GOLD, SILVER INCHES DOWN ON WORLDWIDE CUES
Precious metals gold and silver were trading in red in the early trade on Thursday following global cues. MCX Gold was trading 0.24 percent, or Rs 68, down at Rs 28,182 per 10 gram around 10.40 am (IST), while MCX Silver was down 0.37 percent, or Rs 138, at Rs 37,619 per 1 kg at around the same time.
Experts expect gold prices to trade sideways on Thursday as weaker dollar index and stronger physical demand are push factors.
MARGINAL DECLINE IN EU MILK PRODUCTION
Total EU milk production for May, the EU’s peak milk producing month, is estimated at 14.18m tons, down 0.01 percent year-on-year. However production is up 1.75 percent and 4.59 percent on the three and five-year averages respectively.
Ireland was among a host of EU member states with higher production figures than last year but big reductions in production from France and Germany left EU production behind on 2016 figures. For the first five months of the year, EU milk production came in at 65.43m tons – down 1.07 percent. Globally, production increases in the US and Argentina have offset the fall off in EU, New Zealand and Australian production.
COFFEE PRODUCTION IN DAVAO REGION DOWN BY 2PC
Coffee production in Davao Region was decreased by 2.14 percent to 11,429.78 metric tons (MT) in 2016 from 11,680.62 MT in 2015. Data from the Philippine Statistics Authority (PSA) revealed that 67 percent of the coffee produced in the region in 2016 is Robusta variety at 7,678.74 MT. However, this was a decrease of 1.5 percent from 7,795.70 MT in 2015.
Davao del Sur has the highest Coffee Robusta yield at 2,849.12 MT. It was then followed by Compostela Valley, Davao Oriental, and Davao del Norte at 1,226.57 MT, 1,111.54 MT, and 650.74 MT, respectively. A total of 2,247.42 MT Coffee Arabica was produced in the region for 2016; a slight decrease of 3.56 percent the 2,330.35 MT produced in 2015.
OIL TO BE FIXED IN RANGE OF $40 TO 50 FOR THE NEXT 2-YEARS
Oil prices are likely to be stuck within a range of $40 to $60 for the next year or more, according to the latest investment forecast from UK-based wealth manager Coutts. In its mid-year investment outlook, published Wednesday, the private bank – which is reported to have the UK queen as one of its clients – said it expects oil prices to quieting down and stabilize for the medium term.
COPPER STRUGGLES TO HOLD ONTO GAINS
Copper struggled to hold onto gains above $6,000 on Wednesday after the US dollar rose but higher steel prices and upbeat Chinese data boosted expectations of strong demand.
Benchmark copper on the London Metal Exchange was bid 0.2 percent lower at $5,992 in official rings but failed to trade. Copper hit $6,022.50 on Monday, its highest since March 2, driven by upbeat economic data from China. There has been lots of positive sentiment from China but the dollar is countering that positive sentiment. Copper is struggling to make a clean break from the $6,000 psychological level.
KUWAIT’S GAS PRODUCTION WILL RISE TO 510 MILLION CUBIC FEET
The Kuwait Petroleum Corporation, KPC, and its affiliates plan to ratchet up free gas production capacity to 510 million cubic feet and increase light oil output to 200 thousand barrels per day, bpd by December, a Kuwaiti senior official quoted as saying on Wednesday.
In a meeting Minister of Oil Essam Al-Marzouq said that the capacity would be enhanced through three production units to be configured soon, all of which will churn out 100 cubic feet of free gas and 40,000 bpd of light oil.
MALAYSIAN PALM OIL FUTURES JUMP
Malaysian palm oil futures jumped 1 percent in early trade on Thursday, recovering from a two-week low hit in the previous session, on the back of strength in related edible oils.
Cargo surveyor data showing rising export demand and forecasts of stronger demand from China also supported the market. China is expected to import 450,000 tones of palm oil per month in August and September, compared with a forecast of 250,000 tones for July, according to a report by the China National Grain and Oils Information Center (CNGOIC).