March 4, 2021

Commodity outlook: Crude oil down; right here is how gold, palm oil & others might transfer immediately



Oil futures traded decrease in Wednesday’s early commerce after US crude stockpiles grew greater than anticipated, including to worries about oversupply.

MCX Crude was down 0.39 per cent at Rs 3054 per barrel. However, treasured metallic gold was up 0.36 per cent as a consequence of safe-haven demand for the yellow metallic.

Right here is how SMC International expects commodities to fare immediately:

Spices: Turmeric futures (July) is predicted to witness a bull run in direction of Rs 5,800, taking help close to Rs 5,650 ranges. There may be enormous demand for by-products of turmeric, particularly for its naturally-occurring chemical compound curcumin, within the pharma trade. Jeera futures (July) might present weak point and commerce with a bearish bias within the vary of Rs 13,700-13,900 ranges. The farmers are sitting on enormous inventories of cumin as this season there was bumper yield and as a consequence of lockdown, the motion of produce was restricted. Dhaniya futures (July) is predicted to commerce sideways within the vary of Rs 6,000-6,150 ranges.

Oilseeds: Soybean futures (July) is predicted to consolidate within the vary of Rs 3,810-3,870 ranges with upside getting capped. Mustard futures (July) might witness correction in direction of Rs 4,600 owing to revenue reserving from increased ranges. Larger stocks with farmers, processors, stockists, and authorities businesses and decrease exports of mustard meal would additionally test additional rise in costs. Soy oil futures (July) is predicted to commerce sideways to down within the vary of Rs 823-835 ranges. CPO futures (July) might even see some correction in direction of Rs 690 ranges. Malaysian palm oil futures bounced again as crude costs rose, however beneficial properties have been restricted by fears that the surge in demand and exports would ultimately lose steam if there’s a second wave of Covid-19 infections.

Bullion: Gold might check Rs 48,500 by taking help close to Rs 47,900 whereas silver might check Rs 49,000 by taking help close to Rs 48,400.

Base Metals: Copper can transfer in direction of Rs 442 whereas dealing with resistance close to 452. Zinc might transfer in direction of Rs Rs 158 and dealing with resistance close to Rs 164. Lead can transfer in direction of Rs Rs 145 whereas taking help close to Rs 140. Nickel might commerce with bearish bias the place it could check Rs 948 and dealing with resistance close to Rs 965. Aluminum might transfer in direction of Rs 132 whereas dealing with resistance close to Rs 136.

Vitality: Crude oil might proceed to commerce with bearish bias the place it could check Rs 2,950 by dealing with resistance close to Rs 3,100. Pure fuel might bounce in direction of resistance and check Rs 129 and take help close to Rs 122.

Different Commodities: Cotton futures (June) is predicted to witness additional correction in direction of Rs 15,700-15,600 ranges. Chana futures (July) is more likely to commerce sideways within the vary of Rs 4,200-4,260 ranges. Mentha oil futures (June) might take help close to 990 and the draw back might stay capped. With the convenience of lockdown, the market members expect that the exports in addition to the home consumption would catch tempo and the contemporary demand would come into the marketplace for the newly harvested crop, containing excessive yield of oil. Guargum futures (July) is predicted to carry on to the help close to Rs 5,550, whereas the upside might get prolonged in direction of Rs 5,650-5,700 ranges.