Zinc on MCX settled up 1.27% at 168.1 on short covering after prices dropped recently as data showed Chinese mine supply surged by nearly a fifth last year. The global zinc market moved into a surplus of 19,800 tonnes in February from a deficit of 22,300 tonnes in January, data from ILZSG showed. In the first two months of the year, the zinc market was in a deficit of 2,000 tonnes versus a surplus of 44,000 tonnes in the same period last year. Zinc continues to see plenty of sellers lined up on every rally amid increasingly aggressive CTA selling and ongoing long liquidation. Chinese consumer prices weakened further in March, but were little changed compared to a year ago, while producer prices rose at a steady pace.
Copper on MCX settled down -2.55% at 363.75 shrugging off a tentative recovery in the broader financial markets as geopolitical tensions and fading hopes for a boost to U.S. demand pressured prices. Copper has faltered after BHP Billiton restarted production in Chile last week and Freeport McMoRan said it was waiting for final details on a temporary export permit in Indonesia. Concerns over supply disruptions had sent the metal to a 1-1/2 year high of $6,204 in mid-February. The discount of LME cash copper to the three-month contract was at $32 a tonne, close to the biggest in four years, indicating adequate supply of refined metal in the market. Union representatives and executives from miner Southern Copper in Peru failed to reach an accord to end an indefinite strike, the union said.
Naturalgas on MCX settled up 1.37% at 206.70 on short covering while trader are caution for recent move as over the near term this gains are questionable, given the upcoming weather forecast, ahead of the weekly US Energy Information Administration natural gas storage report. According to natgasweather.com, much of the country will experience comfortable highs of 50’s to 80’s through next week. There will still be numerous weather systems impacting the country daily, but, there is not much cold air associated with each system. As far as highs today, the East Coast will be quite pleasant with 70’s to even lower 80’s, including into major Northeast cities like Washington D.C. and NYC. The net result is light national demand the next several days.
Crudeoil on MCX settled down -0.12% at 3444 as prices gave back some of its gain on some ground in yesterday session tracking weakness from NYMEX Crude which slid by $0.29 to settled at $53.11 a barrel after reaching a one-month high of $53.76 a barrel as traders cashed in on the recent strength despite a report from the EIA showing an unexpected drop in crude oil inventories. Yesterday the US EIA early Wednesday reported that domestic crude supplies fell by 2.2mbls for the week ended April 7, after climbing in each of the previous three weeks. Crude stockpiles have only posted two weekly declines this year to date, according to EIA data. While a day earlier the API late Tuesday reported a 1.3mbl decline, according to sources.
Silver settled flat after prices seen supported as heightened geopolitical tensions underpinned safe haven demand for the precious metal. Investors continued to play it safe as concerns over U.S. military action against Syria and North Korea along with worries over the French presidential election. Risk-off sentiment has boosted to demand for traditional safe-haven assets including bullion, as investors sought refuge from the recent market volatility amid increased geopolitical concerns. U.S. – Russia relations remained in the political spotlight, as U.S. Secretary of State Rex Tillerson was expected in Moscow on Wednesday to meet with his Russian counterpart Sergey Lavrov and discuss a number of sensitive topics including the Korean peninsula, Syria and bilateral relations.
Gold on MCX settled up 0.12% at 29229 as the dollar reversed losses and political tensions simmered, leaving investor interest in safe havens like the precious metal largely intact. The U.S. dollar took a heavy hit after President Donald Trump told the Wall Street Journal the dollar "is getting too strong" and that he would prefer the Federal Reserve to keep interest rates low. Meanwhile, tensions continued over the United States' relationship with Russia over Syria and in the Korean peninsula, while worries about the upcoming French presidential election also kept investors nervous.
New Delhi [India], Apr. 12 : Vedanta Limited (Vedanta) and Cairn India Limited (Cairn India) on Tuesday announced that the merger of Cairn India with Vedanta pursuant to the Scheme of Arrangement has become effective.
Being India's premier natural resources company, Vedanta provides the metals and energy to build India and fuel its growth. The combined entity is positioned to unlock India's wealth of world-class energy and mineral resources, thus enhancing oil and gas production, and preserving the 'Cairn' brand.
Cotton on MCX settled up by 0.58% at 20770 on supply concerns as output is expected to fall in the domestic market. India's cotton productivity has dropped in recent years owing to worm infestations hurting quality of the crop. Cotton output in the domestic market is expected to slip to 34.2-34.6 million bales in 2016-17 according to estimates of Southern Indian mills Association from 39.8 million bales in 2013-14. Additionally, in 2017-18, mills consumption is seen at 30.1 million bales, marginally higher from 2.99 million bales in 2016-17. However, exports are seen rising to 5.8 million bales from 5 million bales. Chinese cotton imports will remain suppressed next season, as the government continues to draw down on cotton stocks, while production recovers, US officials said.
Cardamom on MCX settled down by -2.89% at 1240.2 due to lack adequate support from stockists amid reports of higher supplies of imported variety. Prices are unlikely to improve in the coming week due to accumulation of imported stocks. Arrivals at the auction centres continued to shrink as the season has come to an end and number auctions have been cut in the absence of sufficient quantity. India exported 3,000 ton cardamom during Apr-Dec down from 3,825 on a year ago, data from Spices Board showed. Supply continued to show a shrinkage following the continued dry spell. Harvesting is nearly complete and hence arrivals are unlikely to pick up. Exporters and north Indian dealers have slowed down because of the higher prices.
Maize on NCDEX settled up by 1.17% at 1471 tracking firmness in spot demand despit of losses in overseas on expectations of further increases in South American production. Farmers may harvest at an estimated 14.32-million tonnes of maize in 2017‚ which represents the third-biggest maize crop on record. Favourable weather conditions have enabled producers to increase the area planted to summer crops‚ with maize output now expected to be 84% higher in 2017 than in 2016. In its second estimate for the year on Tuesday‚ the Crop Estimates Committee said it had revised the maize output estimate by 2.91% from the first estimate.
Jeera on NCDEX settled up by 0.39% at 19190 in the wake of reports of fall in output in both Gujarat and Rajasthan. Gujarat government has estimated lower output this year due to adverse weather while there were reports rains during March in some parts of Rajasthan, which have impacted jeera crop. Daily jeera arrivals have been rising in the markets of Gujarat. Due to higher prices last year, production across Turkey, Syria, China, Pakistan and Afghanistan is expected to increase, the report said. India's Apr-Dec jeera export jumped 35% to 91,000 ton from 67,300 ton a year ago on the back of higher demand from China and Bangladesh. India imported around 2,550 ton jeera during Apr-Oct as against negligible in the previous year.
Turmeric on NCDEX settled down by -0.22% at 6264 due to rising arrivals on the back of increased output. Demand from stockists and masala manufacturers remained weak as they are expecting prices to decline further in view of bumper crop. India's Apr-Dec turmeric export 25% to 85,500 ton on year. Last year, India exported 68,500 ton in the same period. In the Delhi spot market turmeric single polish gattha was traded weak at Rs 7,300-7,400 per quintal on weak demand. Turmeric farmers and traders have been hit hard by poor sales during peak season. Many traders and farmers expected good sales of turmeric during the peak period, which started a month ago.
Mustard Seed on NCDEX settled down by -0.59% at 3869 tracking weakness in sprot demand on higher supply. Prices of seed will be down as Solvent Extractors Association of India hiked its output forecast for 2016-17. India's mustard output in 2016-17 is estimated at 7.2 million tons (including 120,000 tons of taramira and toria), up from 5.8 million tons a year ago as favourable weather led to better yield, the SEA of India reported citing a data on a field survey conducted by Neilsen India. India's mustard output in 2016-17 is estimated at 7.2 million tons (including 120,000 tons of taramira and toria), up from 5.8 million tons a year ago as favourable weather led to better yield, the SEA of India reported citing a data on a field survey conducted by Neilsen India.
Crude palm Oil on MCX settled down by -1.74% at 512.6 tracking weakness in spot demand and overseas prices on hope of recover in Malaysian palm oil output. Prices of the oil will be down as Malaysia Palm Oil reserves are expected to rise during March month. Inventories are expected to rise by 4.1% to 1.52 million tons in March as compared to previous month while production estimated to increase by 9.5% to 1.38 million tons from February. Palm oil refiners in Malaysia are boosting purchases of Indonesian crude palm oil to meet festive demand as there is tight local supply. After a year of tight market balances, there is widespread expectation of augmented production around the world, modest demand growth and gradually expanding inventory.
Ref.Soyaoil on NCDEX settled down by -0.58% at 619.25 on robust supply in local market along with lower tariff rates. Prices seen under pressure after International Grains Council in its report hiked soybean output forecast for 2016-17 by 5 million tons to 341 million tons and for 2017-18 output seen at 345 million tons. Moreover, according to market participant import of soybean oil for May is in parity of Rs 28-30 per 10 kilogram which will further put pressure on soy oil prices. Additionally, Celeres Consultancy raised its estimate of Brazil's soybean crop to 113.8 million tons from 109.65 million tons last month. Meanwhile, broker INTL FCStone also lifted its projection for the Brazilian crop to 111.6 million tons from 109.07 million tons previously.
Soyabean on NCDEX settled down by -0.48% at 2913 tracking weakness in spot demand on oversupply woes despite of hope of higher demand from crushers and in export market. Prices remained under pressure on expectation of bumper output in India and other top producers of the world. In, India production of yellow bean is expected to rise to 8.90-9.10 million tons as compared to 7.1 million tons in the previous year Production in the United States, Brazil and Argentina, the world's top producers, is also expected to rise. US Department of Agriculture reported that US farmers are likely to increase soybean acreage by 7.25 million acres to 89.48 million acres in 2016-17.
Mentha oil on MCX settled down by -0.57% at 988.8 on speculation that the area under cultivation can increase this year resulting good production. However downside seen limited amid tight stocks position on restricted supplies from producing belts. Total production of mentha oil during the current season is 32,000-34,000 tonnes against preliminary estimates of around 40,000 tonnes. Unfavourable weather conditions during harvesting period led to the drop in production. On the demand side, the seasonal demand emerges during winter season, especially from the pharma sector. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year.
Aluminium on MCX settled down -1.59% at 123.75 as supply concerns eased and demand remained weak in top metal consumers such as China. LME stocks are falling at a fast pace and physical premiums are rising, although as ever with aluminium appearances can be slightly deceptive. The deficit in the global aluminium market to widen further in CY2017 as a result of up to almost 3 million metric tonne (MMT) of production cutbacks in China, post the imposition of a new air pollution control regime in Beijing. China’s inventories of aluminum ingot registered the first decline after the 2017 Chinese New Year holiday. Last week, total aluminum inventories in the five major trading markets fell 4,000 tonnes, according to data.
Nickel on MCX settled down -0.73% at 652 traded in the range while LME Nickel price ended unchanged at $10,180, balanced by potentially bullish and bearish news. A suspended Philippine nickel miner has asked the president to allow it to ship ore stockpiles after some cargoes were seized. Cyclonic winds and heavy rain buffeted New Caledonia, prompting residents of the French South Pacific territory to seek shelter and halt mining of nickel, its most important export. China has been the target of anti-dumping lawsuits, and this is expected to be a hot topic in the meeting of the two world leaders.
Zinc on MCX settled down -2.06% at 168.40 dropped tracking weakness from LME Zinc which hit a three-month low on Monday as supply concerns eased and demand remained weak in top metal consumers such as China. LME Zinc prices touched a peak of $2,980.50 a tonne in mid-February on worries that major mine closures last year would lead to severe shortages. London Metal Exchange three-month zinc slid 2.7 percent to close at $2,618 a tonne, the weakest since Jan. 6. Also pressuring the market was weakness in Chinese steel prices and news that two flood-hit mines in Peru were ready to restart. Chinese smelters may prove less resilient in the coming months after they announced that 540,000 tpy of capacity would be put on maintenance for unspecified period.