Thursday, August 1, 2013

MCX Gold Slips Even As Rupee Falls

Domestic gold futures on Multi Commodity Exchange slipped today even though the Rupee appreciated and the international gold futures surged.
MCX October gold futures are trading down nearly Rs 20 at Rs 28038 per 10 grams extending yesterday’s losses of more after than 1%. The counter may find support near Rs 27900 and Rs 27750 levels.
The rupee today dropped by 28 paise to 60.68 in late morning deals on the back of a strengthening of the US currency overseas despite a recovery in the equity market. The rupee resumed lower at 60.70 per dollar as against the last closing level of 60.40 at the Interbank Foreign Exchange (Forex) market and dropped further to 60.84.
In the global market, a key gauge of the dollar's performance rose in the early trade, clawing back from multi-week lows suffered after the US Federal Reserve offered no clues as to when it plans to slow the pace of monetary stimulus.
A key gauge of the U.S. dollar’s performance rose on Thursday, clawing back from multi-week lows suffered after the U.S. Federal Reserve offered no clues as to when it plans to slow the pace of monetary stimulus.
The ICE dollar index, which tracks greenback’s movement against six rivals, rose to 81.715, up from 81.464 late Wednesday in North America. The euro on Thursday fell to $1.3272, down from $1.3332 on Wednesday, and the British pound declined to $1.5162 from $1.5248.
Policy decisions were due from both the European Central Bank and the Bank of England later Thursday. Improving economic data can bolster the view that the Fed is moving closer to slowing the pace of asset purchases. The monthly jobs report due Friday marks the last key piece of U.S. data for this week
International gold futures are trading up $ 4.9 at $ 1317.9 per ounce on the COMEX division of New York Mercantile Exchange. However the metal continued to face resistance near $1350 levels.
Source by Commodity Insights

Copper Rises Amid Supportive Cues From US And China

MCX Copper
futures continued to edge higher today, as global cues remained supportive. Asian stocks edged up on a decent uptick in US GDP yesterday and lack of any further taper talk from the US Federal Reserve also supported sentiments. Copper has been strained on worries posed by Chinese demand slowdown in last few days but witnessed a good recovery this week with three week lows around $3.04 auguring as good support levels. COMEX copper is up 0.37% at $3.130 per pound right now.

The US Federal Reserve stated yesterday that the information received since the Federal Open Market Committee met in June suggests that economic activity expanded at a modest pace during the first half of the year. Labor market conditions have shown further improvement in recent months, on balance, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has been strengthening, but mortgage rates have risen somewhat and fiscal policy is restraining economic growth. The US economy grew at an annualised rate of 1.7% in the second quarter of 2013, largely in line with the expectations after the recent surge in housing and consumer confidence data.

Meanwhile, today, China's manufacturing PMI improved slightly from 50.1 in June to 50.3 in July, but was still close to the neutral level of 50. The July reading indicates that the growth momentum of China's manufacturing sector has stayed weak, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing. Ten of the twelve sub- indices were higher than their respective levels in the previous month. The rise in the headline PMI in July was largely due to the accelerating growth of output.

The US dollar has come off its six week low against the Euro and could gain further ahead of the monetary policy meetings of the ECB and the BOE. However, copper is placed rather well given the US GDP figures and Chinese manufacturing data. Unless the US dollar launches a massive rally, the metal should hold on. MCX Copper futures broke above Rs 420 per kg levels yesterday and currently trade at Rs 421.90, up Rs 0.35 per kg on the day.

Source by Commodity Insights

Wednesday, July 31, 2013

Economic Buzz: Japan's Manufacturing Growth Slows In July

Manufacturing sector growth in Japan moderated in July, a survey by Markit Economics showed Wednesday. The seasonally adjusted Markit/JMMA purchasing managers' index, that measures performance of the factory sector, fell to 50.7 in July from June's 28-month high of 52.3. PMI readings above 50 indicate expansion of the sector, while readings below 50 suggest contraction.
New orders increased for a fifth month running in July. New export orders also increased, but the pace of growth slowed since June. Both input and output prices increased in July, the survey found.
Source by Commodity Insights

Oil Inches Up Ahead Of Fed; Jobs

Crude oil futures inched up on value buying in the Asia electronic session today after the commodity tumbled to the lowest level in more than three weeks yesterday as traders awaited a reading on U.S. economic growth and an update on the Federal Reserve's stimulus measures.
Light, sweet crude futures for delivery in September are trading up 22 cents at $ 103.30 per barrel on the New York Mercantile Exchange. Light, sweet crude for September delivery settled $1.47, or 1.4%, lower at $103.08 a barrel its lowest finish since July 3.
In the economic front today, Japan's manufacturing grew at a slower pace this month, though still registered expansion, according to the Markit/JMMA Japan manufacturing Purchasing Managers' Index, released Wednesday. The headline index fell to 50.7 from June's 52.3, but remained above the 50 level -- the dividing line between growth and contraction -- for the fifth straight month.
Chinese stocks rose Wednesday after state media said the Communist Party's politburo vowed to keep economic growth steady in the second half of the year despite what it said were "extremely complicated domestic and international conditions." The Xinhua news report Tuesday carrying the statement didn't specify a growth level that it would defend. China's gross domestic product rose 7.7% in the first quarter and 7.5% in the second quarter.
The American Petroleum Institute reported a decline in U.S. inventories in its separate survey released late Tuesday. The industry group said crude stockpiles last week declined 740,000 barrels.
Investors are likely to remain cautious ahead of the second-quarter gross domestic product data and Fed statement Wednesday. The weekly crude stockpiles data is also due Wednesday. On Friday, traders will shift their focus to the Labor Department's closely watched nonfarm payrolls for the month of July. The release will offer clues on the health of the U.S. jobs market.
MCX August crude oil futures may open today’s session near Rs 6280 levels with resistance near Rs 6315-30 levels.
Source by Commodity Insights

Tuesday, July 30, 2013

Technical Comment For Day: Crude Oil

Crude Oil settled at Rs 6251 per barrel, up 0.84%. The prices are shaping on the lower side similar to the open interest that is dipping with every passing session. The decline in open interest is an indicator that the path of Crude will become more skewed between upside and downside. The support for Crude is at Rs 6150, which is also its trend line support, intact from 9 July 2013.
Source by Commodity Insights

Oil Extends Losses In Asia

Crude oil futures slipped below $105 a barrel in the Asia electronic session today pressured by strength in the US dollar. The energy commodity is also undermined by growing concerns over the outlook for energy demand in China, ahead of manufacturing data from China and a statement on monetary policy from the U.S. Federal Reserve due this week.
Crude oil for September delivery is trading down 24 cents at $104.31 per barrel on the New York Mercantile Exchange. Yesterday, it fell 15 cents, or 0.1%, to settle at $104.55 a barrel. On Friday, the contract fell 79 cents to $104.70 a barrel.
The ICE dollar index, a gauge of the greenback’s movement against six other major currencies, rose to 81.711, up from 81.663 late Monday in North America. The euro bought $1.3260, little changed from $1.3263, while the British pound fell to $1.5339 from $1.5349.
On the data front today, Japan's industrial production took an unexpectedly sharp drop in June, falling a seasonally adjusted 3.3% from May, though manufacturers offered an upbeat outlook for the current month, the Ministry of Economy, Trade and Industry reported Tuesday.
Meanwhile, Japanese consumer spending made a surprise downturn in June, though the unemployment rate eased in the same month, the Finance Ministry reported Tuesday. Spending by households of two or more people fell 0.4% on a price-adjusted basis compared to a year earlier. On a brighter note, the unemployment rate eased to 3.9% in June -- an almost five-year low.
MCX August crude oil futures may open today’s session near Rs 6240 per barrel with support around Rs 6190 levels.
Energy investors have a busy week of economic updates to consider, including the first look at second-quarter growth in the U.S. and more manufacturing data from China for July. Last week, oil prices suffered their first weekly loss in five weeks after HSBC data showed manufacturing activity in China fell to an 11-month low in July.
A statement on monetary policy is due from the Fed on Wednesday, followed by statements Thursday from the European Central Bank and the Bank of England. The markets will watch for any language from the Fed that hints at the timing of when it will start tapering monetary stimulus. The central bank’s bond-buying program, part of a strategy to encourage economic growth, currently runs at $85 billion a month.
Powered by Commodity Insights

Monday, July 29, 2013

Hot Commodities: Natural Gas Tumbles Near Six Month Lows

The US Natural Gas futures tumbled to near their six-month lows today as traders continued to sell the commodity amid a weak global economic backdrop. Prices have also been hit in the last few days on ideas that after predictions that most of the eastern U.S. will see seasonal temperatures, with lower readings in the Midwest. Today, the benchmark US contract slipped nearly 2% to quote at $3.497 per mmbtu as Asian stocks were pushed lower.

Natural Gas stockpiles rose by 41 billion cubic feet last week to 2.786 trillion, below the five-year average gain of 53 billion for the period, an EIA report yesterday showed. A deficit to the historic average widened to 1.6 percent from 1.2 percent the previous week. Inventories were 12.5 percent below year-earlier levels, compared with 13.1 percent in last week's report.

However, the commodity could turn up on updates regarding Tropical Storm Dorian. The storm is currency on the east of the northern Leeward Islands and is moving west-northwest and may be over the southern Bahamas early July 31. The storm has maximum winds of 50 miles per hour and is expected to weaken a bit in the next day or so, the center said.

For the time being though, bearish moves engulf the commodity quite vehemently. Asian stocks have tumbled heavily, down around 1-2% with Nikkei being slammed by nearly two and half percent. MCX Natural Gas is quoting at Rs 208.70, down 2% with a massive 8.8% increase in open interest.

A deficit to the historic average widened to 1.6 percent from 1.2 percent the previous week. Inventories were 12.5 percent below year-earlier levels, compared with 13.1 percent in last week's report.
Source by Commodity Insights