Posted on

Asia power outages and US warm temperature forecasts fuel coal prices to 2 month highs

The warm temperature forecasts coming in from US and the power outages that has been seen in various parts of Asia, including India, is keeping coal prices on the higher side.

Coal prices are trading at 2-month-high levels right now. There has been a continued robust demand for power generation. Firm natural gas prices in Europe and Asia is also something that is continuing to put coal prices on the higher side.

The European Union ban on coal imports from Russia is also taking effect on ground. EU and Asia, as of now, are buying coal from Australia, Indonesia, US, and South Africa.

Also Read: Oil near 6-week high as Saudi Arabia slashes crude price for Asia and Europe

Indian markets have witnessed coal imports at record highs. The Indian energy demand is estimated at around 207 gigawatts in April end and the expectation is that the Indian electricity demand is growing at an annual basis of 4.7 percent.

After the ban and sanctions on Russia, coal prices had seen all-time highs at $435 per tonne. Currently, coal prices are at around $380 per tonne and pricewise, as week-on-week and month-on-month basis, this is one commodity that continues to trade on the positive.

Watch the accompanying video for more details.

Catch latest market updates with CNBCTV18.com’s blog

Posted on

Oil near 6-week high as Saudi Arabia slashes crude price for Asia and Europe

Oil is trading at six-week highs and has put two-weeks of gains behind.

The markets are looking at various data this week – it is looking at more crude production coming in from US where the oil and rigs have added for the seventh straight week.

The reason there haven’t been further gains in Russia right now is because Europe is ready to give countries like Hungary, Slovakia more time to phase out in terms of Russian imports.

Also Read: Oil slips as investors eye EU vote on Russian oil ban

Apart from that Saudi Arabia also has lowered its crude prices for Asia and Europe.

The market are looking for strong demand but the higher prices of crude is leading to the demand destruction is the view coming in.

While the crude prices may be trading steady, that is not the case for the metal prices. Copper is still trading at four-month lows, aluminum is also trading at around four and a half month low.

Watch the accompanying video for more details.

Catch latest market updates with CNBCTV18.com’s blog

Posted on

Natural gas prices hit 14-year high as sanctions threat on Russia roils energy markets

Brent crude prices were trading around $110-111 per barrel on Friday while natural gas prices also surged to a 14-year high. US gas prices, meanwhile, were again trading at a record highs.

The markets still are reacting to the European Union (EU) proposing a ban on Russian oil and phasing it out in six months. Also, the Organization of the Petroleum Exporting Countries (OPEC) and allies met on Thursday and is sticking to a 432,000 barrel per day increase for the month of June, implying no movement or change in OPEC stance.

Also Read: India doubles new renewable energy capacity during FY22: Report

Meanwhile, US is looking to buy 60 million barrels to replenish its Strategic Petroleum Reserve. Until now, it has been releasing but if it also buys from the open market, it will be yet another supportive factor for the crude oil prices.

As far as energy goes, there is no letting down there. There is profit taking in other commodities, precious metals and base metals prices are under pressure again but not energy.

Watch the accompanying video for more.

Catch latest market updates with CNBCTV18.com’s blog

Posted on

World Gold Council says markets have factored in a Fed hike and demand may return if price dips further

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich (Image: Reuters)

Gold prices are at 3-month lows ahead of Fed announcement. Indian gold market also witnessed selling on the eve of Akshaya Tritiya.

CNBC-TV18 learns that 25-28 tons of gold was sold on Akshaya Tritiya.

In an interview to CNBC-TV18, PR Somasundaram, Regional CEO of India at World Gold Council believes that there will be a surge in demand for gold if prices drop below Rs 50,000 per 10 gram.

“There will be a surge in demand for gold once the prices soften up. The prices hit 54,000 and with GST it went closer to Rs 55,000 and that really put off the consumers. Now the prices are testing 50,000 and if it drops below Rs 50,000 you should see another surge in demand.”

He said gold markets have factored in a 50 bps hike from Fed.

“Markets have factored in a 50 bps hike from Fed and that is why it fell almost close to USD 1850 per ounce. So whether it is going to breach USD 1850 per ounce is definitely a thing to wait and watch. However anything more than 50 bps hike, you could see the markets react.”

Watch video for more.

Posted on

Akshaya Tritiya could glitter more this year, say experts

Gold jewellery is displayed at a shop in New Delhi

Buying gold on the auspicious occasions like Akshaya Tritiya is a part of the Indian tradition. According to religious beliefs, buying gold on auspicious days will bring them prosperity and good luck. This year, Akshaya Tritiya will be celebrated on May 3. People buy all forms of gold, ranging from coins to jewellery to even digital gold.

Meanwhile, the demand for gold jewellery has increased by 11 percent yearly — 40 percent higher that the 2019-20 fiscal levels according to data from ICRA’s 2022-23 estimates.

Colin Shah, Chairman of the Gem and Jewellery Export Promotion Council (GJEPC); Surendra Mehta, National Secretary of the India Bullion and Jewellers Association (IBJA); and Chirag Mehra of Quantum Asset Management discussed the demand for gold jewellery this Akshaya Tritiya.

“Demand has been extremely strong in main markets like America, Gulf, China and most of the western nations. We did see a bull run on gold like never before. Talking of Akshaya Tritiya, in 2019, gold price was between Rs 32,000 and Rs 35,000 per 10 grams. The guestimated business which was done during Akshaya Tritiya in 2019 was Rs 10,000-15,000 crore. Last year it drastically dropped because Akshaya Tritiya didn’t account for much, but this year we are estimating that there will be a 5-10 percent growth in value terms over 2019,” Shah said.

Also Read: Gold and silver prices are down thanks to the joy of Akshaya Tritiya and fear of the Fed

For the entire discussion, watch the accompanying video

Posted on

Gold and silver prices are down thanks to the joy of Akshaya Tritiya and fear of the Fed

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich (Image: Reuters)

The only theme the global markets will keep an eye on is the US Fed meeting, the quantum of a rate hike and what they will put out in terms of statements. Therefore, ahead of that, some profit-taking is continuing for gold and silver prices.

Tomorrow is Akshaya Tritiya (an annual Hindu and Jain spring festival) and markets will watch the gold price keenly.

While April closed in negative, by 1 percent of a decline; February and March gained 8 percent at gold prices, but it is definitely off the highs and that perhaps could be lucrative for the investor or the buyers.

Also Read: Rupee trades in narrow range against US dollar amid elevated crude oil price

The silver prices also declined by nearly 6 percent in the month of April and that could be supportive for buying.

The US Dollar index, in the meanwhile, has gained 5 percent in the month of April, putting a best monthly performance in a decade. The strength of the US Dollar continues to weigh on the metal prices.

The crude oil prices have seen a fifth monthly gain in the month of April. It’s holding around USD 104-108 per barrel levels. The Russia-Ukraine war has entered a third straight month. Russia also halted gas supplies to Bulgaria and Poland. Therefore, a lot of support comes in from the war and sanctions, when one looks at energy.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

Catch the latest stock market updates with CNBCTV18.com’s blog

Posted on

Crude oil prices surge on prospects of EU ban on Russian oil

crude oil, crude oil futures, brent crude, US WTI

The crude oil price is 4 percent up in April and this is a fifth straight month of monthly advances for the crude prices.

The latest surge comes in after Germany said that they are dropping opposition to a full Russian oil embargo. Germany has been the biggest opposition within European Union and wanted to put sanctions on Russia. So Germany has asked for sufficient time to secure alternate supplies.

So the point that they are off opposition has led to premium into the prices, but the Chinese COVID restrictions, impact on economic growth and demand is keeping the crude oil prices where they are.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

Catch all the latest updates from the stock market here.

Posted on

Wheat prices may go up; expect India to become a net exporter in 3-5 years: Rabobank

Wheat prices have hit all-time highs in 2022. Carlos Mera Arzeno, Senior Commodity Analyst at Rabobank, believes that there is a lot more potential for prices to increase in the future.

“Russia is the number one exporter of wheat and with Russian banks affected by the SWIFT exclusion, many traders not trading with Russia will create challenges ahead,” he said.

He added that the demand for wheat is very inelastic, unlike products like corn or soybean, so there is lot more potential for further price increases in the future.

On his thoughts about India turning into a net exporter of wheat, he said it is a great help, but there are also logistical issues involved. “India is not used to exporting this volume of wheat. In the short term, it seems to be a welcome relief for wheat trade, especially for those countries which need to import wheat, such as Egypt and some other middle eastern countries,” he said.

However, it is more of an exceptional situation, he said, adding that India had an excellent monsoon last year, but this may not be the case going forward.

“I would expect India to become a major exporter of wheat three to five years from now, At least not just yet,” he said.

Last week, a government official told CNBCTV-18 that India is well positioned on wheat availability and the stock in April is estimated at 190 lakh metric tonne (LMT) versus a stocking requirement of 75 LMT.

Further, India’s current buffer grain stock stands at 513  LMT and this is double the requirement of 210 LMT for April.
The government has also raised the wheat production target for 2022-23 as it expects 328 metric tonne (MT) to be produced against 316 a year earlier.

Earlier this month, Commerce and Industry Minister Piyush Goyal on Friday said Egypt, which is one of the largest importers of wheat from Ukraine and Russia, has approved India as a wheat supplier.

Watch video for more. 

Also Read: Wheat exports: How India plans to meet global demand amid lower yields from Punjab, Haryana, UP

Posted on

Palm oil prices soar as Indonesia widens export ban

Indonesia left the markets in a shock after the chief economic minister on Wednesday widened the scope of its export ban on raw materials for cooking oil to include crude and refined palm oil. The palm oil prices surged to 7,000 ringgit per tonne – not too far away from the all-time high of 7,200 ringgit. The soy oil prices, in Chicago, have hit record highs yet again. The announcement flipped the minister’s statement a day earlier, in which he had said the export ban would only cover refined, bleached, and deodorized (RBD) palm olein.

It’s not about the period that the ban will continue. It is about ensuring that the prices are controlled.

Also Read: Indonesia stuns markets as it widens export ban to include CPO, refined palm oil

The markets also believe that the mounting pressure from buyers to resume shipments will make it happen faster. There is limited infrastructure to store surplus oil in Indonesia. So this may perhaps not last for more than 3-4 weeks, but until then very high prices on edible oil to continue in the international markets and India.

Catch all the latest updates from the stock market here

Posted on

Commodities round-up: Crude oil price gains 3% overnight

The crude oil price gained about 3 percent overnight, but the varieties are above $100 per barrel because China pledges to increase support for the economy. The People’s Bank of China (PBOC) gave a statement yesterday, April 26, and that has been a supportive factor for commodities across the board.

So even if US Fed hikes interest rates higher, even as the markets are still worried about the COVID-19 cases in China, the statement about stimulus from China has been supportive.

Apart from this, Russia said that it will halt gas deliveries to Poland and Bulgaria today and that’s yet another reason that the gas prices rebounded by 17 percent overnight.

Also Read: 10 things you should know before opening bell on April 27

The markets also look at good buying continuing in the metal prices, the strength in the US dollar and demand concerns are limiting gains, but it’s more about the China stimulus hopes that seem to be supporting the industrial commodities, whether it’s energy or industrial metals.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

Catch the latest stock market updates with CNBCTV18.com’s blog