Today's Commodity Updates 27/07/2012

Gold trading range for the day is 29658-29942.Gold ended down due to rupee firmness but prices were supported by hopes of more monetary easing after Draghi’s comments. Central banks in Russia, Kazakhstan make large gold purchases in June. Investors are now eyeing US GDP figure for Q2 which is likely to show US grew at its slowest pace in year. Gold is trading above 50DMA, which is at 29703, now intraday gold is holding support at 29658 and resistance at 29942.

Silver trading range for the day is 52880-53758.Silver dropped but downside was limited after Draghi pledged to do whatever was necessary to protect euro zone from collapse. Sharper appetite for risk and 1% loss in dollar versus euro as result of Draghi comments also supported. Bullions demand from the investment and physical sectors continued to remain weak. Silver is trading below 50DMA, which is at 54326, with intraday support seen at 52880 and resistance at 53758.

Crude trading range for the day is 4909-5077.Crude rose after ECB President said ECB was ready to do whatever was necessary to avoid Eurozone collapse. A drop in U.S. jobless-benefit claims for last week also supported prices. Oil remain about 20% below their 2012 highs, pressured by slowing global growth that has affected demand. Crude is holding with a support at 4909 and resistance will be likely at 5077.

Copper trading range for the day is 413.9-425.1.Copper ended with loss as mixed data from US zone prevented gains which came after ECB Draghi’s comments. Japan’s rolled copper output fell 6.1% in June from a year earlier in the wake of European credit woes. Copper daily stocks at Shanghai exchange came down by 525 tonnes. Warehouse stock for Copper at LME was at 249900mt that is down by -1525mt.

Nickel trading range for the day is 872.8-901.Nickel dropped as Spanish 10-year government bond yields fell but were still at risk level weighed on prices. INSG said that worldwide Nickel production in May rose to 1430000 tns compared to 135700 tns of demand. Splurging production and supplies in Nickel with scrawny demand is getting reflected in LME inventories. Warehouse stock for Nickel at LME was at 112236mt that is up by 474mt.

Nat.Gas trading range for the day is 165.8-178.Natural gas dropped after a report from the EIA showed US gas supplies rose. Natural gas futures found further support from weather forecasts showing hotter than normal temperatures. Barclays kept its natural gas price outlook at $3 raised its full year price average to USD2.64, up almost 8%.Natural Gas is holding with a support at 165.8 and resistance will be likely at 178.

Aluminium trading range for the day is 102.32-104.92.Aluminium dropped as disappointing pending home sales data from the US weighed on prices. The much better-than-expected US June durable goods orders from the US limited the downside. Slow progress on Greece’s austerity measures will limit upside space of the euro. Warehouse stock for Aluminium at LME was at 4835050mt that is down by -5625mt.

Mentha oil trading range for the day is 1333.8-1375.4.Menthaoil spot is at 1470-.Spot market is flat. Mentha oil dropped due to weak spot demand on the back of reports of pan masala ban. Demand is unlikely to rise much as traders wait for further dips before making queries in the mandis. The total arrivals stood steady at 600-650 drums.

Pepper trading range for the day is 42517-44957.Pepper dropped tracking bearish cues from spot where demand slowed down at higher levels Rains are very poor in Karnataka and could hit the growth of the crop. NCDEX accredited warehouses pepper stocks gained by 8 tonnes to 1840 tonnes. Spot pepper dropped -269.05 rupees to 42194.1 rupees per 100 kg in Kochi market.

Soybean trading range for the day is 4510-4862.Soyabean dropped tracking a drop in world market and as rainfall in MP allayed concerns over poor yields. M.P received good rainfall in the past two days and is likely to get more rains in the next three days. NCDEX accredited warehouses soya bean stocks dropped by 190 tonnes to 4341 tonnes. At the Indore spot market in top producer MP, soybean dropped -9 Rs to 4722Re 100 kgs.

Chana trading range for the day is 4508-4766.Chana dropped on the back of possibility of strong pulses imports in the current year. Government might increase imports of pulses in domestic market through state-run agencies to curb prices NCDEX accredited warehouses chana stocks dropped by 1567 tonnes to 76365 tonnes. In Delhi spot market, chana fell down by -135 rupee to end at 4775 rupee per 100 kgs. CHANA CORRECTED, A SUSTAINED ABOVE 4760 WILL RALLY AGAIN. WAIT FOR ENTRY.

Turmeric trading range for the day is 5928-6912.Turmeric ended lower tracking weakness in spot demand amid profit booking after prices hit contract high. Lower output concerns as well as higher exports data led the price to move northwards. Erode is expected to produce 55 lakh bags of Turmeric a rise of 29% as compared to previous year. In Nizamabad, a major spot market in AP, the price ended at 5798.3 rupees dropped by -58.85 rupees.

Jeera trading range for the day is 15655-17201.Jeera dropped as a recent jump in prices encouraged farmers to increase supplies in the spot market. Expectations are that good export orders may be diverted to India from the international markets NCDEX accredited warehouses jeera stocks gained by 510 tonnes to 8855 tonnes. In Unjha, a key spot market in Gujarat, jeera gained 11.65 rupees to end at 16316.65 rupees per 100 kg.

Ref soya oil trading range for the day is 778.9-798.4.Ref soya oil ended lower due to weak spot prices amid weakness in overseas market also weighed. In India monsoon progress is becoming worrisome day by day which will not allow prices to fall. Indian farmers have cultivated soybean on 8.62 million hectares compared with 9.03 million hectares. At the Indore spot market soya oil edged down by -3.3 rupee to 783.3 rupees 10 kgs.

CPO trading range for the day is 557.67-574.67.Crude palm oil fell tracking weak spot market and weakness in overseas prices Slowing exports coupled with better production expected in Malaysia could boost palm oil stock levels. Market players priced in weaker Malaysian exports for July 1-25 period after surveyors reported declines from month ago. Crude palm oil prices in spot market dropped by 5.30 rupees and settled at 563.30 rupees.

RM Seed trading range for the day is 4321-4539.Mustard Seed ended higher on strong Soymeal demand along with lower production concerns. Demand for rape meal, off take from pickle manufacturers and delayed monsoon also supported prices. NCDEX accredited warehouses mustard seed stocks gained by 99 tonnes to 129767 tonnes. In the Sri Ganganagar spot market in Rajasthan the price edged down by -50 rupee to 4325 rupees per 20 kgs.

Wheat trading range for the day is 1367-1419.Wheat dropped on profit-taking and on fears that further rise in its prices could attract government intervention. Government stocks were at 49.8 mln tns, much higher than a target of 17.1 million for the current quarter. NCDEX accredited warehouses wheat stocks dropped by 20 tonnes to 4720 tonnes. In Delhi wheat prices dropped -3.65 rupee to end at 1331.35 rupees per 10 kg.