Commodities Out Look 11 Sep’2012

GOLD:

Gold trading range for the day is 31747-32131.

Gold settled flat on profit booking after disappointing U.S. payrolls data boosted hopes that FED could unveil new stimulus

Gold imports by China from Hong Kong rose to 75,842 kilograms (about 76 metric tons) in July

Holdings of gold-backed exchange-traded funds rose to an all-time high of 72.492 million ounces.

SILVER:

Silver trading range for the day is 63277-64987.

Silver prices ended with gains tracking gains in base metals and crude prices

Downbeat US nonfarm payrolls in August also pushed hopes for QE3 by Fed in its interest rate meeting this Wednesday

Holdings at ishares silver trust gained by 69.32 tonnes to 9803.55 tonnes.

CRUDE:

Crude trading range for the day is 5259-5387.

Crude gains as supportive expectations that the U.S. Federal Reserve will act to stimulate the economy supported prices

Saudi Arabia Oil Minister Ali al-Naimi said that the recent rise in oil prices is not due to any lack of supply

U.S. crude oil stockpiles likely fell last week, with U.S. Gulf Coast oil production and imports still reeling after Hurricane Isaac

Crude is holding with a support at 5259 and resistance will be likely at 5387.

COPPER:

Copper trading range for the day is 444.6-459.

Copper rose driven by the increased likelihood of more economic stimulus in China and the United States

China’s August copper imports fell 2.9% from the previous month

The Chinese data “highlight the continued weakness in demand in the largest global consumer of commodities”.

Warehouse stock for Copper at LME was at 214650mt that is down by -1300mt.

ZINC:

Zinc trading range for the day is 106.78-112.88.

Zinc gains following their global counterparts as hopes of monetary stimulus from China and US firmed sentiments.

China’s industrial production rose 8.9% in August from a year earlier, lower than July’s 9.2%,

Downbeat US nonfarm payrolls in August also pushed hopes for QE3 by Fed in its interest rate meeting this Wednesday

Warehouse stock for Zinc at LME was at 938275mt that is down by -3925mt.

NICKLE:

Nickel prices ended with gains as risk appetite grew amid stimulus from the US and the EU

The growing expectation over QE3 after disappointing nonfarm data and ECB’s bond-buying plan boosted confidence

German Constitutional Court’s decision on whether or not grant ESM is a risk window this week.

Warehouse stock for Nickel at LME was at 120816mt that is down by  -264mt.

NATURAL GAS:

Natural Gas trading range for the day is 145.83-155.83.

Natural gas ended higher despite of forecasts for cooler temperatures

Also supportive was the aftermath of Hurricane Isaac, which shut much of the natural gas production in the Gulf of Mexico.

Any significant gains were likely to be capped amid ongoing concerns over bloated U.S. inventory levels.

ALUMINIUM:

Aluminium trading range for the day is 110.17-115.17.

Aluminium ended higher as raising expectations for policy easing by the People’s Bank of China supported prices

China’s imports unexpectedly dropped 2.6% YoY in August while exports grew only 2.7% YoY, both missing forecasts

Downbeat US nonfarm payrolls in August also pushed hopes for QE3 by Fed in its interest rate meeting this Wednesday

Warehouse stock for Aluminium at LME was at 4869925mt that is down by -1500mt..

MENTHA OIL:

Mentha oil trading range for the day is 1356.1-1383.5.

Menthaoil spot is at 1522/-.Spot market is down by Rs.16/-.

Menthaoil dropped on profit booking tracking weakness in spot market demand.

Delhi government slaps ban on all gutka products

The total arrivals of mentha oil stood steady at 600-650 drums.

TODAY’S COMMODITY ADVICE: