Gold Plummets Under $1200

Gold.....

MCX Gold futures dropped under Rs 25000 per 10-gram levels as the meltdown in the metal continued. The global prices tested their fresh three year lows and looked headed for further losses as $1200 per ounce mark gave up. Global markets were mixed but Gold continued to ease. The COMEX Gold futures gave up after a failed attempt to stay above $1200 in Asia and currently trades at $1193.40, down nearly 20 dollars on the day.

Euro gained from its three week low against the US dollar today as supportive data boosted the sentiments for the single currency. German retail sales were better than expected in May, as consumers returned to the shops after being kept away for months by the cold and rainy weather, data from the Federal Statistics Office showed Friday. Retail sales in May increased 0.8% from April, following three consecutive months of declines, beating economists' forecasts of a 0.3% drop in sales. The data are inflation-adjusted and also consider calendar effects.

The rise in sales comes as a robust labor market and buoyant consumer confidence boost households' spending prospects. German jobless claims in June dropped 12,000 on the month in seasonally adjusted terms, pushing down unemployment to its lowest level since December 2012, data from the country's BA labor agency showed Thursday. German consumer sentiment, meanwhile, is close to a six-month high, according to the GfK research institute.

The MCX Gold futures for August are quoting at Rs 24862, down around 25 on the day a massive rise of 10 % in open interest.
Source by Commodity Insights

Oil Rallies In Tandem With Equities

Oil........

Crude oil futures rallied to one week highs above $97 a barrel boosted by gains in equities and the positive data releases from US.
Japanese stocks shot higher Friday, as an overnight advance on Wall Street and a weakened yen combined with upbeat industrial-production data to lift sentiment, while other Asian markets also saw gains.
Japan’s Nikkei Stock Average jumped another 3.3% on top of Thursday’s 3% rally, recording a climb of more than 30% in the first half of 2013. The broader Topix improved by 3.2%, as the U.S. dollar advanced toward the ¥99-handle, with analysts eyeing further weakness for Japan’s currency.
Light sweet crude futures for delivery in August are trading up 7 cents at $ 97.14 per barrel on the New York Mercantile Exchange. It rose to one-week high on Thursday, after official data showed that U.S. jobless claims declined last week while consumer spending increased last month.
The data came after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell by 9,000 to a seasonally adjusted 346,000, compared to expectations for a drop of 10,000 to 345,000.
A separate report showed that U.S. personal spending was up 0.3% in May, in line with expectations. The data also showed personal income increased 0.5%, above expectations for a 0.2% increase.
Investors had scaled back expectations that the Federal Reserve will start tapering bond purchases this year following a downward revision to U.S. first quarter growth on Wednesday.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Meanwhile, oil prices drew further support after official data showed that profits at China’s industrial companies jumped 15.5% in May from a year earlier, higher than April’s 9.3% gain. Market sentiment received a further boost amid improvement in China’s strained money markets.
MCX July crude oil futures may open today’s session near Rs 5855 levels with resistance near Rs 5890 levels.
Source by Commodity Insights

Economic Buzz: Global FDI Sees Massive Drop In 2012 Says UNCTAD

Global foreign direct investment (FDI) inflows dropped by 18% to US$1.35tn in 2012. Recovery to more vigorous investment levels will take longer than expected, mostly because of global economic fragility and policy uncertainty, UNCTAD's (United Nations Conference on Trade and Development) annual survey of investment trends reports stated today. Developing countries make up four of the top five host economies. Six of the top 10 prospective host countries also come from the developing world, with Mexico and Thailand appearing for the first time. Among developed countries, Japan jumped three positions largely because of reconstruction efforts after the 2011 tsunami, and recent expansionary monetary policies have together increased the country's attractiveness for foreign investment in the medium term. At the same time, Australia, the Russian Federation and the United Kingdom slipped down the rankings from last year's survey, while Germany gained two positions.
Source by Commodity Insights

Hot Commodities: Gold Continues Its Downward Trend, Plummets Under $1200

Gold.......

Gold futures continued its downward trend in the European session today with the precious metal set for solid losses for the month of June.
European stock markets opened higher on Friday, with the week set to end on a positive note, in the wake of soothing comments by U.S. Federal Reserve officials. U.S. sentiment data and another wave of Fed speakers are on the calendar for Friday. FTSE 100 index rose 0.4% to 6,265.15, while the French CAC 40 index rose 0.2% to 3,768.37. The German DAX 30 index rose 0.4% to 8,019.27.
Today, the metal is also under pressure due to gains in the global equity markets. Gold for August delivery is trading down $11.6 at $1,200 an ounce, after having hit an intraday low of $1,179.40. The yellow metal is about to end the month of June down more than $200 an ounce.
Gold prices remained on a downward spiral Thursday, even as three Federal Reserve officials suggested the markets had overreacted after Fed Chairman Ben Bernanke's remarks last week that the central bank may start slowing the pace of stimulus as early as this year.
Such a move would be based on improvement in the economy that's in line with the Fed's forecasts, Bernanke had said. Speculation that the end of Fed stimulus would arrive sooner rather than later hit gold futures hard this month, as so-called quantitative easing has been credited for supporting a rally in gold in recent years.
Wells Fargo Advisors joined the downgrades for gold along with Goldman Sachs, Credit Suisse and HSBC this week. Wells Fargo Advisors cut its year-end target range for gold, saying it now expects to see prices settle at $1,225 to $1,325 an ounce. It has previously expected prices to end the year at $1,475 to $1,525 an ounce.
Gold production in China, the world's largest producer, is expected to rise about 10% this year to a record even as bullion prices slump, the nation's mining association said, according to media reports. The country recorded output of 403 tonnes last year. Production gained 12% in the first four months from a year earlier to 122.89 tonnes, according to the producer-funded China Gold Association.
MCX August gold futures tumbled below Rs 25000 earlier today down nearly Rs 400 per 10 grams. A fall below Rs 24900 may take it towards Rs 24700 levels today.
Source by Commodity Insights

Crude Oil Manages Steady Gains In Global Markets

Oil.......

MCX Crude oil futures traded sideways as a bounce in Indian Rupee from its all time lows near 61 per US dollar undercut the gains in the overseas prices. Modest gains in Asian and European stocks kept crude supported and the WTI futures managed to hit a high above $96 per barrel. The commodity currently quotes at $95.81, up 31 cents per barrel. Prices topped out at their four-month high last week.

Stocks were supported today around the world. US gross domestic product expanded at a 1.8% annual rate in the first quarter, compared with the previously reported 2.4 percent pace, lending a cautionary note on economic recovery. This data could mean that Fed might not act in a very fleeting manner as regards unwinding of its asset buying. In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.

Meanwhile, oil remains capped on the upside. Concerns over China's economic outlook are also weighing on oil after data last Thursday showed that manufacturing activity hit a nine-month low in June. China's HSBC preliminary manufacturing purchasing managers' index fell to 48.3 in June from 49.2 in May as new orders declined, indicating that the slowdown in manufacturing is worsening.

The US dollar continued to liner around its three week high against the Euro. It oil might not rise much in evening if the dollar continues to hold on. MCX July crude oil futures are quoting at Rs 5786, down Rs 9 per barrel on the day. Prices had rose to a high of Rs 5835 per barrel earlier as the Rupee crumbled towards 61 per dollar.
Source by Commodity Insights

Agri Buzz : India Secure Strong Export Orders At $300 Per Tonne

Riding on the strictest multi-layer quality checks mounted by the Food Corporation of India (FCI), Indian wheat has secured comparatively better price in the international market, with the latest lot up for sale crossing the CBOT (Chicago Board of Trade) price by nearly 50 dollars per tonne.
According to the latest tender opened, India got 300.10 dollars per tonne for the lot offered for export as compared to the July future price of CBOT (260 dollars) as on June 3. About four million tonnes (MT) of wheat, exported so far by the FCI, have got an average price of 311.69 dollars per tonne.
An FCI official said the exports this year have proved that the corporation's wheat has a wider and higher acceptability in the international market. “We got a very good response to our wheat despite a drop in the global demand,” he added.
After a long gap, the government had this year allowed export of 4.5 million tonnes of wheat, thanks to a stupendous rise in the production and the excess stock in the country. Earlier, during 2002-04, India had exported it on a commercial basis. However, prices were not so attractive then.
Of the export target, 4.03 million tonnes has already been despatched. The reserve price for export of the initial lot of 2 million tonnes was just 228 dollars per tonne, while for the second lot it was fixed at 300 dollars per tonne.
“There is a huge demand for our wheat now,” said the FCI official. “We get prices as good as that of Australian Soft Wheat, one of the best in the world. The exports have proved the acceptability of our wheat in the international market,” he said.
The main buyers for Indian wheat are South Korea (10,01,789 mt), Ethiopia (6,80,358 mt), Bangladesh (6,75,432 mt), Yemen (3,06,519 mt), Thailand (2,71,767 mt) and Indonesia (2,10,700 mt). Besides, the buyer-countries also included Sharjah, Dubai, Sudan, Oman, Qatar, Vietnam, Malaysia and the Philippines.
FCI has exported the wheat through agencies like STC, PEC and MMTC. Mundra port in Gujarat handled the largest quantify of export, followed by Kandla — also in the Kutch area of the western Indian state. The main players in the international wheat market are USA, Canada, Ukraine, Australia, Russia and Argentina.
“We have a multi-layer quality check to ensure that the Indian wheat gets a credible brand,” the official explained. “The samples were first sent for tests at the Directorate of Wheat Research at Karnal (Haryana) for chemical parameters. Besides the tests by the buyer-representatives, FCI also made sure of tests to prevent rejection of shipments. We exported the wheat only after the buyers got satisfied themselves about the product.”
He said FCI could secure better price if the handling process was fully mechanised. “Non-mechanisation of the handling process is one factor that makes us uncompetitive in the international market. Otherwise, we get highly encouraging feedbacks from the buyers when we meet them,” he noted.
Source by Commodity Insights

Economic Buzz: U.K Q1 GDP Revised Down To 0.30%

The U.K.'s Office for National Statistics said gross domestic product expanded at a seasonally adjusted rate of 0.3% during the first quarter, in line with expectations and unchanged from a previous estimate.

Annualized GDP grew at a rate of 0.3% in the first quarter, downwardly revised from a previous forecast of 0.6% growth. Analysts expected annualized GDP to remain unchanged at 0.6%.
Source by Commodity Insights

Commodities Buzz: Falling Gold Price Raises Red Flag For SA Miners

Gold..........
The Gold price tumbled as much as 4% on Wednesday, touching a low last seen in August 2010 and potentially endangering the future of some of South Africa's top gold mining houses if the fall continues. The top three JSE-listed gold shares — Anglo Gold Ashanti, Harmony Gold and Gold Fields — have shed a combined R100bn in value so far this year, underlining concerns over the sector's future. Predictions that gold could fall under $1,000/oz as expansionary monetary policies are reined in, especially in the US, are putting further pressure on gold miners. The companies are also facing surging labor unrest, and wage demands ranging from 60% increases to a whopping 100%.
The JSE gold index is down 23% this month for a 48% loss so far this year. Harmony and AngloGold shares have lost 54% and 49%, respectively, since the start of the year, while Gold Fields has given up 47% since Sibanye Gold was unbundled on February 11.The gold industry is under attack from all sides, said independent analyst Ian Cruickshanks. With the price in bear market territory, it is very difficult to make an investment case for the sector and its future in South Africa is limited.
Earlier this week, the Association of Mineworkers and Construction Union tabled a 100% wage demand for all unskilled and semiskilled employees in the gold industry, raising fears of a strike and attendant consequences for production if its demands were not met. The National Union of Mineworkers tabled a 60% wage demand last month.
Spot gold fell to lows of $1,236.25oz on Wednesday, which analysts deemed unsustainable for the bulk of South Africa's gold mines.” The gold spot could go as low as $1,000/oz, further impacting gold miners negatively from the cost point of view. The $1,300/oz is, on average, the break-even point for gold companies to produce gold profitably, said Rezco Asset Management investment director RobSpanjaard.
The dollar-denominated metal has lost 25% in value this year as investors cut back their positions amid expectations that the US Federal Reserve (Fed) will wind down its cheap money policy.Gold is susceptible to so many exogenous factors. Investors had previously bought gold to hedge themselves against the threat of global inflation as a result of the US's easy monetary policy, Sasfin Securities portfolio manager Nicholas Sorour said.
The metal is also generally perceived as a haven from collapse scenarios, and demand will tend to wane when market players feel better about the global economy.Rand Merchant Bank analysts said the fall in the gold price has not hit the rand yet but we are increasingly concerned that the Fed tapering is going to generate a further bear market in South Africa's commodity export prices.
The Fed's action, along with liquidity trouble in China's interbank market, was adding to commodity price woes, Standard Bank analysts said.
Source by Commodity Insights

MCX Silver Breaks Below Rs 40000

Silver......

After trading a range bound manner for nearly 2 months, silver prices finally got the downward direction. The white metal slumped below Rs 40000 per kg today as the upbeat US data released yesterday supported the view that the Federal Reserve will slow the pace of monetary stimulus this year.
MCX July silver futures tumbled to as low as Rs 39325 per kg today. The metal had fallen by nearly 10% so far this month; however the fall in prices has been curbed by the extra soft Indian Rupee. The Indian Rupee has fallen by more than 5% so far this month to low of nearly 60 per dollar. The counter should find support near Rs 39000-37000 levels in the near term.
The international silver futures have been hurt more severely due to sharp appreciation in the US dollar. COMEX July silver futures tumbled below $19 an ounce, falling nearly 17% so far in June 2013.
The dollar-denominated commodities felt the pinch from a rise in the U.S. dollar against key rivals, with the greenback looking for a sixth consecutive day of gains. The buck rose Tuesday after a report showed U.S. sales of new homes rose 2.1% in May, the fastest rate since mid-2008, and the Case-Shiller April home-price index jumped 2.5% in April, the largest monthly growth on record.47070
Federal Reserve Chairman Ben Bernanke last week indicated the central bank may slow the pace of bond buying as early as this year if the economy continues to improve within its forecasts. The Fed currently buys $85 billion a month in U.S. Treasurys.
Later Wednesday, the U.S. Commerce Department is slated to release the third estimate of gross domestic product for the first quarter.
Source by Commodity Insights

Hot Commodities: Silver Crashes Under $19 As Precious Metals Continue To Bleed

Silver......

MCX Silver futures fell heavily today, nearing Rs 39000 per kg levels as the global prices crashed to fresh lows under $19 per ounce- a level not seen since August 2009. The commodities dropped in tune with sell off in gold, which exacerbated the pressure already built up on the white metal. The benchmark COMEX Silver futures are down by a massive 3% to 18.98 per ounce right now. Gold is also down to near three year low of $1249, down $26.10 per ounce on the day.

There has been a constant wall or worry in place for the precious metals in last few weeks with the meltdown seen mid April refusing to let go of investor sentiments. Both silver and gold crashed in the current week as ETF outflows accelerated and a rise in US dollar in global currency markets had a dampening effect on the commodity complex.

The holdings of the iShares Silver Trust- the world's largest silver-backed exchange traded fund slipped to near 9800 tonnes- around eight month low. A critical break under $20 per ounce level at the start of the week turned the sentiments around for silver and the metal melted today in what has been auguring as another death spell for the bullion counters.

The volatility in global stocks has not helped the precious metals much and the fact that Copper prices are lingering around two year lows is making it very difficult for silver to witness any bargain buying. The MCX Silver futures for July gave up nearly Rs 1300 per kg in first two hours of trade with an early break under 40k exposing the metal to virtually a limitless downside trade. The counter quotes at Rs 39685, down nearly Rs 1000 or 2.41% on the day with 4.11% increase in open interest.
Source by Commodity Insights

Gold Recovers In Intraday Moves

Gold........
MCX Gold futures edged higher today as global prices recovered from the strong sell off and neared $1290 per ounce levels. The European equities recorded some gains as China's central bank clarified about the acute liquidity crunch being faced by the world's second largest economy. COMEX Gold futures for August slipped near its two and half year low in morning but rebounded to trade at $1286.30, up $9.20 per ounce on the day.

US dollar slipped from its three-week high against the Euro and supported the yellow metal. The dollar had cruised after the US Fed's “taper” comments last week, sending stocks and commodities lower amid a volatile activity in world markets. However, the Minneapolis Fed President Narayana Kocherlakota eased investors today by stating Fed has not become more hawkish and upcoming economic data would be eyed for further clarity.

In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. The Fed's announcement prompted dramatic declines in US markets on Wednesday and Thursday and also helped catalyse significant drops in international equity markets on Thursday. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.

Chinese equities launched a massive intraday rally as the central bank officials alleviated the worries over latest credit crunch to some extent. These gains spilled over into European stocks too, which are trading with gains of around 1-1.5%. Gold plummeted to fresh two and half year lows in global markets last week. However, the losses in local markets were limited as the Indian rupee dropped to a fresh all time low mark around 60 against the US dollar. The MCX Gold futures for August are quoting at Rs 26743, up Rs 18 per 10 grams on the day. Prices have recovered from a low of Rs 26541 per 10 grams.
Source by Commodity Insights

Second Straight Day Of Slump In Lead

Lead.......
Battery material lead has slumped for the second straight day. The metal saw a decline of 1.29 percent in the opening ticks on MCX, giving very little chance for new sellers to enter in the market. The open interest in the contract has increased to 5705 contracts from last night open interest of 5514 contracts. So far 2845 kg of Lead has been traded.
MCX Lead contract was trading at Rs 118.25 per kg; this is a 26 day low for the metal in the exchange. The prices are expected to slip to Rs 115 levels if the psychological barrier of Rs 118 is broken.
LME three month Lead prices were at $ 1988 per tonne, as against $ 2002 per tonne on yesterday's close.
Source by Commodity Insights

Hot Commodities: MCX Gold Drops Well Under 27k

Gold.........

MCX Gold futures slipped in tune with their global counterparts as a volatile spell in global equities pushed the metal lower. The US dollar piled up further gains, nearing its three-week high against the Euro as the rally post US Fed's “taper” comments stayed in place for the greenback. The yellow metal was also hurt on an indication that highs around $1300 per ounce levels are failing to hold. The metal slipped nearly 20 dollars from these levels and currently trades at $1279.90, down $12.10 per ounce on the day.

Meanwhile, the global equities slipped sharply led by Chinese stocks. There are concerns over an acute liquidity crunch in the country after the short-term interbank interest rates hit record highs last week. Bulk of the stock indices in the region are down around 1-2% while the Chinese stocks have pared more than 5%. The commodity prices are down across the board as well with copper sliding near two year low.

In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. The Fed's announcement prompted dramatic declines in US markets on Wednesday and Thursday and also helped catalyse significant drops in international equity markets on Thursday. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.

Gold plummeted to fresh two and half year lows in global markets last week. However, the losses in local markets were limited as the Indian rupee dropped to a fresh all time low mark around 60 against the US dollar. The MCX Gold futures for August are quoting at Rs 26779, down Rs 341 or 1.26% on the day with around 7% increase in open interest. The Rupee is lingering around 59.50 per dollar mark.
Source by Commodity Insights

Gold Bounces Back; Silver Stays Weak

Gold........

Gold futures bounced back in the late Asia session today as the US dollar gave back the Fed led gains; however the white metal was unable to get back after yesterday massive beating. COMEX August bullion futures jumped up by more than $12 a ounce in the electronic session today after tearing down by almost $100 yesterday to $1275.4 the lowest of the session and the 2 ½ year low. MCX August gold futures are trading marginally higher as the weakening Rupee supports. August contract gold is trading up Rs 10 at Rs 26879 per 10 grams after falling to the low of Rs 26808 earlier in the session. COMEX July Silver futures are trading down 0.008 at $ 19.81 per ounce. Local silver futures on Multi Commodity Exchange broke below the crucial mark of Rs 41000 per kg down more than Rs 3000 in last 2 sessions. The rupee resumed lower at 59.74 per dollar as against the last closing level of 59.57 at the Interbank Foreign Exchange (Forex) Market. Meanwhile, the Indian benchmark BSE-30 share index, Sensex, recovered from initial losses and was quoting higher by 73 point at 18,799. The dollar edged lower Friday, easing further off its highs made Thursday but still holding some of its gains in the wake of signals that the Federal Reserve may trim its stimulus this year. In the early East Asia afternoon, the ICE dollar index— which tracks the U.S. currency against six rivals — sat at 81.764, down from 81.823 late Thursday in North America. The euro rebounded modestly to $1.3230 from $1.3221. The Japanese yen proved an exception to the dollar’s downward motion, with the U.S. currency rising to ¥97.75 from ¥97.38 late Thursday. The Japanese yen proved an exception to the dollar’s downward motion, with the U.S. currency rising to ¥97.75 from ¥97.38 late Thursday. Source by Commodity Insights

Nickel Expected To Extend Losses

Nickel.......

LME Nickel prices were seen extending their losses on the back of heightened profit booking after the China reported decline in manufacturing numbers. Nickel has been of the metals that has suffered losses of 19 percent this year. The rise of supplies in the world markets and drop in demand of stainless steel has pressured this metal. LME three month prices was trading at $ 13757 per tonne on Friday. MCX Nickel benchmark contract was trading at Rs 815.5 per kg, down 0.6 percent. The prices tested a high of Rs 821.4 per kg and a low of Rs 815.7 per kg. This month, China State Reserves Bureau decided to buy 60000 metric tonnes of Nickel in 2013 .This has brought some gains in Nickel at the beginning of the month. Although this is not a major quantity considering the heavy supplies that is unused in China and world over. Source by Commodity Insights

Copper Stands On Weak Ground

Copper.......

Copper

remains stranded by the disinterest of traders in buying the metal. The traders remained on a selling spree with price paring 0.25 percent in the opening trades on Indian MCX platform. This is a extended sell off continuing in the metals. Recovery in Indian Rupee from 59.97 levels last night can create some more ripples of pressure in the Copper. MCX Copper is trading at Rs 403.35 per kg and can move near Rs 400 in the trading session.

LME three month prices will be looking at finding supports at 20 month low levels. However, inventories will be a key trigger for the metal in today's session. The opening of European markets in few hours time will be watched out for. LME Copper was at $ 6828 per tonne, down $ 7 per tonne from yesterday.

Copper is finding some aid from the fact that there is still short term supply pressure in the markets. Supply outages at Grasberg and Utah copper mines have slashed off some of the surplus that was expected early in the year.

Source by Commodity Insights

MCX Crude Futures Cushioned On Rupee's Collapse

Crude..........

MCX Crude oil futures were yet again cushioned from a massive sell off in world oil markets. The WTI crude fell from its four month high yesterday on worries about dreaded asset purchase tapering from the US Fed. Weak economic numbers from China and a rise in US crude oil inventories also aided to the downbeat sentiments. Oil dropped towards $96 per barrel in Asia, its one week low and currently trades at $96.98, down $1.48 per ounce on the day.

Global stocks collapsed today. In a keenly awaited event yesterday, the US Federal Reserve Chairman Ben Bernanke stated that the central bank might start to scale back its asset purchases later this year if the economy continues to strengthen, as the central bank expects. The Fed, which kept monetary policy on hold after a two-day meeting, signaled further optimism about the economy, forecasting that the unemployment rate could fall to 6.5% by 2014, one year sooner than the central bank had previously estimated.

This took a heavy toll on the stock markets around the world. DOW fell by 200 points and equities in Asia are down by around 2-3%. The US dollar is rallying, paring some of its latest losses and testing its two-week high around 1.3200 against the Euro today. Commodities fell in general with crude oil and copper taking a heavy drubbing in particular.

Further adding to the gloom in oil, China's manufacturing PMI (purchasing managers' index) dropped to a nine-month low in June as output and new orders both fell. Flash China Manufacturing PMI at 48.3 (49.2 in May) was at a nine-month low; the flash China Manufacturing Output Index at 48.8 (50.7 in May) was at an eight-month low.

Oil futures were also pressured by data from the US Energy Information Administration, which said crude oil inventories in the U.S. rose 300,000 barrels to 394.1 million barrels. US crude-oil stockpiles are lingering near record levels for much of this year, due to surging domestic production and weak demand. The current level is the highest for this week of the year since the EIA began tracking weekly stockpiles in August 1982.

However, the local crude oil futures did not fall as much to the extremely weak undertone in Indian Rupee. The local currency fell towards 60 per US dollar mark- dropping nearly 1.5% on the day as a reaction to the US Fed statement. A hectic activity in local bond markets, which continued to see heavy outflow from overseas investors also spoiled sentiments for the Rupee. MCX crude slipped initially due to the global sell off but recovered from a low of Rs 5764 per barrel. The counter quotes at Rs 5807 - unchanged on the day with a massive 18% increase in the open interest.
Source by Commodity Insights

Economic Buzz: U.K. May Core Retail Sales Jump 2.1%

The U.K. Office for National Statistics said that U.K's core retail sales, which exclude automobile sales, rose 2.1% in May, beating expectations for a 0.9% increase, after falling 1.2% in the preceding month. Annual Retail Sales excluding Fuel increased 2.1%, up from the 0.6% rise and above market consensus of 0.5% growth.
Source by Commodity Insights

Refined Zinc Markets In Surplus Of 155600 Tonnes In January-April 2013: WBMS

Zinc........

World Bureau of Metals Statistics (WBMS) has come up with its numbers for major metals. The agency has said that World Zinc markets were in surplus of 5000 tonnes in the month of April 2013, as compared to a surplus of surplus of 29500 tonnes in March 2013.
Zinc was in surplus of 243100 tonnes in whole of 2012. On a cumulative basis, Zinc markets recorded a surplus of 155600 tonnes in January-April 2013, down 6.7 percent compared to a surplus of 166800 tonnes in the corresponding period last year. The closing stocks of Zinc at the end of April were 1.06 million tonnes, down 9.4 percent from the year ending 2012 when stocks were 1.17 million tonnes.
World mined Zinc production in April 2013 was 1.068 million tonnes, down 2.23 percent from 1.093 million tonnes in March 2013. In January-April 2013, World mined Zinc production was 4.22 million tonnes, up 1.2 percent compared to 4.17 million tonnes in January-April 2012.
Refined Zinc production was 1.11 million tonnes in April 2013, down 0.88 percent compared to 1.12 million tonnes in March 2013. In January-April 2013, World refined Zinc production was 4.34 million tonnes, up 6.7 percent compared to 4.09 million tonnes in January-April 2012.
China refined Zinc production in January-April 2013 was 1.72 million tonnes, up 11 percent from 1.55 million tonnes in January-April 2012. China produced 40 percent of total Zinc produced in the world. China production of refined Zinc in April was 452900 tonnes, down 2.9 percent compared to 466800 tonnes in March 2013.
Refined production of Zinc in Japan was 202800 tonnes in January-April 2013, up 0.84 percent from similar period last year. Production of Zinc was up to 46200 tonnes in April 2013 compared to 55500 tonnes in March 2013.
Refined production of Zinc in EU27 was 666000 tonnes in first four months of the year, up by 3.4 percent than 644000 tonnes in first four months of 2012.
Meanwhile, World refined Zinc consumption was 4.18 million tonnes in first four months of the year, up 6.3 percent from 3.93 million tonnes in January-April 2012. Chinese refined Zinc consumption was 1.92 million tonnes in January-April 2013, up 12 percent from 1.71 million tonnes in January-April 2012. China consumed 46 percent of total Zinc consumed in the world.
Refined Zinc consumption in US declined by 2.6 percent to 299500 tonnes in January-April 2013 compared to 307400 tonnes in similar period last year. Consumption of EU 27 was 556600 tonnes in January-April 2013, from 568300 tonnes in January-April 2012.
Source by Commodity Insights

Silver Slips Ahead Of FOMC Minutes

Silver..........

Silver futures slipped ahead of the FOMC meeting minutes today with the dollar and equities also falling indicating that the US Federal Reserve that the central bank may reduce the asset purchases.
NYMEX July silver futures are trading down 0.057 at $ 21.62 per ounce. The metal has been trading in a very tight range of $23- $21. A break of $21 may take the metal towards $20 its lowest level since May 2013.
Silver for delivery in July lost nearly Rs 200 or 0.44%, to Rs 43,840 per kg at the Multi Commodity Exchange. A fall below Rs 43500 may result in testing of Rs 42900 and Rs 42600 levels.
The U.S. dollar slipped against the Japanese yen and the euro Wednesday, ahead of highly anticipated guidance from the U.S. Federal Reserve on what it plans to do with its bond-buying program. The U.S. dollar bought 95.22 yen, down from ¥95.30 late Tuesday in North American trade.
The euro, meanwhile, inched back to $1.3391 from $1.3398. But with an intraday high of $1.3402, the euro had reached a level that was last seen in February.
Fed Chairman Ben Bernanke was due to address reporters at the conclusion of the Fed’s policy meeting later Wednesday. The dollar has been weaker recently on uncertainty over whether the Fed will decide to scale back the pace of its bond purchases, currently set at $85 billion a month, though some analysts have said the bond buying has generally weighed on the dollar.
The Fed’s purchases were more than doubled to $85 billion a month starting in January in a bid to stimulate economic activity, including encouraging job growth.
The British pound slipped to $1.5632 from $1.5646 ahead of the Fed’s announcement as well as the release of minutes from the Bank of England’s policy meeting held earlier this month. The central bank decided to keep its key lending rate at 0.5%, and left the size of its own bond-buying program unchanged.
Source by Commodity Insights

Nickel Static In Indian Markets

Nickel......
Nickel has been one of the underperformer among the metals space and has lost 11 percent this year in spot markets. The prices of spot Nickel closed at Rs 819.1 per kg on 18 June 2013. Nickel is in contango considering the futures prices that are ruling at Rs 828.6 per kg. The prices were static in the morning hours of trade on MCX though some recovery is expected as the day progresses that too on account of Rupee tracking further losses against the Dollar. The INR was trading at 58.76 against the Dollar.
Source by Commodity Insights

MCX Gold Swells On Weak Rupee, COMEX Under Pressure

Gold.......

MCX Gold

futures are lingering around Rs 28000 per 10-gram levels as global prices consolidated around $1380 per ounce mark in Asian trades. The commodity is moving in a fairly tight range ahead of the all important US Fed meet tomorrow though selling pressure is evident on rallies. Prices failed to hold on above $1390 per ounce in last session and extended these losses today as well. The counter quotes at $1378.20, down $4.90 per ounce on the day. The dollar is ticking higher after falling to its four month low against the Euro last week as traders contemplate about a possible “tapering” comment from the Fed this week.

Meanwhile, the Asian markets are trading mixed today. The Chinese economic activity appeared to be expanding at a steady pace, driven by strong investment growth, with both infrastructure and real estate investment continuing to grow strongly, noted the Reserve Bank Of Australia (RBA) in its latest monetary policy minutes. The residential property market in China remained buoyant in April, although members observed that recently announced controls could weigh on activity in coming months, depending on how widely and strictly they were enforced.

Available indicators suggested that the US economy was continuing on a path of moderate growth. Household consumption was being supported by improving conditions in the housing and labor markets. However, recent indicators suggested that conditions in the manufacturing sector had been somewhat subdued in April and May. Members noted that the euro area remained in recession, with output falling in most countries in the March quarter. More timely data indicated that economic conditions remained weak.

Local gold remains supported on weak Indian Rupee. The Indian rupee plunged once again, breaching the Rs 58 per dollar mark due to renewed dollar demand from importers and appreciation of the US currency overseas. There has been a massive rise in Gold imports after the prices fell around Rs 26000 per 10-gram mark in April. India's gold and silver imports surged by a whopping 89.7% year-on-year to $8.39 billion in May this year. 

The government has initiated a number of measures to curb the ferocious rise in local offtake thereafter, most notable being a hike in import duty to 8%. This has reportedly put some breaks on the demand but still there is a possibility that dips in prices would see resumption of gold buying. MCX Gold futures for August are trading at Rs 28012, up Rs 143 or nearly half a percent with a massive 9% increase in open interest.

Source by Commodity Insights

OIl Inches Up Ahead Of Supply Data

Oil........

Crude oil futures inched up above $ 97 a barrel ahead of the weekly US inventory data from API today which are expected to show a decline. Light sweet crude oil futures for July delivery added 6 cents to $97.82 a barrel on the New York Mercantile Exchange. Oil prices on Monday reversed course and fell 8 cents. Most Asian markets retreated Tuesday in choppy trade as investors pondered whether the U.S. Federal Reserve will maintain its monthly bond purchases, with Hong Kong stocks dragged lower by a drop in mainland Chinese property and banking shares. Australia’s S&P/ASX 200 fell 0.9%, the Shanghai Composite dropped 0.3%, Hong Kong’s Hang Seng Index shed 0.7%, and Taiwan’s Taiex slipped 0.1%. Bernanke is scheduled to hold a press conference Wednesday after the conclusion of the Fed’s two-day policy meeting, which will start later Tuesday. Also, data due out later Tuesday are projected to show U.S. commercial crude-oil stocks declined 1 million barrels for the week ended June 14, according to a Platts survey of analysts. The decline is expected to stem from a reduction in crude-oil imports, which have been volatile recently. The American Petroleum Institute is slated to issue its weekly report at 4:30 p.m. Eastern time. More closely watched figures from the U.S. Energy Information Administration (EIA) are due Wednesday at 10:30 a.m. Eastern. A drawdown of 1 million barrels would be “more than double seasonal norms,” with the EIA’s five-year average showing oil stocks typically fall by about 400,000 barrels during this reporting period, according to Platts. Reports on crude-oil inventory released last week were bearish, with both the API and EIA reporting supply increases, even as analysts had expected no change in inventory levels. MCX August crude oil futures may open today’s session near Rs 5680 levels with resistance near Rs 5720 levels. Source by Commodity Insights

Sideways Trading In Nickel Futures

Nickel......

Nickel futures are trading in a sideways manner in the Asian trading session. The steel material nickel was trading at $ 14132 per tonne, up $ 22 per tonne. Baosteel and other major Chinese players have revised the prices of steel material downwards. The rise in production is also a cause of worry though many players are trying to reduce the production on lower demand.
Baosteel, the country's biggest listed steelmaker, sees China's steel production rising just 1-2 percent in 2013 from a year ago. China produced 716.5 million tonnes of crude steel in 2012, up 3.1 percent from year ago.
MCX Nickel was trading at Rs 819.7 per kg, up 0.16 percent. These are one month low levels for Nickel. The prices have supports at Rs 816 per kg while Resistance is at Rs 821 per kg.
Source by Commodity Insights

Oil Also Tumbles Post World Bank Forecast

Oil.......
Crude oil futures also tumbled along with other commodities and slump in the Asia, US and European equities after the World Bank cut its 2013 global growth estimate.
The World Bank cut its 2013 global growth forecast to 2.2% expansion in 2013, down from a 2.4% projection issued in January and below last year's estimated 2.3% growth. In its semiannual Glob

al Economic Prospects report the World Bank revised lower its expectations for growth in China, Brazil and India, while upping estimates for Japan and the U.S. For 2014, the World Bank sees global growth at 3%.
Crude oil for July delivery fell 62 cents to $95.24 a barrel in electronic trade, wiping out Wednesday’s advance that came despite downbeat oil-market data. U.S. crude-oil futures were also affected as traders await the reports about consumer and labor-market activity in the U.S., with implications for energy demand.
Oil on Thursday was under pressure although the U.S. dollar declined against major rivals. A decline in the dollar tends to help dollar-denominated oil and other commodities, as it makes them less expensive to holders of other currencies.
With high levels of U.S. oil inventory and weak energy demand in focus, investors will assess U.S. retail sales data for May, as well as weekly jobless claims. Signs of improvement in the economy could be supportive for crude prices.
The government reports are due at 8:30 a.m. U.S. Eastern time. The oil market has received bearish updates this week, with the U.S. Energy Information Administration saying Wednesday that crude-oil supplies rose by 2.5 million barrels for the week ended June 7, to 393.8 million barrels.
The International Energy Agency said China, the world’s second-largest oil consumer, will use less oil this year than previously expected, although its total oil demand will grow by 3.8%.
MCX June crude futures are trading up Rs 3 at Rs 5563 per barrel. It may face a resistance near Rs 5590 levels with support around Rs 5510 levels.
Source by Commodity Insights

LME Aluminium Falters On Worries of Heavy Stocks

Aluminium...........
All time high inventories of Aluminium has again become a cause of worry for the metal. Aluminium is used extensively in car bodies and cheaper electricity wiring compared to Copper. However, the prices have fallen for the fifth straight session as the warehousing stocks have started to swell once again.
Inventories of Aluminium increased by 15725 tonnes on Wednesday to 5214150 tonnes. Although this year the inventories have gained by 4100 tonnes but the all time high levels are still restored.
LME Aluminium was trading at $ 1869 per tonne, down $ 12 per tonne. This is a two week low for Aluminium. On MCX, Aluminium benchmark contract was trading at Rs 107.6 per kg. The disparity between Indian and LME exchanges continues after the Rupee regained its sloping journey against the Dollar. Rupee was quoting at 58.45 against the Dollar, down 1.1 percent.
Source by Commodity Insights

Gold Pulls Down; World Bank Cuts Growth

Gold.......

Gold futures pulled down in the Asia electronic session today however the losses were limited due to weakness in the US dollar. The Asia equities tumbled sharply today after the World Bank lowered its global economic-growth forecast.
In its semiannual Global Economic Prospects report the World Bank revised lower its expectations for growth in China, Brazil and India, while upping estimates for Japan and the U.S. For 2014, the World Bank sees global growth at 3%. The World Bank lowered its global economic-growth forecast Wednesday, tipping 2.2% expansion in 2013, down from a 2.4% projection issued in January and below last year's estimated 2.3% growth.
Meanwhile, Australia's May employment data surprised markets with a gain in jobs, sending the nation's currency jumping. Total employment rose by 1,100 last month, with the jobless rate holding steady at 5.5%, the Australian Bureau of Statistics said Thursday. On the other hand, the gains came on the back of a 6,400 rise in part-time jobs, with full-time positions falling 5,300.
Gold for August delivery is trading down $ 2.9 at $ 1389.1 per ounce on the New York Mercantile Exchange. Yesterday, it rose $15, or 1.1%, to end at $1,392 an ounce in floor trade, after earlier dipping to an intraday low of $1,372.20.
Gold prices have suffered on expectations the Fed will move in coming months to scale back its bond buys. Gold had rallied sharply in recent years as the Fed and other major central banks embarked on aggressive monetary-easing programs.
Gold lost $9 on Tuesday as commodities and other assets were rattled by the Bank of Japan’s decision to stand pat on monetary policy. Gold futures have dropped more than 17% so far this year.
MCX August gold may open today’s session near Rs 27850 per 10 grams and may find support near Rs 27700 levels.
Source by Commodity Insights

Economic Buzz: Euro Zone Annualized April Industrial Production Down 0.60%

Eurostat said that, euro zone industrial production fell at an annualized rate of 0.6% in April, after dropping at a rate of 1.4% in the preceding month. Analysts had expected industrial production to decline at an annualized rate of 1.2%.
Source by Commodity Insights

Nickel Feels The Pinch In Opening Trades On MCX

Nickel.......

The demurring of prices of Nickel in the Asian session was indicating only one thing that the prices of Nickel in MCX will open in red. The decline of Dollar against the Rupee has made this easier.
Nickel has opened in red on MCX with benchmark contract last seen trading at Rs 840 per kg, down 0.41 percent. The metal is at its 12 day low in Indian markets. Last night, MCX Nickel was the worst performer in the base metals pack, ending at Rs 844.1 per kg, down 2.7 percent.
LME three month prices were trading down by $ 54 per tonne to $ 14496 per tonne. This is the fifth consecutive day of decline in Nickel.
Source by Commodity Insights

Oil Slips Nearly $1 On High Inventory

Crude oil futures slipped nearly a dollar in the mid Asia session today pressured by the slightly high dollar, high inventories and bearish equities.
Asia markets traded lower Wednesday, with investors slapping down Japanese stocks after the yen spiked overnight. Japan’s Nikkei Stock Average had thudded 1.8% lower by the end of the morning session, but it held on to the 13,000 level, trading at 13,072.61. Markets in China — including those in Hong Kong and Shanghai — were closed for the Dragon Boat Festival.
Crude oil for July delivery fell 90 cents, or 0.94%, to $94.49 a barrel, weighed by a report from the American Petroleum Institute that U.S. crude-oil stocks rose by nearly 9 million barrels for the week ending June 7. Analysts polled by Platts had expected no change.
The more closely watched supply data from the U.S. Energy Information Administration were due out later Wednesday at 10:30 a.m. U.S. Eastern time.
Investors this year have grappled with the issue of lofty oil supplies. Last week’s EIA report showed total U.S. crude supplies at 397.6 million barrels, the highest level since at least 1978, when the agency began collecting the data.
U.S. crude-oil futures and Brent crude prices fell on Tuesday fell as the Organization of the Petroleum Exporting Countries trimmed its oil-demand growth guidance for the year by 10,000 barrels per day from the prior month’s report. But OPEC said demand should increase by about 780,000 bpd in 2013.
MCX June crude futures are trading up Rs 2 at Rs 5519 per barrel. The traders may sell it around Rs 5525-30 levels with target of Rs 5490 and Rs 5470 levels with stop loss of Rs 5555 levels.
Source by Commodity Insights

Oil Extends Decline Ahead Of API

Oil.......

Crude oil futures extended decline ahead of the U.S. supply data from the American Petroleum Institute. The losses were exacerbated also due to the strength in the Japanese Yen which triggered sell off in the equities and commodities today.
U.S. benchmark crude’s July contract lost 40 cents, or 0.1%, to $95.37 a barrel, extending a 0.3% loss during Monday’s New York Mercantile Exchange trade which sent the futures below the $96 mark. Oil futures tick lower ahead of key energy reports due later in the day.
The losses preceded the release of month forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and the U.S. Department of Energy.
The markets were also waiting on weekly U.S. supply data from the American Petroleum Institute, which was due out at 4:30 p.m. U.S. Eastern time.
In currencies, the dollar edged lower in early Tuesday trading, with the yen higher after Japan’s central bank offered no new easing moves in its latest policy decision. The Japanese yen gained ground after the Bank of Japan disappointed some market participants who had wanted it to extend the duration on its ultra-low-interest loans to banks.
The dollar slumped following the decision, quickly dropping to ¥97.94 from ¥98.69 moments ahead of the decision. However, the greenback later pared its losses, rising back to ¥98.30, though still below its ¥98.64 level late Monday in North America.
MCX June crude oil futures are trading at Rs 5608 up more than Rs 30 per barrel. The counter may find support near Rs 5570 levels with resistance near Rs 5650 levels.
Source by Commodity Insights

Nickel Marches Higher On MCX

Even as the steel demand is in doldrums and there are calls that the lackluster trend will continue in world markets on growth of supplies, Nickel prices in Indian markets charged for the fourth consecutive day on the back of depreciating Rupee against the Dollar. The Rupee is trading at all time low of 58.83 per Dollar, down 1.17 percent.
MCX Nickel was trading at Rs 873.9 per kg, up 0.8 percent. The markets tested a high of Rs 878 per kg and a low of Rs 870.7 per kg. The prices can test Rs 890 per kg, if the continuous decline in Rupee doesn't stop.
LME three month Nickel prices declined by $ 92 per tonne and were trading at $ 14853 per tonne. This is three day low for the metal. Nickel inventories has been growing at a rapid pace in LME warehouses and have now reached 182436 tonnes, up 30 percent this year.
Source by Commodity Insights

Gold Slips In Asia; Yen Rises

Gold futures slipped in the electronic session today, with the Asia equities trading mostly lower after Bank of Japan held its asset-buying and other policy elements unchanged and upped the economic outlook.
The policy announcement sent the yen rising and pushed stock futures lower. The central bank said "Japan's economy has been picking up" and "exports have started picking up," after saying at its last meeting on May 22 that the economy "has started picking up" and "exports have stopped decreasing." It also said "some indicators suggest a rise in inflation expectations."
Australia resumed trading after closing on Monday for a public holiday, getting its first chance to react to the events that influenced the previous session — namely, last week’s forecast-beating U.S. nonfarm payrolls data and disappointing Chinese economic data that came out over the weekend.
Markets in mainland China remained closed for a three-day public holiday, though Chinese companies listed in Hong Kong remained weighed by the poor economic data out over the weekend. The Hang Seng China Enterprises Index was down 0.5% and the Hang Seng Index was off 0.5%.
Gold for August delivery is trading down $ 3.2 at $ 1382.8 per ounce on the New York Mercantile Exchange. It ended with a gain of $3 an ounce, or 0.2%, at $1,386 yesterday.
Gold and other precious metals entered the week on the back foot after last week’s U.S. employment data. Also casting a cloud over gold futures, China over the weekend released a round of weaker-than-expected economic data that indicated growth slowed in May.
MCX August gold futures may open today’s session near Rs 27940 levels with support around Rs 27850- 770 levels.
Source by Commodity Insights

MCX Crude Witnesses Further Fresh Buying

Crude...........

MCX Crude oil futures continued to rise, adding to its recent string of gains though the global prices are showing signs of fizzling out from their two-week highs. The Indian Rupee plummeted to a fresh all time low today and pushed the locally traded MCX Crude futures to a high near Rs 5570 per barrel. The contract witnessed handsome gains last week on fresh buying and the momentum remained the same today even as global prices came to a stall. The WTI Crude oil futures came off highs above $96 per barrel, extending a pattern seen in last session. The contract quotes at $95.45, down 58 cents per barrel on the day.

The global stocks were stirred today after meek economic data from China over the weekend. The Chinese exports edged up by just 1% in May from a year earlier, after rising at 14.7% in April. The imports slipped by 0.3% from a year earlier, compared with a 16.8% rise in April. The industrial production also slowed slightly in May with a 9.2% increase for the year, compared with a 9.3% gain in April.

Meanwhile, economic growth is showing signs of edging up in most big economies, but appears to be firming markedly only in the United States and Japan, the Organisation for Economic Cooperation and Development (OECD) said today. Among the major emerging nations China and Brazil are ticking along at trend rates, while growth in Russia is losing momentum and in India it remains below par, notes the OECD.

The Chinese stocks led a mostly lackluster session for Asian equities while European markets are trading mixed. Crude could correct further in evening trades if the recent break sustains. MCX Crude oil futures added further to their longs, which has been a persistent feature of the trade over last one week or so. The counter quotes at Rs 5548, up Rs 35 per barrel or 0.63% on the day with 8% increase in open interest.
Source by Commodity Insights

LME Aluminium Inventories Jumped By 18750 Tonnes In Single Day

LME Aluminium inventories jumped by as much as 18750 tonnes in the single day on 9 June 2013. The rise is probably on account of closure of Chinese markets for Dragon Boat festival which will mean lower demand for metal in spot.
The rise in Aluminium was followed by sharp decline in prices. After the announcement of 0.36 percent rise in Aluminium the prices have moved down by $ 40 per tonne to $ 1928 per tonne.
MCX Aluminium didn't follow the footsteps of its counterpart and was up 0.64 percent mainly due to decline of Rupee to all time lows against the Dollar. Rupee was trading at 57.74 when last checked, up 1.2 percent.
Source by Commodity Insights

Gold Reverses Gains In Europe

Gold..................

Gold futures reversed the earlier gains in the Europe session today extending the 2% decline in the previous session, after stronger than expected US jobs data fuelled uncertainty over the outlook for the Federal Reserve’s stimulus programme.
European stock markets opened slightly lower on Monday, as investors digested lackluster data from China, but also found support in an upbeat trading day in Japan. Data out over the weekend from China showed export growth slumped unexpectedly and inflation grew a slower-than-expected pace in May.
The Stoxx Europe 600 index was slightly lower at 295.31. The U.K.'s FTSE 100 index dropped 0.3% to 6,391.61. France's CAC 40 index fell 0.1% to 3,867.23, while Germany's DAX 30 index inched 0.2% higher to 8,267.58.
August dated gold futures are trading $5.1 at $ 1377.9 per ounce on COMEX division of New York Mercantile Exchange. Earlier in the session, gold prices rose due to buying from China.
Demand for gold in China, the second-biggest bullion buyer after India, has grown since prices touched a two-year low around $1,320 an ounce in April, with tight supply pushing premiums to record highs.
On Friday, the US added more jobs in May than in April, denting hopes for prolonged stimulus and weighing on gold’s appeal as a hedge against inflation.
Philadelphia Fed president Charles Plosser said on Friday the jobs report showed government spending cuts had so far not been as damaging as some feared and that the central bank should reduce its bond buying "now". However, he is in the minority of the Fed’s 19 policy makers, with most appearing to still support bond-buying at current levels.
MCX August bullion futures are trading up nearly Rs 60 at Rs 27638 per 10 grams. A fall below Rs 27570 may take it further lower near Rs 27500-450 levels.
Source by Commodity Insights

Economic Buzz: Japan's Leading Economic Index Rise In April

Japan's Cabinet Office said that Japan's index of leading economic indicators rose to a seasonally adjusted 99.3, from 97.9 in the preceding month whose figure was revised up from 97.6.Analysts had expected Japan's index of leading economic indicators to rise 98.8 last month.Source by Commodity Insights

MCX Crude Gains Yet Again On Fresh Buying

Oil.......

MCX Crude oil futures managed to hold ground today as global prices lingered above $94 per barrel for WTI futures though some exhaustion seemed to be entering into the commodity. WTI futures are up from a one-month low and demand worries continue to keep sentiments haunted on the broader scale. The global equities were mixed today with losses for stocks in Asia and modest gains for stocks in Europe as the central banking decisions from ECB and BOE dominated much of the proceedings. The WTI Crude oil futures are quoting at $94.31, up 57 cents per barrel right now.

Stocks gained in Europe as the European Central Bank (ECB) kept its main lending rate at a record low 0.5%- a much-anticipated move. The ECB left its deposit rate, which it pays, banks on reserves held at the central bank, at zero. Markets are eying some dovish comments from Mario Draghi in the post meeting conference. Earlier in the day, the Bank of England (BOE) left the size of its bond-buying program unchanged at 375 billion pounds and kept its key-lending rate at a record low 0.5%.

The Euro held onto its gains after the ECB decision, striking a fresh one month high of 1.3131 against the US dollar. The currency has been rallying this week after the downturn in the euro zone economy eased for the second month running in May. At 47.7, the final Markit Eurozone PMI Composite Output Index was in line with its earlier flash estimate and above April's 46.9. Germany edged out of contraction territory in May, as an improvement in its manufacturing sector offset a slight decrease in service sector business activity.

Crude managed to hold on yesterday even as DOW dropped by a massive 200 points. U.S. Energy Information Administration reported that US crude oil supplies fell 6.3 million barrels for the week ended May 31, to 391.3 million barrels. Crude seems to be getting benefited from a combination of the drop in US crude supplies and weak US dollar. MCX Crude oil futures neared Rs 5400 per barrel levels in the session today and currently trade at Rs 5371, up Rs 12 per barrel on the day with a massive increase of 13.60% in open interest. The open interest has swung higher by around 50% in the current week, indicating a massive amount of fresh buying.
Source by Commodity Insights

Oil Steady At $94 Ahead Of ECB

Oil........

Crude oil futures are trading steady above $94 a barrel helped by the weak US dollar and also got a lift from larger-than-expected drop in U.S. crude supplies.
The U.S. Energy Information Administration on Wednesday reported that U.S. crude-oil supplies fell 6.3 million barrels for the week ended May 31, to 391.3 million barrels. Late Tuesday after the Nymex trading session ended, the American Petroleum Institute a reported 7.8 million-barrel drop in crude supplies.
Oil traders have been concerned about high U.S. inventory. Last week’s EIA report showed total U.S. crude supplies at 397.6 million barrels, which brought the inventory to the highest level since at least 1978, the year when the agency said it began collecting the data.
Crude for July delivery rose 18 cents at $93.92 a barrel in electronic trade during Asian hours on the New York Mercantile Exchange. Yesterday, it tacked on 43 cents, or 0.5%, to settle at $93.74 a barrel after trading as high as $94.48. Prices had lost 0.2% on Tuesday.
The ADP jobs report arrived ahead the Friday release of the government’s own employment report, and a weak reading there could further dim energy-market sentiment. But before Friday’s figures, the European Central Bank on Thursday is expected to reduce its economic forecasts, and ECB President Mario Draghi is due to speak about conditions in the troubled euro-zone economy.
Ahead of the ECB updates, the U.S. dollar turned slightly lower against major rivals. A weaker greenback tends to aid oil and other commodities denominated in dollars, as it makes them less expensive for holders of other currencies.
MCX June crude oil futures are trading nearly Rs 15 at Rs 5346 per barrel. The counter should find good support near Rs 5325 levels with resistance near Rs 5390 levels.
Source by Commodity Insights

Lead Opens In Red Even As Rupee Remorse Continues

Lead........

Lead and other base metals have opened in red even as Rupee regret continued against the Dollar. The markets were expected to open with pressure on account of profit booking in London Metal Exchange but the support of Indian Rupee seems to be missing in first half and hour of trading. INR was trading at 56.85 against the Dollar, down 0.23 percent.
Battery material lead has been powerfully performing in the base metals pack on the back of renewed demand from battery manufacturers and recovery in China manufacturing data. The inventories have been declining all through this year. Meanwhile Indian problems have remained intact.
The interest rates are still higher and RBI next move is eagerly watched by the industry. The demand side is so lackluster that the automobile manufacturers are trying to woo customers with attractive discounts.
The waiting time is also limited to some segments of automobile markets. In fact in passenger car segment, most of the versions are available on demand which was not the case few years back when waiting period extended to as much as 2 to 3 months.
LME Lead was seen at $ 2217 per tonne, against $ 2244 per tonne on Wednesday. The prices are still at two and half months high. Meanwhile, MCX Lead was at Rs 126.6 per kg, down 0.5 percent. Prices can correct towards Rs 125 per kg in coming days on profit booking.
Source by Commodity Insights

Gold Afloat Near $1400; ADP Data Due

Gold.......

Gold futures stayed afloat near $1400 an ounce level in the mid electronic trades today, with the traders focusing on the ADP employment data which will put further light on the requirement of QE program.
Gold for August delivery rose $5.8 to $1,403 an ounce in electronic trade on the Comex division of the New York Mercantile Exchange.
Investors on Tuesday also reacted to a decision by India's central bank to extend gold import restrictions to designated agencies and trading houses in a bid to reduce the country's current account deficit.
Industry executives last week said they were expecting 100-120 tons of imports in May, same as the previous month. India imported 864 tons of gold in 2012, according to the World Gold Council.
Over the past year, the government has taken steps such as raising the import tax on gold to 6% from 2% to make local purchases costlier and bring down demand. The central bank has tightened lending regulations for gold imports.
But these measures haven't had much impact, as the May import number suggested. The World Gold Council, a mining-industry group, last week projected India's gold imports to rise 150% in the three months ending June 30 to 400 tons from 160 tons a year earlier.
World Gold Council (WGC), the premier organization that promotes the use of gold globally, has approached the Reserve Bank of India (RBI) to work with it so that yellow metal could be promoted as a financial asset, rather than just a physical asset.
MCX August gold futures are trading up nearly Rs 70 at Rs 27164 per 19 grams. The counter may find support near Rs 26900 levels today.
Later Wednesday, gold prices may be pushed up further or yanked lower following a report on private-sector jobs growth for May from Automatic Data Processing Inc. Investors read the ADP figures for any insight on what the U.S. government's monthly payroll report — due Friday — may say.
The ADP data is due at 8:15 a.m Eastern. Also on tap Wednesday is the Fed's Beige Book of anecdotes about the economy, and a report on U.S. factory orders in April, among other data.
Source by Commodity Insights

LME Nickel Tests 15 Day High

Nickel.........

The news of Federal Reserve continue to assist the economy by $ 85 billion bond buying programme coupled with China State Reserve Bureau purchases of Nickel has amplified buying interest. The material used for the preparation of austenitic steel grades moved to a 15 day high on London Metal Exchange. The benchmark three month prices were ruling at $ 15295 per tonne, up $ 15200 per tonne.
The Federal Reserve President Dennis Lockhart comments have come at a critical time for commodities. The prices were dull and lackluster up until yesterday but statements from Lockhart that US Federal bank was committed to economic stimulus programme and reduction was not justified at the moment brought cheers.
Furthermore, supports have emerged from China State Reserves Bureau decision to buy 60000 metric tonnes of Nickel from International markets in 2013. Although this is not a major quantity but the restart of such buying is a promising sign. Refined Nickel demand has often been challenged by a cheaper substitute Nickel Pig Iron.
MCX Nickel June contract was the only one in green on Wednesday. The prices were trading at Rs 866.5 per kg, up 0.36 percent. The metal tested a high of Rs 867 and a low of Rs 862.5 per kg.
Source by Commodity Insights

Copper Remains Marching On Mine Closure

Copper.......
Long-drawn-out shutdown in world's second biggest mine has underpinned Copper prices that are marching forward. The LME three month Copper prices were trading at 11 days high levels as it crossed $ 7400 per tonne. Copper has been gaining on account of higher spot premiums in China due to lower available quantity.
Meanwhile, Freeport Grasberg mine was closed down and is expected to remain closed for government investigation for a period of three months. Production outage can slash 150000 to 200000 tonnes of Copper supplies from the markets. Inventories of Copper are still at higher levels at 614075 tonnes, up 92 percent in 2013 so far.
MCX Copper closed down at Rs 420.5 per kg, up 1.2 percent. Further gains are expected in the markets with targets of Rs 422 kg. Supports for Copper are at Rs 416 and 414 levels.
Markets are cheering few factors at the moment. One is the closure of Freeport mine, the other one is the rise of Euro against the Dollar. Dollar ended the trades at 1.3081 against the Euro, compared to 1.3069 on Monday.
Last week, COMEX Copper fund managers, Commitment of traders CoT report showed decline in the short positions while there was concurrent minor decrease of long positions by hedge fund managers. The total short positions declined by 899 contracts taking total short contracts number to 36038 contracts against 36937 contracts in the previous week
Source by Commodity Insights

Oil Stays Afloat Above $93

Oil.........

Crude oil futures stayed afloat above $93 a barrel in Asia electronic session getting a lift from larger-than-expected weekly drop in supplies of the commodity.
Crude for July delivery gained 33 cents, to $93.63 a barrel in electronic trade after the American Petroleum Institute reported a drop in crude supplies that was nearly 8 times of what analysts had expected.
Before the API data were released late Tuesday, the July crude contract shed 14 cents, or 0.2%, on the New York Mercantile Exchange.
The trade group said crude supplies fell 7.8 million barrels for the week ended May 31. Analysts polled by Platts were, on average, looking for a decline of 1 million barrels.
The market will look for inventory data from the U.S. Energy Information Administration at 10:30 a.m. Eastern.
Investors have been concerned about high inventory. Last week’s EIA report showed total crude supplies at 397.6 million barrels, bringing inventory to the highest level since at least 1978, the year when the agency said it began collecting the data.
The API late Tuesday also said weekly gasoline inventories declined by 1.3 million barrels while distillate stockpiles rose by 241,000 barrels. Analysts were looking for a climb of 1 million barrels in gasoline inventories and a rise of 1.4 million barrels in distillate supplies.
MCX June crude oil futures may open today’s session near Rs 5300 levels with resistance near Rs 5330 and Rs 5370 levels.
Source by Commodity Insights