The US Commerce Department informed that the US inflation, measured by
the Personal Consumption Expenditures, rose 1.0% QoQ during the first
quarter, surpassing the median at 0.9%. The core reading, which strips
the food and energy costs, rose 1.3% QoQ.
Source by Commodity Insights
Thursday, May 30, 2013
Gold Shoots Up As Dollar, Equities Tumble
Gold for August delivery rose $14 to $1,406 an ounce in electronic transactions on the Comex division of the New York Mercantile Exchange. Prices on Wednesday settled higher by or 0.9%,
In Asia, the Nikkei Stock Average, which had been dropping throughout most of Thursday’s session, closed down 5.2%, with the biggest losses coming in the last hour or so of trade.
In turn, the dollar fell below ¥101 as investors backed out of equities and moved into the Japanese currency. Dollar weakness tends to lift prices for dollar-denominated commodities, as it makes them less expensive for holders of other currencies to buy.
Wednesday’s move higher for gold was aided by strength in the euro against the U.S. dollar, and the euro on Thursday extended gains against the greenback. The shared currency traded at $1.2953 compared with $1.2930 seen in North American trading a day prior.
Meanwhile, the World Gold Council, an industry group, said Asian gold demand from this April to June will reach a quarterly record as bullion consumers in the region take possession of supply freed up by selling from ETFs.
But outflows from gold exchange-traded funds and cuts in forecast for gold prices have also weighed on the precious metal, which is on pace to fall 5.5% in May. Earlier this month, it had been on track for a decline of more than 7%
MCX June gold futures are trading up more than Rs 200 at Rs 26847 per 10 grams. The counter may face a resistance near Rs 26900 levels and Rs 27100 levels.
Source by Commodity Insights
Copper Inventories Down 2.5 Percent In Last Five Days
The
inventories of Copper on LME warehouses have declined by 2.5 percent in
the last five days. The metal has been in a declining mode in last one
week even as inventories have remained in a downtrend. This is because
of the fact that inventories though down by 16150 tonnes has been at
1993 high levels. LME Copper three month prices was last seen at $ 7301
per tonne, against $ 7235 per tonne on 29 May 2013. Meanwhile,
on-warrants data in Shanghai was up by 300 tonnes to 52209 tonnes.Source by Commodity Insights
Oil Drips Below $93 On Forecast Cut
Oil........
Crude oil futures dripped below $93 a barrel in the Asia electronic
trades today as the sentiments were depressed after the OECD cut its
global growth forecast and the International Monetary Fund reduced its
estimate for China’s growth.
The lowered forecasts fed concerns over the outlook for energy demand as traders mulled over what members of the Organization of the Petroleum Exporting Countries may decide to do with output targets at their meeting in Vienna on Friday.
Crude for July delivery is trading up 9 cents at $93.22 per barrel on the New York Mercantile Exchange. It fell $1.88, or 2%, to settle at $93.13 a barrel.
Separately, the Organization for Economic Cooperation and Development warned that when the U.S. Federal Reserve and others start tapering their monetary-easing programs, that will likely cause spikes in government-bond yields and put growth in the global economy at risk. The OECD said the U.S. economy is still expected to grow, though at a slightly lower rate than previously thought. It predicts a rate of 1.9% in 2013, down from an earlier estimate of 2.0%.
After the Nymex session ended Wednesday, the API reported across-the-board increases in petroleum stockpiles. Crude supplies jumped 4.4 million barrels, while a Platts survey of analysts showed a forecast for a 1.5 million-barrel decline.
The Energy Information Administration will follow with its own supply data Thursday at 11 a.m. Eastern. The supply figures for oil come before members of OPEC review production targets at their meeting on Friday. OPEC members are expected to maintain their supply target of about 30 million barrels a day.
In a note dated Tuesday, Bank of America Merrill Lynch cut its global oil demand assumptions and lowered its Brent price forecasts. It expects global oil demand to grow by 800,000 barrels a day in 2013, down from a previous forecast of 950,000 barrels because of slightly weaker-than-expected consumption in Europe and China. The bank also reduced its Brent forecast to $103 in the second half of 2013, from $111 prior.
MCX June crude oil futures may open today’s session near Rs 5270 levels with support around Rs 5230 levels and resistance near Rs 5300 levels.
Source by Commodity Insights
The lowered forecasts fed concerns over the outlook for energy demand as traders mulled over what members of the Organization of the Petroleum Exporting Countries may decide to do with output targets at their meeting in Vienna on Friday.
Crude for July delivery is trading up 9 cents at $93.22 per barrel on the New York Mercantile Exchange. It fell $1.88, or 2%, to settle at $93.13 a barrel.
Separately, the Organization for Economic Cooperation and Development warned that when the U.S. Federal Reserve and others start tapering their monetary-easing programs, that will likely cause spikes in government-bond yields and put growth in the global economy at risk. The OECD said the U.S. economy is still expected to grow, though at a slightly lower rate than previously thought. It predicts a rate of 1.9% in 2013, down from an earlier estimate of 2.0%.
After the Nymex session ended Wednesday, the API reported across-the-board increases in petroleum stockpiles. Crude supplies jumped 4.4 million barrels, while a Platts survey of analysts showed a forecast for a 1.5 million-barrel decline.
The Energy Information Administration will follow with its own supply data Thursday at 11 a.m. Eastern. The supply figures for oil come before members of OPEC review production targets at their meeting on Friday. OPEC members are expected to maintain their supply target of about 30 million barrels a day.
In a note dated Tuesday, Bank of America Merrill Lynch cut its global oil demand assumptions and lowered its Brent price forecasts. It expects global oil demand to grow by 800,000 barrels a day in 2013, down from a previous forecast of 950,000 barrels because of slightly weaker-than-expected consumption in Europe and China. The bank also reduced its Brent forecast to $103 in the second half of 2013, from $111 prior.
MCX June crude oil futures may open today’s session near Rs 5270 levels with support around Rs 5230 levels and resistance near Rs 5300 levels.
Source by Commodity Insights
Friday, May 24, 2013
MCX Crude Recovers Well Above Rs 5200, Sharp Rise In OI
Crude Oil.........
are on a recovery track today following the awesome intraday gains witnessed in global prices last night. The commodity witnessed a heavy sell off during the Asian and European trades yesterday as world markets were sent in for a toss due to a combination of forces from US, China and Japan. The commodity had been lingering around six week highs earlier in the week but fell to a low near $92 per barrel yesterday, extending a frantic sell off. However, a smart bounce has been witnessed thereafter as a late rally in Asian stocks supported sentiments. The WTI crude oil futures are trading at $94.29, up 4 cents per barrel on the day.
The US Fed reiterated the stance of the policymakers to put an end to their asset purchases should the economic conditions allow them, sending market down in mid week. Chinese growth worries came back to haunt the sentiments for Asian stocks. China HSBC flash manufacturing PMI for May came in at 49.6, down from 50.4 in April and down from 50.4 expected for May. This is a seven month low back into contraction territory. All of this led to a chaotic run in Japanese stocks yesterday as the Nikkei slipped by more than 7% amid a wild run in government bonds.
US Federal Reserve chairman Ben Bernanke has suggested in his latest comments that the current quantitative easing measures that have been pushing US growth could start to taper off as soon as June. He said the US economy was improving but headwinds including government spending cuts were dragging on the recovery. He said the job market was improving but it remains weak overall and participation rates are still moving down'.
US crude oil inventories remain at a three-decade high and oil would find it difficult to rally much from hereon. The downward bias in Chinese manufacturing could also cap gains. The MCX Crude oil futures for June edged up well above Rs 5200 per barrel and tested a high of Rs 5250 per barrel. The contract trades at Rs 5242, up Rs 27 per barrel or 0.52% on the day with a massive 14% increase in the open interest.
The US Fed reiterated the stance of the policymakers to put an end to their asset purchases should the economic conditions allow them, sending market down in mid week. Chinese growth worries came back to haunt the sentiments for Asian stocks. China HSBC flash manufacturing PMI for May came in at 49.6, down from 50.4 in April and down from 50.4 expected for May. This is a seven month low back into contraction territory. All of this led to a chaotic run in Japanese stocks yesterday as the Nikkei slipped by more than 7% amid a wild run in government bonds.
US Federal Reserve chairman Ben Bernanke has suggested in his latest comments that the current quantitative easing measures that have been pushing US growth could start to taper off as soon as June. He said the US economy was improving but headwinds including government spending cuts were dragging on the recovery. He said the job market was improving but it remains weak overall and participation rates are still moving down'.
US crude oil inventories remain at a three-decade high and oil would find it difficult to rally much from hereon. The downward bias in Chinese manufacturing could also cap gains. The MCX Crude oil futures for June edged up well above Rs 5200 per barrel and tested a high of Rs 5250 per barrel. The contract trades at Rs 5242, up Rs 27 per barrel or 0.52% on the day with a massive 14% increase in the open interest.
Source by Commodity Insights
Base Metals Marginally Higher
Base Metals...........
Base metals were trading in a mixed manner in Asian trading today. LME Copper three month prices were trading at $ 7329 per tonne, up $ 10 per tonne. The data from China has now seemed to have been discounted for now. Now the markets will dwindle between the positives and negatives ahead of Shanghai weekly and LME daily warehouse details. Among other metals, Zinc was trading at $ 1863 per tonne, up $ 10 per tonne. Indian MCX Copper was trading at Rs 408.6 per kg, up 0.05 percent.
Meanwhile, US home sales and initial jobless claims released last night has given some ray of home after the reports of quantitative easing programme to end jittered the metals. Chinese PMI numbers that were in the news from last two days had crushed the metal earlier.
Source by Commodity Insights
Southern Silver Update On Cerro Las Minitas Project
Silver........
Southern Silver Exploration Corp reported today that it has executed an amending agreement with the Optionor of the Cerro Las Minitas property in Durango Mexico to reduce the option payment due on May 18, 2013 from $1 million to $250,000 and to extend the balance of the purchase price of $1.75 million to be paid periodically with the last payment due in March 2015.
Freeport-McMoRan Exploration Corporation has been funding and directing Southern Silver's subsidiary, Minera Plata del Sur, S.A. de C.V. to explore the property pursuant to an earn-in agreement since October 2012 and has advanced the $250,000 option payment together with a previous payment of $750,000 due November 18, 2012, together with applicable IVA taxes with such amounts being credited toward potential expenditures of $25 million required to earn an indirect 70% interest in the property.
Approximately 1300 metres of the planned +3500 metres drill program has been completed to date. Logging and sampling of the core continues. Assays are pending and will be reported upon the completion of the drill program.
Source by Commodity Insights
Copper Declines Sharply On MCX Even As INR Crosses 55
Copper.......
This has been quite surprising and one can very well judge the pace at which Copper contract showed a correction. The Indian Copper prices declined by Rs 8 per kg even after Rupee crossed 55 mark against the Dollar and was down by 0.2 percent on Friday.
This has been quite surprising and one can very well judge the pace at which Copper contract showed a correction. The Indian Copper prices declined by Rs 8 per kg even after Rupee crossed 55 mark against the Dollar and was down by 0.2 percent on Friday.
MCX Copper closed at Rs 408 per kg, further decline can take Copper towards Rs 400 per kg. The Chinese data was also on the downside forcing LME Copper to close below $ 7400 per tonne at $ 7319 per tonne, down $ 185 per tonne.
However, Copper prices will likely hold above $ 7200 a metric ton in the near term, as a stoppage at Freeport Indonesia's massive Grasberg mine keeps investors and consumers cautious about possible supply risks.
Chinese data has showed that seven month low manufacturing PMI was creating problem for the markets. The preliminary reading of HSBC Flash manufacturing PMI for May dropped to 49.6 against the forecast of 50.4.
In US, the U.S. Labor Department said initial claims for jobless benefits fell by 23,000 to 340,000 last week. Economists expected a reading of 345,000 new claims. The less volatile four-week moving average for May fell to 339,500 from 362,000.
The Commerce Department said new home sales rose 2.3% last month to a seasonally adjusted annual rate of 454,000 units. The median sales price rose 8.3%.
Source by Commodity Insights
Wednesday, May 22, 2013
WBMS Copper Surplus Brings One More Difficulty Out of The Bag
Copper.......
Traders were already bored to see the pessimism on account of Chinese demand but now the new numbers from World Bureau of Metal Statistics (WBMS) released a few minutes back can pose challenge to the rise of metal.
The agency has said that World copper markets were in surplus of 127200 tonnes in the month of March 2013, as compared to a surplus of 65300 tonnes in February 2013. Meanwhile, the data shows that Copper markets were in surplus of 252700 tonnes in first quarter of this year compared to 192000 tonnes deficit in the first quarter of last year.
Copper was in surplus of 52300 tonnes in whole of 2012.
The closing stocks at the end of Jan-March 2013 were 1.30 million
tonnes, up 22 percent from the year ending 2012 when stocks were 1.06
million tonnes.
World mined copper production in March 2013 was 1.45 million tonnes, up 7.2 percent from 1.35 million tonnes in February 2013. In Jan-Feb 2013, World mined copper production was 4.25 million tonnes in Jan-March 2013 across globe compared to 3.97 million tonnes in Jan-March 2012.
Refined Production of Copper was 1.79 million tonnes in March 2013, compared to 1.67 million tonnes in February 2013. Production of refined copper in Jan-March 2013 was 5.20 million tonnes, compared to 4.94 million tonnes in Jan-March 2012.
Indian refined copper production in Jan-March 2013 was 1.75 million tonnes in Jan-March 2013 compared to 1.8 million tonnes in Jan-March 2012. Production of refined copper in March was 63900 tonnes, compared to 55900 tonnes in February.
China refined copper production was 1.54 million tonnes in Jan-March 2013 compared to 1.3 million tonnes in similar period last year.
Meanwhile, World refined copper consumption was 4.95 million tonnes in first three months of the year compared to 5.13 million tonnes in Jan-March 2012. Chinese refined copper consumption was 2.05 million tonnes in Jan-March 2013, compared to 2.20 million tonnes in Jan-March 2012.
Refined consumption in US declined by 15 percent to 450000 tonnes in Jan-March 2013 compared to 456000 tonnes in similar period last year.
LME three month Copper prices was trading at $ 7510 per tonne, up from $ 7408 per tonne. The concerns of Chinese demand are well known though the prices posted a confident face at the time of closing. Shanghai August expiry contract closed at 53730 yuan per tonne on Wednesday, up 350 yuan per tonne.
Indian Copper has splurged past Rs 415 per kg and was seen trading at Rs 416 per kg. The decline of Rupee has been the main trigger for Indian prices. Rupee destabilized versus the Dollar and was at 55.5.
Source by Commodity Insights
Traders were already bored to see the pessimism on account of Chinese demand but now the new numbers from World Bureau of Metal Statistics (WBMS) released a few minutes back can pose challenge to the rise of metal.
The agency has said that World copper markets were in surplus of 127200 tonnes in the month of March 2013, as compared to a surplus of 65300 tonnes in February 2013. Meanwhile, the data shows that Copper markets were in surplus of 252700 tonnes in first quarter of this year compared to 192000 tonnes deficit in the first quarter of last year.
Copper was in surplus of 52300 tonnes in whole of 2012.
The closing stocks at the end of Jan-March 2013 were 1.30 million
tonnes, up 22 percent from the year ending 2012 when stocks were 1.06
million tonnes.World mined copper production in March 2013 was 1.45 million tonnes, up 7.2 percent from 1.35 million tonnes in February 2013. In Jan-Feb 2013, World mined copper production was 4.25 million tonnes in Jan-March 2013 across globe compared to 3.97 million tonnes in Jan-March 2012.
Refined Production of Copper was 1.79 million tonnes in March 2013, compared to 1.67 million tonnes in February 2013. Production of refined copper in Jan-March 2013 was 5.20 million tonnes, compared to 4.94 million tonnes in Jan-March 2012.
Indian refined copper production in Jan-March 2013 was 1.75 million tonnes in Jan-March 2013 compared to 1.8 million tonnes in Jan-March 2012. Production of refined copper in March was 63900 tonnes, compared to 55900 tonnes in February.
China refined copper production was 1.54 million tonnes in Jan-March 2013 compared to 1.3 million tonnes in similar period last year.
Meanwhile, World refined copper consumption was 4.95 million tonnes in first three months of the year compared to 5.13 million tonnes in Jan-March 2012. Chinese refined copper consumption was 2.05 million tonnes in Jan-March 2013, compared to 2.20 million tonnes in Jan-March 2012.
Refined consumption in US declined by 15 percent to 450000 tonnes in Jan-March 2013 compared to 456000 tonnes in similar period last year.
LME three month Copper prices was trading at $ 7510 per tonne, up from $ 7408 per tonne. The concerns of Chinese demand are well known though the prices posted a confident face at the time of closing. Shanghai August expiry contract closed at 53730 yuan per tonne on Wednesday, up 350 yuan per tonne.
Indian Copper has splurged past Rs 415 per kg and was seen trading at Rs 416 per kg. The decline of Rupee has been the main trigger for Indian prices. Rupee destabilized versus the Dollar and was at 55.5.
Source by Commodity Insights
Shanghai Copper Closes Marginally Higher
Copper........
The concerns of Chinese demand are well known though the prices
posted a confident face at the time of closing. Shanghai August expiry
contract closed at 53730 yuan per tonne on Wednesday, up 350 yuan per
tonne.
LME Copper three month futures gain is most likely to have boosted Copper in China. LME Copper was trading at $ 7463 per tonne, though it was below $ 7400 per tonne levels at the early Asian trades. Bernanke testimony is eagerly awaited in the markets today.
Inventories have moved up once again and were at 627275 tonnes, up 2750 tonnes on 22 May. The inventories have gained 96 percent in this year. In Shanghai, on warrants declined by 1598 tonnes to 57504 tonnes today. The decline in on-warrants means stocks to be taken out of the warehouses.
Indian Copper has splurged past Rs 415 per kg and was seen trading at Rs 416 per kg. The decline of Rupee has been the main trigger for Indian prices. Rupee destabilized versus the Dollar and was at 55.5.
Source by Commodity Insights
The concerns of Chinese demand are well known though the prices
posted a confident face at the time of closing. Shanghai August expiry
contract closed at 53730 yuan per tonne on Wednesday, up 350 yuan per
tonne.LME Copper three month futures gain is most likely to have boosted Copper in China. LME Copper was trading at $ 7463 per tonne, though it was below $ 7400 per tonne levels at the early Asian trades. Bernanke testimony is eagerly awaited in the markets today.
Inventories have moved up once again and were at 627275 tonnes, up 2750 tonnes on 22 May. The inventories have gained 96 percent in this year. In Shanghai, on warrants declined by 1598 tonnes to 57504 tonnes today. The decline in on-warrants means stocks to be taken out of the warehouses.
Indian Copper has splurged past Rs 415 per kg and was seen trading at Rs 416 per kg. The decline of Rupee has been the main trigger for Indian prices. Rupee destabilized versus the Dollar and was at 55.5.
Source by Commodity Insights
Tuesday, May 21, 2013
Copper Moves Above Resistance On MCX
Copper.........
A critical resistance of Rs 410 was broken by Indian copper in today's trades as INR surpassed 55 mark against the Dollar in a flash. General rise in US Dollar against the majors ahead of Federal Reserve Chairman Speech was watched carefully by market players. Indian Rupee was trading at 55.3, down 0.35 percent before the closing bell. Meanwhile, Dollar was trading at 1.2865 against the Euro, down 0.2 percent.
A critical resistance of Rs 410 was broken by Indian copper in today's trades as INR surpassed 55 mark against the Dollar in a flash. General rise in US Dollar against the majors ahead of Federal Reserve Chairman Speech was watched carefully by market players. Indian Rupee was trading at 55.3, down 0.35 percent before the closing bell. Meanwhile, Dollar was trading at 1.2865 against the Euro, down 0.2 percent.
LME prices of copper were at $ 7398 per tonne, up 1.3 percent from last night. Markets are expecting that Federal Reserve will give some indications on the bond buying programme in the minutes. In another important event, China is due to release its Purchase Manager's Index this week. These are very decisive triggers for Copper and peers.
Meanwhile, China came out with its import numbers for copper. The news of decline in refined copper imports to June 2011 levels has been ignored by the prices. China general administration of customs reported a fall to 183023 tonnes in April compared to 218823 tonnes in March. Exports of refined copper have also taken a hit as they declined to eight month lows of 29072 tonnes, down 52 percent from a month earlier.
Indian copper futures for June delivery are taking the advantage of weak Rupee and moved beyond levels of Rs 410. Further increase will take prices towards Rs 413 per kg. Support for the contract is at Rs 404 per kg.
Among other metals, LME Aluminium made some smart moves today and was up by 1 percent after the opening of European markets. The LME three month Aluminium prices were trading at $ 1865 per tonne, up from $ 1845 per tonne. On MCX, Aluminium was trading at Rs 101.95 per kg, up 0.5 percent
For the time being, Lead has corrected by more than 13 percent so far this year. However it has been much less in case of Copper that has been down by more than 7 percent so far. The propensity of selling makes it a better contender for buying in coming days. Prices have moved up from cap of Rs 111 per kg making it a candidate of a jump of 7 to 10 percent. The prices were last seen at Rs 112.9 per kg, up 0.71 percent.
Source by Commodity Insights
Copper Moves Higher As Dollar Eases Against The Euro
Copper......
| Copper The shutdown of production in Freeport Grasberg mine after the fatal incident has caused little impact on the red metal which declined by $ 54 per tonne to $ 7296 per tonne on Monday. Last week, Commitment of traders report for week ending 14 May 2013 showed decline in the short positions while there was concurrent minor increase of long positions by hedge fund managers. The total short positions declined by 3064 contracts taking total short contracts number to 40667 contracts from 43731 contracts in the previous week. Markets are keenly awaiting hints from Federal Reserve minutes regarding central bank monetary policy. Copper prices have gained last week on the back of news that Federal Reserve will end its monetary policy stimulus of $ 85 billion per month. Indian Copper futures moved up smartly by Rs 3.5 or 0.9 percent to end at Rs 409 per kg. The prices tested a low of Rs 400 before recovering. Further appreciation can take the metal towards Rs 411 and 413 per kg today. Among other metals, Nickel three month prices were at $ 15070 per tonne, up $ 160 per tonne. MCX Nickel closed at Rs 828 per kg on Monday, up 1.5 percent. The prices tested a high of Rs 831 per kg and a low of Rs 810.6 per kg. Nickel markets are estimated to be in surplus of 90000 tonnes in 2013. World Nickel markets were in surplus of 110000 tonnes in 2012. Source by Commodity Insights |
Oil Flat Ahead Of FOMC
Oil.......
Crude oil futures stayed flat in the Asia electronic trades today as traders remain cautious ahead of the FOMC meeting minutes. Also, the appreciation in the US dollar against the Yen kept pressure on the commodities.
The Japanese yen lost ground Tuesday following fresh remarks by Japan's economic minister about the currency's recent price levels.
The U.S. dollar rose to 102.50 yen, up from ¥102.20 earlier in Tokyo trading hours following reports that Economy Minister Akira Amari said he hopes the yen's foreign-exchange rates will settle at levels that “match the basic strength of the Japanese economy.”
Over the six months since then, the yen has dropped 21% against the dollar, and the greenback has vaulted above the ¥103 level for the first time since late October 2008. Gains for the dollar accelerated after the Bank of Japan in April formally announced a two-year easing campaign aimed at stimulating economic growth and defeating years of deflation.
The Reserve Bank of Australia said Tuesday in the minutes of its May 7 policy meeting that tame inflation readings and the prospect of below average economic growth in the next year allowed the one quarter of a percentage point cut in the cash rate target to 2.75%. Australia's currency has lost more than 4% against the dollar since the early May rate cut.
NYMEX light sweet crude oil futures are trading down 1 cent at $ 96.70 per barrel. Yesterday, it settled higher by 69 cents, or 0.7%, at $96.71 a barrel.
MCX May crude oil futures may open today's session near Rs 5330 levels with support near Rs 5310 levels and resistance near Rs 5370-90 levels.
Source by Commodity Insights
Monday, May 20, 2013
Copper Refrains From Moving Higher
Copper......
The worries that China will step up further to control its property prices is letting metals to taste defeat once again. China has already tried to control the boom by setting higher mortgage rates and down payments. China consumes more than 43 percent of the world Copper that is directly getting affected by the government measures.
The worries that China will step up further to control its property prices is letting metals to taste defeat once again. China has already tried to control the boom by setting higher mortgage rates and down payments. China consumes more than 43 percent of the world Copper that is directly getting affected by the government measures.
Having said that, Dollar was trying to corner some support for Copper and peers. US Dollar was exchanging hands at 1.2856 against the Euro, down 0.12 percent. This is also indicative of commodities becoming more attractive.
Copper Inventories that has been in constant radar of analysts showed a marginal dip towards 628025 tonnes, down 1925 tonnes. Shanghai on-warrants of Copper showed a decline of 1476 tonnes to 62153 tonnes.
LME Copper prices were at $ 7271 per tonne, down 1 percent. Meanwhile, MCX Copper June prices was trading at Rs 403.5 per kg, down 0.54 percent. The prices tested a low of Rs 400 per kg and a high of Rs 405 per kg in the day. The opening was already on a skeptical note and till the evening session prices have extended their losses.
LME Aluminium three month prices were trading at $ 1844.5 per tonne, as against $ 1863 per tonne last week. On MCX, Aluminium was trading at Rs 100.6 per kg, down 0.54 percent. International Aluminium Institute (IAI) said that the total world Aluminium production declined by 111000 tonnes in April to 3.745 million tonnes.
The total world production in March was at 3.856 million tonnes. When compared to last year the production was up by 168000 tonnes to 3.577 million tonnes from April 2012.
In another report, Japan's Ministry of Economy, Trade and Industry (METI) said that Japan's output of stainless steel products totaled 238986 tons in March, increasing by 7.2% from a month ago.
The Japan output included 105733 tonnes of chromium based stainless steel, up 6.6 percent. Meanwhile, Nickel based stainless steel production was 133253 tonnes, up 7.6 percent.
Source by Commodity Insights
Nickel Sharply Lower On LME, Dollar Rise Pose Problems
Nickel.......
Dollar rise in new week trading posed problems for stainless steel material Nickel World Nickel markets are estimated to be in surplus of 90000 tonnes in 2013, as per International Nickel Study Group (INSG). Opening of number of new mines will be creating surplus in Nickel. Having said that, INSG said that surplus will be narrow this year compared to last year on account of recovery in demand. Last year, world Nickel markets were in surplus of 110000 tonnes. World primary Nickel production is expected at 1.86 million tonnes in 2013, up 5.7 percent from 2012. Primary Nickel usage is expected to increase by 7.3 percent to 1.77 million tonnes. China is exporting Nickel ores from Philippines. These ores are being used to produce Nickel Pig Iron in China. Indonesia banned its Nickel ores exports but INSG has noted that country hasn't affected the exports to China. Source by Commodity Insights |
Oil Begins Week On Flat Note
Oil......
began the new week on flat note getting some lift from sharp rally in the Asian equities on back the Bank of Japan report that the nation's economy was slowly improving.
Stocks in Hong Kong and Japan jumped to lead Asian markets higher Monday, tracking a positive global lead after key U.S. indexes notched another record finish on Friday, although South Korean shares underperformed amid geopolitical concerns.
The Bank of Japan said in its May report issued Monday that the nation's economy was slowly improving, marking an upgrade from its views in the April update, according to reports. Japanese stocks traded solidly higher Monday, also helped by Friday's gains on Wall Street, with the Nikkei Stock Average up 1.5% in early afternoon action.
Light sweet crude futures for delivery in July are trading down 6 cents at $ 95.96 on the New York Mercantile Exchange. It rose 1.2% Friday to settle the week at $96.29 a barrel by close of trade. On the week, Nymex oil futures added 0.75%, the fourth consecutive weekly advance.
New York-traded crude oil futures ended Friday’s session at a one-week high, after data showed that U.S. consumer sentiment rose more than expected in May, climbing to an almost six year high. Oil prices drew further support from rising U.S. equities markets, with the S&P 500 index closing at a fresh record high on Wall Street.
U.S. shares and crude oil have traded in tandem in recent weeks, on the belief share prices act as a proxy for economic sentiment and are a bellwether for oil demand.
Gains were limited as the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, rose 0.5% on Friday to settle the week at 84.34, the strongest level since July 2010.
MCX May crude oil futures may open today’s session near Rs 5300 levels with resistance near Rs 5330 and support near Rs 5270 levels.
In the week ahead, oil traders will be focusing on Wednesday’s Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke.
Markets will also be awaiting the release of key euro zone data on manufacturing and service sector activity.
Source by Commodity Insights
Saturday, May 18, 2013
Commodities Buzz: US Gold Exports Hit 129 Tonnes In First Two Months Of 2013
Gold.........
Gold exports from US are hitting new highs. According to the USGS, the
United States exported 129 metric tonnes of gold Jan-Feb, 2013. At this
rate, total U.S. gold exports could reach around 800 metric tonnes this
year- a record high. The UK received 7.4 metric tonnes in Jan and 11.5
more in Feb for a total of 18.9 metric tonnes. Hong Kong came in
second by importing a total of 40 metric tonnes (Jan-Feb) from the
United States, while Switzerland received 43.5 metric tonnes.In total,
the United States exported 129 metric tonnes of gold (refined bullion,
Dore' & precipitates) in the first two months of 2013. The U.K,
Hong Kong and Switzerland accounted for 102.4 metric tonnes or nearly
80% of all US Gold exports during these two months.The total gold
imports in US were just 50 metric tonnes of gold during this time
period, while domestic gold production supplied an additional 35 more.
With a total of 85 metric tonnes of gold imports and domestic mine
supply, the United States suffered a net deficit of 44 metric tonnes in
the first two months of the year.
Source by Commodity Insights
Source by Commodity Insights
Friday, May 17, 2013
Gold Tumbles Further In Europe
Gold........
Gold futures tumbled below $1375 an ounce in the Europe trading today extending its weekly losses as dollar continued to have an upper hand.
The U.S. dollar strengthened Friday, trading at its best levels in 10 months after a Federal Reserve official projected the possible timing of a winding down of the Fed’s bond buying. The ICE dollar index, which measures the greenback’s movement against six other major currencies, sat at 83.895, up from 83.758 on Thursday.
The greenback fell during Thursday’s session following a climb in U.S. weekly jobless claims, mixed signals from the housing market, and data showing conditions in the Philadelphia region’s manufacturing sector worsened this month.
The ICE dollar index was on track for a rise of roughly 1% for the week, benefiting in part from a fall in the euro after disappointing first-quarter gross domestic product reports from France, Germany and the euro zone.
Gold for June delivery are trading down $12 at $ 1375 per ounce on the New York Mercantile Exchange. Yesterday, it shed $9.30, or 0.7%, to settle at $1,386.90 an ounce. Including Thursday’s loss, prices have fallen 5.9% in six straight trading sessions. They settled Thursday at their lowest since April 17.
The World Gold Council said in a report on Thursday that investors during the first quarter didn’t buy enough physical gold to offset outflows from gold-exchanged traded funds. Total world gold demand was 963 metric tons in the first quarter, down 13% from the same time a year ago, according to the report.
But the World Gold Council also said total ETF gold holdings in the first quarter were higher than the year-ago period, and demand for jewelry, bars and coins increased.
MCX June bullion futures pierced below Rs 26000 trading at Rs 25957 per 10 grams. It may bounce back from the Rs 25920 levels today.
Source by Commodity Insights
Thursday, May 16, 2013
Gold Drowns Further; Dollar Appreciates
Gold.....
Gold futures drowned further in the early European trades today as
the dollar held largely steady ahead of a raft of data that could offer
further evidence on whether an economic recovery remains under way in
the U.S. The 12% rise in the gold demand in the first quarter of 2013
also failed to boost the prices.
The ICE dollar index, which measures the greenback’s movement against six other major currencies, was at 83.799 versus 83.795 on Wednesday. The greenback rose to around ¥102.25, but then lost grip of the slight gain by softening to ¥102.15. The dollar late Wednesday traded at ¥102.23.
The dollar briefly climbed against the Japanese yen after Japan said stronger household consumption and exports helped the economy grow 0.9% in the first quarter, surpassing expectations.
Quarterly gross domestic product figures from France, Germany and the euro zone that fell short of expectations had supported broad gains for the dollar on Wednesday. The euro exchanged for $1.2871 on Thursday, down from $1.2880 Wednesday, when the euro hit a six-week low against the greenback.
Later Thursday, a raft of data from the U.S. will be under assessment. That includes weekly figures on jobless claims, as the Federal Reserve has listed improvement in the labor market as a key factor in deciding when it will start tapering down bond purchases aimed at stimulating growth.
A snapshot of activity in the manufacturing sector, which has been sluggish lately, is also expected from the Philadelphia Federal Reserve. Also due are reports on consumer prices and new-home construction in April.
The latest World Gold Council Gold Demand Trends report, which reports on the period January-March 2013, shows a market driven by diverse global demand, and an appetite for owning gold jewellery that continues to grow. However, overall demand for gold slowed in Q1 of 2013. First quarter gold demand of 963 tonnes (t) was down 13% compared with Q1 2012 and the value measure of gold demand in Q1 2013 was US$51bn, down 16% on the year before.
Total jewellery demand was up 12% year-on-year in Q1 2013, driven in the main by Asian markets. Jewellery demand in China was up 19% on the same period last year and stood at a record 185 tonnes(t). Demand in both India and the Middle East was up 15% respectively and in the US, demand showed a significant increase, 6%, for the first time since 2005. Demand for gold in China and India was also driven by an increase in bar and coin sales - up 22% year-on-year in China and 52% in India. In the US demand for bars and coins was up 43% compared with the same quarter in 2012.
Source by Commodity Insights
The ICE dollar index, which measures the greenback’s movement against six other major currencies, was at 83.799 versus 83.795 on Wednesday. The greenback rose to around ¥102.25, but then lost grip of the slight gain by softening to ¥102.15. The dollar late Wednesday traded at ¥102.23.
The dollar briefly climbed against the Japanese yen after Japan said stronger household consumption and exports helped the economy grow 0.9% in the first quarter, surpassing expectations.
Quarterly gross domestic product figures from France, Germany and the euro zone that fell short of expectations had supported broad gains for the dollar on Wednesday. The euro exchanged for $1.2871 on Thursday, down from $1.2880 Wednesday, when the euro hit a six-week low against the greenback.
Later Thursday, a raft of data from the U.S. will be under assessment. That includes weekly figures on jobless claims, as the Federal Reserve has listed improvement in the labor market as a key factor in deciding when it will start tapering down bond purchases aimed at stimulating growth.
A snapshot of activity in the manufacturing sector, which has been sluggish lately, is also expected from the Philadelphia Federal Reserve. Also due are reports on consumer prices and new-home construction in April.
The latest World Gold Council Gold Demand Trends report, which reports on the period January-March 2013, shows a market driven by diverse global demand, and an appetite for owning gold jewellery that continues to grow. However, overall demand for gold slowed in Q1 of 2013. First quarter gold demand of 963 tonnes (t) was down 13% compared with Q1 2012 and the value measure of gold demand in Q1 2013 was US$51bn, down 16% on the year before.
Total jewellery demand was up 12% year-on-year in Q1 2013, driven in the main by Asian markets. Jewellery demand in China was up 19% on the same period last year and stood at a record 185 tonnes(t). Demand in both India and the Middle East was up 15% respectively and in the US, demand showed a significant increase, 6%, for the first time since 2005. Demand for gold in China and India was also driven by an increase in bar and coin sales - up 22% year-on-year in China and 52% in India. In the US demand for bars and coins was up 43% compared with the same quarter in 2012.
Source by Commodity Insights
Oil Dips Below $94 In Asia
Oil.....
Crude oil futures dipped below $94 a barrel in the Asia electronic
session today on appreciation in the US Dollar. Jump in the Japan first
quarter GDP was also of little help to oil.
Japan's economy expanded at a faster-than-expected rate in the first quarter of 2013, driven by higher household consumption and exports, showed government data released Thursday. The gross domestic product grew 0.9% in the January-March period from the quarter ended Dec. 31, after adjusting for inflation.
On an annualized basis, the quarterly growth represents a 3.5% increase, according to figures released by the Cabinet Office. The first-quarter growth is three times the 0.3% quarter-on-quarter expansion recorded in the last three months of 2012, which itself followed two quarters of contraction.
Crude-oil prices for June delivery is trading down 37 cents at $93.94 a barrel on the New York Mercantile Exchange. Yesterday, it rose 9 cents, or 0.1%, to settle at $94.30 a barrel after tapping an intraday low at $92.13. They tallied a loss of 2.7% over the past four trading sessions.
Prices during the trading session had dropped by more than 2% to touch a low under $93 a barrel as weak euro-zone economic data weighed on prospects for energy demand and fueled a rise in the dollar.
U.S. crude supplies fell 600,000 barrels for the week ended May 10, according to the Energy Information Administration. Analysts polled by Platts had expected a 300,000-barrel climb.
Even so, at 394.9 million barrels, stockpiles were still high. Last week’s total of 395.5 million was the highest weekly level in at least 30 years, according to EIA data that stretches back to as far as August 1982.
Official data showed the French economy slipped into a recession in the first quarter, and that Germany’s gross domestic product rose a less-than-expected 0.1%. Data Wednesday also showed that the euro-zone economy contracted 0.2% in the first quarter, worse than expectations for a 0.1% contraction.
Oil traders continued to keep a cautious eye on the dollar as well as the latest economic indicators in the U.S. and abroad.
MCX May crude oil futures may open today’s session near Rs 5130 levels with support near Rs 5090 and Rs 5055 levels.
Source by Commodity Insights
Japan's economy expanded at a faster-than-expected rate in the first quarter of 2013, driven by higher household consumption and exports, showed government data released Thursday. The gross domestic product grew 0.9% in the January-March period from the quarter ended Dec. 31, after adjusting for inflation.
On an annualized basis, the quarterly growth represents a 3.5% increase, according to figures released by the Cabinet Office. The first-quarter growth is three times the 0.3% quarter-on-quarter expansion recorded in the last three months of 2012, which itself followed two quarters of contraction.
Crude-oil prices for June delivery is trading down 37 cents at $93.94 a barrel on the New York Mercantile Exchange. Yesterday, it rose 9 cents, or 0.1%, to settle at $94.30 a barrel after tapping an intraday low at $92.13. They tallied a loss of 2.7% over the past four trading sessions.
Prices during the trading session had dropped by more than 2% to touch a low under $93 a barrel as weak euro-zone economic data weighed on prospects for energy demand and fueled a rise in the dollar.
U.S. crude supplies fell 600,000 barrels for the week ended May 10, according to the Energy Information Administration. Analysts polled by Platts had expected a 300,000-barrel climb.
Even so, at 394.9 million barrels, stockpiles were still high. Last week’s total of 395.5 million was the highest weekly level in at least 30 years, according to EIA data that stretches back to as far as August 1982.
Official data showed the French economy slipped into a recession in the first quarter, and that Germany’s gross domestic product rose a less-than-expected 0.1%. Data Wednesday also showed that the euro-zone economy contracted 0.2% in the first quarter, worse than expectations for a 0.1% contraction.
Oil traders continued to keep a cautious eye on the dollar as well as the latest economic indicators in the U.S. and abroad.
MCX May crude oil futures may open today’s session near Rs 5130 levels with support near Rs 5090 and Rs 5055 levels.
Source by Commodity Insights
Wednesday, May 15, 2013
Gold Nears $1400 As Recovery Fizzles
Gold.......
 MCX Gold fell for another day. Gold eased towards $1400 per ounce yet again in global markets, cutting back on the recent gains and witnessing heavy selling pressure as gains in the US dollar hurt the sentiments. MCX Gold futures also witnessed a similar movement, extending its recent break under Rs 27000 per 10 grams level. The COMEX Gold futures quote at $1407, down $18 per ounce on the day.The euro slipped under 1.2900 against the US dollar today, extending the recent downward spell after quarterly economic reports from France and Germany missed expectations. With France now in recession and Germany posting weak growth in the first quarter, the dollar continued to benefit from relatively attractive growth prospects in the U.S. French first-quarter GDP contracted by 0.2% compared with the fourth quarter of 2012, the third contraction in the last four quarters, according to the preliminary report from France's Insee agency. The German GDP edged up by 0.1% in the first quarter of 2013- managing to record nominal growth after stumbling in the previous quarter. In the last quarter of 2012, the German economy had suffered a major setback of -0.7%. The economic performance of the Euro zone remained depressing. GDP fell by 0.2% in the Eurozone (EA17) and by 0.1% in the EU27 during the first quarter of 2013, compared with the previous quarter, according to a flash estimates published today by Eurostat, the statistics office of the European Union. In the fourth quarter of 2012, growth rates were -0.6% and -0.5% respectively. So with consecutive quarterly falls in both zones, they remain in recession. Compared with the same quarter of the previous year, seasonally adjusted GDP fell by 1.0% in the Eurozone and by 0.7% in the EU27 in the first quarter of 2013, after -0.9% and -0.6% respectively in the previous quarter. The US Federal Reserve should slow and then halt bond purchases when it's time to exit from the central bank's quantitative easing efforts, Philadelphia Fed President Charles Plosser stated yesterday The Fed is buying $85 billion per month of Treasury and mortgage-backed securities- ensuring that the US dollar edges higher. This has boosted the US dollar across the board and the persistently weak undertone in Japanese Yen has assisted the US dollar index to jump to its strongest level since July last year. Commodities are falling as a reason and Gold is getting hammered the most given the fragile sentiments after nerve wrecking collapse towards $1300 per ounce levels last month. MCX Gold futures for June tracked the global cues and tested lows near Rs 26400 per 10 grams. The counter has lost nearly Rs 300 in intraday moves. The counter quotes at Rs 26457, down Rs 260 per 10 grams or 0.94% on the day. Source by Commodity Insights |
Oil Up On Bargain Buying; Awaits EIA Data
Oil.......
are trading higher on bargain buying in the Asia electronic session today after tumbling below $95 a barrel yesterday after the IEA referred to the surge in North American production as a “supply shock” that's sending “ripples throughout the world.” The traders will today await the weekly oil inventories data from EIA.
The International Energy Agency on Tuesday said the oil market is undergoing a supply shock, as production in North America continues to grow at a record pace, with non-OPEC supply alone expected to meet most of the world's rising energy demand.
The Paris-based agency forecasts North American supply to grow by 3.9 million barrels per day from 2012 to 2018 — nearly two-thirds of total forecast non-OPEC supply growth of 6 million barrels per day.
“The supply shock created by a surge in North American oil production will be as transformative to the market over the next five years as was the rise of Chinese demand over the last 15,” the IEA said in its Medium-Term Oil Market Report.
Crude oil for June delivery is trading up 13 cents at $ 94.33 an ounce on the New York Mercantile Exchange. Yesterday, it ended lower by 96 cents, or 1%, to settle at $94.21 a barrel — its fourth straight session loss and lowest close since May 2.
According to data from the American Petroleum Institute issued late Tuesday the crude-oil supplies rose over three times more than analysts expected for the week ended May 10. Crude supplies climbed 1.1 million barrels, while a Platts survey of analysts showed a forecast for a 300,000-barrel climb. Gasoline inventories fell 480,000 barrels and distillate stockpiles rose by 1.9 million barrels. The API data come ahead of the more closely watched U.S. Energy Information Administration report due Wednesday.
MCX May crude futures may open today's session near Rs 5195 levels with resistance near Rs 5225 levels and support around Rs 5165 levels.
Source by Commodity Insights
Gold Flat In Asia Post Losses
Gold........
Gold for June delivery is trading flat at $1424 an ounce on the Comex division of the New York Mercantile Exchange. It fell $9.80, or 0.7%, to settle at $1,424.50 an ounce. Prices, which tallied a four session loss of more than 3%, settled at their lowest level since April 24.
Gold prices on Monday fell $2.30, or 0.2%, as the dollar strengthened and investors weighed a report indicating the Fed is preparing to bring current monetary stimulus to an end.
On the economic front today, the Bank of America Merrill Lynch has cut growth forecasts for China, saying that sluggish external demand is in part behind its dimmer view of economic activity for this year. Merrill Lynch now expects gross domestic product in 2013 to expand by 7.6% from 8%.
Merrill Lynch also reduced its 2014 GDP projection to 7.6% from 7.7%, and noted its forecasts are below consensus of around 7.8% to 8% for this year and next.
Meanwhile, the International Monetary Fund said in a report Wednesday that New Zealand's economy continues to recover but the country remains sensitive to external developments and the strong local currency is acting as a headwind to growth.
The IMF country report added that rising house prices--which are already elevated by standard metrics--are a growing concern for the country and that New Zealand's high external debt is making it desirable to raise that national savings rate.
MCX June gold futures may open today’s session near Rs 26740 levels with support around Rs 26700 and Rs 26640 levels.
Source by Commodity Insights
Tuesday, May 14, 2013
Copper Faces Heat From Traders Selling
Copper.....
remained intact even after the opening of European trades. The extension of Asian losses was seen as prices lost hope of any recovery in near term. Chinese growth concerns remained pinning the minds of day traders as the prices on LME tested a one week low.
Selling pressure in Copper
The LME three month Copper prices were seen at $ 7276 per tonne, down $ 102 per tonne. Inventories continued to pile up for the second straight day of the week. The total inventories have now reached 618700 tonnes, after it moved up by 12000 tonnes.
Meanwhile, Freeport mine reported a tunnel collapse which was not impacting the prices. The collapse occurred at an underground training facility near the company's massive Grasberg copper and gold mine in Papua.
In another news, Rusal reported that the primary aluminium production in the first quarter of 2013 decreased by 4% or 42 thousand tonnes to 1007 thousand tonnes compared to the first quarter of 2012 or by 3% or 31 thousand tonnes compared to the fourth quarter of 2012 reflecting the launch of capacity curtailments program and was mostly attributable to the decreased production at certain less efficient smelters located in European part of Russia and Urals.
London warehouses today saw a jump of 1.4 percent in Aluminium inventories or 76125 tonnes to reach levels of 5230300 tonnes. This was also the six week high level of inventories on LME. LME three month forward prices were trading at $ 1855 per tonne, unchanged from last night. Meanwhile, MCX Aluminium was trading at Rs 100.85 per kg, down 1.2 percent.
For the second straight session in a row MCX Copper slipped sharply lower triggered by pressure from the world economy and simultaneous recovery of Rupee against the US Dollar.
MCX Copper benchmark June expiry contract was trading at Rs 399.9 per kg, down 2.2 percent from last day. This is a three day low for the metal which now seems to be moving below Rs 395 per kg in remaining session.
Source by Commodity Insights
Aluminium Inventories Increase By 1.5 Percent In Single Session
Aluminium...........
The idea of the lackluster demand can be made from the fact that even after a significant correction in the Aluminium prices, the inventories are still piling up in warehouses. London warehouses today saw a jump of 1.4 percent in inventories or 76125 tonnes to reach levels of 5230300 tonnes. This was also the six week high level of inventories on LME.
Prices have already been moving down on account of higher supply pressure and calls of production cuts from Aluminium majors like UC Rusal. The company estimated that global primary aluminium consumption reached 12 million tonnes in the first quarter of 2013, a 6 percent increase compared to the respective period of 2012.
Consumption of primary aluminium globally is forecasted to reach 50 million tonnes, an increase of 6 percent, with China remaining as the largest growing market with an expected 9.5 percent growth, followed by India with a growth of 6 percent growth.
LME three month forward prices were trading at $ 1855 per tonne, unchanged from last night. Meanwhile, MCX Aluminium was trading at Rs 100.9 per kg, down 0.8 percent.
Source by Commodity Insights
Rusal Reports Decline In Primary Aluminium Production In Q1 13
Aluminium...........
Rusal has reported that the primary aluminium production in the first quarter of 2013 decreased by 4% or 42 thousand tonnes to 1007 thousand tonnes compared to the first quarter of 2012 or by 3% or 31 thousand tonnes compared to the fourth quarter of 2012 reflecting the launch of capacity curtailments program and was mostly attributable to the decreased production at certain less efficient smelters located in European part of Russia and Urals.
Revenue in the first quarter of 2013 increased to $ 2,682 million (by 2.2%) as compared to $ 2,624 million for the fourth quarter of 2012 due to historically high premiums over LME aluminium price of $ 264 per tonne and improvement of the product mix offsetting a 1.7% decrease in physical aluminium sales while the metal price on LME was almost flat as compared with the last quarter of the preceding year.
Speaking on the occasion Oleg Deripaska, CEO of RUSAL said:
“Despite continued weakness in global aluminium prices and unfavorable market developments, RUSAL delivered a set of improved quarter-on-quarter financial results in the first three months of 2013. Our top-line increased to $ 2,682 million, up 2.2% from the fourth quarter last year, while EBITDA grew by 11.3% to $ 246 million in the same period reflecting record-high realized premiums and further improvements to our product portfolio.”
Source by Commodity Insights
Copper Is Rangebound On LME, MCX Likely To Open On A Dull Tone
Copper......
| Copper is trading in a rangebound fashion on Tuesday in early Asian trades after the Chinese industrial production data came below expectations last night. The dullness in Copper and other metals is also due to the fact that the rise in inventories levels is making things difficult for the prices to move ahead. LME Copper three month prices are trading at $ 7335 per tonne, against $ 7378 per tonne on Monday. The inventories levels of Copper are at decade high of 606700 tonnes. Chinese industrial production increased by 9.3 percent but below market expectations of 9.5 percent increase. The industrial production numbers moved higher compared to March figures of 8.9 percent. Various data agencies have been warning of decline in Chinese economy in coming days. Last week, Copper and Copper product imports in China declined to multi month low levels as per the data from China General Administration of Customs. The report showed that the Copper imports were 295799 tonnes in April 2013, down 7.4 percent from last month levels of 319603 tonnes. The decline was more denting on a yearly basis by 21 percent from 375258 tonnes in April 2012. In other economic news, US Commerce Department said that the retail sales increased 0.1 percent in April following in March. The increase was the result of rise in auto sales numbers by 1 percent. In currencies, Dollar was lower against the Euro, trading at 1.3013. The last session closed with Dollar at 1.2981 per Euro. Meanwhile, Indian Rupee that slipped to 55 against the Dollar is recovering and is now at 54.72. This is ten month low level for Rupee. The rise in Rupee can bring further slide to Copper that was down in MCX futures even after sharp fall in Indian currency last night. Indian Copper prices have declined by 8 percent in 2013 to Rs 408.6 per kg from Rs 443.9 per kg at the beginning of this year. Resistance of Copper is at Rs 412 and 415 per kg. Supports for the contract is at Rs 403 and 401 per kg. Source by Commodity Insights |
Oil Inches Up As Dollar Dims
Oil.......
inched up in Asia as the US dollar dimmed after three straight session of gains boosting the dollar denominated commodities.
Light, sweet crude for June delivery is trading up 18 cents at $ 95.35 per barrel on the New York Mercantile Exchange. Yesterday it settled 87 cents, or 0.9%, lower at $95.17 a barrel.
The U.S. dollar pulled lower Tuesday, edging back from gains against Japan’s yen, and softening against the euro ahead of the release of economic reports from Europe.
The ICE dollar index, which measures the U.S. dollar’s moves against six other major currencies, fell to 83.015 from late Monday’s level at 83.276. The U.S. dollar bought 101.51 yen, down from ¥101.81 late Monday in North America.
Yesterday, the counter settled lower for the third straight session, weighed by concerns over weakening demand in China and robust global production. Futures headed lower after data released Monday showed Chinese industrial output in April came in at 9.3% above last year's level.
On Monday, the Organization of the Petroleum Exporting Countries raised its strongest concerns yet this year about weakening oil demand in China. It cut its estimate for Chinese oil demand growth in the first quarter by 20,000 barrels a day, saying weaker-than-expected economic growth in China "may dent oil demand consumption."
Research service Platts estimated OPEC raised crude output by 25,000 barrels a day to 30.5 million barrels a day in April. The increase marked the end of a recent trend of lower production. The service said output had fallen by nearly a million barrels a day between October and March.
Platts said the increase was driven by higher output from Saudi Arabia, the biggest producer, and Iraq, the No. 2 producer. The group's next meeting in Vienna scheduled for May 31
Meanwhile, many oil-market observers remained concerned about the effect of a wind-down of monetary stimulus measures at the U.S. Federal Reserve. An end to the measure would likely entail more support for the U.S. dollar, which typically weakens oil prices by making the commodity more expensive to global buyers.
MCX May crude futures may open today’s session near Rs 5235 levels with resistance near Rs 5270-85 levels today. It should find a good support near Rs 5200 levels.
Powered by Commodity Insights
Monday, May 13, 2013
Commodities Buzz: EU Proposes To Relax Controls On Food And Agriculture Industries
| The European Commission has put forward proposals to change the current legislation governing all official controls in the food and agriculture industries, according to media reports. The proposed plans will potentially affect all organisations involved in the production, manufacture, supply and regulation of food, feed, live animals, plants and plant reproductive material. The Commission's aim is to ensure a more consistent approach to official controls, such as inspection and approvals, throughout the food and agriculture sectors. The changes are also intended to support more sustainable and effective control systems across European Union (EU) member states. In the UK, the Food Standards Agency is consulting with members of the industry as part of a UK-wide programme across the food industry and with enforcement agencies to gather views on the potential impact of the proposed changes. These measures will reduce the legislation from approximately 70 pieces to five. The Commission's proposals include detailed measures for the calculation of fees and a mandatory exemption for micro-businesses. A micro-business is a business that employs less than 10 people, with a turnover of less than €2 million. Procedures and management of import controls across the plant, animal, feed and food chains are expected to be simplified and harmonised under the changes. New rules regarding the level of information that government and local authorities will be expected to make available to businesses and the general public about official controls have also been proposed. As negotiations proceed, the revised regulations will be presented to the European Parliament and the European Council. Both will assess the details before voting on whether to adopt the amended regulations. Due to the complexity of the proposals, voting is not expected to take place until late 2014. Source by Commodity Insights |
Gold Eases To Two-Week Low
Gold.......
slipped in tune with the global prices as a broad retreat continued for the red metal amid a pullback in global stock markets. The metal had witnessed a sizeable fall in the last week, extending a drop from its highs around $1490 per ounce amid strength in US dollar and a continued outflow in major gold exchange trades funds. The metal fell to a two-week low of $1418 per ounce on Friday and remained depressed today. The benchmark COMEX futures slipped from highs near $1450 per ounce and currently trade at $1433.20, down $3.40 per ounce on the day.
Even as the prices have recovered in last few weeks, the declines in holdings in gold-backed exchange-traded funds remained a concern in the market. Gold holdings in the SPDR Gold Trust fell to 1051.65 tons on Friday lingering around their four-year low.
The Asian markets witnessed a mixed set of data from China. The industrial production in the country witnessed a smaller-than-expected rise in April, underlining worries that the economy may be losing steam. Output rose 9.3% from a year ago, which was up from March's figure of 8.9% but below market forecasts for a 9.5% rise. Fixed-asset investment also weakened in the first four months of 2013. However, the Chinese retail sales increased in line with expectations by an annualised 12.8% in April, up on the 12.6% rate witnessed in the previous month.
Meanwhile, India's trade deficit in April soared more than 70% from March as imports of gold and silver shot up over two times. The deficit widened to $17.8 billion from $10.31 billion in March. Imports in April rose 10.9% from a year earlier to $41.95 billion. That was mainly because of a sharp increase in the imports of gold and silver — India imported $7.5 billion worth of gold and silver in the past month, compared with $3.1 billion in the year-earlier period.
This is concurring with the fact that demand in the country after a ferocious drop in mid April has held very well. However, this data failed to prop up the prices must on Akshay Tritiya- considered a very good occasion to buy the yellow metal in India. The benchmark MCX Gold futures fell in a hurry, breaking under 26900 per 10 grams mark in early moves. The metal tanked to a low of Rs 26676 per 10 grams and edged up to trade at Rs 26772 per 10 grams right now, down Rs 227 or 0.84% on the day with a massive 17% increase in the open interest.
slipped in tune with the global prices as a broad retreat continued for the red metal amid a pullback in global stock markets. The metal had witnessed a sizeable fall in the last week, extending a drop from its highs around $1490 per ounce amid strength in US dollar and a continued outflow in major gold exchange trades funds. The metal fell to a two-week low of $1418 per ounce on Friday and remained depressed today. The benchmark COMEX futures slipped from highs near $1450 per ounce and currently trade at $1433.20, down $3.40 per ounce on the day.
Even as the prices have recovered in last few weeks, the declines in holdings in gold-backed exchange-traded funds remained a concern in the market. Gold holdings in the SPDR Gold Trust fell to 1051.65 tons on Friday lingering around their four-year low.
The Asian markets witnessed a mixed set of data from China. The industrial production in the country witnessed a smaller-than-expected rise in April, underlining worries that the economy may be losing steam. Output rose 9.3% from a year ago, which was up from March's figure of 8.9% but below market forecasts for a 9.5% rise. Fixed-asset investment also weakened in the first four months of 2013. However, the Chinese retail sales increased in line with expectations by an annualised 12.8% in April, up on the 12.6% rate witnessed in the previous month.
Meanwhile, India's trade deficit in April soared more than 70% from March as imports of gold and silver shot up over two times. The deficit widened to $17.8 billion from $10.31 billion in March. Imports in April rose 10.9% from a year earlier to $41.95 billion. That was mainly because of a sharp increase in the imports of gold and silver — India imported $7.5 billion worth of gold and silver in the past month, compared with $3.1 billion in the year-earlier period.
This is concurring with the fact that demand in the country after a ferocious drop in mid April has held very well. However, this data failed to prop up the prices must on Akshay Tritiya- considered a very good occasion to buy the yellow metal in India. The benchmark MCX Gold futures fell in a hurry, breaking under 26900 per 10 grams mark in early moves. The metal tanked to a low of Rs 26676 per 10 grams and edged up to trade at Rs 26772 per 10 grams right now, down Rs 227 or 0.84% on the day with a massive 17% increase in the open interest.
Source by Commodity Insights
Copper Managing Some Gains Even As Inventories Rise By 2450 Tonnes
Copper managed some gains even as inventories on LME increased by 2450 tonnes on Monday. The inventories in LME have now increased by 89 percent in 2013 to 606700 tonnes.
LME three month prices were trading at $ 7418 per tonne, up $ 42 per tonne after the Chinese data showed rise in industrial production. However, the prices have not moved much due to the fact that the rise in industrial production was not as per the expectations.
Chinese industrial production increased by 9.3 percent but below market expectations of 9.5 percent increase. The industrial production numbers moved higher compared to March figures of 8.9 percent. Various data agencies have been warning of decline in Chinese economy in coming days. China GDP increased by 7.7 percent in the first three month of the year to 7.9 percent in the previous quarter.
Fixed asset investment of China grew by 20.6 percent in the first four months of the year. Economists had expected a rise of 21 percent in fixed asset investment.
Indian Copper prices have declined by 7.6 percent in 2013 to Rs 410 per kg from Rs 443.9 per kg at the beginning of this year. Further elevation in Indian Copper is possible considering the decline of Indian Rupee against the Dollar. Rupee tested a ten month low level of 55 against the Dollar on 13 May 2013. However resistance of Rs 415 and 420 per kg will be difficult to be broken.
In another news, ICSG has predicted that demand will continue to lag behind production and the total surplus is estimated to increase to 415000 tonnes in 2013. World Mine production of copper is expected to increase by 18.54 million tonnes from 17.56 million tonnes in 2012, up 5.2 percent.
Refined copper production is expected to increase by 4.3 percent to 20.98 million tonnes in 2013 up from 20.16 million tonnes in 2012. Meanwhile, World refined usage of Copper is expected to reach 0.3 percent to 20.56 million tonnes in 2013, from 20.51 million tonnes in 2012.
Source by Commodity Insights
Copper Skeptical, China Industrial Production Data Awaited
Copper......
| LME three month prices of Copper were marginally higher ahead of the release of Chinese industrial production data. Any negative news from the Chinese industry can play havoc in the recent recovery of Copper and other metals. The only worry for the markets is the output growth of metals. Copper production is expected to rise by 8 percent. Oversupply burden has chopped Copper to 18 month lows last month. LME Copper was trading at $ 7377 per tonne, against $ 7376 per tonne last week. Most active Copper contract on MCX closed the last week trading at Rs 410.8 per kg, up 3.5 percent in the week. Further uptrend can take Copper towards Rs 413 per kg in the upcoming trading sessions. Supports for the contract are at Rs 408 and 406 per kg. Last week, COMEX Copper fund managers, Commitment of traders report for week ending 7 May 2013 showed decline in the short positions while there was simultaneous minor liquidation of long positions by hedge fund managers. The total short positions declined by 7402 contracts taking total short contracts number to 43731 contracts from 51133 contracts in the previous week. COT report showed that long contracts decreased by 768 contracts and were at 26935 contracts from 27703 contracts a week before. Total net short positions therefore moved to 16796 contracts from 23430 contracts. LME Copper inventories closed at 604250 tonnes against 604600 tonnes at the beginning of the week. Source by Commodity Insights |
Gold Extends Decline As Dollar Gains
Gold.....
Gold futures extended decline in the Asia electronic trades today as the US dollar stretched its last week’s gains against the Yen and Australian Dollar.
The ICE dollar index , which measures the U.S. dollar’s moves against six other major currencies, rose to 83.268, up from 83.132 late Friday in North America. Ahead of the figures, the Aussie traded at its lowest level against the U.S. dollar in about a year, buying 99.84 U.S. cents. It bought $1.0026 late Friday after briefly falling below the $1 level.
The U.S. dollar may react later Monday to data from China on industrial production and retail sales in April. Hours after those reports are expected to be released, the U.S. Commerce Department’s report on retail sales for April is due.
Gold for June delivery is trading down $9 at $ 1428 per ounce on the Comex division of the New York Mercantile Exchange. The metal is likely to find support near $1400 and $1370 levels. On the week, gold futures lost 1%, the first weekly decline in three weeks.
On Friday, gold futures for June delivery tumbled 1.5% to settle the week at $1,446.65 a troy ounce. Earlier on Friday, Comex gold fell by as much as 3.4% to hit a session low of $1,418.65 a troy ounce, the weakest level since April 24.
In the week ahead, gold traders will be focusing on a flurry of U.S. economic reports, including data on retail sales, building permits, jobless claims as well as a closely watched report on consumer sentiment.
MCX June delivery gold futures may open today’s session near Rs 26950 levels with support around Rs 26900-850 levels.
Source by Commodity Insights
Friday, May 10, 2013
MCX Crude Slides Under Rs 5200, Global Prices Down Two Dollars
Oil.....
by Commodity Insights
Crude oil came off its five week highs today, succumbing to a heavy sell off in European trades as the Organization of Petroleum Exporting Countries (OPEC) warned about the global oil demand due to lingering worries on Chinese and European front. The WTI Crude oil futures fell through $96 per barrel and broke under $95 as well, dropping around two dollars per barrel on the day to quote at $94.50 per barrel right now.
The Organization of Petroleum Exporting Countries (OPEC) left its oil supply and demand forecasts unchanged but maintained a cautious outlook on possible demand destruction from China and the euro zone in its monthly update. The OPEC said that world oil demand went up less than expected in the first quarter of the year. Demand is expected to grow by 800,000 barrels a day, the group said, but warned economic headwinds could see further downward revisions to this forecast.
While at the beginning of the year it looked as if further momentum was building up, the continued decline in the euro zone, the significant deceleration in the first quarter in some of the Asian economies and the recently acknowledged slow-down in Russia all have the potential to again push growth down slightly further, OPEC said.
The Asian equities were in a good touch today; rally on back of a persistent weakness in Japanese Yen. The Yen fell to a four and half year low against the US dollar today. Crude stayed supported amid these cues but flipped back the direction quite quickly in the European trades. MCX Crude oil futures for May 2013 came off the highs near Rs 5250 per barrel and currently trade at Rs 5198, down Rs 29 per barrel on the day with a huge 12% increase in open interest.
The Organization of Petroleum Exporting Countries (OPEC) left its oil supply and demand forecasts unchanged but maintained a cautious outlook on possible demand destruction from China and the euro zone in its monthly update. The OPEC said that world oil demand went up less than expected in the first quarter of the year. Demand is expected to grow by 800,000 barrels a day, the group said, but warned economic headwinds could see further downward revisions to this forecast.
While at the beginning of the year it looked as if further momentum was building up, the continued decline in the euro zone, the significant deceleration in the first quarter in some of the Asian economies and the recently acknowledged slow-down in Russia all have the potential to again push growth down slightly further, OPEC said.
The Asian equities were in a good touch today; rally on back of a persistent weakness in Japanese Yen. The Yen fell to a four and half year low against the US dollar today. Crude stayed supported amid these cues but flipped back the direction quite quickly in the European trades. MCX Crude oil futures for May 2013 came off the highs near Rs 5250 per barrel and currently trade at Rs 5198, down Rs 29 per barrel on the day with a huge 12% increase in open interest.
Source
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