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Gold ( MCX ) 29580 | Silver ( MCX ) 39530 | Copper ( MCX ) 448.75 | Crude Oil ( MCX ) 3740 | Cotton Seed ( NCDEX ) 1595 | Sugar M ( NCDEX ) 3331 | Refined Soy Oil ( NCDEX ) 734.9
 
Long liquidation seen in MCX Zinc; Support seen at 194.9
Commodity Online | September 13 2017
UPDATED 11:40:59 IST

MCX Zinc may trade in range between 205.5-213.1

Copper market under fresh buying; Resistance seen at 449.4

Mentha Oil market under short covering; Support seen at 1685.7

NCDEX Turmeric likely to move in a range of 7024-7320

NCDEX Mustard Seed under long liquidation

Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 3.69% to settled at 7830 while prices down 1.3 rupees.

Now MCX Zinc is getting support at 194.9 and below same could see a test of 193.7 levels and resistance is now likely to be seen at 197.6, a move above could see prices testing 199.1.

Zinc on MCX settled down 0.66% at 196 pressured by profit-taking and worries over the outlook for Chinese demand. Pressure also seen on prices after data showed LME zinc inventories surged by 13,800 tonnes, mainly at warehouses in Antwerp.

Base metals markets are looking ahead to data from China on new loans, investment and industrial production due this week for clues as to the strength of demand over coming months. U.S. President Donald Trump said on Tuesday that U.N. sanctions on North Korea agreed this week were a small step and nothing compared to what would have to happen to deal with the country’s nuclear programme.

Investors worried about possible damage to metal stored in New Orleans, the location that holds 95 percent of zinc in LME warehouses. News that North Korea’s anniversary celebrations on the weekend passed without a new missile test also spurred renewed investment in commodities.

China’s imports of major commodities in August illustrate both why prices have gained in recent months and why this rally may be running out of steam. Total zinc inventories in Shanghai, Tianjin and Guangdong will remain low next week. Downstream buying interest was strong as zinc prices slumped in the latter half of this week.

Despite inflows of imported zinc, outward shipments were also high. Together with maintenance at smelters around Tianjin and Guangdong, total inventories in the three regions will remain low.

Trading Ideas:
--Zinc trading range for the day is 193.7-199.1.
--Zinc prices dropped pressured by profit-taking and worries over the outlook for Chinese demand.
--Pressure also seen on prices after data showed LME zinc inventories surged by 13,800 tonnes, mainly at warehouses in Antwerp.
--Markets are looking ahead to data from China on new loans, investment and industrial production due this week for clues.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 30 8000.00
Coconut Oil 5 20700.00
Sugar NR 4450.00
Rubber 0.1 12200.00

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