MCX Crude Oil Tips

Crude oil futures continued to trade lower in Asia electronic session today as Tropical Cyclone Sandy shut East Coast refineries, roads and airports, reducing crude and fuel demand in the world's largest oil consumer.

Fuel supply into the region almost ground to a halt as Sandy, one of the biggest storms ever to hit the United States, forced the closure of two-thirds of the region's refineries, its biggest pipeline, and most major ports.

WTI crude oil futures for December edged down 25 cents to $85.29 in Asia electronic session today.

The national average retail price of regular gasoline fell 11.9 cents a gallon to a three-month low of $3.568 a gallon in the week ended Monday, the Energy Information Administration said. The 3.2% drop in the week put the price at the lowest since July 30.

Global markets were subdued on the closure of New York stock exchanges, with Asian shares making modest gains. Sandy battered the U.S. East Coast, prompting the closure of air, ship, rail and even highway services, and knocked out power to more than 2.8 million homes and businesses in the region.

Sandy will close U.S. stock markets for a second day on Tuesday, as Wall Street turned its attention to whether markets would be able to resume functioning for the month's final trading day on Wednesday.

The American Petroleum Institute said on Monday it has not delayed the release of its weekly petroleum stocks report yet, but it will continue to assess conditions.

MCX November crude futures may open today’s session near Rs 4650 levels with support around Rs 4600 levels.

Chana updates

Advisory Data:-

Saturday buying continued in chana futures on the back of strong millers offtake along with sharp gains in local mandies. The NCDEX futures swelled by almost Rs 132 per quintal today
Strapping millers offtake ahead of festival demand spurred strong gains in both spot and futures market. Most of the millers of North India have witnessed active buying interest in local mandies. Moreover, poor moisture content in some parts of the chana growing states also added speculative demand in local mandies.
The spot prices of chana such as Akola and Latur variety increased by almost Rs 75-100 per quintal today from the previous day to trade at around Rs 4500-4650 per quintal with the total arrivals of 35 thousand bags.
The NCDEX November Chana contract increased by almost Rs 132 per quintal to settle at Rs 4530 per quintal in today's trading. The contract pared 800 positions in open interest indicating short covering by speculators and traders.

Chill updates

Selling might continue in chilli futures at every spurt in the wake of new arrivals in Madhya Pradesh mandies coupled with favourable crop condition in Andhra Pradesh and Karnataka. The NCDEX futures wilted Rs 105 per quintal in the last trading.
The major mandies of Madhya Pradesh such as Bediya , Indore and Mandsaur have reported the average daily arrivals of around 1000-1500 bags of new crop . These are likely to gain momentum after October 15. Moreover, most of the chilli growing regions of Andhra Pradesh such as Guntur and Khammam also witnessed the favourable rainfall from the last ten days . This might also encourage the better productivity of chilli crop.
The total daily arrivals of chilli reported at around 10 thousand bags at Guntur mandi. While the spot prices of chilli S334- quality were trading at Rs 5200-5400 per quintal and Teza New quality at Rs 7200-7500 per quintal , down almost Rs 100 per quintal in the last day.
The NCDEX November Chilli contract declined by almost Rs 105 per quintal to settle around its new contract low of Rs 5150 per quintal in the previous day. The contract pared 30 positions in open interest indicating long liquidation by speculators and traders. Technically, prices are likely to witness some selling around Rs 5210-5215 per quintal while supports are likely at Rs 5120-5130 per quintal in the short term.