Today's Commodity News : 07.11.2019
Aluminium futures were trading lower during the noon trade in the domestic market on Thursday as investors and speculators cut down their bets in the industrial metal amid fall in physical demand for aluminium at the domestic spot market. Further, a slide in physical demand for aluminium at the domestic spot market was due to trimming of positions by traders in the spot markets. At the MCX, aluminium futures for November 2019 contract is trading at Rs 134.55 per kg, down by 0.11 per cent, after opening at Rs 134.45, against a previous close of Rs 134.70. It touched the intra-day low of Rs 134.40 .
Copper futures up on firm demand : 07/11/2019
Copper futures were trading higher during the noon trade in the domestic market on Thursday as speculators raised their positions amid pick-up in demand at the spot market. Analysts said firm trend in base metals at the physical market mainly led to rise in copper prices here. At the MCX, copper futures for November 2019 contract is trading at Rs 441.25 per kg, up by 0.08 per cent, after opening at Rs 441.45, against a previous close of Rs 440.90. It touched the intra-day high of Rs 441.45 .
Crude Oil prices are expected to trade lower today
On Wednesday, Crude prices ended lower by 1.54 percent to close at $56.4 per barrel. Prices dipped over expectation of a larger than expected build up in the U.S. Crude inventory levels. Prices have been under pressure as uncertainties around the 16-month long trade war between the United States and China sapped the demand prospects for oil. No concrete outcome of the prolonged trade and tariff spat continue to undermine the demand prospects for Crude and push the prices lower.
Outlook
Weak economic data from China and U.S. amid fading optimism over a possible trade deal between U.S. & China might weigh on the prices. Moreover, rising U.S. Crude inventory levels might further weigh on the prices. On the MCX, oil prices are expected to trade lower today; international markets are trading lower by 0.12 percent at $56.28 per barrel.
Onion prices skyrocket, reach Rs 100/kg in Delhi
The prices of onions, which are skyrocketing due to low procurement from producing states, have reached to Rs 100 per kilogram in Delhi, The Indian Express has reported. According to the report, the prices are increasing despite a dip in the wholesale prices of the kitchen staple. Following a continuous hike for three weeks in the wholesale markets across Nashik, considered the onion belt of Maharashtra, the price was corrected by Rs 1,000 per quintal on November 6. The average traded price of onion at Lasalgaon market, India’s largest wholesale onion market, was Rs 4,300 per quintal on November 6 — almost Rs 1,000 correction from the price of Rs 5,501 per quintal it traded on November 4, the report said. Meanwhile, Union Food and Consumer Affairs Minister Ram Vilas Paswan has assured that the government is taking all steps to contain the price rise. In view of high prices, Paswan reviewed the situation of demand, supply and prices with top officials of food and consumer affairs departments for two hours at his residence on November 6. The secretaries of both departments were present. "We have reviewed the onion availability and price situation. Prices have gone up as production (kharif onion) has declined by 30-40 percent in the country," Paswan told reporters. There was a delay in sowing of kharif onion because of late arrival of monsoon and later floods in many states damaged the crop, he said. Stating that prices fluctuate depending on supply-demand, Paswan said currently, there is mismatch in this. However, the government is taking measures to improve availability and check prices. "We are concerned about the situation and the government is trying its best. We have taken maximum steps," he said.
Agri commodities market gives a thumbs up to India’s decision of staying away from RCEP
All active contracts of major commodities at NCDEX (National Commodity & Derivatives Exchange) traded on a stronger note as the Government of India decided not to join Regional Comprehensive Economic Partnership (RCEP). India conveyed its decision not to join the group to protect domestic industry as well as farmers, who could have been adversely impacted by huge imports coming in from member countries. The Regional Comprehensive Economic Partnership was an agreement between the 10-member Association of Southeast Asian Nations and six of its large trading partners, that are China, Japan, South Korea, India, Australia, and New Zealand. India’s trade deficit with RCEP nations is estimated at around 105 billion dollars, of which, almost 50 percent of the pie goes to China alone. “The present form of the RCEP Agreement does not fully reflect the basic spirit and the agreed guiding principles of RCEP,” Prime Minister Narendra Modi said in his address at the RCEP summit in Bangkok, according to a tweet by official broadcaster Prasar Bharati.
Commerce and industry minister Piyush Goyal said the decision not to join RCEP will boost ‘Make in India’ as he lauded Prime Minister Narendra Modi for his “bold and courageous decision to not join RCEP, since it was against our economic interests and national priorities”. Entering into an agreement with RCEP countries, with whom India is already bearing a large trade deficit could have compelled India to import more agriculture crops like Palm Oil from Malaysia & Indonesia.
India is levying around 44 percent (surcharge included) import duties on imports of Crude Palm Oil and around 50 percent (surcharge included) import duty on RBD Palm Oil from all the countries.
By joining the economic corridor of RCEP, we would not have just lost the revenue opportunity on edible oil but have also run the risk of cheaper edible oil and oilseed being disposed by other ASEAN countries, which would have added in the woes of domestic farmers and oil refining industry.
Following the government’s decision to shun RCEP, all major commodities futures at NCDEX surged substantially on Monday. Soybean, Cottonseed oilcake, Coriander, Guargum, Guar Seed, Moong, and Jeera were the commodities which posted gains of over 3 percent at the start of this week.
Aluminium futures dip 0.11% on low demand : 07/11/2019
Aluminium futures were trading lower during the noon trade in the domestic market on Thursday as investors and speculators cut down their bets in the industrial metal amid fall in physical demand for aluminium at the domestic spot market. Further, a slide in physical demand for aluminium at the domestic spot market was due to trimming of positions by traders in the spot markets. At the MCX, aluminium futures for November 2019 contract is trading at Rs 134.55 per kg, down by 0.11 per cent, after opening at Rs 134.45, against a previous close of Rs 134.70. It touched the intra-day low of Rs 134.40 .
Copper futures up on firm demand : 07/11/2019
Copper futures were trading higher during the noon trade in the domestic market on Thursday as speculators raised their positions amid pick-up in demand at the spot market. Analysts said firm trend in base metals at the physical market mainly led to rise in copper prices here. At the MCX, copper futures for November 2019 contract is trading at Rs 441.25 per kg, up by 0.08 per cent, after opening at Rs 441.45, against a previous close of Rs 440.90. It touched the intra-day high of Rs 441.45 .
Crude Oil prices are expected to trade lower today
On Wednesday, Crude prices ended lower by 1.54 percent to close at $56.4 per barrel. Prices dipped over expectation of a larger than expected build up in the U.S. Crude inventory levels. Prices have been under pressure as uncertainties around the 16-month long trade war between the United States and China sapped the demand prospects for oil. No concrete outcome of the prolonged trade and tariff spat continue to undermine the demand prospects for Crude and push the prices lower.
Outlook
Weak economic data from China and U.S. amid fading optimism over a possible trade deal between U.S. & China might weigh on the prices. Moreover, rising U.S. Crude inventory levels might further weigh on the prices. On the MCX, oil prices are expected to trade lower today; international markets are trading lower by 0.12 percent at $56.28 per barrel.
Onion prices skyrocket, reach Rs 100/kg in Delhi
Agri commodities market gives a thumbs up to India’s decision of staying away from RCEP
All active contracts of major commodities at NCDEX (National Commodity & Derivatives Exchange) traded on a stronger note as the Government of India decided not to join Regional Comprehensive Economic Partnership (RCEP). India conveyed its decision not to join the group to protect domestic industry as well as farmers, who could have been adversely impacted by huge imports coming in from member countries. The Regional Comprehensive Economic Partnership was an agreement between the 10-member Association of Southeast Asian Nations and six of its large trading partners, that are China, Japan, South Korea, India, Australia, and New Zealand. India’s trade deficit with RCEP nations is estimated at around 105 billion dollars, of which, almost 50 percent of the pie goes to China alone. “The present form of the RCEP Agreement does not fully reflect the basic spirit and the agreed guiding principles of RCEP,” Prime Minister Narendra Modi said in his address at the RCEP summit in Bangkok, according to a tweet by official broadcaster Prasar Bharati.
Commerce and industry minister Piyush Goyal said the decision not to join RCEP will boost ‘Make in India’ as he lauded Prime Minister Narendra Modi for his “bold and courageous decision to not join RCEP, since it was against our economic interests and national priorities”. Entering into an agreement with RCEP countries, with whom India is already bearing a large trade deficit could have compelled India to import more agriculture crops like Palm Oil from Malaysia & Indonesia.
India is levying around 44 percent (surcharge included) import duties on imports of Crude Palm Oil and around 50 percent (surcharge included) import duty on RBD Palm Oil from all the countries.
By joining the economic corridor of RCEP, we would not have just lost the revenue opportunity on edible oil but have also run the risk of cheaper edible oil and oilseed being disposed by other ASEAN countries, which would have added in the woes of domestic farmers and oil refining industry.
Following the government’s decision to shun RCEP, all major commodities futures at NCDEX surged substantially on Monday. Soybean, Cottonseed oilcake, Coriander, Guargum, Guar Seed, Moong, and Jeera were the commodities which posted gains of over 3 percent at the start of this week.