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GOLD, SILVER MARGINALLY DOWN

Gold and silver were trading marginally lower in deals on Thursday on account of subdued demand of precious metals from jewellers, industries and retailers.

MCX Gold futures were down 0.10 per cent, or Rs 30, at Rs 29,495 per 10 gram, while MCX Silver futures were down 0.13 per cent, or Rs 52, at Rs 39,659 per 1 kg at around the same time. However, it is said, Bullion counter may trade with volatile path as the US industrial production along with movement of greenback to give further direction to the prices.

OIL MARKETS STABLE AS OPEC CUTS COUNTER RISING US SUPPLIES

Oil markets were stable on Thursday as rising US crude production and inventories were countered by expectations that OPEC will extend an ongoing production cut during a meeting at the end of this month.

Brent crude futures, the international benchmark for oil prices, were at $61.98 per barrel at 0438 GMT, 11 cents above their last close. US West Texas Intermediate (WTI) crude futures were at $55.37 a barrel, 4 cents up from their last settlement. Despite these slight gains, Brent and WTI have lost around 4 percent in value since hitting 2015 highs last week, pulled down in part by rising crude availability in the United States.

US crude inventories rose for a second week in a row, building by 1.9 million barrels in the week to Nov. 10 to 459 million barrels, the government’s Energy Information Administration (EIA) said on Wednesday. That compared to analyst expectations in a Reuters poll for a decrease of 2.2 million barrels. US crude oil production hit a record of 9.65 million barrels per day (bpd), meaning output has risen by almost 15 percent since their most recent low in mid-2016.

PALM OIL RISES AFTER 5 SESSIONS OF FALLS ON TECHNICAL CORRECTION

Malaysian palm oil futures rose on Thursday after five consecutive sessions of declines on technical correction and support from overnight gains in Chicago Board of Trade (CBOT) soyoil.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was up 0.6 percent at 2,747 ringgit ($657.65) a tonne at the midday break. Traded volumes stood at 19,864 lots of 25 tonnes each at noon.

The ringgit’s strength continues to cap palm’s upside but we’re not sure if the ringgit can strengthen further. Palm declined to its weakest since Oct. 19 on Wednesday as the ringgit hit its strongest in about a year against the dollar. Gains in the ringgit, the currency of trade for palm, usually make the edible oil more expensive for foreign buyers.

The Malaysian currency was down 0.1 percent at 4.1775 around Thursday noon. Palm oil prices are also affected by movements in other edible oils as they compete for a share of the global vegetable oils market.

The December soybean oil contract on the Chicago Board of Trade surged over 2 percent in the previous session on reports of strong demand. It was down 0.4 percent on Thursday. US soybean processors accelerated their crush pace in October to the fifth highest on record and second highest ever for the month, the National Oilseed Processors Association said on Wednesday.

US CASH SOYMEAL BASIS STEADY

Spot basis offers for soymeal in the US Midwest were steady on Wednesday as futures snapped back from recent lows, helped by short-covering a higher soybean contracts, said dealers.

Chicago Board of Trade soybeans shrugged off new contract lows, with buying before the National Oilseed Processors Association’s monthly soy crush report on Wednesday at 11 a.m. CST (1700 GMT). Chicago Board of Trade December soymeal futures at 10:53 a.m. CST (1753 GMT) were up $2.40 at $312.70 per ton.

BANGLADESH TEA PRICES DIP, SNAPPING TWO WEEKS OF GAINS

Tea prices in Bangladesh fell at the weekly auction, snapping a two-week run of gains, but strong demand for quality leaf capped a steeper decline amid tight supplies. Bangladeshi tea fetched an average price of 234.43 taka ($2.80) per kg at the auction on Tuesday, compared with 236.72 taka at the previous sale, National Brokers said.

There was muted demand from buyers, but strong demand for quality leaf helped limit a steep drop in prices when supplies were lower than last week, a senior official with National Brokers said.

Around 8.7 percent of the 2.36 million kg offered at the sole auction centre in Chittagong remained unsold. In the previous auction, 14.8 percent of the 2.55 million kg on offer was unsold. Bangladesh’s tea production rose nearly 27 percent last year to a record 85 million kg, a harvest that was seen as big enough to make imports unnecessary. The South Asian country was the world’s fifth-largest tea exporter in the 1990s but is now a net importer due to a surge in domestic consumption.

SOUTH KOREA’S NOFI BUYS 68,000 TONNES OF CORN

South Korea’s largest feedmaker Nonghyup Feed Inc. (NOFI) purchased around 68,000 tonnes of corn to be sourced from optional origins in an international tender which closed on Wednesday, European traders said.

The corn was purchased at $187.78 a tonne c&f plus a $1.00 a tonne surcharge for additional port unloading. No purchase was made of two other consignments of up to 69,000 tonnes also sought by NOFI, traders said. The 68,000 tonnes was bought from trading house CHS, they said. Traders said they suspected the corn was likely to be sourced from the United States or South America. The yellow corn purchased was for 2018 shipment between Feb. 15 to March 6 if sourced from the US Pacific North West Coast or from Jan. 26 to Feb. 14 if from the US Gulf.

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