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| As on Apr 19, 2018 12:00 AM |
Your results on : Pre Session |
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BHP Billiton came out with its production report for the nine months ended 31 March 2018. The company stated, total Copper production guidance narrowed to between 1,700 and 1,785 kt, however guidance for. Olympic Dam reduced to approximately 135 kt following a slower than planned ramp-up after the major smelter maintenance campaign. Total copper production for the nine months ended March 2018 increased by 37 per cent to 1,290 kt. Guidance for the 2018 financial year narrowed to between 1,700 and 1,785 kt from between 1,655 and 1,790 kt. Escondida copper production for the nine months ended March 2018 increased by 64 per cent to 897 kt, supported by the start-up of the Los Colorados Extension project on 10 September 2017. Production guidance for the 2018 financial year has been narrowed to between 1,180 and 1,230 kt from between 1,130 and 1,230 kt. The Escondida Water Supply Extension (EWSE) was sanctioned by all joint venture partners in March 2018 and it comprises the expansion of the Escondida Water Supply conveyance system and desalination plant. EWSE is in execution phase and will deliver first water production in the 2020 financial year. EWSE will continue Escondida's sustainable reduction of groundwater usage and maximise concentrator throughput beyond the 2020 financial year. The existing agreement with Union N°1 will expire on 1 August 2018 and early negotiations started in April 2018. Pampa Norte copper production increased by six per cent to 193 kt due to record production at Spence mainly driven by higher utilisation of the solvent extraction and electrowinning plants. Pampa Norte production guidance for the 2018 financial year remains unchanged and is expected to be higher than the prior year. During the period, we successfully completed the accelerated negotiation with Spence Union N°2 (supervisors and staff) with the new agreement effective from 1 April 2018 for 36 months. Olympic Dam copper production decreased by 18 per cent to 95 kt as a result of the planned major smelter maintenance campaign in the first half of the financial year. Production guidance for the 2018 financial year has been reduced from 150 kt to approximately 135 kt due to a slower than planned ramp-up during the March 2018 quarter. A return to full capacity is now expected over the course of the June 2018 quarter. Development into the highergrade Southern Mine Area continues with record underground development metres achieved in March 2018. Antamina copper production increased by 10 per cent to 105 kt and zinc production increased 43 per cent to 84 kt due to higher head grades as mining continued through a zinc-rich ore zone consistent with the mine plan. Copper production guidance for the 2018 financial year has increased to approximately 135 kt from approximately 125 kt and zinc production guidance to approximately 110 kt from approximately 100 kt. Powered by Commodity Insights |
| MCX Copper futures jumped near Rs 460 levels- adding 2.60% on day amid excellent buying on mining worries. Relations between the world's largest copper producer, Codelco, and unions in its Chuquicamata division have reached the lowest point in years as the mine transitions from open pit to an underground model that will use more automation and employ fewer workers- according to media reports yesterday. Powered by Commodity Insights |
Crude futures soared sharply yesterday- adding nearly two and half dollars to text around three year high near $69 level. MCX Crude oil spurt nearly 3% to close at Rs 4479 per barrel after testing highs near Rs 4500 level. US crude oil inventories, excluding the Strategic Petroleum Reserve, dropped 1.1 million bbl for the week ended Apr. 13, according to US Energy Information Administration data. The latest estimate is 427.6 million barrel, putting oil in storage in the lower half of the average range for this time of year. The total motor gasoline inventories decreased 3 million bbl but are in the upper half of the average range. Both finished gasoline inventories and blending components inventories decreased last week. Distillate fuel inventories decreased 3.1 million bbl last week and are in the lower half of the average range for this time of year. US refinery inputs averaged more than 16.9 million b/d for the week ended Apr. 13, about 70,000 b/d less than the previous week’s average. Refineries operated at 92.4% of capacity. Gasoline production increased, averaging 10.2 million b/d. Distillate fuel production decreased, averaging 5.1 million b/d. US crude oil imports averaged more than 7.9 million b/d, down 720,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged 8.2 million b/d, 2.7% more than the same period last year. Total motor gasoline imports averaged 705,000 b/d. Distillate fuel imports averaged 103,000 b/d. Powered by Commodity Insights |
| COMEX Gold jumped above $1350 per ounce levels amid excellent buying support following good upside movement in crude futures and falling Gold output in China. Weak US dollar also acted well for the metal. COMEX Gold currently quotes at $1355 per ounce right now. MCX Gold futures ended around Rs 31540 per 10 grams- half a percent on the day. Gold mining output in China fell almost 3% in the first 3 months of 2018 compared with the same period last year, according to new data. That extends the 6% annual drop recorded in 2017 according to the latest statistics from government-backed body the China Gold Association (CGA). The world's No.1 gold-mining nation produced 98.2 tonnes in the first quarter, the CGA said, down from over 101 tonnes a year earlier. Other supportive cues for Gold came from broad commodity spectrum as oil prices jumped near recent highs yet again. Powered by Commodity Insights |
| US Business owners are getting nervous about a possible trade war with China, according to the Federal Reserve's Beige Book. Outlooks remained positive, but contacts in various sectors including manufacturing, agriculture, and transportation expressed concern about the newly imposed and/or proposed tariffs, the Beige Book noted. Economic activity continued to expand at a modest to moderate pace across the 12 Federal Reserve Districts in March and early April. Widespread employment growth continued, but many respondents noted difficulty finding qualified candidates across a broad array of industries and skill levels. Reports of labor shortages over the reporting period were most often cited in high-skill positions. Looking at inflation, prices increased across all Districts, generally at a moderate pace, and businesses expect prices will continue to rise in the coming months. Powered by Commodity Insights |
As per the latest estimates of United States Department of Agriculture (USDA), Canada's wheat production for MY 2017/18 was down seven percent to 29.98 million metric tons (MMT), on lower durum yields and reduced area seeded to spring wheat (down less than a percent), to durum (down 15 percent) and to winter wheat (down 20 percent). In line with historical rates, 98 percent of all wheat seeded was harvested. Total wheat, spring wheat and durum area seeded in MY 2018/19 are expected to remain below fiveyear averages, but total wheat area is forecast higher, led by a three percent increase in area seeded to spring wheat. Dry conditions in the prairies and lower anticipated returns for lentils and dry peas are expected to drive spring wheat area higher in MY 2018/19, while durum area is forecast flat on weak export demand and relatively soft prices. In MY 2018/19, total wheat production is expected to remain similar to the MY 2017/18 level, as additional spring wheat area and better durum yields offset lower spring wheat yields. While improved wheat genetics helped boost MY 2017/18 yields in regions that received minimal rain during the growing season, high subsoil moisture at planting was critical to realizing superior water use efficiency yield gains. Unless soil moisture conditions improve by planting, MY 2018/19 yields would drop, regardless of genetic improvements in water use efficiency. Approximately 95 percent of the MY 2017/18 Canadian Western Red Spring (CWRS) crop was graded in the top two milling categories. The average CWRS protein level (all grades) was 13.0 percent, slightly below the 13.4 percent ten-year average. CWRS accounts for more than 75 percent of total wheat production in Canada. The Canadian Prairie Spring Red (CPSR) crop exactly matched the 12.1 percent ten-year average. The MY 2017/18 average durum protein level was 13.6 percent, well above the ten-year average of 12.9 percent, with 95 percent of the Saskatchewan crop within the top two grades (well above the ten-year average of 57 percent) and 85 percent of the Alberta crop within the top two grades (up from the five-year average of 71 percent). Powered by Commodity Insights |
As per the official sources, Malaysia's palm oil production for For 2017/18 is forecast to reach 20.5 million tons an increase of 8.7% from 18.8 million tons recorded in 2016/17. The use of high yield seedlings contributed to this growth, as new planted areas has not expanding much for the last few years. With fewer weather anomalies recorded in the last 12 months, production of palm oil for the remaining calendar year of 2018 set to be in recovering mode as before the 2016/17 season. According to the industry, it needs 300,000 manual labors to ensure palm plantations operate at optimal levels. Sarawak State government moratorium on new plantation areas is still enforced, and most of the new areas recorded are from conversion of non-productive rubber tree plantation areas. As the labor issue remains the limiting factor, production for 2018/19 is forecast to increase slightly to 21.0 million tons. The increase is attributed to high oil extraction rate from fruits collected as the total tonnage of Fresh Fruit Bunches (FFB) collected is forecasted to slightly drop. Export for 2018/19 is forecast to increase slightly to 17.9 million tons as price of palm oil is projected to stabilize, and GOM manages to control stock levels at around 2.9 million tons. Stiff competition from other oilseeds, namely soybean, limits growth of palm oil export. Based on information from the industry, stiff competition from Indonesia saw some of palm oil producers in Indonesia has been offering discount factor of more than $50 per ton in relative to Malaysian palm oil in expanding their export market share. Powered by Commodity Insights |
India’s sugar production soared to a record 29.98 million tonnes (mt) till April 15 in the current season on higher sugarcane output, resulting in arrears to farmers jumping to Rs 20,000 crore, according ISMA. The industry body noted that Sugar output of India, the world’s second largest producer, was 20.3 mt in 2016-17 against an annual domestic demand estimated at 25 mt. As many as 227 sugar mills were still crushing sugarcane. Sugar production in Maharashtra has almost reached its past record and mills produced 10.49 mt up to April 15, 2018. Mills in Uttar Pradesh produced a record 10.48 mt of sugar. Crushing operations are almost over in Karnataka and only one sugar mill was operational as on April 15, 2018. The State has so far produced 3.63 mt of sugar. ISMA said sugar prices have been under severe pressure in the last 4-5 months and have fallen by Rs 9/kg across the country. The current ex-mill sugar prices are around Rs 8 lower than cost of production and sugar mills are incurring substantial losses. Inability to pay cane price because of highly depressed sugar prices has translated into huge cane price arrears. As on March 15, 2018, the cane arrears reported to the government was over Rs 18,000 crore across the country, ISMA said, noting that arrears could have crossed Rs 20,000 crore now. Powered by Commodity Insights |
WTI Crude oil futures stayed supported following a good set of economic data from China. China's economy grew at 6.8% in the first quarter, buoyed by strong consumer demand, healthy exports and robust property investment. Data also showed that China's March retail sales rose 10.1% from a year earlier, rising at the strongest pace in four months. This kept the WTI Crude afloat above $67 per barrel. The tailwinds have been supportive for oil following the Middle East worries and the prices are quoting just below their three year highs. MCX Crude oil futures edged up amid good follow up buying yesterday and closed above Rs 4400 per barrel. China's central bank lowered the reserve requirement ratio for most commercial banks on Tuesday, to free up funds for lending and improve liquidity as the economy sustained growth momentum in the first quarter. In a statement, the People's Bank of China said it reduced the ratio of cash that banks should hold as reserves, by 100 basis points, with effect from April 25. The rate is currently at 17% and 15%. Powered by Commodity Insights |
COMEX Gold stayed locked in sideways trade yesterday as a recovery in equities capped the upside. However, firm oil prices and weak US dollar kept the metal around $1350 per ounce. The counter recently hit a three month high around $1370 per ounce levels. The local Gold futures have been supported by a weak undertone in the Indian Rupee. The benchmark MCX Gold futures closed at Rs 31383 per 10 grams yesterday, witnessing a good intraday pullback though the buying is likely to moderate around the current levels. Large precious metals speculators continued to trim their bullish net positions in the Gold futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 155,372 contracts in the data reported through Tuesday April 10th. This was a weekly drop of -11,217 contracts. Speculative positions fell for a second week and have now declined for four out of the past five weeks. Powered by Commodity Insights |
Indian Copper ended the last session trades marginally up. The prices were only 0.12% up to Rs 447.5 per kg. The prices tested a high of Rs 449.35 per kg and a low of Rs 443.6 per kg. Meanwhile, Rio Tinto came out with its production numbers for first quarter. Rio Tinto chief executive J-S Jacques said “We delivered a solid operational performance across most commodities in the first quarter of 2018. Our world-class Pilbara iron ore assets continue to demonstrate flexibility and the benefits of increased productivity, and production at our bauxite and copper assets was also higher. We announced $5 billion of divestments in the quarter, highlighting our ongoing drive to strengthen the portfolio and raise return on assets. By continuing to advance our mine-to-market productivity programme, whilst maintaining our focus on the disciplined allocation of cash, we will continue to deliver superior returns to our shareholders.” Pilbara iron ore shipments of 80.3 million tonnes (100 per cent basis) in the first quarter were five per cent higher than the first quarter of 2017, benefitting from productivity improvements and fewer weather disruptions. Bauxite production of 12.7 million tonnes was 12 per cent higher than the corresponding quarter of 2017, due to continued operational improvements. Third party shipments increased by 19 per cent to 8.2 million tonnes due to firm demand and higher port availability. Aluminium production of 0.8 million tonnes was five per cent lower than the first quarter of 2017 due primarily to disruptions at the Becancour smelter in Canada. Mined copper production of 139.3 thousand tonnes was 65 per cent higher than the first quarter of 2017, as output recovered at Escondida following a labour union strike in the first half of last year. Powered by Commodity Insights |
| Large precious metals speculators added to their bullish net positions in the Copper Futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Copper futures, traded by large speculators and hedge funds, totaled a net position of 23,706 contracts in the data reported through Tuesday April 10th. This was a weekly increase of 2,796 contracts from the previous week which had a total of 20,910 net contracts. Speculative positions have risen for two straight weeks following three weekly declines. The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -26,137 contracts on the week. This was a weekly fall of -860 contracts. Powered by Commodity Insights |
MCX Crude oil futures dropped by more than a percent on heavy profit selling as global prices corrected after recent spurt to near three year high. However a steady recovery was noted in the counter in Asian trades as stocks edged up. Crude oil currently trades at $66.56 per barrel- up half a percent on the day. MCX Crude oil closed down 1.34% at Rs 4340 per barrel after sliding under Rs 4400 levels. Expect a steady rebound today. Large energy speculators increased their bullish net positions in the Crude Oil WTI Futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Future+-s Trading Commission (CFTC) on Friday. The non-commercial futures contracts of WTI Crude Oil futures, traded by large speculators and hedge funds, totaled a net position of 707,080 contracts in the data reported through Tuesday April 10th. This was a weekly gain of 7,535 contracts. The current net position is still in the vicinity of the all-time high record of +739,097 contracts that was registered on February 6th. Powered by Commodity Insights |
| The Indian rupee recovered slightly against the dollar on Tuesday, 17 April 2018 on fresh selling of the greenback amid a higher opening of domestic equities. A weak dollar against other currencies overseas also supported the domestic unit. Rupee, however, erased early gains to weaken further thereafter. The domestic currency opened at Rs 65.45 against the dollar and dropped to a low of 65.54 so far during the day. In the spot currency market, the Indian unit was last seen trading at 65.52. Yesterday, the rupee had fell by 29 paise, or 0.44 per cent, to close at a six-month low of 65.49 against the US currency on widening trade deficit concerns amid heightened geopolitical worries. Overseas, Asian stocks were trading mixed as investors parsed a mixed set of economic numbers out of China and sought fresh leads after weeks of volatility sparked by trade frictions and geopolitical conflict. US stocks closed sharply higher yesterday, 16 April 2018 with major indexes rallying in a broad advance as the first-quarter earnings season pointed to strong growth and geopolitical tensions showed signs of easing. In the meantime, the dollar remained steady in Asia on Tuesday late morning as Syria's situation improved. Investor risk appetite revived amid easing geopolitical tensions as more strikes at Syria seemed unlikely. The market shifted focus to economic data from China, the world's second largest economy, on Tuesday and the high-level trade talks between the U.S. and Japan this week to look for cues. The U.S. dollar index that tracks the greenback against a basket of six major currencies steadied at 89.14 at 11:00PM ET (03:00 GMT). Powered by Commodity Insights |
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