COMMODITY UPDATES FOR 23/07/2012

Gold trading range for the day is 29258-29480.Gold edged up as market sentiment improved after Russia revealed it had boosted its bullion reserves in June Gold fell earlier as euro tumbled after Spain’s Valencia region said it would seek central government help to repay its debts SPDR gold trust holding dropped by 2.41 tonnes to 1254.64 tonnes. Gold is trading below 50DMA, which is at 29671, now intraday gold is holding support at 29258 and resistance at 29304.

Silver trading range for the day is 52467-53250.Silver recovers as safe-haven appeal of precious metal re-emerged amid growing fears that Spain will need a full bailout . Ongoing hopes of further stimulus from global central banks to boost world growth underpinned prices. Euro zone finance ministers approved the terms of a loan of as much as EUR100 billion to recapitalize Spanish banks. Silver is trading below 50DMA, which is at 54534, with intraday support seen at 52767 and resistance at 52901.

Crude trading range for the day is 5015-5165.Crude fell from a multiday rally on profit-taking, a stronger dollar and revived concerns about the euro zone. U.S. demand for crude oil, gasoline and distillates fell in June from a year earlier, API said. Adding to the bearish sentiment was news that China will load full contracted volumes of Iranian oil in July. Crude is holding with a support at 5074 and resistance will be likely at 5108.

Copper trading range for the day is 418-425.70.Copper slid weighed down by fresh worries about Spain’s debt crisis and a stronger dollar. Metals tracked lower after Beijing issued reminder to local governments to keep clamping down on property speculation. The global market for refined copper was in a 384,000- tonne deficit from January to April 2012 – ICSG Warehouse stock for Copper at LME was at 253225mt that is up by 675mt.

Zinc trading range for the day is 101.30-102.95.Zinc settles up but overall market was caution as China again became one of factors affecting movements in financial market.US dollar was favored as safe-haven amid increasing investor worries over Chinese demand Zinc weekly stocks at Shanghai exchange came down by 1677 tonnes. Warehouse stock for Zinc at LME was at 1015075mt that is up by 2700mt.

Nickel trading range for the day is 869-892.Nickel settled up but trend remain weak as economic uncertainty in Europe has increased resulting in shorter visibility for demand. Normal seasonality and the declining nickel price have had an adverse effect on distributors buying behavior. Mainly impacted by normal seasonality, prices for stainless steel in third quarter are expected to be slightly lower. Warehouse stock for Nickel at LME was at 110658mt that is down by -516mt.

Aluminum trading range for the day is 103.50-104.80.Aluminium is trading in the range as European secondary aluminum prices remained flat last week. Chinas confirmation of strict property curb will erode metals demand. Aluminum weekly stocks at Shanghai exchange came up by 8372 tonnes. Warehouse stock for Aluminum at LME was at 4832425mt that is up by 29875mt.

Nat.Gas trading range for the day is 168.73-171.93.Natural gas ended higher as ongoing hot temperatures are expected to support demand for gas-powered electricity. Gas remained supported after updated forecasts showed that above-normal temperatures were expected to remain. Spot prices have rallied nearly 25% in the past three weeks, as extreme heat conditions boosted demand. Natural Gas is holding with a support at 168.73 and resistance will be likely at 171.93.

Mentha oil trading range for the day is 1242-1371.Menthaoil spot is at 1455-.Spot market is up by Rs.45-.Mentha oil rose on rising demand from pharmaceutical units. Reports of ban on Pan masala pressurized the market sentiments. The total arrivals of Mentha oil stood at 600-650 drums.

Pepper trading range for the day is 42945-43785.Pepper dropped on profit-taking triggered by weak exports, though slack spot supplies restricted downside. Latest reports keep production estimates in Vietnam at 1.35-1.40 lh tonnes vs 1.0-1.10 lh tonnes. In April, pepper exports fell 47 percent to 1,200 tonnes from a year ago. Spot pepper gained 85.7 rupees to 42114.25 rupees per 100 kg in Kochi market.

Soybean trading range for the day is 4828-5182.Soyabean hit a record high tailing an overseas rally and on poor rains in growing areas. This year soybean production (in India) is likely to be slightly lower than last year. NCDEX accredited warehouses soya bean stocks dropped by 31 tonnes to 4082 tonnes. At the Indore spot market in top producer MP, soybean gained 121 Rs to 4941Re 100 kgs.

Jeera trading range for the day is 15759-16693.Jeera dropped due to profit booking after prices gained on strong demand from overseas buyers. Declining spot supplies at the end of the peak arrival season aided sentiment. NCDEX accredited warehouses jeera stocks dropped by 1488 tonnes to 7558 tonnes. In Unjha, a key spot market in Gujarat, jeera gained 15.4 rupees to end at 15947.9 rupees per 100 kg.

CPO trading range for the day is 565.9-588.3.Crude palm oil ended higher supported by rising demand in spot markets. Gains limited following improved weather forecasts in drought-hit areas of the U.S. Midwest, easing worries over limited supplies. Malaysia’s July 1-15 palm oil shipments fell 21% from a month earlier to 563,603 tons. Crude palm oil prices in spot market gained by 2.10 rupees and settled at 570.10 rupees.

Wheat trading range for the day is 1419-1491.Wheat ended with gains on the back of firm export demand along with strong physical demand. Limited arrivals in the domestic markets also supported the firm trend. NCDEX accredited warehouses wheat stocks gained by 99 tonnes to 4690 tonnes. In Delhi wheat prices gained 13.3 rupee to end at 1341.65 rupees per 10 kg.

Chana trading range for the day is 4787-4943.Chana rose bolstered by strong demand from domestic traders and millers due to the upcoming festival season Chana production is expected to fall to 7.58 mln tonnes as compared to 8.22 mln tonnes last year. NCDEX accredited warehouses chana stocks dropped by 625 tonnes to 80748 tonnes. In Delhi spot market, chana fell down by -59.4 rupee to end at 4950 rupee per 100 kgs.

Ref soya oil trading range for the day is 800.88-818.68.Ref soya oil ended higher tracking gains in spot demand amid firm overseas market. India has lifted a six-year freeze on the base import price of refined palmolein. India’s soymeal exports rose to 180,987 tonnes in June, from 117,600 tonnes the same period a year ago. At the Indore spot market soy oil edged up by 0.85 rupee to 792.75 rupees 10 kgs.Gold trading range for the day is 29258-29480.Gold edged up as market sentiment improved after Russia revealed it had boosted its bullion reserves in June Gold fell earlier as euro tumbled after Spain’s Valencia region said it would seek central government help to repay its debts SPDR gold trust holding dropped by 2.41 tonnes to 1254.64 tonnes. Gold is trading below 50DMA, which is at 29671, now intraday gold is holding support at 29258 and resistance at 29304.

Silver trading range for the day is 52467-53250.Silver recovers as safe-haven appeal of precious metal re-emerged amid growing fears that Spain will need a full bailout . Ongoing hopes of further stimulus from global central banks to boost world growth underpinned prices. Euro zone finance ministers approved the terms of a loan of as much as EUR100 billion to recapitalize Spanish banks. Silver is trading below 50DMA, which is at 54534, with intraday support seen at 52767 and resistance at 52901.

Crude trading range for the day is 5015-5165.Crude fell from a multiday rally on profit-taking, a stronger dollar and revived concerns about the euro zone. U.S. demand for crude oil, gasoline and distillates fell in June from a year earlier, API said. Adding to the bearish sentiment was news that China will load full contracted volumes of Iranian oil in July. Crude is holding with a support at 5074 and resistance will be likely at 5108.

Copper trading range for the day is 418-425.70.Copper slid weighed down by fresh worries about Spain’s debt crisis and a stronger dollar. Metals tracked lower after Beijing issued reminder to local governments to keep clamping down on property speculation. The global market for refined copper was in a 384,000- tonne deficit from January to April 2012 – ICSG Warehouse stock for Copper at LME was at 253225mt that is up by 675mt.

Zinc trading range for the day is 101.30-102.95.Zinc settles up but overall market was caution as China again became one of factors affecting movements in financial market.US dollar was favored as safe-haven amid increasing investor worries over Chinese demand Zinc weekly stocks at Shanghai exchange came down by 1677 tonnes. Warehouse stock for Zinc at LME was at 1015075mt that is up by 2700mt.

Nickel trading range for the day is 869-892.Nickel settled up but trend remain weak as economic uncertainty in Europe has increased resulting in shorter visibility for demand. Normal seasonality and the declining nickel price have had an adverse effect on distributors buying behavior. Mainly impacted by normal seasonality, prices for stainless steel in third quarter are expected to be slightly lower. Warehouse stock for Nickel at LME was at 110658mt that is down by -516mt.

Aluminum trading range for the day is 103.50-104.80.Aluminium is trading in the range as European secondary aluminum prices remained flat last week. Chinas confirmation of strict property curb will erode metals demand. Aluminum weekly stocks at Shanghai exchange came up by 8372 tonnes. Warehouse stock for Aluminum at LME was at 4832425mt that is up by 29875mt.

Nat.Gas trading range for the day is 168.73-171.93.Natural gas ended higher as ongoing hot temperatures are expected to support demand for gas-powered electricity. Gas remained supported after updated forecasts showed that above-normal temperatures were expected to remain. Spot prices have rallied nearly 25% in the past three weeks, as extreme heat conditions boosted demand. Natural Gas is holding with a support at 168.73 and resistance will be likely at 171.93.

Mentha oil trading range for the day is 1242-1371.Menthaoil spot is at 1455-.Spot market is up by Rs.45-.Mentha oil rose on rising demand from pharmaceutical units. Reports of ban on Pan masala pressurized the market sentiments. The total arrivals of Mentha oil stood at 600-650 drums.

Pepper trading range for the day is 42945-43785.Pepper dropped on profit-taking triggered by weak exports, though slack spot supplies restricted downside. Latest reports keep production estimates in Vietnam at 1.35-1.40 lh tonnes vs 1.0-1.10 lh tonnes. In April, pepper exports fell 47 percent to 1,200 tonnes from a year ago. Spot pepper gained 85.7 rupees to 42114.25 rupees per 100 kg in Kochi market.

Soybean trading range for the day is 4828-5182.Soyabean hit a record high tailing an overseas rally and on poor rains in growing areas. This year soybean production (in India) is likely to be slightly lower than last year. NCDEX accredited warehouses soya bean stocks dropped by 31 tonnes to 4082 tonnes. At the Indore spot market in top producer MP, soybean gained 121 Rs to 4941Re 100 kgs.

Jeera trading range for the day is 15759-16693.Jeera dropped due to profit booking after prices gained on strong demand from overseas buyers. Declining spot supplies at the end of the peak arrival season aided sentiment. NCDEX accredited warehouses jeera stocks dropped by 1488 tonnes to 7558 tonnes. In Unjha, a key spot market in Gujarat, jeera gained 15.4 rupees to end at 15947.9 rupees per 100 kg.

CPO trading range for the day is 565.9-588.3.Crude palm oil ended higher supported by rising demand in spot markets. Gains limited following improved weather forecasts in drought-hit areas of the U.S. Midwest, easing worries over limited supplies. Malaysia’s July 1-15 palm oil shipments fell 21% from a month earlier to 563,603 tons. Crude palm oil prices in spot market gained by 2.10 rupees and settled at 570.10 rupees.

Wheat trading range for the day is 1419-1491.Wheat ended with gains on the back of firm export demand along with strong physical demand. Limited arrivals in the domestic markets also supported the firm trend. NCDEX accredited warehouses wheat stocks gained by 99 tonnes to 4690 tonnes. In Delhi wheat prices gained 13.3 rupee to end at 1341.65 rupees per 10 kg.

Chana trading range for the day is 4787-4943.Chana rose bolstered by strong demand from domestic traders and millers due to the upcoming festival season Chana production is expected to fall to 7.58 mln tonnes as compared to 8.22 mln tonnes last year. NCDEX accredited warehouses chana stocks dropped by 625 tonnes to 80748 tonnes. In Delhi spot market, chana fell down by -59.4 rupee to end at 4950 rupee per 100 kgs.

Ref soya oil trading range for the day is 800.88-818.68.Ref soya oil ended higher tracking gains in spot demand amid firm overseas market. India has lifted a six-year freeze on the base import price of refined palmolein. India’s soymeal exports rose to 180,987 tonnes in June, from 117,600 tonnes the same period a year ago. At the Indore spot market soy oil edged up by 0.85 rupee to 792.75 rupees 10 kgs.