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Commodity World Roundup

05th May -11th May – Oil and Gold heading to levels beyond Reach

Oil and Gold heading to levels beyond Reach

OIL MINISTER CONFIRMED SAUDI’S ASSURANCES ON SUPPLY AS OIL HITS $80 PER BARREL

May 18, 2018

Indian Oil minister Dharmendra Pradhan said that Thursday it had received assurances from the world's top oil exporter Saudi Arabia it would ensure adequate supplies to keep a lid on soaring oil prices. Brent Oil oil prices rose back to $80 per barrel for the first time since 2014 due to rising concerns over disruptions to Iranian oil exports because of new U.S. sanctions.

Source: Economic times

OIL SPIKE CAN REDUCE RATE CUT CHANCES

May 11, 2018

NEW DELHI: Oil prices at a four-year high and depreciating rupee have reduced the chances of a rate cut in the current financial year besides being an overall negative for growth. Economists say that a $10 per barrel rise in crude could increase current account deficit (CAD) by 50 basis points and fiscal deficit by around 8 basis points as a percentage of GDP.

Source: https://economictimes.indiatimes.com

OIL PRICE RISE GIVES EVS A BIG BOOST

May 11, 2018

NEW DELHI: The spike in oil prices following US move to impose sanctions on Iran has given new momentum to India’s ambitious e-vehicles programme that aims to reduce oil imports, cut emissions and boost energy security.

Source: https://economictimes.indiatimes.com

BUY GOLD IF IT TOUCHES $1,305/OUNCE

May 11, 2018

Comex gold futures edged higher on Thursday as the dollar paused for breath, holding near its 2018 peak, with investors focused on US inflation data due later and simmering tensions between the United States and Iran.

Source: https://www.thehindubusinessline.com

MAIZE FUTURES SLIP ON WEAK SPOT SENTIMENTS

May 11, 2018

Maize prices drifted lower by Rs 4 to Rs 1,155 per quintal in futures trade today as participants trimmed holdings in sync with weak sentiments at the physical markets. At the National Commodity and Derivatives Exchange, maize for delivery in May was trading lower by Rs 4 or 0.35 per cent to Rs 1,155 per quintal, having an open interest in 940 lots.

Source: http://www.business-standard.com

RESERVE BANK OF INDIA ADDS 2.5 TONNES OF GOLD TO FOREX RESERVES IN Q4

May 11, 2018

The Reserve Bank of India (RBI) has added 2.5 tonnes of gold to foreign exchange reserves for the quarter ended March 2018 in two tranches. This is the first such addition after 2009, when the central bank bought 200 tonnes of the yellow metal from the International Monetary Fund (IMF) at $1,032 per tonne.

Source: http://www.business-standard.com

OIL PRICES HIT HIGHEST IN YEARS AS MARKETS ADJUST TO LOOMING SANCTIONS ON IRAN

May 10, 2018

Singapore: Oil prices clocked up more multi-year highs on Thursday as traders adjusted to the prospects of renewed US sanctions against major crude exporter Iran amid an already tightening market. US plans to impose new sanctions against Iran, which produces around 4% of global oil supplies, after abandoning an agreement reached in late 2015 which limited Tehran’s nuclear ambitions in exchange for removing US-Europe sanctions.

Source: https://www.livemint.com

INDIA'S OIL IMPORT FROM IRAN WILL NOT BE IMMEDIATELY IMPACTED BY US SANCTIONS

May 10, 2018

The US decision to reinstate financial sanctions on Iran will not impact India's oil imports from the Islamic Republic as long as European countries don't follow suit, officials said today.

Source: https://economictimes.indiatimes.com

IRAN NUKE DEAL FALLOUT: GOVT PLAYS DOWN IMPACT OF SURGE IN CRUDE PRICE

May 10, 2018

The government might decide to cut the excise duty on petrol and diesel but only after further stabilisation in the goods and services tax (GST), in the backdrop of global crude prices reaching a 40-month high after the US pulled out of a deal with Iran.

Source:http://www.business-standard.com

BSE TIES UP WITH SLCM FOR AGRI-COMMODITIES TRADE

May 10, 2018

Stock exchange major BSE has entered into an agreement with agri-services solutions provider Sohan Lal Commodity Management (SLCM) to support its launch of agri-commodities trade, a statement said on Wednesday

Source: http://www.business-standard.com

IMPACT OF US SANCTIONS ON IRAN: IT’S DEJA VU FOR OIL REFINERS

May 10, 2018

US President Donald Trump’s decision to pull out of the Iran nuclear accord and reinstate sanctions against the regime, including its shipping industry, could spell trouble for India, which is Iran’s top oil customer after China.

Source: https://www.thehindubusinessline.com

LOOMING US SANCTIONS: INDIA MAY NOT CUT OIL IMPORTS FROM IRAN

May 10, 2018

US President Donald Trump’s move to reimpose sanctions on Iran after more than two years of reprieve given to the Persian Gulf country could keep global crude prices elevated in the short to medium term, analysts reckon. Imminent production cuts by Iran come at a time when global supplies are already hit by falling crude production in Venezuela, increasingly a key supplier to India.

Source: https://www.financialexpress.com

INVEST IN GOLD ONLY IF IT MEETS YOUR FINANCIAL GOAL

May 10, 2018

India is by far the major consumer of gold across the world. Whether it is a religious occasion, weddings, or while planning our children’s marriage, the yellow metal plays an important role. We use it both as jewellery and investment.

Source: http://www.dnaindia.com

CHEAP CHINA ALTERNATIVE HITS INDIAN GUAR GUM PRICES

May 09, 2018

Guar gum prices have fallen about 10 per cent in the past one month amid intensifying competition from China. The North American oil drilling industry is relying more on slick water and friction reducer from China which is available at half the price of guar gum, exporters said.

Source: https://economictimes.indiatimes.com

MCX to launch crude oil options

May 09, 2018

Multi Commodity Exchange, the country’s largest commodity derivatives exchange, will launch options trading in Crude oil (100 barrels) futures from May 15. The exchange received SEBI approval for the launch last week.

Source: https://www.thehindubusinessline.com

NCDEX GETS SEBI NOD TO SET UP CLEARING CORPORATION

May 09, 2018

The National Commodity and Derivatives Exchange of India (Ncdex) has received in-principle approval from commodity market regulator SEBI to set up a standalone clearing corporation, to be called National Commodity Clearing Ltd (NCCL).

Source: https://www.thehindubusinessline.com

MCX ZINC: BREAK ABOVE RS. 216 COULD PUSH CONTRACT HIGHER

May 09, 2018

The zinc futures contract on the Multi Commodity Exchange was volatile in the past week. The contract opened with a wide gap-down at ₹208 per kg last Tuesday (May 1) and fell to a low ₹198.7 on Friday. However, the contract has bounced back again from this low and is currently trading at ₹207 per kg.

Source: https://premium.thehindubusinessline.com

GST HEADWINDS FOR GOLD JEWELLERY SECTOR BUT HIGH PRICE MAY IMPACT DEMAND

May 09, 2018

Imposition of the Goods & Service Tax has changed the way gold was traded in India. Prima facie, it has helped large gold chains to grow, the industry is consolidating and small jewellers have opted several other ways to retain customers and business. However, challenges still exist for jewellery industry as demand will be impacted due to high price, under pressure jewellers finances and rising cost.

Source: http://www.business-standard.com

CRUDE OIL LIKELY TO REMAIN BULLISH

May 09, 2018

Crude oil prices were on fire over the last few weeks. Earlier this week, the crude oil futures contract on the New York Mercantile Exchange (NYMEX) touched the key level of $70 per barrel for the first time since November 2014. Economic crisis in Venezuela – one of the top exporter and the tensions pertaining to the US bringing back sanction on Iran have resulted in the oil prices surging higher.

Source: https://www.thehindubusinessline.com

FALLING RUPEE TO HURT JEWELLERY DEMAND

May 08, 2018

A depreciating rupee is expected to slow down the sale of gem and jewellery at the retail end as prices of diamond and gold are inching up. Jewellers, diamond traders and analysts said that demand is likely to be lower by 4-5 per cent in the second quarter of calendar 2018, compared with the same period last year.

Source: https://economictimes.indiatimes.com

OIL PRICES TO FACE A MONTH OF MAYHEM

May 08, 2018

Plunging Venezuelan crude production; sanctions disrupting Iranian oilNSE 0.98 % exports; Saudi Arabia pushing for even higher prices; North Korea peace talks – the coming weeks bring an abundance of risks for the oil market. The geopolitical premium has already helped lift crude prices to a three-year high.

Source: https://economictimes.indiatimes.com

DOLLAR SURGE BRINGS EM RATE CUT CYCLE TO A HALT

May 08, 2018

A resurgent dollar and higher borrowing costs are smashing through Argentina and Turkey's currencies like a wrecking ball and raising the likelihood more broadly that emerging markets' three-year long interest rate cutting cycle is at an end.

Source: https://economictimes.indiatimes.com

FALLING RE, RISING CRUDE REIGNITE INFLATION FEARS

May 08, 2018

The Narendra Modi government approaches its fourth anniversary on a distinctly inauspicious note, with crude oil prices touching a four-year high and the rupee sinking to below 67 to a dollar. This is likely to lead to higher inflation and a further hardening of interest rates.

Source: https://www.thehindubusinessline.com

GOLD JEWELLERY DEMAND TO FALL 2-4% THIS YEAR

May 08, 2018

Higher gold prices and lesser availability of finance for jewellers will see jewellery demand growth weakening in 2018. Regulatory risks too will continue to dampen the demand. In calendar year (CY) 2017, gold jewellery demand grew by 12 per cent in volume terms and 9 per cent in value. According to rating agency Icra, jewellery demand is expected to grow slower by 2-4 per cent this year.

Source: http://mydigitalfc.com

RUPEE’S DANCING TO MORE TUNES THIS YEAR

May 07, 2018

The Indian currency has been facing some selling pressure for the last 4-5 weeks, chiefly on the back of rising crude price. The rupee fell against the U.S. dollar by a little over 2.5% in April, and 4.3% since the beginning of the year, making it the worst-performing Asian currency.

Source: http://www.thehindu.com

WHEAT FUTURES SPURT 1.42 PC ON SPECULATIVE BUYING

PTI, May 7, 2018

Wheat prices shot up by 1.42 per cent to Rs 1,780 per quintal in futures market today as speculators made fresh bets. At the National Commodity and Derivatives Exchange, wheat for delivery in far-month June jumped by Rs 25, or 1.42 per cent to Rs 1,780 per quintal with an open interest of 1,980 lots.

Source: http://www.business-standard.com

MCX TO LAUNCH CRUDE OIL, METALS OPTIONS; ALSO GETS NOD FOR DIAMOND FUTURES

May 07, 2018

Multi Commodity Exchange (MCX) got permission, late last week, to launch options trading in crude oil, silver, copper and zinc. The exchange announced on Monday that crude oil (100 barrels) option and trading will start from May 15 and expire on June 15.

Source: http://www.business-standard.com

GOLD PRICES RISE BY RS100 ON JEWELLERS’ BUYING, RECLAIM RS32,000-MARK

May 05, 2018

Gold prices reclaimed the Rs32,000-level by rising Rs100 to Rs32,080 per 10 grams on Friday, taking strength from scattered buying by local jewellers amid a firm trend overseas. Silver prices also strengthened by Rs200 to Rs40,500 per kg due to increased offtake by industrial units and coin makers.

Source: https://www.livemint.com

GOLD DIPS AS DOLLAR INDEX CLIMBS BACK TOWARDS 2018 PEAK

May 07, 2018

Gold fell on Monday, snapping three days of gains as the dollar index rose back towards its 2018 peak, with the previous session's soft US jobs data doing little to dampen optimism over the world's largest economy.

Source: https://economictimes.indiatimes.com

GOLD PRICES DIP AS DOLLAR INDEX CLIMBS BACK TOWARDS 2018 PEAK

Jan Harvey, May 07, 2018

Gold prices fell on Monday, snapping three days of gains as the dollar index rose back towards its 2018 peak, with the previous session’s soft US jobs data doing little to dampen optimism over the world’s largest economy.

Source: https://www.livemint.com

GOLD SHOWS RESILIENCE DESPITE STRONG DOLLAR

May 07, 2018

Gold prices were down for the third consecutive week. Strong dollar is continuing to keep the bullion prices under pressure. The global spot gold prices tumbled about 2 per cent intra-week to test the psychological support level of $1,300/ounce in the early part of the week.

Source: https://premium.thehindubusinessline.com

WHY INDIA INC IS SELLING MORE BUT PROFITING LESS

May 07, 2018

Will rising commodity costs and higher interest rates trip India Inc’s fledgling earnings recovery? That seems to be a worry, going by the March 2018 quarter results reported by about 270 companies so far.

Source: https://premium.thehindubusinessline.com

BUY GOLD IF IT TOUCHES $1,305/OUNCE

May 07, 2018

Comex gold futures rose for the second consecutive session on Thursday after the US Federal Reserve held interest rates steady, while investors awaited US-China trade talks. Comex gold futures moved higher as per our expectations.

Source: https://www.thehindubusinessline.com