Weekly Base Metals Wrap Up: Four Month Low Levels For Copper

Metals......

Commitment of traders reported that fund managers slashed 2476 long contracts taking the total towards 22064 contracts, on 19 March 2013. Meanwhile, short positions were increased by 6479 contracts to 47782 contracts. Total net short positions therefore moved up by 53% to 16763 contracts. Meanwhile, news of disruption in Copper is metal. Workers in Antofagasta and Angamos ports went to strike. The strike has threatened to disrupt supplies from Codelco, which is the largest producer of Copper in the world.World Copper surplus situation has started growing as per the latest update by International Copper Study Group (ICSG). The group monthly release showed that the Copper markets were in production surplus of 170000 tonnes in the month of December 2012.
bringing no support to the
The production surplus of Copper for November 2012 was 30000 tonnes. The major reason given was the lower usage in major consuming regions of Copper. Another worry is the stupendous rise of LME Copper inventories that has reached a 10 year high in London Metal Exchange and increased by 78% since January 2013 to reach 569775 tonnes. LME three month Copper forwards ended at $ 7613 per tonne, down $ 42 per tonne from last week. These are four month low levels for Copper.
Source by Commodity Insights

Weekly Energy Review: Recovering Risk Appetite Takes Crude Higher

Oil....
NYMEX light sweet Crude Oil for May delivery ended at $ 97.23 per barrel, up 3.7% in the week. The Energy Information Administration (EIA) reported that the Crude oil inventories in US increased by 3.3 million barrels to 385.9 million barrel for the week ending 22 March 2013. The week proved fruitful for US benchmark Crude oil futures as it tested a one month highs on the news of Cyprus bailout.
Recovering risk appetite in the world resulted in the rise of Crude oil futures even as the inventories moved up in the holiday shortened week. The prices in coming days will be riding on further clarity of bailouts in other Eurozone countries and the rising Crude oil stockpiles.
Crude oil participants are also keeping an eye on the reserved in Cushing Okla. The reserves in the region can dip bringing an impact on the overall prices of Crude oil in NYMEX exchange. Meanwhile, Oil output in OPEC is anticipated to reach lowest levels since October 2011. The supplies are expected to average at 30.18 million barrels per day, down 30.42 million barrels per day in February.
The decline is mainly on account of disruptions of supplies in Libya, exporting problems in Iraq and news of pipeline leaks in Nigeria. In October 2011, OPEC had produced 29.81 million barrels per day of Crude Oil.
Source by Commodity Insights

Copper Dented By High Inventories

Copper.....

MCX Copper futures continue to stay under pressure amid failure of the LME Copper to hold on to its gains. The global prices edged up yesterday following reports that troubled nation Cyprus finally reached a deal with its European and international lenders. This calmed worries pertaining to its financing conditions in the short term though the financial markets witnessed renewed selling that such a rescue could turn out to be the blue print for official assistance to the other debt heavy economies too.

It means that the bank depositors in these economies might need to take a substantial haircut in case if these economies also go through the wringer. LME copper has also been hit by decade high inventories and failed to hold on above $7700 per tonne yesterday. The metal now quotes at $7621, down $11 per tonne on he day.

US and European markets fell as the initial euphoria pertaining to the Cyprus bailout wore off. The sentiments in world markets had improved after the cash-strapped European island nation managed to carve out a bargain with the European Central Bank (ECB), the European Commission and the International Monetary Fund — collectively known as the Troika — clearing the main hurdle to securing 10 billion euros ($13 billion) in crucial financing.

Last week, Copper futures edged up on bargain hunting after the spate of selling witnessed earlier. The world equities extended losses as the worries pertaining to Cyprus yet again triggered a sell off though copper benefited from a rather lax undertone in US dollar and ideas that Chinese growth would stay on track.

LME Copper inventories extended their rise though. The warehouse stocks jumped by 2850 tonnes to 565350 tonnes yesterday. The warehouse stocks are currently at a ten-year high. This could keep a tab on the metal today even if the equities extend their rise. MCX Copper futures for April failed to garner much of gains and slipped from highs near Rs 420 per kg. The counter quotes at Rs 415.60, down Rs 0.50 per kg on the day with 3% increase in the open interest.
Source by Commodity Insights

LME Inventories Data - 26 March 2013

All figures in tonnes
Source by Commodity Insights

Oil Jumps Above $94 On Cyprus Deal

Oil....

Crude oil futures jumped above $94 per barrel in Asia electronic session today on news that Cyprus and its international lenders reached a bailout agreement removing fears of the nation's exit from the euro zone.
Under the broad terms of the bailout agreement, Cyprus will receive 10 billion euros ($13 billion) in bailout funds for its banks, while depositors holding less than €100,000 in their accounts will be spared from any deposit taxes.
Light sweet crude futures for delivery in May are trading up 40 cents at $94.11 per barrel on the New York Mercantile Exchange. On the week, New York-traded oil futures gained 0.3%, the third consecutive weekly gain.
In the week ahead market participants will also be watching German data on retail sales on Tuesday amid concerns over the economic outlook for the euro zone and an Italian government debt auction on Thursday.
Oil traders will also be looking ahead to a flurry of data from the U.S., including reports on durable goods orders, home sales and consumer confidence.
At the same time, U.S. oil stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures, are declining as new pipelines relieve a supply glut there. Indications that the U.S. economy is improving has also lifted sentiment on the New York-benchmark.
MCX April crude oil futures may open today's session near Rs 5120 levels with resistance near Rs 5140 levels and support near Rs 5100 levels.
Source 
 by Commodity Insights

Gold Cheers Cyprus Deal

Gold......

Gold futures are trading with steady gains in the Asia morning session Monday cheering the news that Cyprus reached a tentative deal to unlock crucial financial aid. Gold is likely to trade in the range of $1570-$1620 levels this week.
Under the broad terms of the bailout agreement, Cyprus will receive 10 billion euros ($13 billion) in bailout funds for its banks, while depositors holding less than €100,000 in their accounts will be spared from any deposit taxes.
Asian stocks also rallied as news that Cyprus and its international lenders reached a bailout agreement removed fears of the nation's exit from the euro zone, also helping boost U.S. equity futures, euro and crude-oil.
Japan's Nikkei Stock Average and South Korea's Kospi jumped 1.5% each, while Hong Kong's Hang Seng Index added 0.6%, and Australia's S&P/ASX 200 index climbed 0.5%. On the downside, the Shanghai Composite Index fell 0.1% in choppy trading.
Gold futures for April delivery are trading up $4.1 at $1610.2 an ounce on the Comex division of the New York Mercantile Exchange. It posted a gain of 1% on the week, the third consecutive weekly advance.
Sentiment on the precious metal remained upbeat after the Federal Reserve reiterated its commitment to its asset purchase program despite signs of a strengthening U.S. economy. The U.S. central bank announced Wednesday that it will leave its loose monetary policy unchanged, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
In the week ahead market participants will be looking ahead to a flurry of data from the U.S., including reports on durable goods orders, home sales and consumer confidence.
MCX April gold futures may open today's session near Rs 29700 levels with resistance near Rs 29740 levels and support near Rs 29640 levels.
Source  by Commodity Insights

Gold Bends Down After Gains

Gold......

Gold futures bent down today, however the losses were limited due to weakness in the Asia markets and US dollar also displayed some fragility today. Also the Fed’s announcement that it will leave its loose monetary policy in place should support the metal.
Gold for delivery in April fell $1.8 to $1,612 an ounce in Asia trading hours on the Comex division of the New York Mercantile Exchange. Yesterday, the precious metal added $6.30, or 0.4%, to settle at $1,613.80 an ounce, boosted by a drop for U.S. stocks and concerns over the financial crisis in Cyprus.
However, safe-haven buying looked to be taking a breather Friday. The ICE dollar index , which measures the greenback against a basket of six rival currencies, fell to 82.748, down from 82.833 late Thursday.
Japanese stocks tumbled Friday as the yen firmed up a day after the new Bank of Japan governor offered few new details on future policy, while Hong Kong shares fell after weak results from PetroChina Co.
Many Asia markets suffered from heightened worries over Cyprus after the European Central Bank (ECB) issued a deadline to its parliament for meeting the terms of a proposed bailout, an issue which also hurt stocks on Wall Street overnight.
Meanwhile, the Fed announced Wednesday that it will leave its loose monetary policy in place, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
Fed officials reaffirmed their commitment to keeping short-term interest rates at record low levels at least until unemployment falls to 6.5%. The current unemployment rate is 7.7%. Elsewhere, the European Central Bank announced that it will continue to supply emergency funding to Cyprus's banks until next Monday.
MCX April gold futures are trading down nearly Rs 70 at Rs 29764 per 10 grams. The counter may find support near Rs 29700-650 levels with resistance near Rs 29830 levels.
Source by Commodity Insights

Back Oil Rises In Asia After Recent Losses

Oil.......

Crude oil futures rose in the Asia electronic session today as the traders bought the commodity after it tumbled down more than 1% yesterday, knocked lower by concerns over the ongoing debt crisis in Cyprus and worries it could spread further into Europe.
High U.S. oil inventories and weak demand in the world's biggest oil consumer also kept prices down. The Energy Information Administration reported Wednesday U.S. crude-oil stocks fell by 1.3 million barrels last week, while analysts expected a 1.7-million barrel rise. The surprise decline followed nine straight weeks of increases that plumped up inventories by 24 million barrels.
But even with the decline, crude stocks, at near 383 million barrels, are unusually high and 12% above the five-year average for this time of year, the biggest surplus in two months. At the same time, the EIA said U.S. oil demand dropped last week to its lowest level since January.
The Fed announced Wednesday that it will leave its loose monetary policy in place, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
Fed officials reaffirmed their commitment to keeping short-term interest rates at record low levels at least until unemployment falls to 6.5%. The current unemployment rate is 7.7%.
Meanwhile, the European Central Bank has warned it won't extend beyond Monday the emergency funding that has kept Cypriot banks in operation while a bailout plan was being negotiated. The Cypriot Parliament rejected an earlier package that included a tax levy on bank accounts in the island nation, fueling fears of a run on banks, which have been ordered to close this week.
Worries about Cyprus sparked fears debt problems could flare anew elsewhere in Europe and have weighed on the euro, sending the common currency down against the dollar. In times of dollar strength, some investors using foreign currencies avoid dollar-based investments such as oil futures as they become pricier due to currency issues.
Light, sweet crude oil for May delivery on the New York Mercantile Exchange are trading up 27 cents at $ 92.71 per barrel. Yesterday, it settled 1.1%, or $1.05 lower, at $92.45 a barrel.
MCX April crude oil futures may open today’s session near Rs 5060 levels with resistance near Rs 5090 levels and support near Rs 5025 levels.
Source  by Commodity Insights

Gold Trades Marginally Lower In Asia

Gold.......

Gold futures are trading marginally lower in the electronic session today, however weakness in the Asia equities continued to give safe haven appeal to the metal.
Japanese stocks tumbled Friday as the yen firmed up a day after the new Bank of Japan governor offered few new details on future policy, while Hong Kong shares fell after weak results from PetroChina Co.
Many Asia markets suffered from heightened worries over Cyprus after the European Central Bank (ECB) issued a deadline to its parliament for meeting the terms of a proposed bailout, an issue which also hurt stocks on Wall Street overnight.
April gold are trading down 0.8 cents at $1613an ounce on the Comex division of the New York Mercantile Exchange.Yesterday, it added $6.30 to settle at $1,613.80 an ounce. That's the highest settlement for a most-active contract since Feb. 26. Prices fell $3.80, or 0.2%, on Wednesday.
Gold rose to the session high after the U.S., the Department of Labor said the number of people who filed for unemployment assistance last week rose by 2,000 to a seasonally adjusted 336,000, compared to expectations for an increase of 8,000 to 342,000.
Meanwhile, the Fed announced Wednesday that it will leave its loose monetary policy in place, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
Fed officials reaffirmed their commitment to keeping short-term interest rates at record low levels at least until unemployment falls to 6.5%. The current unemployment rate is 7.7%. Elsewhere, the European Central Bank announced that it will continue to supply emergency funding to Cyprus's banks until next Monday.
The ECB said that further funding would be considered if an agreement with the European Union and the International Monetary Fund on a bailout is in place.Negotiations aimed at finding an alternative solution on a bailout deal for the tiny island continued after the country’s parliament rejected a controversial bank deposit tax in a vote on Tuesday. Cyprus needs to come up with EUR5.8 billion on its own in order to secure EUR10 billion in rescue loans from international creditors.
MCX April gold futures may open today’s session near Rs 29770 with resistance near Rs 29830 levels and support near Rs 29700 levels.
Source  by Commodity Insights

Copper Rebounds From Four Month Lows

Copper.....

Copper prices rebounced from four month lows on falling US Dollar and traders holding shorting of metal before the two day meet of Federal Reserve. LME Copper closed at $ 7608 per tonne, up $ 40 per tonne. The metal is also up on Thursday as the China PMI data has registered strength. This has improved the sentiments as traders think that the demand situation will not be as bad as it was considered.

HSBC China Purchase Managers Index moved to 51.7 in March compared to 50.4 in the month of February. The PMI was below two year high of 52.3 but the rise on a monthly basis has been consoling the prices. LME Copper was seen trading at $ 7696 per tonne on Thursday. This has increased hopes of good opening in domestic Copper that closed at Rs 417.1 per kg, up Rs 4.3 last night. The prices can open near Rs 421 per kg.
Meanwhile, Codelco workers are demanding more clarity on administration functioning, outsourcing of labour and privatization of employee's health care. The mining strike is not expected to bring any significant disturbance in the Copper markets. Copper market is set to turn in surplus in 2013 and this is relatively blowing out any fears of price rise due to labour unrest.
Federal Reserve said last night that they will keep the bond buying programme intact till more clarity on the economic recovery was seen. US Dollar traded at 1.294 against the Euro, down 0.02% on Thursday.
Source by Commodity Insights

LME Three Month Forwards Prices- 20 March 2013

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Gold Witnesses Pre FOMC Chills

Gold.....

Gold witnessed a familiar correction today as traders booked profits ahead of the US FOMC meet though the worries triggered by the Cyprus banking crisis kept buying support in place for the yellow metal. Prices had shot up in last session, topping three-week highs of $1615 per ounce as Cypriot government rejected a EU proposed bank levy. The metal felt the useal pre FOMC chills today and came off levels near three week highs in electronic moves today to trade at $1607, down $4.30 per ounce on the day.

Gold rallied last night even as the US dollar strengthened to a four-month high of 1.2844 against the Euro after the Cypriot government overwhelmingly rejected a EU proposed bank levy. However, the greenback pared back some of these gains and was quoting around 1.2940 levels against the Euro today. Eurozone finance ministers have assured that they still stood ready to help Cyprus after the island's parliament voted down the bank deposit levy. This boosted the confidence of the market players and decent gains have trickled in the European equities today.

Former ECB president Jean-Claude Trichet said today that he was confident an appropriate solution would be found for Cyprus's banking crisis, despite lawmakers rejecting contentious bailout terms, according to media reports. The will of the international community to help is obvious, and I am confident that they will find an appropriate solution, Trichet stated. We need to be extremely cautious, extremely prudent when imposing cuts on the private sector in any rescue plan, Trichet added, but said he did not see a risk of financial contagion with whatever solution is finally decided.

FOMC decision could be a critical one for Gold today. The Fed policymakers may continue to suggest that there will not be any imminent changes to the pace of QE and that should provide a floor to the gold prices. The yellow metal jumped in local markets yesterday but witnessed a gap down opening today and slipped further once the Rs 29800 per 10 gram levels gave up. The counter quotes at Rs 29695 per 10 grams right now, down Rs 76 or 0.60% with a 9% drop in the open interest.
Source by Commodity Insights

Moderate Spike In Copper, But Demand Side Scenario Still Bleak

Copper...................

After a sharp correction in last few days in Copper the prices showed moderate spike in the LME and MCX exchanges. The most active Copper contract on MCX was trying to pick up steam and tested a high of Rs 416.9 per kg so far on Wednesday. On LME, the metal recovered from lows and was trading at $ 7603 per tonne, up $ 35 per tonne. Demand for major metals across globe is still in pretty bad shape. World biggest consumer of metals China is still absent from heavy buying in metals.
The rise in Copper today was on account of profit booking in Dollar against the Euro. Markets are also awaiting Federal Reserve policy meeting today. US Dollar was trading at 1.292 against the Euro, down 0.41%. The indications of Federal Reserve on its bond buying programme are critical for the metals. In Cyprus, an emergency meeting is being called by the President to save the country from bankruptcy.
Steel major, Baosteel has slashed the prices of stainless steel products in April. The company has decided to cut list prices of 304 grade Cold rolled stainless steel products by RMB 800 per tonne. The prices of 304 grade hot rolled steel have been slashed by RMB 400 per tonne. The list price of 304 grade cold rolled stainless steel products is at RMB 18100 per tonne. The list price for 430 grade cold rolled steel products is at RMB 16800 per tonne.
World Steel Organization has said that China Crude steel output was 61.8 million tonnes, up 9.8% in February. Global Crude Steel output was 123 million tonnes, up 1.2% in February 2013. Meanwhile, International Aluminium Institute has said that the world Aluminium output in February was 3.63 million tonnes, down 233000 tonnes.
Indian Copper has dropped to four month low levels of Rs 411.8 per kg on 19 March 2013. The prices have recovered and were trading at Rs 416.2 per kg, up 0.84%. Yesterday, Important levels of Rs 412.6 per kg were breached in the process though Copper managed to recover and settled at Rs 412.8 per kg. The breach of Rs 412 has opened new gates for Copper declines. Technical bounce towards levels of Rs 418 and further to Rs 422 per kg will bring fresh pressure in the markets.
Source by Commodity Insights

Economic Buzz: Switzerland Mar ZEW Survey Expectations Decline

The ZEW-CS Indicator of economic expectations for Switzerland has been rising for several months in a row, however, it declined during March 2013, for the first time since October 2012. The indicator decreases by 7.7 points to a level of 2.3 points, thereby stabilizing close to the neutral level of zero. This development suggests that the analysts surveyed expect a stable economic situation until this year's third quarter. The ZEW-CS Indicator is calculated monthly by the Centre for European Economic Research (ZEW) in cooperation with Credit Suisse (CS). The indicator reflects the expectations of the surveyed financial market experts regarding the economic development in Switzerland on a six-month time horizon.
Source by Commodity Insights

Cyprus Continues To Underpin Gold

Gold......

Gold futures traded steady above $1610 in the Asia electronic session today close to a three-week high as Cyprus's rejection of bailout terms triggered worries about a default and underpinned safe haven demand in gold.
Cyprus's parliament overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout on Tuesday, throwing international efforts to rescue the latest casualty of the euro zone debt crisis into disarray. The threat of a default or even expulsion of Cyprus from the euro zone drove nervous investors to seek refuge in gold.
Upbeat U.S. economic data in recent months has encouraged investors to pile money into the stock market, helping the S&P 500 index climb more than 8% so far this year. Gold, in comparison, is down nearly 4% since Dec. 31.
Investors will be closely watching the outcome of the Federal Reserve's two-day meeting on Wednesday, as well as a press conference by Fed Chairman Ben Bernanke. Any hint of tightening monetary policy would add to headwind that gold faced recently.
April gold futures are trading up 0.4 at $ 1611.7 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it surged $6.70, or 0.4%, to settle at $1,611.30 an ounce. Prices for the metal on Monday finished above $1,600 an ounce for the first time in March, up $12.
MCX April bullion may open today’s session near Rs 29800 levels with resistance near Rs 29870 levels and support near Rs 29740 levels.
Source by Commodity Insights

Back LME Three Month Forward Prices- 19 March 2013

Source by Commodity Insights

Gold Breaks $1600 On Cyprus Bailout Fears

Gold......

Gold futures broke past the $1600 an ounce levels in the mid European session today as investors sought gold as a safe haven asset as the global equity markets had a bad time today.
Global markets were jolted by news that Cyprus will receive 10 billion euros ($12.9 billion) of financial aid but with heavy conditions — notably the imposition of a levy on private bank deposits. It’s the first time depositors have been asked to contribute to a financial-rescue plan during the euro-zone debt crisis.
S&P 500 futures fell 12.9 points, or 0.8%, to 1,540.70, and Dow Jones Industrial Average futures were down 72 points, or 0.5%, to 14,361. Dow industrial futures had been down by as much as 160 points at one stage in Asia. Nasdaq 100 futures lost 27.25 points to trade at 2,763.25.
In Europe, the U.K.'s FTSE 100 index fell 1.1% to 6,420.01, while France's CAC 40 index lost 1.6% to 3,782.68. Germany's DAX 30 index traded 1.3% lower at 7,937.53.
The Cyprus news has sparked fears of renewed turmoil in the eurozone lifting appeal for the yellow metal. Gold for April delivery rose $10.10 to $1,602.7 an ounce on the COMEX division of the New York Mercantile Exchange. Silver for May delivery rose 3 cents to $28.80 an ounce.
Investors will be watching a vote in Cyprus tied to the levy, while in the U.S. a home-builders index which has been delayed till tomorrow.
MCX April gold futures may are trading up nearly Rs 200 at Rs 29549 per 10 grams, hitting a high of Rs 29644 earlier in the day.
Source by Commodity Insights

Copper futures fell for a second day to a four-month low on Monday

opper.....

Copper futures declined for a second day to a four-month low as an unprecedented levy on bank deposits in Cyprus threatens to plunge Europe back into crisis, curbing demand for metals. Last week's announced unexpected drop in US consumer confidence and increases in exchange stockpiles also weighed on the copper market.
Copper futures for most actively traded May delivery retreated 2.2 % at $3.444 per pound, on the Comex metals division of New York Mercantile Exchange. While, copper on the London Metal Exchange slumped as much as 2.7 % at $7,545.75 a metric ton.

Copper falls by 1.83% on eurozone crisis fears, strong dollar

Copper......

Copper prices fell by 1.83 per cent on Monday at the domestic markets after an unusual bailout proposal for Cyprus renewed concerns of a euro zone crisis which reduced the demand outlook for the industrial metal. The EU and the IMF agreed on a 10 billion euro bailout package for Cyprus but the aid called for a one-time levy of 6.75 per cent on deposits of less than 100,000 euros and 9.9 per cent above that to raise 5.8 billion euros, a move that may severely hit investor confidence in weaker euro area economies. At the MCX, copper futures for April 2012 contract were trading at Rs. 416.10 per 1 kg, down by 1.83 per cent, after opening at Rs. 423.50 against the previous closing price of Rs. 423.85. It touched the intra-day low of Rs. 415.25 till the trading. (At 11.27 AM today). Prices also fell as consumer confidence in the US fell to the lowest level since December 2011 in March 2013 in turn dimming the demand prospects for the metal. The consumer confidence index fell to 71.8 in March 2013 from 77.6 in February 2013, the preliminary reading of the University of Michigan and Thomson Reuters showed. Moreover, stronger dollar makes copper expensive for those holding other currencies, thus increasing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.72 per cent higher at 82.851 on the Inter-Continental Exchange (ICE) at 11.30 am IST. At COMEX, copper futures for March 2013 contract traded at US$3.4345 per pound, down by 2.44 per cent. It opened at US$3.5090 against the previous closing price of US$3.5205. It touched the intra-day low of US$3.4175 till the electronic trading. (At 11.28 am IST).

Copper Gains On Account Of Weak Dollar

Copper....

Copper was moving forward on Friday on the back of weak Dollar. The markets were trying to recover from the dullness though the upside seemed to be kept by the rising inventories on LME and Shanghai. LME three month Copper forwards was trading at $ 7822 per tonne, up $ 32 per tonne. Shanghai warehouse data for the week showed a rise of 6456 tonnes in Copper to 231875 tonnes. LME Copper inventories have reached 3575 tonnes to 525825 tonnes. US Dollar was facing profit booking by traders ahead of weekend. The Dollar was seen trading at 1.3063 against Euro. Rupee was in a minor recovery mode against the Dollar and was trading at 54.04, up 0.52%. Copper surplus this year is all over the place and the rise in inventories of metal is promoting this fact. Inventories of Copper on LME have been rising significantly and are up by almost 65% in 2013. Meanwhile, Aluminium inventories in Shanghai have increased by 14% since the beginning of 2013. Faltering demand of metals and rising supplies has been a major reason of appreciation in inventories. The most active Aluminium contract has increased by 60327 tonnes to 502622 tonnes since January 2013. In Nickel, China major producer of steel and steel products Baosteel has reduced the prices of Stainless Austenitic Coils by $ 50 per tonne. The move has been made to sustain the export orders and to adjust the prices according to the decline in the value of Nickel. The decline in demand of Europe that has already battered Nickel considerably. However, Nickel was seen trading at $ 17309 per tonne, up $ 234 per tonne. MCX Nickel was trading at Rs 935.3 per kg, up 0.30%. MCX Copper was trading at Rs 426.4 per kg, unchanged from last night. The prices were not picking up strength at all, may be evening session will be a bit different. Support for the contract is at Rs 425 per kg. Resistance for the contract is at Rs 431 per kg. Media sources have confirmed that the Oyu Tolgoi Copper and Gold project in Mongolia will begin production in June this year. Earlier there were reports that the tussle between Rio Tinto and Mongolian government over the project will impact its commercial production due to begin in June. Taxes and rising costs were the area of concern for both the parties ( Rio and Mongolian government). No decision has been taken yet on how this matter will resolve but it has been decided that they will meet next week to discuss it further. Source  by Commodity Insights

Gold Steady Ahead Of Data, Local Prices Dip On Rupee Effect

Gold......

U.S Gold futures are trading steady ahead of the U.S data release. U.S. consumer inflation, industrial production and consumer sentiment index data are due out later today and next weeks Federal Reserve meeting could be the next catalysts to provide increased action for gold, which has been noticeably lethargic in recent days. On the Comex division of the New York Mercantile Exchange, gold futures for April delivery quotes at $1591.40, up $0.80 per troy ounce, easing from $1593.20 an ounce. Silver futures quote at $28.88, up 0.07 per ounce. Euro quotes at $1.31, up 0.41% from last close. Local currency appreciated with rupee ended the day at Rs 54.03 per USD, down 0.53% from last close
Local gold futures pared the early gains as global prices eased and due to stronger rupee. The MCX April contract slumped from the high of Rs 29,420 and currently quotes at Rs 29,343, down Rs 44 per 10 grams from last close. Technically, the counter is likely to find support at Rs 29,260, Rs 29,150 and resistance at Rs 29,450, Rs 29,500 level. MCX Silver May futures eased from session high of Rs 54,485 and quotes at Rs 54,341, up Rs 52 per 1 kg. The counter is having strong support at Rs 54,290, Rs 54,000 and resistance at Rs 54,500, Rs 54,600 level.

Source  by Commodity Insights

Shanghai Aluminium Inventories Has Increased By 14% In 2013

Aluminium  
 
Aluminium inventories in Shanghai have increased by 14% since the beginning of 2013. Faltering demand of metals and rising supplies has been a major reason of appreciation in inventories. The most active Aluminium contract has increased by 60327 tonnes to 502622 tonnes since January 2013. Shanghai Aluminium contract ended at 14840 yuan per tonne, down 5 yuan on Friday. On LME, Aluminium three month forward was unchanged at $ 1977.8 per tonne. On MCX, Aluminium was trading at 0.19% to Rs 105.75 per kg.
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Commodities Buzz: Jiangxi Copper To Invest In Rare Earth Metals To Become Top Five Mining Company

Jiangxi Copper of China, which is also the largest Copper producer in the country is planning to scale up its operations in order to become top five metal company in the world. The company has plans to invest in rare earth metals and to invest further in metals in next 10 to 15 years. The report from China is that the company is also extending its scope in investments in banking and securities sector to support the goal. Jiangxi is already the second largest shareholder in the Bank of Nancheng and has established a International trading company in Shanghai with an investment of 1 billion yuan.
Source by Commodity Insights

Copper Advances Before Weekend As Jobless Claims Show Decline

Copper...
Copper advanced on Friday as jobless claims declined in US and bottom fishing picked up. LME three month Copper forwards was trading at $ 7841 per tonne, up from $ 7790 per tonne on Thursday. China measures to support its ailing metal industry by stockpiling in auguring well for metals like Aluminium that was up by $ 3 per tonne, at $ 1981 per tonne.
China is picking up metals like Aluminium and Zinc for storage so that the industry gets some support. News in the China State Reserve is going to stock further 300000 tonnes of Aluminium in order to give support to the falling prices.
In currency markets, US markets ended at 1.3002 against the Euro compared to 1.2959 on 13 March 2013. Indian Rupee closed at 54.32, down from 54.30 on Wednesday. The fall in Rupee is supporting local metal prices.
In US, Department of Labor said that the initial jobless claims fell by 10000 in the week ending 10 March 2013 to reach 332000. Four week moving average of jobless claims declined by 2750 to 346750.
MCX Copper April expiry contract settled down by 0.33% to Rs 426.3 per kg. The contract tested a high of Rs 428.6 per kg and a low of Rs 425.8 per kg. Steel material Nickel was the sole gainer among the metals space and ended at Rs 932.3 per kg, up 0.9%.
The data released by National Association of Customs this week showed that the production of Nickel in the country increased by 153.5% to 51707 tonnes in February 2013. The rise in first two months of the year was 166% to 105712 tonnes.
Source by Commodity Insights

Crude Oil Jumps Above $93

Oil....
Crude oil futures jumped above $93 a barrel in Asia electronic session today, supported by positive economic data from US and Japan indicating high demand for the commodity.
Light, sweet crude for April delivery is trading up 28 cents at $ 93.31 per barrel on the New York Mercantile Exchange. Yesterday, it settled 51 cents, or 0.6%, higher at $93.03 a barrel.

Brent crude on the ICE futures exchange for April delivery settled 90 cents higher at $109.42 a barrel. CME Group, the world's leading and most diverse derivatives marketplace, announced it reached a record in open interest for its NYMEX Brent (BZ) crude oil futures contract yesterday, March 13, 2013.
Open Interest for NYMEX Brent reached 51,642 contracts, compared to 49,305 on February 28, 2013, the last record for this contract. Trading volume for this contract is also at record highs, with average daily volume for March at 28,846 contracts.
U.S. crude futures settled higher Thursday as investors cheered a reading on the U.S. labor market that pointed to further improvements in the broader economy. The number of U.S. workers filing new applications for jobless benefits fell by 10,000 last week to a seasonally adjusted 332,000, the Labor Department said.
Further supporting the energy commodity was the data from Japan, the world leading crude oil user. The Japanese government upgraded its assessment of the domestic economy for the third straight month in March, saying it was "showing movements of picking up," as industrial production and corporate profits all showed signs of improvement.
In its monthly report released Friday, the government raised its assessment of industrial production, corporate earnings, capital investment and employment. It said economic recovery is "expected to resume gradually, supported by the improvement of confidence, the improvement of export conditions and the effect of the policy package and monetary policy."
MCX March crude futures may open today’s session near Rs 5040 with resistance near Rs 5060-70 with support around Rs 5010 levels.
Source by Commodity Insights

Crude oil futures extend losses for second consecutive day

Oil........
Crude oil futures are trading lower for the second consecutive day as speculators offloaded their positions driven by weak trend in domestic as well as overseas markets. Further US crude oil stockpiles rose last week, signaling weakening demand for the fuel in the world’s biggest crude oil consuming nation. The US EIA said oil inventories rose by 2.624 million barrels last week, down from 3.833 million in the preceding week, also influenced the prices. The contract for March delivery was trading at Rs 5034.00/1 BBL, down by 0.14% or Rs 7.00 from its previous closing of Rs 5041.00/1 BBL. The open interest of the contract stood at 26103.00 lots. The contract for April delivery was trading at Rs 5085.00/1 BBL, down by 0.10% or Rs 5.00 from its previous closing of Rs 5090.00/1 BBL. The open interest of the contract stood at 9242.00 lots on MCX.

LME Inventories Data- 14 March 2013

Source by Commodity Insights

Gold Extends Losses In Asia

Gold......

Gold futures extended losses in the Asia electronic session today on weak tone in the equity markets and crude oil.
On the economic front today, the Bank of Korea kept its key rate on hold at 2.75% for a fifth consecutive month on Thursday, as inflation remained below the South Korean central bank's target range.
Meanwhile, Australia's jobless rate remained steady at 5.4% in February, the Australian Bureau of Statistics reported Thursday, and the economy added 71,500 jobs in the month.
On Thursday, the U.S. is to release government data on producer price inflation, a leading indicator of price stability, and the weekly government report on initial jobless claims.
Gold for April delivery is trading down $2.1 at $ 1586.3 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $3.30, or 0.2%, to settle at $1,588.40 an ounce. It had climbed to as high as $1,598.80 during the session.
It settled with a modest loss Wednesday after a failed attempt to breach $1,600 an ounce, pressured by the dollar’s climb to a seven-month high after data showed a surge in February U.S. retail sales.
Retail sales in February posted the biggest increase in five months, but around half of the increase took place at gas stations and reflected higher prices at the pump. Following the data, the U.S. dollar gained ground versus the euro, putting pressure on dollar-denominated prices of gold. The ICE dollar index traded at 82.869, after an intraday high of 83.055 — the strongest level since early August. It traded at 82.585 late Tuesday.
MCX April bullion futures may open today’s session near Rs 29450 levels with resistance near Rs 29500 levels and support near Rs 29400 levels.
Source by Commodity Insights

LME Three Month Forward Prices- 13 March 2013

Source by Commodity Insights

Copper Overlooks Rising Output In China, Bounces Higher

Copper....


The suppression of prices in last several days resulted in the bounce back of Copper. The fundamentals were overlooked last night as LME forwards increased by 1.8% to $ 7839 per tonne. Indian Copper responded well on the buying calls in global counterpart and ended higher. The prices tested a high of Rs 430 per kg.

China reported a rise in Copper production during February, a news that was ignored by the participants. Sell off from four month low levels seemed tough considering the oversold markets. This resulted in bargain buying.
Chinas copper output in February rose 10.8% from a year earlier to 483000 metric tons, the National Bureau of Statistics said Tuesday. Production in the first two months rose 11.9% on year to 975000 tons.
In another news, Antofagasta reported record production of Copper in its year ending 2012 report. The company said that Copper volumes were up by 11% to 709600 tonnes in 2012 compared to a production of 640500 tonnes in 2011. Copper production rise was basically on account of higher production in Esperanza where production increased by 81% to 163200 tonnes. Group copper production in 2013 is expected to be approximately 700,000 tonnes.
In currency markets, Dollar closed higher against the Euro after European Central Bank Council member Jens Weidmann said that inflationary pressures across the Eurozone remain light. The greenback settled at 1.302 against the Euro, up 20 pips.
Australian Bureau of Statistics said that Australian home loans fell to a seasonally adjusted -1.5% in February, from -2.1% in the preceding month whose figure.
MCX Copper April expiry contract gained sharply higher and ended at Rs 428.3 per kg, up 0.63%. The prices are expected to find resistance at Rs 431-432 per kg. Supports for the contract are at Rs 427 and Rs 424 per kg.
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Gold Extends Gains Towards $1600

Gold.....


Gold futures inched up in the Asia electronic session today, extending its recent rally towards $1600 an ounce. However gold was unable to breach the pschological $1600 an ounce mark.

The most actively traded contract, for April delivery is trading up 0.5 cents at $ 1592.2 per ounce on the Comex division of the New York Mercantile Exchange. It settled up $13.70, or 0.9%, at $1,591.70 a troy ounce yesterday. The contract touched an intraday high of $1,597.60 a troy ounce.
Golds gains came as weaker-than-expected U.K. industrial production data reiterated that world economies continue to need support from loose monetary policies. Low interest rates and a cash-flush financial system tend to benefit gold prices, as investors looking to preserve wealth stock up on hard assets such as gold.
Gold also benefited from weakness in equity markets, which had been on a record-breaking runup that drew some investors away from gold in recent weeks. Gold is widely considered a safe haven, and demand for it tends to weaken when riskier assets like equities are rallying.
This week, gold traders will be closely watching U.S. data on retail sales, industrial production and inflation to determine the strength of the economic recovery. Any improvement in the U.S. economy could scale back expectations for further easing by the Fed, boosting the U.S. dollar and weighing on dollar-denominated commodities.
MCX April gold futures may open today’s session near Rs 29440 levels with resistance near Rs 29470-90 levels.
Source by Commodity Insights

LME Inventories Data- 12 March 2013

Source by Commodity Insights

Production of Aluminium In China Continue To Grow

Aluminum....


Aluminum production in China continued to grow in the month of February. National Bureau of Statistics said that the total Aluminium production was 1.73 million tonnes, up 11% from February 2012. The total production of Aluminium in Jan-Feb 13 was 3.51 million tonnes, down 15% from last year.

A recent report from Beijing Antaike has citied reasons of higher production from new capacity from western region in China. The production of Aluminium in China is expected to reach 25 million tonnes in 2013 from earlier forecast of 24 million tonnes and a rise of 12.3% from 22.3 million tonnes in 2012.
Weak Aluminum prices have forced major smelters to cut back their production barring those that have facilities in western China where the production costs are much lower.
On LME, Aluminium was trading at $ 1958 per tonne on Tuesday, up $ 18 per tonne from last night. MCX Aluminium March expiry was seen trading at Rs 104.8 per kg, Source by Commodity Insights

Oil Stays Flat On Hefty Supplies

Oil.......

Crude oil futures are trading flat in the Asia electronic session today with counter still suppressed by the hefty climb in last week’s crude inventories and weak tone in Asia equities.

April delivery crude oil futures are trading flat at $90.43 per barrel in Asia electronic session on the New York Mercantile Exchange. Yesterday, it declined by 39 cents, or 0.4%, to settle at $90.43 a barrel. Prices, which climbed 0.8% on Tuesday, had traded below $90 for much of the session — falling to as low as $89.55.
The Fed’s Beige Book, released a half hour before the Nymex close Wednesday, helped lift prices back to the $90 level. The Beige Book said economic activity expanded at the same “modest to moderate pace” shown in the prior survey released in mid-January, which was supportive for energy demand.
Oil prices came under pressure after the U.S. Energy Information Administration reported that crude supplies climbed by 3.8 million barrels for the week ended March 1. Analysts polled by Platts expected a 1.1 million-barrel climb.
The EIA follows the American Petroleum Institute’s weekly report, released late Tuesday, which showed that crude supplies jumped by 5.6 million barrels last week.
On economic front today, the Bank of Japan left its policy interest rate and size of asset-purchase program unchanged by a unanimous vote, as widely expected. The decisions were made at the last meeting of the central banks monetary policy board before Gov. Masaaki Shirakawa and two of his deputy governors step down later in the month.
The central bank said the local economy has stopped weakening against the backdrop of an improvement in overseas economies, and that while it is expected to level off for the time being, it is likely to "return to a moderate recovery path" in due course.
MCX March crude oil may open today’s session near Rs 4950-60 levels with resistance near Rs 4990 levels and support near Rs 4920 levels.

Source by Commodity Insights

Gold Rises Back In Asia

Gold....


Gold futures inched up in the Asia electronic session today after having flat trades yesterday as strong data releases from US hurt the metal’s appeal.
The market saw better-than-expected U.S. private-sector employment data and a drop in factory orders Wednesday, and awaited Thursday’s decisions on monetary policy by the European Central Bank and the Bank of England as well as Friday’s official U.S. nonfarm payrolls report.

Gold for delivery in April is trading up $ 7.5 at $ 1582.4 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it settled at $1.574.90 an ounce, unchanged from Tuesday’s close. It stuck to a range between $1,566.40 and $1,584.30. Gold prices tallied a modest gain of $2.60 over the past two trading sessions.
Data from Automatic Data Processing Inc. showed that U.S. private-sector jobs rose by 198,000 in February, more than economists expected. Factory orders in January, meanwhile, fell 2%.
After the Comex trading session ended Wednesday, the Federal Reserve’s Beige Book showed that government fiscal and health-care policies are holding back private spending and hiring. It had been expected to show that the economy limped along in early 2013.
On the data front today, Australias trade data for January showed that the country recorded an adjusted deficit of 1.057 billion Australian dollars ($1.09 billion), the Australian Bureau of Statistics reported Thursday. Exports dropped 1% while imports rose 1%, according to the ABS.
Meanwhile, the Bank of Japan on Thursday left its policy interest rate and size of asset-purchase program unchanged by a unanimous vote, as widely expected. The decisions were made at the last meeting of the central banks monetary policy board before Gov. Masaaki Shirakawa and two of his deputy governors step down later in the month. The central bank said the local economy has stopped weakening against the backdrop of an improvement in overseas economies, and that while it is expected to level off for the time being, it is likely to "return to a moderate recovery path" in due course.
MCX April bullion futures may open today’s session near Rs 29650-670 levels with resistance near Rs 29720-50 levels and support levels 29570 levels. Yesterday, it ended marginally higher at Rs 29593 per 10 grams.
Source by Commodity Insights

Gold Supported On Weak US Dollar

Gold.....


Gold futures are trading slightly higher in the late Asia trading action, taking support from the weak US dollar and high crude oil prices.
Gold for delivery in April rose $2 to $1,578 an ounce in Asia electronic-trading hours on the Comex division of the New York Mercantile Exchange. Yesterday, the precious metal rose $2.50, or 0.2%, to settle at $1,574.90 an ounce, in part due to a weaker dollar.

The ICE dollar index, which measures the greenback against a basket of six currencies, fell to 81.949 on Wednesday from 82.078 in late North American trading on Tuesday.
Crude-oil futures moved higher in electronic trade Wednesday, benefitting from a stock rally that helped propel benchmark U.S. crude back above $91 a barrel.
After rising 0.8% during Tuesdays New York Mercantile Exchange session, April crude tacked on another 24 cents, or 0.3%, to sit at $91.06 a barrel by Wednesday afternoon in East Asia.
However, yellow metal is expected to remain under pressure in the near term as another investment house cut it prices forecast yesterday. The Bank of America Merrill Lynch altered its outlook on gold prices, saying it doesnt expect gold to break above $2,000 until 2014. The bank also cut its prices for this year and next. The analysts cut their 2013 average price forecast for gold by nearly 7% to $1,680 a troy ounce and its 2014 forecast by nearly 10% to $1,838 an ounce. Those analysts had previously expected gold to reach $2,000 an ounce in the second quarter of 2013.
MCX April gold are trading flat at Rs 29593 per 10 grams. It may face a resistance near Rs 29625 levels and support near Rs 29500-450 levels.
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Gold Becomes Dull As Merrill Lynch Cuts 2013, 2014 Forecast

Gold...


Gold futures are trading with mild gains as demand for gold was hurt as the investors rushed for risky asset classes taking the global equity markets up more than a percent. BOA Merrill Lynch cut the metals price forecast for next two years which further depressed the prices.

Asian stocks made strong gains Wednesday, as investors picked up on the advance on Wall Street � where the Dow industrials hit an all-time high � to push stocks higher from Tokyo to Hong Kong.
The Dow Jones Industrial Average leapt to a new high on Tuesday, surpassing levels reached more than five years ago, on indications of an improving U.S. economy. Up 8.8% for the year so far, the more than century-old blue-chip index posted its first finish above the record closing high of 14,164.53 set on Oct. 9, 2007, ahead of the global financial meltdown.
Adding to a near-2% gain made so far this week on optimism for another round of policy loosening to lift the Japanese economy out of deflation, the Nikkei Stock Average climbed 1.2% in Tokyo to trade at its highest level in nearly five years. The Hang Seng Index rose 0.9%, while the Shanghai Composite Index climbed 0.3% on the Chinese mainland.
Meanwhile, the Bank of America Merrill Lynch, meanwhile, became the latest investment house to alter its outlook on gold prices, saying it doesnt expect gold to break above $2,000 until 2014. The bank also cut its prices for this year and next. The analysts cut their 2013 average price forecast for gold by nearly 7% to $1,680 a troy ounce and its 2014 forecast by nearly 10% to $1,838 an ounce. Those analysts had previously expected gold to reach $2,000 an ounce in the second quarter of 2013.
Gold for delivery in April is trading up $3.1 at $ 1577.8 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it rose $2.50, or 0.2%, to settle at $1,574.90 an ounce. It traded as high as $1,585.80 and as low as $1,571.10.
MCX April gold may open todays session near Rs 29600 levels with resistance near Rs 29700 and support near Rs 29500 levels. Yesterday, it ended lower by 0.3% at Rs 29569 per 10 grams.
Source by Commodity Insights

LME Three Month Forward Prices- 5 March 2013

Source by Commodity Insights

Markets Speak: Shanghai Copper Has Shredded 1370 Yuan In A Month

Copper...
Most active and highest Copper contract in Shanghai has lost 1370 yuan per tonne in last one month. Shanghai Copper for June expiry settled at 56310 yuan per tonne on Monday. Interesting to note is the fact that the Open interest in the contract has jumped by 29876 lots to 233918 lots in total since last month. The fall in metals across globe has been a impact of the slowdown in Chinese buying and lower demand in spot markets.

China refrained from buying metals before the lunar New Year and the traders remained waiting for lower prices after coming back before entering the markets. The slowdown in spot demand continues even now as the curbs on property purchases is acting as a bane for the metal. China consumes more than 40% of the total metal produced in the world. The curbs in property markets mean that the consumption rate will be affected in coming months.
Calls of increase in world supplies are also concerning traders. The copper markets can transform itself into surplus after world major production units will start functioning in 2013-14. Refined Copper stocks in Shanghai Futures Exchange hit a one year high at 226201 tonnes last week. Even in LME the stocks have moved up by 44% since the start of the year to 462400 tonnes.
Source by Commodity Insights

Meanwhile, brent crude oil for delivery on the same date was spotted trading at $109.80 a barrel, a loss of 0.54% or $0.59 as of 9.49 PM IST.

Crude Oil.....

 WTI crude oil for delivery on April 13 was seen trading at $89.72 a barrel, a loss of $0.96 or 1.06% as of 09.47 PM IST registering a figure below $90 for the first time in 2013. The trend looks negative. Meanwhile, brent crude oil for delivery on the same date was spotted trading at $109.80 a barrel, a loss of 0.54% or $0.59 as of 9.49 PM IST.

The US President Obama has signed into law the US Congress bill to effect so-called sequestration or cuts to the tune of $1.2 trillion over the next decade. This year would see cuts of $85 billion getting effected. This coupled with weak Chinese data in service sector performance has brought down the futures, it seems.
On India's MCX, crude oil for March delivery was seen trading at Rs.4958 a loss of 1.18% as of 09.54 PM IST.

Traders Still Worried On The China Property Measures, Copper Ends Sideways

Copper...

Traders still remained worried on the measures adopted by China on its property markets. However the metal recovered from its three month lows on London Metals Exchange. LME three month forwards ended at $ 7741 per tonne, up $ 77 per tonne. China that accounts for 40 percent of the refined Copper opted for measures to control its overheated economy. The country has initiated 20 percent taxes on capital gains on home sales profits and has even asked to increase the down payment requirement to keep buyers on the back foot. LME three months Copper forwards was trading at $ 7779 per tonne.
Euro managed to recover against the US Dollar on Monday. The pair ended at 1.3025 on Monday. Although recovering marginally Euro is still at two and half month lows against the greenback. Indian Rupee closed the last session at 54.85 against the US Dollar. The same is now up by 0.14% to 54.77 on Tuesday.
MCX Copper April expiry contract bounced from intraday lows of Rs 427 per kg and ended at Rs 430 per kg, down 0.2%. MCX Copper contract tested a high of Rs 430.85 per kg. The prices are well resisted at Rs 433-435 per kg levels. Support for the contract is at Rs 427 per kg.
Among other metals, Aluminium was trading at $ 1982 per tonne, up $ 10 from last day. Major world producers are reducing their production in 2013 in order to sustain costs that are getting challenged by lower Aluminium prices and demand. MCX Aluminium closed the last session at Rs 107.8 per kg. The resistance for the contract is at Rs 108.1 and 108.5 per kg. Supports for the contract are at Rs 106.7 per kg.
UC Rusal has planned to slash its output by around 7% in 2013 citing excess global supplies and lackluster demand as the major. Rising output in China and Persian Gulf is another factor that is worrisome for worlds biggest producer of Aluminium. The company has said that the Rusal will maintain lower production through atleast 2015 unless prices rise sharply.
Rusal will cut production by around 300000 metric tons at its less efficient smelters by the end of the year, and maintain output at around 3.8 million tons a year, down from 4.2 million tons in 2012, through at least 2015. The company currently accounts for 9% of the total production in the world.

Source by Commodity Insights

Gold Stays Steady in Asia

Gold....

Gold futures stayed steady above $ 1570 an ounce in Asia electronic trades today taking cues from the higher equities and oil futures. This week, gold traders will be hooked on interest rate decisions by the European Central Bank, the Bank of England and the Bank of Japan. To add more the Friday’s data on U.S. nonfarm payrolls will also be closely watched. Asian markets rebounded Tuesday as a higher finish on Wall Street helped sentiment a day after most regional equities suffered a sell-off, with Japanese stocks extending gains on hopes for further monetary easing under a new central bank chief. Mainland Chinese stocks advanced in choppy trading as the National People’s Congress — the country’s parliament — began its annual session, although property developers fell further under the lingering influence of fresh restrictions imposed on the sector late last week. Gold for April delivery is trading up $5.4 at $1577.8 an ounce on the Comex division of the New York Mercantile Exchange. On Monday it ended higher by $0.10 or 0.1%, to settle at $1,572.4 an ounce. On the data front today, The Reserve Bank of Australia on Tuesday left its benchmark interest rate unchanged at 3%, as widely expected, saying that benign inflationary conditions give the central bank room to further loosen its policy, if required. "The Banks assessment remains that inflation will be consistent with the target over the next one to two years," Gov. Glenn Stevens said, according to a statement accompanying the central banks decision. An Australian service-sector gauge rose to its highest level in nine months in February, adding to signs that nonmining sectors of the economy are responding to more than a year of steep central bank interest-rate cuts. The Australian Industry Group-Commonwealth Bank of Australia Performance of Services Index rose 3.1 points from January to 48.5. A reading below 50 denotes a contraction. Meanwhile, Chinas 7.5% economic growth target for this year is "fairly conservative," and the worlds second-largest economy will likely expand more quickly than that, Li Daokui, an influential academic and former adviser to the Peoples Bank of China, said Tuesday. MCX April delivery gold futures may open today’s session near Rs 29750 levels with resistance near Rs 29810-40 levels. Yesterday, it closed lower by Rs 72 at Rs 29,668 per ten grams. Prices rose to a high of Rs 29,770 per 10 grams and fell to a low of Rs 29,606 per 10 grams during the days trading. Source by Commodity Insights

Forbes Billionaire list 2013: Mr. Slim wins it again

Billionaire of 2013.....

Here it comes, the list you’ve all been waiting for.
Yes, the Forbes annual billionaires list was out Monday with a few surprises and a few not-so-surprising winners.
Once again, Mexican telecommunications tycoon Carlos Slim Helu & family have topped the list with a net worth of $73 billion, which matches his age. Second in line was former Microsoft c0-founder Bill Gates, with a net wealth of $67 billion, while in third place for the first time was Amancio Ortega, co-founder of the Inditex fashion group, with a fortune of $57  billion. Check out the full 100 list of billionaires from Forbes.
A first this year involved Berkshire Hathaway head Warren Buffet, who came in fourth behind Ortega, with a net worth of $53.5 billion. This marks the first year since 2000 that Buffett hasn’t been in the top three.
In fifth place was Oracle’s chief Larry Ellison, with a net worth of $43 billion.
Forbes said resurgent asset prices were a “driving force” behind the rising wealth of the uber-rich around the globe. The magazine also said fortune gainers outnumbered losers by 4-t0-1.
Forbes also noted some new names to make the bunch, such as Diesel jeans mogul Renzo Rosso at $3 billion, retailer Bruce Nordstrom at $1.2 billion and designer Tory Burch at $1 billion.
Source : Market Watch

China Is Creating Fears In The Mind Of Metal Traders

Metal Traders...

China has instilled fears in the mind of traders currently. The heavy sell off in Indian metals continued on Monday even when it seemed that the selling was too extended to continue in the new week. China has opted for some strict measures in order to tame down inflation in property markets. The country has initiated 20 percent taxes on capital gains on home sales profits and has even asked to increase the down payment requirement to keep buyers on the back foot.

The selling pressure was also coming from the fact that $ 85 billion US spending cuts kicked in as lawmakers failed to agree on any resolution to prevent the same. The cuts are expected to bring down the GDP of US by 0.5 percent as per International Monetary Fund (IMF) estimates.
Shanghai metals declined sharply after the last week moves while London Metals that have already beaten down in last week were more silent with marginal gains. Zinc was the only metal that traded in red. LME Copper three month forwards was up by 0.66% at $ 7716 per tonne. Inventories continued to create headache for Copper as it rolled forward by another 3625 tonnes to 462400 tonnes on Monday.
In currency markets, Dollar has accentuated up its position against the Euro. The drop down in European investor confidence resulted in further moving away from Euro. The investor confidence indicator of Eurozone dropped to -10.6 in March from a reading of -3.9 in February. The greenback was trading at 1.299 against the Euro, up 0.16%. Indian Rupee remained heads down against the Dollar but even this is creating heaviness in the markets after the imposition of 0.01% CTT on commodity trades. Rupee was seen trading at 54.86, down 0.06% against the Dollar.
MCX Copper April expiry contract was down by 0.56% to Rs 428.7 per kg. The prices have tested a high of Rs 430 per kg and a low of Rs 427.2 per kg. The most active contract of Nickel was down by 0.9% to Rs 914 per kg.
On LME, Zinc forwards were down, right from early Asian trades and tested a intraday low of $ 2009 per tonne. The metal was trading at $ 2012 per tonne, down $ 6 from last week. Inventories of Zinc were down by 1750 tonnes to 1198300 tonnes but that has hardly made any difference to the metal.
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Zinc Ends Down In Shanghai, Marginally Down On LME

Zinc....
Zinc settled down in Shanghai as heavy selling in whole metals pack activated bearish tone. The metal used in galvanization of steel declined by 175 yuan per tonne and ended at 15395 yuan per tonne in Shanghai futures exchange. On LME, Zinc forwards were down, right from early Asian trades and tested a intraday low of $ 2009 per tonne. The metal was trading at $ 2012 per tonne, down $ 6 from last week.

Inventories of Zinc were down by 1750 tonnes to 1198300 tonnes but that has hardly made any difference to the metal.
Source by Commodity Insights

Oil Mildly Lower In Asia

Oil.....

Crude oil futures are trading mildly lower in Asia electronic session today taking cues from losses in the Asian equties. However , it stayed above $90 a barrel on some bargain hunting after the commodity tumbled 2.6% last week, the second consecutive weekly decline. In Asia, the Shanghai Composite Index sank 2.5%, and Hong Kong’s Hang Seng Index declined 1%. But Japan’s Nikkei Stock Average rose 0.6%. Elsewhere, South Korea’s Kospi traded down 0.3%, and Australia’s S&P/ASX 200 index declined 1.2%. Light sweet crude futures for delivery in April is trading down 14 cents at $ 90.54 a barrel on the New York Mercantile Exchange. On Friday, it fell 1.2% to settle the week at $90.92 a barrel. On the week, New York-traded oil futures lost 2.6%, the second consecutive weekly decline. Oil prices came under pressure after government data showed that manufacturing activity in China fell to a five-month low of 50.1 in February from a reading of 50.4 in January. Oil prices came under additional selling pressure as a broadly stronger U.S. dollar and worries over U.S. spending cuts, known as the sequester, weighed on the appeal of growth-linked assets. Oil prices were further weighed after weak manufacturing data out of the U.K. and the euro zone fuelled concerns over the outlook for global growth. Revised data showed that manufacturing activity in the euro zone contracted in February at the same pace as in January, while the U.K. manufacturing sector suffered a shock contraction last month. MCX March crude oil futures may open today’s session near Rs 5000 per barrel with support near Rs 4970 and resistance near Rs 5040 levels. In the week ahead, oil traders will be focusing on Friday’s data on U.S. nonfarm payrolls, as investors attempt to gauge the strength of the economic recovery. Interest rate decisions by the European Central Bank, the Bank of England and the Bank of Japan will also be in focus. Source by Commodity Insights