MCX Cotton under short covering; Resistance seen at 22366.6
Long liquidation seen in MCX Cardamom
Natural Gas market under short covering; Support seen at 212.7
NCDEX Jeera under long liquidation
Crude Oil market under fresh buying; Support seen at 5069
Technically Copper market is under fresh buying as market has witnessed gain in open interest by 45.45% to settled at 19294 while prices up 19.3 rupees.
Now Copper is getting support at 444.7 and below same could see a test of 431.1 levels and resistance is now likely to be seen at 466.7, a move above could see prices testing 475.1.
Copper on MCX settled up 4.4% at 458.15 as the fundamentals front took the center stage after US-China trade tensions temporarily receded from the spotlight. The global economic growth has peaked in the face of rising trade frictions and emerging market turbulence, the OECD said, as it trimmed its earlier outlook.
Inventories across LME, SHFE and COMEX came in at 526,800 mt, standing 18.2% lower than the corresponding period last year. LME stocks stood at 225,900 mt with COMEX stocks at 166,300 mt. SHFE stocks decreased for 11 consecutive weeks to 134,600 mt, data showed.
The import market was also experiencing spectacular demand. Premiums of cargoes with quotational period in October were offered up to $120/mt as of Tuesday September 18, the highest thus far this year. Inventories in the Shanghai bonded areas came in at 410,000 mt as of Friday, down 43,500 mt from a week ago and 123,000 mt from a year ago.
The months-long trade disputes between Washington and Beijing and the downward pressure faced by China’s economy had been keeping weighing on copper prices. The trade war temporarily receded from the spotlight after the US and China announced their new round of tit-for-tat tariffs earlier in the week.
The fundamentals front is expected to come under spotlight across the copper market in the short term.
Trading Ideas:
–Copper trading range for the day is 431.1-475.1.
–Copper prices gained as the fundamentals front took the center stage after US-China trade tensions temporarily receded from the spotlight.
–The global world refined copper market showed a 45,000 tonnes deficit in June, compared with a 50,000 tonnes deficit in May, the ICSG said.
–Chinese copper import premiums hit $107.50 a tonne, the highest since October 2015, indicating strong demand for physical metal.
Courtesy: Kedia Commodities
Source: Commodityonline.com
