Cardamom futures were trading higher during the morning trade in the domestic market on Tuesday as investors and speculators built up fresh bets in the agri-commodity amid increase in physical demand for cardamom in the domestic spot market. Further, insufficient supplies on restricted physical arrivals from the major cardamom producing regions, supported the upward trend in the domestic cardamom prices.
Mentha oil futures were trading higher during the morning trade in the domestic market on Tuesday as investors and speculators increased their bets in the agri-commodity amid rising physical demand for mentha oil from major consuming industries in the domestic spot market.
US Q4 GDP will be released today. Trump will speak before congress senators. The market will remain cautious before release of such news.Geopolitical concerns in Europe and the U.S. have prompted hedge funds to jump back into the gold market according to the latest trade data from the Commodity futures trading commission.
The disaggregated Commitments of Traders report, for the week ending Feb. 21, showed money managers increased their speculative gross long positions in Comex gold futures by 6,900 contracts to 142,639. At the same time, short bets fell by 7,517 contracts to 64,597. Gold’s net length now stands at 78,042 contracts, an increase of 22% from the previous week. Despite the renewed buying interest, gold’s net length is still down more than 71% from its highs seen in July.
Trump will speak before congress senators today, and the market will awaiting if there will be any details as to infrastructure construction and tax cut. Base metals are expected to diverge today. Trump’s statement will be the focus of markets today, and is expected to drive up commodity market. In China’s domestic market, downstream battery producers remain low operating rates, resulting in poor spot transaction.
This focus is expected to be extended next winter when atmospheric pollution is at its worst to directly target aluminum smelters, steel plants and other heavy industrial processors who are contributing to atmospheric pollution. It has been suggested that the smelters current enthusiasm to operate at full capacity is in response to an expectation that restrictions next year will cause shortages.At the rate that smelters are going and warehouse stocks are increasing, smelters’ enthusiasm may prove to be overly optimistic. Reuters calls a note of caution as to whether domestic Chinese prices will continue to rise in the face of such relentless overproduction. As the graph suggests, rising prices encourage rising production until a substantial surplus is reached at which point prices tend to fall followed in due course by cutbacks in output. Reuters cites JP Morgan Chase’s advice to clients to close out long positions in aluminum advising that both Shanghai Futures Exchange and open market aluminum stocks have risen dramatically in recent months.
U.S. crude oil futures inched higher on Monday as investors continued to react to higher than expected compliance with OPEC’s plan to cut production, trim the global surplus and stabilize prices. However, gains were limited as investors continue to be affected by rising U.S. production.
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