Crude Oil futures Ended Higher in the Domestic Market

Stock Market News: Crude oil futures ended higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity after service activity in the US picked up a gear last month while private sector payrolls topped the 200K mark, signaling momentum in the world’s biggest economy, lifting the demand outlook for the fuel.

The gauge measuring US service activity rose to 56.9 in February from 56.7 in January, with a reading above 50 signaling expansion. American companies boosted payrolls by 212,000 in February, following 250,000 in January which was revised upwards.

Investors cast aside bearish US supplies data which showed an eighth straight uptick in US crude inventories last week to a record high, threatening to boost a supply glut. US oil supplies climbed 10.3 million barrels to 444.4 million barrels in the week closed 27 February 2015, the biggest weekly profit gain in 14 years.

Stockpiles at Cushing, the biggest US oil storage hub, rose by 536,000 barrels last week while refinery utilization dropped by 0.8 percentage points. US oil production rose for the fourth week on the trot, to 9.3 million barrels per day last week.

Oil may decline today amid rising US supplies and as Saudi Arabia signaled that it will not cut down on output as it defends market share. Crude oil futures, for the March 2015 contract, closed at Rs 3,163 per barrel, up by 0.80 per cent, after opening at Rs 3,148, against the previous close price of Rs 3,138. It touched an intraday high of Rs 3,200 till the closing.

Chana prices closed lower by 0.33 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the steady sowing progress of pulses along with high supplies in major producing states. Chana futures for April 2015 contract ended at Rs. 3,672 per quintal, down by 0.33 per cent, after opening at Rs. 3,680 against the previous closing price of Rs. 3,684. It touched the intra-day low of Rs. 3,643.

Mustard seed prices closed higher by 0.24 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the decline in the supply for the commodity in the major markets. Mustard seed futures for April 2015 contract ended at Rs. 3,395 per quintal, up by 0.24 per cent, after opening at Rs. 3,390 against the previous closing price of Rs. 3,387. It touched the intra-day high of Rs. 3,397.

Maize prices closed higher by 1.03 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of a rise in the demand from exporters and poultry industries. At the National Commodity & Derivatives Exchange Limited, maize futures for April 2015 contract closed at Rs. 1,272 per quintal, up by 1.03 per cent, after opening at Rs. 1,260 against the previous closing price of Rs. 1,259. It touched the intra-day high of Rs. 1,284.

Jeera prices closed lower by 2.95 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) on account of a surge in the supply from the producing regions in the midst of a decline in the export demand. Jeera futures for March 2015 contract closed at Rs. 14,485 per quintal, down by 2.95 per cent, after opening at Rs. 14,900 against the previous closing price of Rs. 14,925. It touched the intra-day low of Rs. 14,455.

Barley prices closed higher by 0.91 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of strong demand from beer and cattle-feed making industries against the restricted supply in physical markets. At the NCDEX, barley futures for April 2015 contract closed at Rs. 1,166 per quintal, up by 0.91 per cent, after opening at Rs. 1,153 against the previous closing price of Rs. 1,155.5. It touched the intra-day high of Rs. 1,168.

Gold futures ended bigger in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal after a top US Federal Reserve official urged policymakers to hold off interest rate increases until next year to help inflation reach the central bank’s 2 per cent target by 2018, bolstering the appeal of the bullion as a store of value. Gold futures for April 2015 contract closed at Rs 26,547/10 gram, up by 0.45 % after opening at Rs 26,411, against the last ending price of Rs 26,427. It touched the intra-day maximum of Rs 26,579 till the ending.

Zinc futures ended bigger in the domestic market on Wednesday as investors and speculators booked fresh positions in the industrial metal after service activity in China expanded at a quicker pace in February, signaling a pickup in the world’s biggest economy, lifting the demand outlook for industrial metals. The China services gauge climbed to 52 in February from 51.8 in January, with a reading above 50 signaling expansion. Moreover, a combined gauge measuring Euro area manufacturing and services rose to a seven-month high of 53.3 in February from 52.6 in January, signaling strong momentum in the 19 member economies, assisting zinc. Zinc futures for March 2015 contract closed at Rs 126.60/1 kg, up by 0.80 per cent after opening at Rs 125.75, against the last closing price of Rs 125.60. It touched the intra-day high of Rs 127.15 till the closing.

Natural Gas futures overflow in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity as forecasts showed a blast of cold air heading into the US, lifting the demand outlook for the hearing fuel. The MDA Weather Services predicted below-normal temperatures across most of the lower 48 states over the next five days. Natural Gas futures for March 2015 contract closed at Rs 173.70 per 1 kg, up by 2.42 per cent after opening at Rs 170, against the previous closing price of Rs 169.60. It touched the intra-day high of Rs 174.30 till the closing.