Copper futures little changed on ease in supply worries - 4 Apr 2017

Commodity Intraday Tips

Gold builds on gains to reach 1-week high.
Gold prices firmed in European trading on Tuesday, extending gains into a third session as investors turned their attention to U.S. trade data ahead of President Donald Trump's meeting with Chinese President Xi Jinping. Also on the Comex, silver futures for May delivery tacked on 15.0 cents, or about 0.8%, to $18.36 a troy ounce. It reached its highest since March 2 at $18.37 earlier. The U.S. trade deficit data is scheduled for release Tuesday at 8:30AM ET. Economists expect it to have narrowed in February to $44.8 billion from a five-year high of $48.5 billion a month earlier.The main focus for markets this week centers on President Donald Trump's first meeting with Chinese counterpart Xi Jinping on Thursday and Friday. The U.S. dollar index was at 100.44 in London morning trade, keeping distance from last week's four-and-a-half month low of 98.67.

Copper futures little changed on ease in supply worries.
Copper futures were little changed during afternoon trade in the domestic market on Monday as investors and speculators remained on the sidelines in the industrial metal as supply worries eased after end of a strike at Peru's biggest copper mine.

Further, workers at Freeport-McMoRan Inc's Cerro Verde mine ended strike and it is coincided with the Escondida mine in Chile where workers resumed operations. At the MCX, copper futures for April 2017 contract is trading at Rs 380.70 per kg, down by 0.01 per cent, after opening at Rs 380.80, against a previous close of Rs 380.75. It touched the intra-day low of Rs 379.05.Zinc mines in Huayuan County, Hunan Province were forced to slash or suspend production recently since the region stepped up environmental protection. Some mines that had passed inspections were also affected by this round of environmental protection and will delay restarts until late April or early May, SMM understands.  

Oil prices fall as Libya's output rebound boosts supply.
Oil prices fell on Tuesday as a rebound in Libyan oil production combined with an increase in U.S. drilling to signal the potential for increased crude supply. U.S. oil may drop to $49.62 per barrel as it failed to break a resistance at $50.95, said Wang Tao, a Reuter’s market analyst for commodities and energy technical. Brent oil may also retrace its steps back to $52.79 per barrel. Oil prices fell as increased drilling in the United States and a rebound in Libyan output weighed on investor sentiment," said ANZ bank in a note.

Libya's crude output increased after state-owned National Oil Corp (NOC) lifted a force majeure on loadings of Sharara oil from the Zawiya terminal in the west of the country, sources familiar with the matter told Reuters. U.S. drillers last week added rigs for an 11th week in a row, data from energy services company Baker Hughes showed on Friday, extending a 10-month drilling recovery. OPEC producers are also raising output. Iran's exports of crude oil and gas condensate hit a record 3.05 million barrels per day (bpd) by March 20, the end of the Iranian month of Esfand, according to a report by the Islamic Republic News Agency (IRNA). Oil market continues to look for signs of a tightening market as concerns linger that compliance with producer-led output cuts remains insufficient to erode a supply glut and the United States raises oil output.

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