SMC’s commodity updates for Oct 17 | commodity outlook for the day |

Crude Oil

Crude  oil  may  open  on  firm  path  as  it  can  move  in  range  of  3310-3400.  Oil prices  closed  in  on  the  highest  level  in  six months as a conflict in Iraq spilled over into one of the nation’s key crude-producing hubs. Iraqi forces on Sunday  launched a campaign to retake control of the area surrounding Kirkuk, an ethnically diverse area controlled by the  semiautonomous Iraqi Kurdistan region.  Government troops  took control of the North Oil Company ,  a military base  and airport. Iraqi Kurdistan produces between 500,000 and 600,000 barrels a day of oil. Turkey ,  which is  allied with  the  central  government  in  Baghdad,  has  threatened  to  shut  down  a  pipeline  that  carries  Kurdish  oil  to  the  Turkish  port  at  Ceyhan.  Natural  gas  may  move  in  range  of  188-194.

Base Metals

Base  metals  complex  may  witness  profit  booking  at  higher  levels  as  US  industrial  production  can  give  further  direction to  the  prices.  Copper  may  trade  in  range  of  458-468.  Aluminum  can  move  in  the  range  of  136-139  in  MCX.  Nickel  can move in range of 755-775. Lead can hover in the range of 162-167 . Zinc may move in range of 205-210. London copper  paused  for  breath  near  three-year  highs  on  T uesday  as  it  faced  headwinds  from  a  stronger  dollar ,  but  renewed optimism  over  China’s  economic outlook  has  lent  support  to  prices.  China’s  producer  profits  and  copper  imports  have picked up, recent data showed, even as China’s economic growth is expected to ease to 6.8 per cent in the third quarter  from  6.9  per  cent  in  the  previous  quarter  due  to  a cooling property  sector  and  the  government’s  battle  against debt risks. Rio Tinto cut its mined copper production guidance for 2017 to 460,000-480,000 tonnes from 500,000-550,000  tonnes  owing  to  a  delayed  ramp-up  at  its  Chilean  Escondida  mine.

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