Mtechtips Commodity Market News 1

7/29/2019 Mtechtips Commodity Market News 1

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MTECHTIPS COMMODITY MARKET NEWS 1

MTECHTIPS:-Gold slightly higher after Cyprus rejects deposit tax

Gold futures are trading modestly to the upside in the early part of

Wednesdays Asian session after Cyprus parliament rejected the

controversial bank deposit levy plan set forth by the European Union

and the International Monetary Fund. The vote is seen as imperiling

the island nations ability to secure vital bailout assistance. On the

Comex division of the New York Mercantile Exchange, gold futures for

April delivery rose 0.06% to USD1,612.20 per troy ounce in Asian

trading Wednesday after settling up 0.43% at USD1,611.50 a troy

ounce in U.S. trading on Tuesday. Gold futures were likely to test

support USD1,590.80 a troy ounce, Monday's low, and resistance at

USD1,619.40, the high from Feb. 26.Late Tuesday, Cypriot

policymakers rejected the highly unpopular plan that would tax bank

deposits in the country of less than EUR100,000 at a rate of 6.75% and

deposits north of that amount at a rate of 9.9%. The vote casts doubt

on the ability of the country to secure bailout funding and has

prompted fears Cyprus could go bankrupt and be forced out of the

euro zone. While Cyprus has rejected one plan, some market

participants expect another plan will be forthcoming as European

policymakers do not want to tempt fate and risk the departure of any

of the euro zone member states.

MTECHTIPS:-Oil rises despite Cyprus rejection of deposit tax

Oil futures are trading slightly higher during the early going in

Wednesdays Asian despite news that Cypruss parliament rejected

the plan offered by the European to tax bank deposits in the tiny


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island nation. On the New York Mercantile Exchange, light, sweet

crude futures for April delivery rose 0.01% to USD92.53 per barrel in

Asian trading Wednesday after falling slightly during Tuesdays U.S.

session. New York-traded oil prices held in a range between USD93.69a barrel, the daily low and a session high of USD94.45 a barrel, which

was strongest level since February 25.Traders appear to be focusing

more on Cyprus than the most recent economic data out of the U.S.,

the worlds largest oil consumer. In economic news, the Commerce

Department said U.S. housing starts increased 0.8% last month a to

seasonally-adjusted rate of 917,000. Permits to build new homes rose

4.6% to 946,000 units, the best rate since June 2008. Single-family

housing starts increased 0.5%.Late Tuesday, Cypriot policymakers

rejected the highly unpopular plan that would tax bank deposits in

the country of less than EUR100,000 at a rate of 6.75% and deposits

north of that amount at a rate of 9.9%. The vote casts doubt on the

ability of the country to secure bailout funding and has prompted

fears Cyprus could go bankrupt and be forced out of the euro

zone.While Cyprus has rejected one plan, some market participants

expect another plan will be forthcoming as European policymakers do

not want to tempt fate and risk the departure of any of the euro zone

member states.

MTECHTIPS:-NCDEX Sugar: Sell at 3020 with stop loss 3045; target

2990

Sugar futures for April delivery on India's National Commodity and

Derivatives Exchange (NCDEX) is expected to trade negative in

upcoming sessions, according to our analystThe commodity has good

resistance at 3045 while 2990 is the support. Traders are advised to

take short sell position near 3020 with the stop loss of 3045 for the


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target of 2990,Earlier, NCDEX sugar prices edged down on fresh selling

and closed at 3012. Sluggish demand from the bulk buyers followed

by higher supply are the key reasons for the negative trend in both

spot and futures market.Meanwhile, sugar mills in Maharashtra havestopped their crushing process due to non availability of sugar

cane.India's sugar production in 2013-14 may fall to around 24 mn tn

against current years output of 24.5 mn tons, according to a

statement by the union Agriculture Minister Sharad Pawar.India's

sugar output for the season 2013 14 is set to fall below demand for

the first time in four years as a result of severe water shortage in key

sugar cane growing areas

MTECHTIPS:-NCDEX Chana range bound; trading range 3350-3450

On the NCDEX, chana for April delivery is looking range bound for the

day. The commodity's trading range is likely to be between 3350-

3450, according to our analyst.The contract was trading on a positive

note at Rs. 3407, a gain of 0.24% as of 11.34 AM IST,

Wednesday.Trend of chana for April delivery is looking range bound

and 3350-3450 is likely to be the range for the commodity. Either side

break out will give clear direction to the prices,Chana acreage has

increased to 94.78 lakh ha vs 89.92 lakh ha last year. Good

weatherconditions in growing areas in MP, Maharashtra and

Rajasthan have been responsible for the improved productivity and

production prospects.Regular imports are also preventing major

uptrend for Chana rates. Raising of MSP for Chana last year has

resulted in higher acreage for the Rabi crop this year in states of

Madhya Pradesh and Maharashtra. Conducive weather in growing

states have been creating a bearish impact on the commodity rates

for last few months.


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MTECHTIPS:-NCDEX Coriander down on profit booking; positive for

short term

Coriander futures for April delivery on India's National Commodity

and Derivatives Exchange (NCDEX) is down on profit booking,

however the commodity looks positive for short term, according to

our analyst.Intra-day sellers can get benefit of the profit booking by

selling with some gains, while buyers may buy on dips,Short term

traders can buy around 6550 with the stop loss of 6400 for the target

7050. The commodity has support at 6400 while 7050 is the

resistance, he added.NCDEX coriander for April delivery was down by

1.27 percent at Rs.6789 per 100 kg as of 11.44 PM IST on

Wednesday.Rising arrivals in physical markets are expected to keep

coriander prices down. However, for long term the commodity looks

positive to bullish on lower production estimates.

MTECHTIPS:-NCDEX Soy Oil range bound; trading range 665-675

Soy oil on the NCDEX for April delivery is looking range bound. Trading

range of the commodity is likely to be between 665-675, as per our

analyst.The contract was trading on a positive note at Rs.669.6, a gain

of 0.07% as of 11.59 AM IST, Wednesday.Trend for soy oil for April

delivery is looking range bound and 665-675 is likely to be the range

for the commodity. Either side break out will give clear direction to

the prices,India's import of vegetable oils during February 2013 is

reported at 969,175 tons compared to 876,669 tons in February 2012,consisting of 954,176 tons of edible oils and 14,999 tons of non-edible

oils, up by 10.55 %.The overall import of vegetable oils during Nov.12

to Feb.13 is reported at 3,735,263 tons compared to 3,061,923 i.e. up

by 21.99%.


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MTECHTIPS:-NCDEX Castor Seed likely to be negative; support at 3500

On Indias NCDEX, castor seed for April delivery is likely to be

negative. The commodity is likely to have support at 3500 and

resistance at 3740 level, as per our analyst.The contract was trading

on a positive note at Rs.3625, a gain of 0.78% as of 02.34 PM IST,

Wednesday.Castor seed on the NCDEX is looking negative and sell on

rise is advised to the traders. Support for the commodity is likely to be

at 3500 while resistance is at 3740 level,Castor seed output of India

may fall to the lowest levels since 2010- 11 at around 1.14 mt for2012-

13, according to estimates. Inadequate water availability has affected

the castor crop prospects in India, the worlds largest producer of the

oilseed.Production fall is seen in Gujarat and Rajasthan, two major

castor growing states, at around29% and 11%, respectively. Total area

under castor crop in the country has been registered at around 1.1 mn

hectares (ha) this year against 1.14 mn ha, lower by about five per

cent on year- on- year basis.

MTECHTIPS:-Gold futures hold steady near 3-week high ahead of Fed

decision

Gold futures were little changed near the previous sessions three-

week high on Wednesday, as investors looked ahead to the outcome

of the Federal Reserves policy meeting later in the day.

Uncertainty remained over the situation in Cyprus, where the

countrys parliament rejected a proposed bank deposit tax, whichformed part of a EUR10 billion international bailout deal.On the

Comex division of the New York Mercantile Exchange, gold futures for

April delivery traded at USD1,610.60 a troy ounce during European

morning trade, nearly flat on the day.Prices held in a tight USD5-


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trading range between USD1,609.70 a troy ounce, the daily low and a

session high of USD1,613.90. Comex gold prices rose to USD1,614.60 a

troy ounce on Tuesday , the strongest level since February 26.Gold

prices were likely to find support at USD1,560.60 a troy ounce, thelow from March 8 and near-term resistance at USD1,619.40, the high

from February 26.Market players were looking ahead to the outcome

of the Federal Reserves two-day policy meeting, as investors try to

assess the central bank's attitude towards monetary stimulus.Data on

Friday showed that U.S. inflation was contained in February, leaving

the way clear for the central bank to continue its bond-buying

program.Fed Chairman Ben Bernanke is to give a press conference

after the release of the policy statement.Moves in the gold price this

year have largely tracked shifting expectations as to whether the Fed

could bring quantitative easing to an end this year.

MTECHTIPS:-Crude oil futures edge higher ahead of U.S. supply data,

Fed meeting

Crude oil futures edged higher during European morning hours on

Wednesday, as traders looked ahead to closely-watched weekly

supply data on U.S. stockpiles of crude and refined products from the

U.S. Energy Information Administration later in the day.Investors

were looking ahead to the outcome of the Federal Reserves policy

meeting, as well as developments surrounding a bailout deal for

Cyprus.On the New York Mercantile Exchange, light sweet crude

futures for delivery in April traded at USD92.78 a barrel during

European morning trade, up 0.3% on the day.New York-traded oil

prices held in a range between USD92.36 a barrel, the daily low and a

session high of USD92.95 a barrel.Oil traders looked ahead to data

from the U.S. government on oil and fuel supplies later in the day to


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gauge the strength of demand from the worlds largest oil

consumer.The report was expected to show that U.S. crude oil

stockpiles increased by 2 million barrels last week, while gasoline

inventories were forecast to fall by 2.1 million barrels.After marketsclosed Tuesday, the American Petroleum Institute, an industry group,

said that U.S. crude inventories unexpectedly fell by 0.4 million

barrels last week, while gasoline stocks rose by 0.3 million

barrels.Market players also looked ahead to the outcome of the

Federal Reserves two-day policy meeting later in the day, as investors

try to assess the central bank's attitude towards monetary

stimulus.Fed Chairman Ben Bernanke is to give a press conference

after the release of the policy statement.

MTECHTIPS:-Copper futures bounce off 7-month low with Fed, Cyprus

in focus

Copper futures regained strength during European morning hours on

Wednesday, bouncing off a seven-month low as investors were

looking ahead to the outcome of the Federal Reserves policy meeting

later in the day, as well as developments surrounding a bailout deal

for Cyprus.Weakness in the U.S. dollar also contributed to coppers

strength. The dollar index, which tracks the performance of the

greenback against a basket of six other major currencies, was down

0.2% to trade at 82.98.On the Comex division of the New York

Mercantile Exchange, copper futures for May delivery traded at

USD3.438 a pound during European morning trade, up 1% on the

day.New York-traded copper prices rose by as much as 1.2% earlier in

the day to hit a session high of USD3.444 a pound.New York-traded

copper prices fell to USD.3389 a pound on Tuesday, the weakest level

since August 21, as worries over a controversial bailout deal for


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Cyprus and concerns over a slowdown in demand from top consumer

China weighed on the industrial metal.Cypruss President Nicos

Anastasiades called an emergency meeting with political leaders to

look at alternatives after parliament rejected the terms of the bailoutagreement on Tuesday.Following the vote, the European Central Bank

said it will provide liquidity to Cypriot banks within existing

rules.Market sentiment remained supported amid growing

expectations that the European Union will renegotiate a deal with

Cyprus to keep the country in the euro zone.

Mtechtips Commodity Market News 1

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