Commodity Research Report Ways2Capital 1 August 2016


Posted August 2, 2016 by ways2capital

The Federal Reserve should be cautious on interest rate increases due to lingering risks to the U.S. economy, one of its most influential policymakers said on Monday, appearing to signal the chance of a hike by the end of the year was fadin

 
MCX - WEEKLY NEWS LETTERS
✍ GLOBAL UPDATE
The Federal Reserve should be cautious on interest rate increases due to lingering risks to the U.S. economy, one of its most influential policymakers said on Monday, appearing to signal the chance of a hike by the end of the year was fading. 
The U.S. Federal Reserve should not overreact to Friday's weaker-than-expected U.S. GDP report, but needs to consider more data before contemplating another interest rate increase, a top Fed policymaker said
Data from the U.S. Commodity Futures Trading Commission (CFTC) that extends back to 2006 showed that money managers, including hedge funds and other big speculators, were holding a record net short, or bearish, position of 5,078 contracts on NYMEX-traded gasoline.
Middle distillates remain the one ray of hope for U.S. oil refiners still struggling to clear a glut of gasoline caused by over-production earlier in the year.

✍ BULLION
The U.S. Federal Reserve gave no hints of any near-term interest rate rise as some had expected it to at its monthly policy meeting last week. Early on Monday, New York Fed President William Dudley said the central bank should be cautious on interest rate increases due to lingering risks to the U.S. Economy. Palladium and platinum, however, fared better, hitting their highest in more than a year on improved investor sentiment. The U.S. Federal Reserve gave no hints of any near-term interest rate rise as some had expected it to at its monthly policy meeting last week. Early on Monday, New York Fed President William Dudley said the central bank should be cautious on interest rate increases due to lingering risks to the U.S. economy. Markets will closely monitor this week's data, which includes the monthly non-farm payrolls report on Friday. The US Federal Reserve’s decision has maintained its status quo by not doing rate hike in its recent meeting indicating that the growth in the economy needs to gain further. Besides, The Bank of Japan has announced a modest expansion of its monetary easing programme, blaming Britain’s decision to leave the European Union as the biggest uncertainty facing world markets.

✍ ENERGY
A nearly 15-percent slump in U.S. crude prices in July, the worst monthly loss in a year, also triggered liquidation as trading began for August. Monday's slide in crude prices also came after Marathon Petroleum unexpectedly shut its lone crude unit and an associated unit at its 212,000 barrel-per-day refinery in Robinson, Illinois, at the weekend. The cause and duration of the outage were not clear. Other data from last week showed the United States added 44 oil drilling rigs in July, the most for a month in two years, intensifying concerns that global production could again get to unmanageable levels like in 2014-2015.A nearly 15-percent slump in U.S. crude prices in July, the worst monthly loss in a year, also triggered liquidation as trading began for August. Monday's slide in crude prices also came after Marathon Petroleum unexpectedly shut its lone crude unit and an associated unit at its 212,000 barrel-per-day refinery in Robinson, Illinois, at the weekend. The cause and duration of the outage were not clear. Other data from last week showed the United States added 44 oil drilling rigs in July, the most for a month in two years, intensifying concerns that global production could again get to unmanageable levels like in 2014-2015. Natural gas futures on Friday held mostly steady as forecasts for less hot weather over the next two weeks offset the extremely small weekly storage build seen Thursday. The front-month ended up for a second consecutive week due primarily to Thursday's gain, which was the largest daily percentage rise since late May. Analysts forecast utilities added just 10 billion cubic feet (bcf) of gas into storage during the much hotter-than-normal week ended July 29, the least for that week since at least 2010. That compares with what was a much smaller-than-expected increase of 17 bcf for the week ended July 22, which was also the least for that week since at least 2010, and a build of 41 bcf during the seven days ended July 29 a year ago and a five-year average build for that week of 54 bcf.

✍ BASE METAL
Activity in China's manufacturing sector eased unexpectedly in July as orders cooled and flooding disrupted business, an official survey showed, suggesting overall industrial activity remains sluggish at best. A similar private survey showed business picked up for the first time in 17 months, but the increase was only slight. The stainless steel ingredient has been boosted by worries about ore supply from the Philippines, which were reinforced by President Rodrigo Duterte warning mining firms to strictly follow tighter environmental rules or shut down. But analysts say high stocks mean nickel's gains of more than 20 percent so far this year are probably overdone. Reported and unreported stocks, are thought to account for half of global consumption estimated at around 1.9 million tonnes this year. They also expect any shortfall from the Philippines to be covered by higher supplies from elsewhere.Along with this, the Federal Open Market Committee kept its overnight interest rate target in the 0.25 percent to 0.5 percent range although it acknowledged a sharp improvement in the labour market. As a result of Fed and BoJ actions, DX fell be more than 2 percent providing little respite. Earlier this week, the China Banking Regulatory Commission’s (CBRC) proposed crackdown on the $3.5-trillion Wealth management products market state that cash from “mass market” wealth products can only be invested in money or bond markets, not domestically-listed shares. Further, Peru’s energy and mines ministry, MEM, said the country produced 1.12 million fine tonnes of copper, a 51.5% increase from the corresponding period of last year, in the first half of 2016.


NCDEX - WEEKLY NEWS LETTERS
✍ MANSOON UPDATE
In line with predictions, the South-West monsoon, the country’s agricultural lifeline, has stayed on course for the first half of the fourmonth season, starting June. The timely and widespread precipitation, after two-successive weak monsoon years, has provided a fillip to crop plantings this kharif season, thereby raising prospects of a good harvest, which has induced a softening trend in prices of many farm commodities. Though the arrival of the monsoon was delayed by about eight days, the swift progress has ensured adequate rainfall across most parts of the country, except pockets such as Gujarat, Kerala and some North-Eastern States. Rainfall in July was 9.8 per cent above normal, while in June it had registered a deficit of 11 per cent. Global models are of the view that for the rest of the season, the monsoon will stay on track, delivering normal to above-normal rains across for many parts of the country. In fact, a long-range forecast for the second-half of the season (AugustSeptember) issued by the India Meteorological Department on Monday said that rainfall is likely to be above normal (106 per cent of the long period average, LPA).
The government has no plan as of now to bring back the control raj and re-introduce a release order mechanism to control sugar sales by mills, food minister Ram Vilas Paswan said on Monday. Some media reports recently suggested that the food ministry was mulling such a move to tame rising sugar prices. The government had in 2012 announced the sugar sector “decontrol” by scrapping the release order mechanism through which it used to dictate how much of sugar a mill could sell in a month. It had also abolished the levy system, which mandated that mills would sell 10% of their production to the government at heavily subsidised rates. Listing out the measures taken by the government to help mills clear cane arrears owed to farmers including two subsidised loan packages in times of a crash in sugar prices, Paswan also said the government recently initiated measures to control the price rise in sugar. “We have taken various steps, no curb on mills’ sales, as of now,” he said at the Idea Exchange programme of the Indian Express Group.


For Quick Trial – 08962000225
Or mail us here: [email protected] or visit http://www.ways2capital.com/free-trial.php
Contact 0731-6626222
Toll Free – 1800-3010-2007
Give a Missed Call for Free Trial - 09699997717
For Reports And Tracksheets - http://www.ways2capital.com/downloads.php
-- END ---
Share Facebook Twitter
Print Friendly and PDF DisclaimerReport Abuse
Contact Email [email protected]
Issued By ways2capital
Phone 0731-6626222
Business Address 515,516 Shagun Arcade Vijay Nagar
Country India
Categories Business , Finance , Reports
Tags mcx tips
Last Updated August 2, 2016