Weekly Commodity: Mixed trend was witnessed in the commodity space
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Mixed trend was witnessed in the commodity space as market looked confused before the oath ceremony of the 45th President of US, Donald Trump. Dollar index lost its strength for the continuous fourth week whereas gold gained for the straight fourth week on safe haven buying. Gold prices hit their highest in more than seven weeks, boosted by safe-haven buying ahead of a speech in which British Prime Minister Theresa May is expected to discuss plans for a "hard Brexit". Silver too moved up last week but shed its weekly gain later on. Energy prices cooled off for various reasons. As regards rig count update, oil rig count fell by 7 to 522 from 529 as reported by Baker Hughes for the week ended Jan 13, 2017. Natural gas rig count, on the flip side, has increased by 1 to 136. Total rig count in the U.S. fell to 659 from 665. For the first time in the last 10 weeks, U.S. oil rig count has declined. The U.S. Energy Information Administration said in its weekly report that crude oil inventories jumped by 2.347 million barrels in the week ended January 13. Base metals traded on their own fundamentals. LME copper slid on profitbooking from higher levels, but expectations of strong demand in top consumer China put a floor under prices.
In agri counter, edible oil and oil seeds saw strong come back on uptick in demand from retailers. Mustard oil prices edged up on scattered demand from local parties. Mentha oil prices fell further, taking negative cues from spot market on sluggish demand. Wheat futures extended fall further on expectation of increased supply with high volume of imports and better crop condition. New wheat crop is expected to arrive in many markets of Madhya Pradesh by the next month. Key cotton indicators were up on strong cues from US cotton Futures. Sugar prices extended fall in the spot market of Delhi on poor off take and weak cues from future market despite positive fundamentals. As far as demand is concerned, it will increase in coming sessions while production remained lower till first half of January in the ongoing crushing season 2016-17 as compared to the last year. Guarseed and Guargum remained mostly flat in most of the markets of Rajasthan and Haryana due to lack of encouraging cues from futures and exports front.
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