Gold prices rose as the dollar fell on technical factors and weak U.S. economic data.
“Many participants thought that another increase in the target range for the federal funds rate was likely to be warranted in the near term”, the Fed said in the minutes. The details of the meeting, at which the U.S. central bank voted to leave rates unchanged also showed that several Fed members said future rate increases would depend on data showing that the trend of sluggish inflation subsided
Minutes from the November Federal Open Market Committee meeting indicated solid views on growth – the labor market, consumer spending and manufacturing all were showing solid gains. While there were disagreements on the pace of inflation, sentiment otherwise was largely positive. “In their discussion of the economic situation and the outlook, meeting participants agreed that information received since the FOMC met in September indicated that the labor market had continued to strengthen and that economic activity had been rising at a solid rate despite hurricane-related disruptions,” the minutes stated.
Inventories of crude fell by roughly 1.9mbls for the week ended Nov. 18, beating expectations of a draw of 1.6mbls. Crude oil stockpiles fell for the first time in three weeks. The rally in oil prices comes as the Opec meeting slated for Nov. 30 draws closer amid expectations that Opec will agree to extend its production cuts beyond March, when the current phase of output curbs is set to expire.
Tight stock positions due to restricted arrivals from the major producing belts of Chandausi is also giving support to the mentha prices. With the onset of winter the seasonal and export demand of mentha is improving which is also one of the reasons for rise in prices. Stock positions of mentha in MCX accredited warehouses were around 8537 drums which is 192 drums less in comparison to the previous day, while in process were 408 drums which is same against the previous day.
Total exports of soy oilmeal in the first seven months of the fiscal started April is almost 5 times higher to 5.37 lakh tons compared to 1.07 lakh tons last year. There are 7 states that were reported at 100% harvested. The USDA showed soybean export inspections at 2.131 mt for the week of November 16 was 2.46% lower than the previous week and 20.3% below this week last year.
The government has also increased the duty on soybean to 45% from 30%. As per latest SEA import report, Soybean oil imports slumped 21% to 220,200 tons in October from a year earlier while imports dropped during the oil year ended Oct. 31 by 22 % to 3.32 mt. NOPA said that its members crushed 164.242 million bushels of soybeans in October, up from 136.419 million bushels in September whereas it was recorded 164.641 million bushels for corresponding month in last year.