Commodity Research Report Ways2Capital 26 Feb 2018
Added: (Mon Feb 26 2018)
Pressbox (Press Release) -
Gold futures tilted lower in American trade away from January 25 highs for the fifth session out of six as the dollar rebounded also for the fifth session out of six from December 17, 2014 lows following earlier data from China.†Federal Reserve Chair Jerome Powell will testify before the Senate Committee on Banking Housing and Urban Affairs and to the House Committee on Financial Services and submit a report on monetary policy and Fed's outlook.As of 02:57 GMT gold futures due on April 15 fell 0.21% to $1,329.90 an ounce from the opening of $1,332.70, while the dollar index rose 0.20% to 89.91 from the opening of 89.74.
Oil futures rose nearly one percent to February 7 highs even as the dollar index advanced for the fifth session out of six away from December 17, 2014 lows following earlier data from China and the US.†The Energy Information Administration released its report on US crude stocks showing a deficit of 1.6 million barrels in the week ending February 16, compared to a 1.8M buildup in the previous reading while analysts expected a 2.2M increase with total stocks now down to 420.5 million barrels remaining within the medium range on average in this time of year.
Natural gas futures lost over one percent in American trade even as the dollar index declined for the first time in five sessions, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed an inventory draw down for the tenth straight week.†
The base metals complex on the London Metal Exchange is mixed this morning, Friday February 23, with prices down by an average of 0.2%. Zinc prices lead the decline with a 0.8% fall to $3,501 per tonne, copper and nickel prices are off by 0.4% with the former at $7,143 per tonne, aluminium prices are bucking the trend with a 0.4% rise, while the rest are little changed.
Even as no strong trend persisted for Jeer markets found strong support at these lower levels. Even as overall fundamentals still did not remain strong from new crop arrivals amidst better crop expectations traders expect that incoming festival season along with firm Dollar could support export demand and support prices. Recent reports of apprehensions of crop damage in parts of Gujarat from climatic fluctuations may not be strong to support prices for now as overall production is expected to be higher this year.
No strong trend was noted for Turmeric as prices traded near the immediate psychological support of 7000 mark. Traders expect export and domestic demand to rise in coming weeks but new crop arrivals have kept up trend limited for now.
There was no let-up in the fall in rates for Mentha as sentiments remained weak from higher sowing report. Expectations of better sowing due to high rates prevailing last year could keep some more pressure on prices even as lower Demat stocks in MCX warehouses may provide some support.
Markets ended the day with unchanged fundamentals. Soya oil had traded with bearish bias mostly during previous week since the recent appreciation of soy bean and soy meal prices had forced the physical market participants to price the commodity lower just to maintain the crushing activity economically feasible. Soya oil shall tend to gain further if closes above 755. Bullish global cues, strength in Pam oil and expected Holi Demand to emerge soon kept futures in bullish territory yesterday.
After the recent dips in prices, Guar is finding some strong support at these lower levels for last few days. Firmness in crude oil prices kept possibilities of rising export demand in coming weeks as Dollar too shows firmness vs Rupee.
Cotton/Kapas failed to show strong movement even as firmness in International markets are likely to support prices as of now. Trend now looks positive as traders anticipate a rise in trading activities to support prices in the near term.
In coming days the new arrivals shall prevent the April contract to sustain above 4200 level. Harvest operations continue while there are estimations of amply inventory with the stockists hence futures are constantly facing resistance in moving up. However longer term bullish outlook soy bean and palm oil in addition to the recent hike in import duty on mustard oil and drop in the crop acreage shall keep the downside limited.
NCDEX TURMERIC Apr future continued to trade with negative sentiment for the fourth consecutive trading week. Price made the low of 6862 during the week and the high of 7292and settled at 6898/quintal. Price dropped by around 5 % during the week with higher volume and open interest indicating building of short positions. Market is forming lower lows and lower high on its daily chart indicating selling trend. We can see pressure on prices from higher level. And we are expecting market can be traded in its negative trend.
The secondary trend of GUARSEED10 is bearish on charts also market is forming H&S formation on higher level indicating selling pressure in coming session.The oscillator is showing sell signal for short term to mid term basis. Immediate support for Guarseed10 is 4200 while the Resistance for the Castor seed at4330. Investor can follow the sell on higher level strategy for the week.
Silver prices opened flat in the last week and thereafter consolidated for the whole week in the range of 38700-38000 levels. Prices have broken out from its short term declining trend line resistance in the last week and closed above the same on weekly basis as appeared on the chart. Also market is sustaining above the level of 38000 indicating positive trend in coming sessions. Prices are expected to go high above the level of 38900 On the lower side immediate support is placed around 38600 level.
Last week, Zinc prices opened flat and corrected sharply for most of the week till low of 225.70 and getting bounce back from lower level with good volume. 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 235.
Last week, EURINR Mar Futures started the week on negative note and after that it witnessed sideways to negative movement for the remaining part of the week. It made a low of 79.9000 during the week and closed at 79.9900 with the overall loss of 0.79% on weekly basis. Technically itís forming Bearish Harami pattern on the weekly chart & for this week, we can expect downside movement in it. If it breaks the level of 79.9000 on the downside, then it can test the level of 79.3125 during the week. One can make sell position in it by maintaining a SL of 80.2650
Last week, GBPINR Mar Futures started the week on positive note and after that it witnessed sideways movement for the remaining part of the week. It made a low of 90.4600 during the week and closed at 90.6700 with the overall loss of 0.16% on weekly basis. Currently itís consolidating on the higher levels with the positive RSI and also sustaining above the trend line breakout. Technically for this week, we can expect upside movement in it and if it breaks the level of 91.0300 on the upside, then it can test the level of 90.6300 during the week. One can make buy position in it by maintaining a SL of 90.6450
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