Palm oil futures traded lower in morning trade on Thursday after the pace of exports slowed in June and as crude prices and equity markets plunged overnight over concerns of the second wave of coronavirus infections.
NCDEX Crude Palm Oil futures (Kandla) traded 0.34 per cent down at Rs 728 in the morning trade, while MCX Crude Oil traded 0.66 per cent lower at Rs 2,874 per barrel.
Here is how SMC Global expects commodities to fare today:
Spices: Turmeric futures (July) are expected to witness correction towards Rs 5,700-5,650, facing resistance near Rs 5,800 levels. Jeera futures (July) may show weakness and trade with a bearish bias in the range of 13,700-13,900 levels. Dhaniya futures (July) are likely to trade sideways in the range of Rs 6,000-6,150 levels.
Oilseeds: Soybean futures (July) are expected to trade with a downside bias in the range of Rs 3,740-3,820 levels. Mustard futures (July) may witness correction towards Rs 4,600-4,550 owing to profit booking from higher levels. Soy oil futures (July) are likely to plunge towards Rs 810-805 levels. CPO futures (July) may see some correction towards Rs 665-660 levels. Malaysian palm oil futures ended lower on Wednesday in cautious trading ahead of private data on exports amid a forecast of global consumption of the edible oil falling for the first time on record.
Gold: Bullion counter may trade in the range with positive bias. Gold may test Rs 48,400 by taking support near Rs 47,900 while silver may test Rs 48,500 by taking support near Rs 47,500. Gold prices edged higher on Thursday, as concerns over rising coronavirus cases dented hopes of a swift economic recovery, driving investors towards the safe-haven metal. Yesterday, prices hit a near eight-year high of $1,779.06. But they ended lower as investors booked profits, snapping a three day winning streak.
Base metals: Base metals may trade with sideways to bearish bias. Copper can move towards Rs 442 while facing resistance near Rs 452. Zinc may move towards Rs 158 and facing resistance near Rs 164. Lead can move towards Rs 145 while taking support near Rs 140. Nickel may trade with bearish bias where it may test Rs 935 and facing resistance near Rs 955. Aluminum may move towards Rs 131 while facing resistance near Rs 134.
Energy: Crude oil may continue to trade with bearish bias where it may test Rs 2,800 by facing resistance near Rs 2,950. Oil prices inched up in early trading on Thursday after sliding more than 5 per cent in the previous session on worries that a rapid rise in Covid-19 cases could choke a revival in fuel demand, but volumes were thin with China out on a public holiday. Crude oil prices declined sharply as worries about the outlook for energy demand rose after data showing a surge in coronavirus cases raised the possibility of another lockdown in several parts of the globe. Data showing increased production in US shale fields also weighed on crude oil prices. Natural gas may trade in the range of Rs 118-126.
Other commodities: Cotton futures (July) are expected to witness further correction towards Rs 15,800-15,700 levels. Chana futures (July) is likely to trade sideways in the range of Rs 4,190-4,240 levels. Chana and other pulse seeds have been trading higher at the mandis in Indore on improved buying and weak arrival. Mentha oil futures (June) may remain stable in the range of Rs 990-1020. Guargum futures (July) is expected to witness correction towards Rs 5,400.