Commodity outlook: Crude oil may turn soft on US oil waiver

Commodity outlook: Crude oil may turn soft on US oil waiver
Crude oil prices may show a weakening bias on Monday.

Brent crude futures, the global benchmark, were at $ 72.41 per barrel on Monday, down over $ 0.50 a cent.


Washington has said it will make a well-supplied global oil market, with help from Saudi Arabia, as Iran oil is cut back, according to Reuters.

Gold and silver prices were little changed on Monday morning. MCX Gold prices were marginally down 0.01 per cent at Rs 31.752 per 10 grams at around 10.45 am. MCX Silver softened 0.16 per cent at Rs 38.557 per kg.


How are various commodities lined up today? Here are some statements from brokerage SMC Global Securities.

Gold and silver: Gold can take support near Rs 31,550 and face resistance near Rs 31,850 on MCX. Silver can take support near Rs 38,200 and face a barrier near Rs 39,000.

Energy: Iranian crude, at least temporarily. Iranian crude, at least temporarily. The Iranian oil when it re-imposes sanctions, aimed at forcing Iran to curb its nuclear, missile and regional activities.

Crude oil can support near Rs 4,560 and resistance near Rs 4,660 on MCX. Oil markets have already adjusted to Iran sanctions, gradually becoming imports into preparations.

American sanctions against Iran will not succeed in reducing exports to zero.

Natural gas may trade with a positive bias as it can move in the range of Rs 240-255 on MCX. US natural gas futures rose to a two-week high on Friday on forecasts for cold weather, with heating demand set to rise sooner than previously expected.

Base metals: Base metal prices may be in the red tracking weak international markets. Zinc can face resistance near Rs 190 and support near Rs 187. London Copper took a breather on Monday after hitting a two-week peak in the previous session following comments by the US President that the United States may be approaching a trade deal with China.

HX Funds Contracts in the week to October 30, the US Commodity Futures Trading Commission said on Friday. Rs 1460 can not support Rs 860 while it's upside down. Rs 880. Can not support Rs.

Spices: Turmeric futures (December) are likely to trade with a downside bias and witness selling pressure with RISE 6,835 levels. Jeera futures (December) are looking forward to the future.

oilseeds: Soybean futures (December) are expected to show upside momentum for the third consecutive week and head towards Rs 3,450-3,500, taking support near Rs 3,365 levels. This oilseed is trading on a major spot across the country due to persistent demand from traders and crushers. Exporters are buying soybean with a better look about soymeal exports.

The traders are expecting to pay more than Rs 3,500 in the next few months and thus continue to purchase the commodity on bulk scale. The selling spree is likely to continue to grow over the past few days (December) and the bleak prospects of its exports to China are likely to push down the counter to Rs 4,125-4,100 levels.

CPO futures (November) are looking bearish as it can plunge towards 564-562 levels. Malaysian palm oil prices could be falling to the support zone of RM 2.099-2.122 wants to add to the negative sentiment.


Other commodities:
Cotton futures (November) are expected to bounce back towards Rs 22,650 levels, taking support near Rs 22,200, buoyed by strong buying from exporters amid good overseas inquiries, followed by lower crop estimates and bullish cues from US market. Trump's tweet suggesting that US and China are "progressing nicely" ahead of the scheduled G -20 meeting at the end of November.

Back home, mills are getting active in buying cotton as stocks with them are depleting at a fast pace. Mills have not made major purchases of cotton during the past 30-45 days due to high availability and higher rates, but now they are likely to buy aggressively. A sideways trend can be seen in guar seed futures (December) as it may trade in the range of Rs 4,640-4,700 levels. The weakness in crude oil and global financial market is denting demand for guar gum overseas.

Chana futures (December) are likely to be witnessed in the range of Rs 4,075-4,110 levels. Nafed activeness in liquidating procured stock of chained at flourishing miller showing less interest to procure due to average quality.

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