Daily Commodity Pointer
24 January 2020
Tracking Market
Jan 24 2020 ClosePrevCloseAbsChange
$ / Re.71.3071.240.06
Euro / $1.10261.1054-0.0028
Light Sweet Crude Oil54.1855.69-1.51
Gold $ / OZ-1570.401562.408.00
Silver $ / OZ-18.1117.790.32
$ / Yen109.26109.48-0.22
On Jan 24 2020
Events ETISTForecastPrev
Flash Manufacturing PMI9.4520.1552.452.4

CallTracker
Commodity LTPT1T2SLMarginTick
CRUDEOIL3950390038704000450001

  Pivot Point - Agri/Non-Agri



Energy



The fear of the unknown has become bigger in oil’s pricing than the known barrels out there. Crude prices hit nine-week lows on Thursday as a global risk flight on fears over the new coronavirus pushed the oil market closer to its worst monthly loss since May. New York-traded West Texas Intermediate, the benchmark for U.S. crude, sunk for a fourth straight day, settling down $1.15, or 2%, at $55.59 per barrel. Earlier in the session, WTI sunk to $54.77, its lowest since the week of Nov. 17, as traders ignored a relatively neutral weekly supply-demand report from the Energy Information Administration to focus on the potential fallout from the new coronavirus, known as the 2019-nCoV. London-traded Brent, the global crude benchmark, was down rose $1.94, or 2.9%, to $68.19. It hit $69.48 (earlier). Brent hit a seven-week low of $61.26 earlier. With just about a week left to January, WTI is down 9% on the year, putting it on track to its worst monthly loss since the 16.3% decline in May. Oil's fortunes have nosedived since a 35% gain for WTI in 2019 and 24% for Brent. The market appeared to be on good footing just after the New Year began as U.S.-Iran tensions initially sent crude prices rallying. But that upside was quickly lost as calm returned to the Middle East, and oil bulls have had trouble since capitalizing even on supply blockades in major producing countries Libya and Iraq.

Source: Investing.com

Bullions



The gold buyers’ strike finally ended on Thursday as rising concerns about the coronavirus, which had weighed on risk assets all week, finally lent support to havens.  Gold futures were up 0.6% at $1,565.75 a troy ounce, a mirror-image of the decline in global stocks after China quarantined Wuhan and six cities nearby in an effort to contain the spread of the virus. Spot gold was up 0.5% at $1566.38. The measures came on the eve of the week-long Lunar New Year holiday in China, the peak travel season in the country. The traditional seasonal spike in consumer spending now appears more than a little vulnerable to public health measures clamping down on official celebrations, which may make the next couple of months of Chinese data more than usually difficult to interpret. Gold prices were supported, as normal, by falling bond yields, as both classes of haven benefited from inflows. U.S. 10-Year Treasury bond yields by five basis points to their lowest since early December. The news from China combined with some weak-looking earnings reports to stop this week’s rise in stocks and prompt more caution. Global consumer giant Procter & Gamble (NYSE:PG) warned that the dollar’s strength had continued to weigh on its reported earnings in the quarter, and the dollar index, which tracks the greenback against a basket of currencies, rose to its highest this year in response to the Chinese news.

Source: Investing.com

Currency



The euro hovered near a seven-week low against the dollar on Friday after the European Central Bank was seen as more dovish than expected, while anxiety over China's coronavirus outbreak propped up the safe-haven yen. The euro stood at $1.1055 (EUR=), touching a seven-week low of $1.1036 hit in U.S. trade on Thursday after the ECB held interest rates steady and launched a broad review of its policy. ECB President Christine Lagarde on Thursday sought to redefine the ECB's main goal and how to achieve it, as years of the central bank's experiment with negative interest rates and quantitative easing have failed to deliver targeted inflation levels. Lagarde told a news conference that risks to growth in the euro zone remained tilted to the downside and traders took her overall tone as dovish. Purchasing Managers' Index (PMI) data from Germany and the euro zone due later on Friday is the next focus for the currency. The common currency was also undermined by the coronavirus threat in China because some countries in the currency bloc, notably Germany, have big trade exposures to the Asian economic giant. Concerns about the new disease bolstered the yen, which traded at 109.55 yen to the dollar , having risen to a two-week high of 109.26 on Thursday.

Source: Investing.com

Base Metals



Copper prices fell to their lowest in more than six weeks on Thursday as the rising coronavirus death toll heightened fears over the outbreak’s potential impact on the Chinese economy. Other industrial metals also slipped, oil prices fell more than 2% and Chinese shares registered their biggest decline since May while the yuan also suffered as China put two cities at the epicentre of the outbreak on lockdown. Investors recalled how the Sudden Acute Respiratory Syndrome (SARS) epidemic in 2002-2003, which also started in China, dented economic growth in the world’s biggest consumer of metals and caused a slump in travel. Benchmark copper on the London Metal Exchange (LME) ended down 2% at $5,987 a tonne, taking this week’s losses to about 4.5%. Also weighing on prices is a sharp rise in stocks. On-warrant inventories in LME-registered warehouses rose to 162,875 tonnes from less than 90,000 tonnes last week. Chinese markets will be closed from Friday to Jan. 31 for the Lunar New Year, reducing liquidity.

Source: Investing.com

Agri Commodity



Spot rubber closed unchanged on Thursday. RSS 4 was quoted steady at Rs 137.50 per kg by traders and the Rubber Board. It finished flat at Rs 133.50 per kg according to dealers. The commodity lost its direction as there were no quantity buyers or sellers in the local trading houses. But it managed to sustain at the prevailing levels mainly on supply concerns. The overall volumes were low. In futures, the February contracts improved to Rs 141.34/kg (Rs 140.89) and March to Rs 144.01/kg (Rs 143.38) for RSS 4, while April contracts dropped to Rs 147.25/kg (Rs 147.52)on the Indian Commodity Exchange (ICEX). The near month February contracts were up 0.35 per cent with a volume of 287 lots and total traded value of Rs 405.49 lakh.

Source: Business Line
Exchange Turn Over :
NCDEX recorded a total turnover of Rs. 1130.30 crores, whereas MCX recorded a total traded turnover of Rs. 37852.12 Crores on 23rd January 2020.
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