Monday, November 23

Tag: Commodities

Crude Oil Futures: Rising bets for extra decline
Commodities

Crude Oil Futures: Rising bets for extra decline

Open interest in crude oil futures markets reversed two pullbacks in a row and went up by around 1.2K contracts on Thursday in light of preliminary figures from CME Group. Volume, instead, extended the downtrend for the third straight session, this time by around 257.7K contracts.WTI could drop further and test the 200-day SMAPrices of the WTI closed Thursday’s session with losses amidst rising open interest. That said, there is now rom for a deeper pullback that could see the 200-day SMA at $36.75 retested in the very near-term.Credit: FX Street
Crude already reflects market#39;s view that rebalancing is still some time away
Commodities

Crude already reflects market#39;s view that rebalancing is still some time away

Navneet DamaniOil prices hit a rough patch last week, falling back in line with broader financial markets. WTI crude initially tried to inch higher but continued to find sellers at highs. Strength in the dollar also weighed on the prices.Better-than-expected monthly US employment data revealed that in August jobless rate dropped to 8.4 percent from 10.2 percent.Meanwhile, hopes for more stimuli are going out of the window and the US needs more economic activity back up to get the demand flowing.Crude prices lost more than 4 percent as the passing of Hurricane Laura brought the focus back on uncertain demand outlook amid the coronavirus pandemic. The demand rebound is also sputtering. Prices got dented by lower refinery runs and the upcoming maintenance season that is expected to...
Rise in textile demand to support MCX cotton ahead of harvest season in October
Commodities

Rise in textile demand to support MCX cotton ahead of harvest season in October

Sumeet BagadiaCotton, or kapas in Hindi, is a kharif crop sown in the monsoon season in the states of Maharashtra, Gujarat, Madhya Pradesh and Telangana and the crop is harvested from October to February.Rajasthan, Haryana, Karnataka and Punjab are the other states that grow cotton but at a smaller scale. Sowing depends on the monsoon season and the distribution of rainfall.Good rain is vital for yield  as are remunerative prices. Higher prices are generally forecasted to encourage sowing, as a lower price can lead to farmers opting for soybean, maize and castor seed over cotton.Raw cotton is traded at the National Commodity and Derivatives Exchange as wells and the Multi-Commodity Exchange. Cottonseed oilcake is a byproduct mainly used as an organic fertiliser or cattle fe...
Oil prices slip as growing stockpiles signal bumpy fuel demand recovery
Commodities

Oil prices slip as growing stockpiles signal bumpy fuel demand recovery

Oil futures fell in early trade on Thursday, paring overnight gains, on worries about fuel demand after data showed U.S. crude stockpiles rose last week, rather than dropping as expected, and COVID-19 cases continued to rise around the world.U.S. West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.5%, to $37.85 a barrel at 0056 GMT, after climbing 3.5% on Wednesday.Brent crude futures dropped 14 cents, or 0.3% to $40.65 a barrel, after rising 2.5% on Wednesday.As coronavirus case surged in several U.S. states, the country's crude stockpiles rose by 3 million barrels in the week to Sept. 4, data from the American Petroleum Institute showed on Wednesday. That compared with analysts' forecasts of a draw of 1.4 million barrels.related newsThe U.S. Energy Informatio...
Gold may remain choppy, but buying may emerge at lower levels: Kotak Securities
Commodities

Gold may remain choppy, but buying may emerge at lower levels: Kotak Securities

Ravindra RaoCOMEX gold trades 0.5 percent lower near USD 1934/oz after a 0.5 percent gain on September 8. Gold fell as low as USD 1911.7/oz in intraday trade on September 8 but bounced back to end higher. Mixed factors have led to directionless trade in gold and this may continue in the near term.Supporting gold price is increased safe haven demand amid sell-off in equity markets, uneven global economic recovery, rising virus cases, increased US-China tensions and Brexit uncertainty. US and global equity markets have corrected sharply from the highs as market players questioned the rally in face of rising challenges to global economy.Virus cases continue to rise globally while resurgence of cases is being reported in many European countries like France, etc. US-China are at l...
Oil breaks below $40/bbl on demand concerns, improving supply
Commodities

Oil breaks below $40/bbl on demand concerns, improving supply

Fed's dovish stance may also limit any major upside in the US dollar.After days of rangebound movement, crude oil price has slipped below the key $40 per barrel and tested the lowest level since late June.Crude oil was bound in a range for the last few weeks owing to mixed factors both on demand front as well as supply. Price however benefitted from general strength in equity markets and weakness in the US dollar.Crude weakened sharply in the last few sessions amid first signs of correction in the US equity market. The US DJIA index ended lower for a second day Friday marking its biggest fall since June.Equity markets have been riding high on expectations of continuing economic recovery amid continuing stimulus measures and on signs of progress in vaccine development.Th...
Gold flat as dollar strength counters safe-haven demand
Commodities

Gold flat as dollar strength counters safe-haven demand

Gold prices were steady on Wednesday as the metal was caught between a strengthening U.S. dollar and a pullback in global equities, with investors awaiting monetary policy strategies from central banks.FUNDAMENTALSSpot gold was little changed at $1,929.30 per ounce by 0038 GMT, after falling to a near two-week week low of $1,906.24 on Tuesday.U.S. gold futures eased 0.3% to $1,936.80.related newsThe dollar jumped to a near one-month high, as the pound dropped to a six-week low on renewed worries about Brexit and as risk appetite waned. A stronger greenback makes gold more expensive for holders of other currencies.Asian stocks were set to come under pressure on Wednesday after Wall Street sank for the third consecutive day.Britain will set out new details of its bluepri...
Oil falls further amid growing alarm over coronavirus second wave
Commodities

Oil falls further amid growing alarm over coronavirus second wave

The biggest global health crisis in a century continues to flare unabated with cases rising in India, Great Britain, Spain and several parts of the United States, where the infection rate has not come under control for months.Oil futures fell further on Wednesday after big declines the previous session with Brent sliding below $40 a barrel for the first time since June as COVID-19 cases rebounded in several countries.The biggest global health crisis in a century continues to flare unabated with cases rising in India, Great Britain, Spain and several parts of the United States, where the infection rate has not come under control for months.The outbreak is threatening hopes for a global economic recovery that could impact demand for fuels from aviation gas to diesel.Brent cr...
Gold may witness choppy trade, expect buying at lower levels
Commodities

Gold may witness choppy trade, expect buying at lower levels

COMEX gold is trading flat near $1,936/oz after a 0.2 percent decline on Friday. Gold corrected sharply after failing to sustain above the $2,000/oz level but has managed to hold above $1,920/oz level so far.Gold has turned rangebound amid mixed cues and this trend may continue unless there are fresh triggers, possibly from the ECB’s monetary policy meeting or the US inflation data.Weighing on gold's price is gains in the US dollar index, slack ETF activity and weaker consumer demand. The US dollar index continues to trade firm after last week’s gain as mixed economic data, rising virus cases and ECB’s concerns about the euro’s strength.British Pound has come under pressure amid a fresh rise in virus cases and increasing uncertainty about post Brexit terms negotiations. Gold holdi...
Energy Weekly Report: Motilal Oswal
Commodities

Energy Weekly Report: Motilal Oswal

According to Motilal Oswal, Oil prices hit a rough patch last week, falling back in line with broader financial markets. Prices did try to inch higher, but experienced selling pressure at highs.Motilal Oswal's report on Energy WeeklyOil prices hit a rough patch last week, falling back in line with broader financial markets. Prices did try to inch higher, but experienced selling pressure at highs. Crude prices lost more than 4% last week as the passing of Hurricane Laura returned the focus to an uncertain demand outlook amid the ongoing pandemic.OutlookGiven the ongoing weakness indicators in the U.S., which is the world's largest oil consumer-, plans to increase production could send oil prices crater if OPEC+ isn’t careful.Disclaimer: The views and investment tips express...