Gold steadied as the dollar drifted ahead of a U.S. Federal Reserve monetary policy meeting, but bullion’s upside remained capped by strong U.S. economic data that continues to underpin the greenback.
U.S. consumer confidence surged to an 18-year high in September as households grew more upbeat about the labour market, pointing to sustained strength in the economy despite an increasingly bitter trade dispute between the United States and China.
The U.S. dollar fell with an expected Federal Reserve rate rise mostly priced in by traders, who will be looking for clues on the future pace of rate hikes from the central bank. A senior Chinese official said it was difficult to proceed with trade talks with the United States while Washington was putting “a knife to China’s neck”, a day after both sides heaped fresh tariffs on each other’s goods.
US house prices increased in July, inching forward 0.2% from June, according to the latest monthly House Price Index from the Federal Housing Finance Agency (FHFA). The previously reported 0.2% increase in June was revised upward to 0.3%.
But the president has also been sending mixed signals to the market by calling on the Organization of the Petroleum Exporting Countries (OPEC) to put a lid on the rally, saying he would sell supplies from the U.S. Strategic Petroleum Reserve, if necessary, to curb rising prices at the pump.
In a speech at the UN, Trump reiterated calls on the Organization of the Petroleum Exporting Countries to pump more oil and stop raising prices. The so-called ‘OPEC+’ group, which includes Russia, Oman and Kazakhstan, met over the weekend to discuss a possible increase in crude output, but the group was in no rush to do so.
Mohammad Barkindo, OPEC secretary general, said in Madrid that OPEC and its partners should cooperate to ensure they do not “fall from one crisis to another”. Also weighing on sentiment was an industry report showing U.S. crude stocks unexpectedly climbed last week.
Mentha oil on MCX settled down by -0.61% at 1671.6 amid subdued demand at the spot market and ample stock positions on higher supplies. Anticipation of bumper crop harvest and nearing of harvesting season adding negativity to the market.
As per preliminary estimates, acreage under mentha crop will rise this year as the farmers are encouraged by higher price in recent past. As per trade sources, all the major markets are likely to witness higher inflow of the produce. There could be chances of crop damage to certain extend due to unfavourable weather condition.
According to the data released by SEA, India’s soy meal exports down 32% on year to 59,643 tn in August due to dull demand from major importers. For Apr-Aug, India’s soymeal exports down by 4% on year at 3.72 lakh tonnes. However, there is anticipation of good physical demand for crushing due to expectations over rising exports to China.
China has shown interest in buying soybean de-oiled cake produced in Maharashtra which will help soybean prices to rise above MSP. Moreover, Government is likely to announce Rs 10,000 Crore package to ensure MSP to oilseeds farmers.
According to an official notification, government increase base import prices of all edible oils. For the second fortnight of September, base import price of crude soyoil increase to $714 per tn from $711 per tn.
As per the data from SEA, import of vegetable (cooking) oils in August jumped to 15.12 lakh tonnes from 11.19 lakh tonnes in July, as pipelines were dried up due to lesser import during June and July 2018. Soyoil degummed imports also increase by 7.7% to 312,049 tons compared to 249,746tons in August.
India’s vegoil imports in August rose 11 percent to 1.5 million tonnes from a year ago, a trade body said. The country’s imports of palm oil in August stood at 920,894 tonnes, while soyoil imports were 312,049 tonnes, the Solvent Extractors’ Association of India said in a statement.
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