INTERNATIONAL COMMODITY NEWS
- Gold prices held stronger in Asia on Thursday in a rebound from overnight trade as China’s manufacturing sector showed a surpising burst of upward momentum. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at $1,292.60 a troy ounce, up 0.35%, after hitting an overnight session low of $1,286.40 and off a high of $1,296.40.
- Silver comex for July delivery was up 0.49% at $19.432 a troy ounce. Copper futures for July delivery were up 0.47% at $3.141 a pound.
- Crude oil prices recovered in Asia Thursday after stronger manufacturing in key importer China in May. China’s HSBC May flash manufacturing PMI rose to 49.7, well above expectations of matching the April reading of 48.1. On the New York Mercantile Exchange,
- West Texas Intermediate crude oil for delivery in July traded at $104.06 a barrel, bearly flat, after hitting an overnight session low of $102.58 a barrel and a high of $104.27 a barrel.
- Brent crude futures on the ICE Futures Europe exchange rose 86 cents to $110.55 a barrel on Wednesday.
- Natural gas prices fell on Wednesday after investors sold the commodity for profits and jumped to the sidelines to await the release of Thursday’s weekly U.S. inventory report. On the New York Mercantile Exchange, Natural gas futures for delivery in June traded at $4.489 per million British thermal units during U.S. trading, down 1.38%. The commodity hit session high of $4.575 and a low of $4.487. The June contract settled up 1.83% on Tuesday to end at $4.552 per million British thermal units.
- Base metals traded mixed on Thursday Asian trade after the release of the FOMC meetings last night. The release of the Chinese PMI this morning came in a huge positive, driving copper higher. The optimistic data was much needed especially since a downgrade to the property sector in the country warns of more downside risk ahead. In the metals, copper is bid at $6,876, $45 up from Wednesday’s kerb close at $6,831 per tonne. In the forward spreads, the backwardation in cash/threes, which at the start of the month was around $70, has eased to $54 currently. Aluminium is $6 higher at $1,773 as stocks fell a net 9,775 tonnes to 5,232,175 tonnes, a one-month low. Cancelled warrants were down 11,625 tonnes at 2,854,425 tonnes. Nickel which finished at $19,500 yesterday, traded up $300 this morning to last at $19,800 although stocks increased 882 tonnes to 280,020 tonnes and cancelled warrants slipped 2,778 tonnes to 119,352 tonnes. Tin closed under $23,000 at $22,975 and this morning fell further to $22,950 per tonne – there was no change in stocks. Lead increased $7 to $2,130 after a 200-tonne reduction in stocks to 192,375 tonnes and zinc was $7 higher at $2,074 – stocks and cancelled warrants both fell 3,800 tonnes to 739,650 tonnes and 112,650 tonnes respectively.
TRADING STRATEGY :
- BUY WTICRUDEOIL-NYMEX ABOVE 104.34 TGTS 104.84, 105.45 SL 103.74.