Commodities outlook: Crude deals with a summer of discontent

Stars aligned for gold and silver on Tuesday on an uptick in demand of precious metals by jewellers, industries and retailers.

Brent crude was trading 0.65 per cent down ahead of Friday’s Opec meeting at a time when Russia and Saudi Arabia are pushing for higher output.

Here’s a look at how key commodities are likely to play out today.

Gold prices, according to Angel Commodities, are likely to take on more shine as the tariff war between the US and China will boost its safe haven appeal.

Agri commodities
Jeera July NCDEX: A sharp zig-zag move within the range of Rs 16,720-16,240 was witnessed in the previous trading session. For the day, Geojit Financial Services expects choppy trading.

Soybean: On NCDEX, soybean prices for July have been stabilising above the support of Rs 3,435, after a short covering rally last week. Thus, any slip below Rs 3,435 could continue the weak bias towards Rs 3,400/3,360 levels. However, any sharp rise above 3,520 with sturdy volume could extend the current rally, Geojit Financial Services said in a report.

Cardamom: Cardamom prices on MCX for July have been staying well above the 45-day EMA support at Rs 949 for the past few days. “If it stays successful above the same, expect a bounceback towards Rs 960/980 levels, which is supported by daily RSI (14) indicator,” Geojit said.

Turmeric: The brokerage house believes that if turmeric’s July NCDEX prices stabilise above Rs 7,200 levels, markets may see a pullback towards Rs 7,300-7,350 levels. There was profit booking for the past two days though.

Mentha oil June MCX: Range bound trading session for the day.

Cotton June MCX: According to Geojit, prices slipped from the support placed at Rs 22,800 and for the day, expect some more lower correction towards Rs 22,200 followed by Rs 22,000 levels.

Meanwhile, daily RSI (14) is treading lower from overbought zone.

Crude Oil

Oil prices are likely to be under pressure on concerns that the Opec and key ally Russia will gradually increase output after withholding supplies since 2017. That may weigh on prices, according to Angel Commodities.

The Opec meeting scheduled on June 22-23 will be closely tracked by investors across the globe.

Base metals
Base metals traded mostly lower on Monday, given a global risk aversion because of heightened trade war concerns, coupled with a stronger dollar index. MCX copper prices are expected to trade lower on Tuesday in line with international markets, Angel Commodities added in a report