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Technically MCX Aluminium is getting support at 144.8 and below same could see a test of 143.8 level, And resistance is now likely to be seen at 147.4, a move above could see prices testing 149.
Aluminium on MCX settled down 0.24% at 145.80 on long liquidation despite LME aluminium finished up 0.2 percent at $2,035 a tonne after the United States imposed new tariffs on about $200 billion of Chinese imports as President Donald Trump escalates his trade war with Beijing.
Trump warned that if China takes retaliatory action against U.S. farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”
The United States has thrown Russian aluminium company Rusal a lifeline by loosening sanctions imposed on the company in April. Critically, the U.S. Treasury has tweaked its sanctions to allow Rusal to enter into new contracts with existing customers.
This is good news for the Russian company, which has been shunned by buyers negotiating 2019 shipments. It’s also good news for the aluminium market, which was facing the prospect of 3.7 million tonnes of Rusal product being locked out of the supply chain.
However, the broader sanctions threat against Rusal, a by-product of the sanctions against its oligarch owner Oleg Deripaska, remains. An Oct. 23 deadline for customers to wind down business with the company still stands, leaving any new contracts still beholden to the same underlying uncertainty about when sanctions will be fully lifted.
And even if sanctions are eventually removed, political risk is not going to disappear any time soon from the aluminium market. Relations between the United States and Russia, the world’s second largest producer of the metal, remain strained, to say the least.
Trading Ideas:
–Aluminium trading range for the day is 143.8-149.
–Aluminium remained under pressure on reports that U.S. tariffs on $200 billion of Chinese goods could be imposed immediately.
–Primary aluminium inventories across eight consumption areas, including SHFE warrants, decreased by some 31,000 mt to stand at 1.645 million mt, data showed.
–Shrinking supplies and improved consumption accounted for the decline in aluminium stocks over the weekend.
Courtesy: Kedia Commodities
Source: Commodityonline.com