading weeks Natural Gas trading in range between the 265-250 and forming bottom formation on lower side. Last week Natural Gas made a low of 250.90 and closed at the level of 265.40 with overall marginal loss of 3.88% on weekly basis. Natural Gas recently broken its resistance trend line and sustaining above it indicating bullish trend for short term to mid term basis. For this week, if it breaks the level of 260 on the upper, then it can test the level of 269.60 during the week. One can make buy position in it by maintaining a SL 255.90
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