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Existing Home Sales and Commodity Market Tips

Crude Oil during the evening session on Thursday we had the inventory report from the US Department of Energy which said crude stocks in the country rose by 973,000 barrels to 362.3 million while touched its highest levels since December last year. While the increase in crude stocks was lower than expected, markets were keen to look at the movement in the distillate front. Distillate stocks which includes heating oil and diesel fell by just fell 339,000 to 112.7 million; highly lower than expectations despite a stubbornly higher winter season in the US. Separately gasoline stocks increased and put a negative shadow over the black liquid. Losses in the commodity however were limited as markets took positivity out of the inventory scenario at Cushing. Supplies at Cushing, Oklahoma slipped as oil pipeline by TransCanada Corp started draining the liquid towards the gulf coast recently. Inventories at Cushing fell by 1.73 million barrels to 35 million barrels; its lowest since October last year. Overall drop in the last three weeks has stood just under 6 million barrels for the commodity for the Cushing platform and a important positive indicator for WTI in short-term. Looking at the overall cues for the commodity in Intra-day we are having a mixed outlook for the day as on one side the inventory report published by the US DoE was mixed to marginally weak though the winter season demand continues in the US. In other market updates, equities in Asia are positive and could support against any major drop in prices during the early trade on Friday. We have a ranged view for the commodity in today’s session though would look for selling or buying based on the developments in the latter half of the day Global market analysis: Most Asian markets are trading positive this morning taking cues from the overnight US equities which ended on a higher note. From the global front, US dollar was heading for a first weekly advance while euro currency is still managing to trade above $1.3700. The Japanese Yen is trading weak above 102 marks against the US dollar this morning as the economy recorded a huge trade deficit. Coming to crude oil, WTI April future contract is currently trading at $102.73, the weekly inventory numbers released last night in the US was less significant while it might have had a slight negative impact on prices. For the day we believe this commodity to remain muted and trade in a very mixed note. There are several factors playing out related to crude oil, inventory numbers faded having no impact on oil prices, US winter continues to be a worry, prices are trading at good higher levels and money managers are hoping it to trade strong. Looking at the basket full of sides we believe it may trade in a mixed note and we do not intend to hold any strong trade idea on oil today. There are no significant data today except the US existing home sales number. Commodity Market Tips GOLD MCX APR SELL BELOW 29850 SL 29960 TGT 29750-29650 Today Economic Data Indicators: DATE

TIME

Region

Indicator

Period

Survey

Prior

21.02.14 21.02.14 21.02.14 21.02.14 21.02.14 21.02.14

15:00 15:00 15:00 20:30 20:30 20:30

UK UK UK US US US

Retail Sales E Auto Mom Retail Sales Incl. Auto MoM Public Sector Net Borrowing Existing Home Sales Revision Existing Home Sales Existing Home Sales MoM

Jan Jan Jan --Jan Jan

-1.00% -1.00% -9.08 ---4.70M -3.50%

2.80% 2.60% 10.4B --4.87M 1.00%


Existing home sales and commodity market tips