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Oil futures traded lower in Wednesday’s early trade after US crude stockpiles grew more than expected, adding to worries about oversupply.

MCX Crude was down 0.39 per cent at Rs 3054 per barrel. On the other hand, precious metal gold was up 0.36 per cent due to safe-haven demand for the yellow metal.

Here is how SMC Global expects commodities to fare today:

Spices: Turmeric futures (July) is expected to witness a bull run towards Rs 5,800, taking support near Rs 5,650 levels. There is huge demand for by-products of turmeric, especially for its naturally-occurring chemical compound curcumin, in the pharma industry. Jeera futures (July) may show weakness and trade with a bearish bias in the range of Rs 13,700-13,900 levels. The farmers are sitting on huge inventories of cumin as this season there was bumper yield and due to lockdown, the movement of produce was limited. Dhaniya futures (July) is expected to trade sideways in the range of Rs 6,000-6,150 levels.

Oilseeds: Soybean futures (July) is expected to consolidate in the range of Rs 3,810-3,870 levels with upside getting capped. Mustard futures (July) may witness correction towards Rs 4,600 owing to profit booking from higher levels. Higher stocks with farmers, processors, stockists, and government agencies and lower exports of mustard meal would also check further rise in prices. Soy oil futures (July) is expected to trade sideways to down in the range of Rs 823-835 levels. CPO futures (July) may see some correction towards Rs 690 levels. Malaysian palm oil futures bounced back as crude prices rose, but gains were limited by fears that the surge in demand and exports would eventually lose steam if there is a second wave of Covid-19 infections.

Bullion: Gold may test Rs 48,500 by taking support near Rs 47,900 while silver may test Rs 49,000 by taking support near Rs 48,400.

Base Metals: Copper can move towards Rs 442 while facing resistance near 452. Zinc may move towards Rs Rs 158 and facing resistance near Rs 164. Lead can move towards Rs Rs 145 while taking support near Rs 140. Nickel may trade with bearish bias where it may test Rs 948 and facing resistance near Rs 965. Aluminum may move towards Rs 132 while facing resistance near Rs 136.

Energy: Crude oil may continue to trade with bearish bias where it may test Rs 2,950 by facing resistance near Rs 3,100. Natural gas may bounce towards resistance and test Rs 129 and take support near Rs 122.

Other Commodities: Cotton futures (June) is expected to witness further correction towards Rs 15,700-15,600 levels. Chana futures (July) is likely to trade sideways in the range of Rs 4,200-4,260 levels. Mentha oil futures (June) may take support near 990 and the downside may remain capped. With the ease of lockdown, the market participants are expecting that the exports as well as the domestic consumption would catch pace and the fresh demand would come into the market for the newly harvested crop, containing high yield of oil. Guargum futures (July) is expected to hold on to the support near Rs 5,550, while the upside may get extended towards Rs 5,650-5,700 levels.



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