Friday, 28 June 2013

Economic Buzz: UK Annual Nationwide Housing Prices Grow 1.9% In June

On an annual basis UK Nationwide Housing Prices increased 1.9% in June, after rising 1.1% previous month, Nationwide revealed on Friday. This result is almost in line with projections of +2%. Month-over-month Nationwide Housing Prices increased 0.3% in June, following a 0.4% rise in May, as expected.
Source by Commodity Insights

Economic Buzz: Germany Annualized May Retail Sales Up 0.40%

Statistisches Bundesamt Deutschland informed on Friday that German Retail Sales rose 0.8% in May, compared with the 0.1% drop in April and above forecasts of +0.2%. On an annual basis German Retail Sales rose 0.4% in May, after growing 2.7% in April and below expectations of increasing 0.6%.
Source by Commodity Insights

Commodities Buzz: Sugar Crushing Activity Losing Pace In Brazil

Brazilian Sugar industry officials highlighted some worries over the cane output in the country's main producing region and helped provide a floor under the sugar prices. Mills in Brazil's Centre South region, responsible for some 90% of the country's sugar output, produced 1.78m tonnes of sugar in the first half of this month, cane industry group Unica said. The output is easing due to rain delays, and highlighted the growing appeal of turning cane into ethanol instead.
While a 30% jump on output in the first half of June 2012, when crushers suffered severe rain delays, the figure was below the 1.85m tonnes produced in the second half of May, and the 2.07m tonnes produced in the first half of May, the strongest period for manufacturing the sweetener so far in 2013-14.
Besides slowing cane volumes - which came in at 35.1m tonnes, some 5m tonnes less than mills achieved when running at full tilt in the first half of May - the rains also lowered the concentrations of sugars in cane. Sugar levels fell to 125.3 kilogrammes per tonne of cane, from 132.81 kilogrammes per tonne in late May, according to Unica.
New York Benchmark raw sugar futures had slipped to a three-year low of 16.48 cents per pound in the middle of June but have witnessed some bargain buying thereafter. The latest updates from Unica could help it find a floor and pare some of the excessive losses seen in last few moths.
Source by Commodity Insights

Thursday, 27 June 2013

Economic Buzz: German Unemployment Rate Eases In May

According to results of the labour force survey, the number of unemployedamounted to 2.25 million in May 2013. It was down by 106,000 persons or 4.7 % onMay 2012. Compared with April 2013, the number of unemployed decreased by 24,000people or 0.9%. When adjusted for seasonal and irregular effects, the number ofunemployed amounted to 2.27 million. The adjusted unemployment rate was 5.3% against5.40% last month.
Source by Commodity Insights

Commodities Buzz: Mining Giant Cuts Jobs On Falling Coal Prices, Weak Demand Outlook

Glencore Xstrata has unleashed a massive job cuts in its coal mining operations in Australia as falling coal prices, higher costs, oversupply and subdued demand take their toll. The mining giant said today that it was cutting back coal production at its Newlands and Oaky Creek mines, which would lead to a loss of about 450 jobs by the end of the year.

Against a backdrop of lower coal prices, high input costs and the strong Australian dollar, the decision to cut production at the mining operations has been taken to maintain viability in a challenging market, Glencore Xstrata said in a statement. This is a difficult decision, but one that needs to be taken in the current challenging economic conditions,'' Glencore Xstrata said.

A lot of jobs have been lost across the country in past weeks as resource companies respond to weaker commodity prices and high costs.

Australian Thermal coal prices have slipped sharply in last few months and currently linger around $90 per tonne, down around 9% on the year.
Source by Commodity Insights

Indian Copper Opened Lower, China Demand Uncertainty Continues

Copper opened lower on MCX as was expected. The markets continued to remain trading in disparity from its foreign counterpart LME. The LME three month prices were trading at $ 6727 per tonne, up from $ 6715 per tonne. Meanwhile, MCX Copper June contract was seen trading at Rs 407.7 per kg, down 0.27 percent. The rise of Rupee is the cause of decline in Copper.
Indian Rupee was last seen exchanging hands at 60.53 against the Dollar, up from 60.72 on Wednesday. Dollar was at 1.3022 against the Euro.
Excessive credit growth in China has made markets nervous and calls of reassurances from Peoples Bank of China have been taken lightly by the traders. Chinese premier bank said this week that it was providing short term assistance to institutions that were facing cash crisis.
Source by Commodity Insights

Wednesday, 26 June 2013

Economic Buzz: German Consumer Confidence Forecasts Higher For July

German consumers continued to be in an optimistic mood at the onset of  summer.Economic and income expectations increased further, but willingness to buy fellslightly at an extremely high level. Following a value of 6.5 points in June,the overall indicator is forecasting 6.8 points for July. Optimism appears to beunbroken. The income outlook of Germans has improved further from an alreadyhigh level on account of the stable employment situation and good collectivebargaining agreements, which have also benefited economic expectations . Incontrast, willingness to buy dropped slightly this month, but still remained atan extremely good level. The upward trend in the consumer climate is alsoenhanced by the continually falling propensity to save, which has reached arecord low.
Source by Commodity Insights

Oil Slippery Ahead Of EIA Report

Crude oil futures were trading on a slippery note ahead of the Energy Information Administration report to be released later today. The sentiments were also weakened after the strong US data yesterday increased the chances of early windup of the US monetary stimulus program.
Crude for August delivery is trading down 66 cents at $94.65 a barrel on New York Mercantile Exchange. Oil futures finished Tuesday’s regular session higher by 14 cents, or 0.1%, to settle at $95.32 a barrel, after better-than-expected reports on the housing sector. Also, durable-goods orders in May rose 3.6%.
The contract lost ground after the American Petroleum Institute, in its weekly report on U.S. commercial crude-oil inventories, said supplies were unchanged in the week ended June 21. A Platts survey of analysts had forecast a decline of 2 million barrels.
A more widely watched report from the Energy Information Administration is slated for release at 10:30 a.m. U.S. Eastern time. Last week, the EIA reported an unexpected increase of 300,000 barrels in oil stockpiles to 394.1 million barrels. At that level, the EIA said, inventories were above the upper limit of the average range for this time of year.
The U.S. dollar rose against rivals on Tuesday after a string of strong economic data reinforced expectations the Federal Reserve will move to slow its program of asset purchases later this year.
Strength in the US dollar also pressurized oil futures. The ICE dollar index which measures the U.S. unit against six other major currencies, rose to 82.553 from 82.412 late Monday in North America.
MCX July crude oil futures may open today’s session near Rs 5650 levels with support around Rs 5600 levels. The U.S. Commerce Department is due to release its third estimate of gross domestic product for the first quarter today.
Source by Commodity Insights

Gold Gets Hammered On Strong US Data

Gold futures got hammered further in the Asia electronic session today on strong US economic data which strengthened the US dollar and also supported the early tapering of U.S. monetary stimulus measures.
The U.S. dollar rose against rivals on Tuesday after a string of strong economic data reinforced expectations the Federal Reserve will move to slow its program of asset purchases later this year.
Several housing reports flowed in on Tuesday. U.S. home prices rose 2.5% in April, the biggest monthly increase ever, according to S&P/Case-Shiller data. A home-price report by the Federal Housing Finance Agency showed a gain, albeit more modest, of 0.7% in April adjusted for seasonality. New-home sales rose 2.1% in May to an annual rate of 476,000, their highest rate since mid-2008.
Additionally, durable-goods orders increased in May for the second month in a row, rising 3.6% to a seasonally adjusted $231 billion. Consumer confidence in June surged to a reading of 81.4, its highest level in more than five years.
The ICE dollar index which measures the U.S. unit against six other major currencies, rose to 82.553 from 82.412 late Monday in North America. The euro— which makes up more than half of the comparative basket used for the ICE dollar index by weighting — fell to $1.3095 from $1.3122.
Gold for August delivery slipped to as low as $1242.6 an ounce so far in the session today. Yesterday, it ended lower by $2 to close at $1,275.10 an ounce.
MCX Gold futures have however been cushioned by the extra soft Rupee. The August bullion futures may open today’s session near Rs 26200 levels with support around Rs 26000 levels. So far in the month of June the Indian Rupee has tumbled by more than 5% whereas the gold futures have shed just 3%.
Source by Commodity Insights

Tuesday, 25 June 2013

Economic Buzz: Core U.S Durable Good Orders Rise 0.70%

New orders for manufactured durable goods in May increased $8.0 billion or 3.6 percent to $231.0 billion, the U.S. Census Bureau announced today. This increase, up three of the last four months, followed a 3.6 percent April increase. Excluding transportation, new orders increased 0.7 percent, after surging 1.50% in the previous month. Excluding defense, new orders increased 3.5 percent.
Source by Commodity Insights

Monday, 24 June 2013

Bargain Buying Lifts Gold

Gold futures gold a lift in the Asia electronic session today as the investors jumped to buy the commodity after it tumbled another $15 to below $1280 an ounce yesterday following the tightening credit conditions in China.
U.S. and global equities sold off Monday, taking their cue from a sharp drop in Chinese equities following a rise in Chinese money-market rates. The sell off continued in the Asia today on concerns about a Chinese liquidity squeeze which had sparked a global selloff the previous day. Shanghai shares extended losses on worries about the impact from high money-market rates.
The Shanghai Composite Index fell 0.8%, recovering a little after falling more than 1% in the opening minutes. The Shanghai benchmark plunged 5.3% on Monday for its worst finish in nearly four years.
Adding more pressure on gold prices, analysts at Goldman Sachs cut their outlook on the metal for 2013 and 2014, citing growing price risks from a brightening U.S. economic picture. The bank now expects gold to end this year at $1,300 a troy ounce, down 9.4% on its previous forecast. It sees gold ending 2014 at $1,050 an ounce, down 17.3% on its earlier outlook.
"Medium term, we expect that gold prices will decline further given our U.S. economists' forecast for improving economic activity and a less accommodative monetary policy stance," the bank said. "Further, with quantitative easing tapering likely to start soon, perhaps even a bit sooner than previously anticipated, we are fast forwarding on our real rate path."
The price of gold plunged 6.3% in a single session last week after U.S. Federal Reserve Chairman Ben Bernanke said the U.S. central bank could start winding down its $85-billion-a-month bond-buying program later this year.
Gold for August delivery is trading up $1 at $ 1278.1 an ounce in the electronic trades today. Yesterday, fell $14.90, or 1.2%, to close at $1,277.10 an ounce, after having surrendered almost $100 over the course of last week’s trading.
MCX August bullion may open today’s session near Rs 26850 levels with resistance near Rs 26930 levels and support near Rs 26740 levels.
Source by Commodity Insights

Inventories of Copper Are Now At 10 Years High

Copper inventories ticked to 10 year high on Monday reaching 678225 tonnes. This is a cause of worry for the markets which is already carrying the burden of slack Chinese demand. Three-month copper futures turned lower on the London Metal Exchange, with losses in Shanghai shares Tuesday fueling selling, as concerns about China's cash crunch rattle investors.
LME three month prices of Copper were seen at $ 6625 per tonne, compared to $ 6675 per tonne. Indian Copper prices suffered the same fate as its International counterpart. The prices declined to Rs 400.8 per kg, down Rs 8. Supports for the contract are at Rs 395 and 393 per kg.
Last week, COMEX Copper fund managers, Commitment of traders (CoT) report showed heavy rise in short positions while there was minor increase of long positions by hedge fund managers. The total short positions increased by 11209 contracts taking total short contracts number to 55896 contracts against 44687 contracts in the previous week.
In US economic news, the Federal Reserve Bank of Philadelphia said late last week that its manufacturing index rose to 12.5 in June from -5.2 in May, well above expectations for a -2.0 reading.
A separate report showed that U.S. existing home sales climbed 4.2% to 5.18 million units in May from April's total of 4.97 million, far surpassing market calls for a 0.6% increase. Bank Of Japan said that Japan's corporate services price index rose by a seasonally-adjusted 0.3% last month following a -0.3% reading in April.
Source by Commodity Insights

Commodities Buzz: Mining Slowdown To Affect Australian Housing Market

The slowing of the mining boom and public sector cuts in Australia will lead to a dramatic drop in the number of new homes being built in parts of the country, according to a new report. However, localised population increases mean some pockets are set for a building boom, the report also found.

The BIS Shrapnel Regional Building 2013-2015 report identified the Coffs Harbour-Grafton area on the north coast of NSW as the No.1 growth area for new dwellings next year with a forecast increase of 52% for 2013/2014.

Alice Springs will experience the biggest slow-down in new buildings, with annual commencements expected to drop by 43% over the same period. Western Australia's Pilbara and Kimberley region will also slow significantly by 36% and 22% respectively.

Major investment in the Pilbara had driven strong employment and population growth until recently, the report found, however it said this was unsustainable. Building activity in the Pilbara and Kimberley regions is expected to remain high by pre-mining boom standards.

In Victoria, areas hit by recent factory closures such as Geelong and Hume will sustain a drop of a projected 11% each. The Australian Capital Territory (ACT) will see a 32% reduction in new dwellings as public sector jobs are cut, the report said.
Source by Commodity Insights

Copper Goes Down Begging For Mercy From Sellers

LME and MCX prices of Copper have come down begging for some respite as selling pressure mounted after a series of bad data from world markets last week. The rise in ICSG Copper surplus and fall in Chinese imports was already been handled by the markets but the news of money managers sharply increasing their short positions killed all chances of bottom fishing.
After the week ending 11 June 2013 the second week in the row turned out to be in favor of bears. The week ending 18 June 2013 highlighted that the short positions were increased significantly.
COMEX Copper fund managers, Commitment of traders (CoT) report showed heavy rise in short positions while there was minor increase of long positions by hedge fund managers. The total short positions increased by 11209 contracts taking total short contracts number to 55896 contracts against 44687 contracts in the previous week.
CoT report showed that long contracts increased by 914 contracts and were at 26887 contracts from 25973 contracts a week before. Total net short positions therefore moved up by 55 percent to 29009 contracts from 18714 contracts a week before.
LME copper three month prices was trading below $ 6800 per tonne on account of worries on Chinese demand outlook. Most active Copper contract on MCX was trading at Rs 401.2 per kg, down 1.6 percent from last week. Resistance for the contract is at Rs 405 per kg. Downtrend can take copper towards Rs 398 per kg.
Source by Commodity Insights

Friday, 21 June 2013

Commodities Buzz: Fed Taper Unlikely To Affect Crude Oil Prices Significantly Says Russian Minister

The latest announcement by Ben Bernanke, chairman of the US Federal Reserve, about plans to reduce stimulation of the US economy won't significantly affect oil prices, Russia Deputy Economic Development Minister Andrei Klepach has stated, according to media reports. Oil prices will only be affected if the US economy slows down significantly, a scenario that he thinks is unlikely, Klepach stated in a forum. The ministry estimated the average oil price for 2013 at $105 per barrel. The minister said the government would have the final word on the issue of increasing oil supplies to China via the Eastern Siberia-Pacific Ocean pipeline. The agreement foresees the supply of an additional 800,000 tons of oil to China in 2013 and two million tons the next year.
Source by Commodity Insights

Thursday, 20 June 2013

Gold Settles After A Strom

are trading slightly higher in Asia electronic trading today aided by weakness in the US Dollar. Yesterday, it collapsed by more than 6% as investors continued to price in the Federal Reserve’s possible trimming of its monetary stimulus later this year.
After settling Nymex trade at $1,286.20 an ounce — the lowest close since September 2010 — August gold took further damage on news exchange operator CME Group Inc. CME was hiking margin requirements.
The CME, which owns the Nymex’s metals-trading Comex division, said following Thursday’s close that it would hike initial and maintenance margins for gold by 25%, according to reports. The CME's decision came after August gold futures plunged $87.80, or more than 6%, to end at $1,286.20 an ounce on Thursday, the futures' lowest closing level since September 2010. The new margins would come into effect after Friday’s close, CME said.
Gold for August delivery is trading up $3 at $ 1289.2 an ounce on the COMEX division of the New York Mercantile Exchange. The contract had tumbled to as low as $1275.4 an ounce marking its lowest level in 2 ½ years.
By late morning in East Asia, the ICE dollar index had edged down to 81.642 from its 81.823 level late Thursday. The dollar had rallied since the Federal Reserve’s statement late Wednesday, signaling it could slow its asset purchases this year if the economy improves further.
A weaker U.S. currency tends to support gold and other dollar-denominated commodities, as it makes them less expensive for holders of euros, yen and other units.
MCX August gold futures may open today’s session near Rs 27000 with resistance near Rs 27100 levels and support near Rs 26700 levels.
Source by Commodity Insights

Commodities Buzz: CME Raises Initial Margins On Gold Futures By 25%

The CME Group Inc. on Thursday raised the initial margins on trading in gold futures by as much as 25%, according to reports. The CME's decision came after August gold futures plunged $87.80, or more than 6%, to end at $1,286.20 an ounce on Thursday, the futures' lowest closing level since September 2010. The CME Group Inc. on Thursday raised the initial margins on trading in gold futures by as much as 25%, according to reports.
Source by Commodity Insights

Commodities Buzz: UK Wheat Imports Maintain Their Pace

UK wheat imports continue to fascinate the global grain markets. UK, usually a net exporter of wheat, imported 255,785 tonnes of the grain in April, taking total buy-ins to 2.38m tonnes in first ten months of the crop year (July-June), far exceeding outward shipments of less than 609,000 tonnes. Last month, the UK lifted its estimate for wheat imports following poor weather which has boosted demand for the grain, besides cutting yields last year to a 20-year low. The UK farm ministry, Defra, upgraded its forecast for UK wheat imports in 2012-13 by 275,000 tonnes to 2.54m tonnes- marking a rise of 10%.

The upgraded figure is far bigger than exports, which Defra pegged at 800,000 tonnes in its official forecast. The upward estimates also reaffirmed the UK's unusual slip into net imports of wheat. The estimate for feed use, however, was raised, by 229,000 tonnes to 6.69m tonnes, reflecting the lingering impact from the poor weather last year, the UK's second wettest on record, in boosting demand besides lowering yields.

The wet summer/autumn and delayed spring have necessitated an increase in the use of grain for animal feed in place of forage and grazing, Defra noted. The continuation of the poor weather into a cold spring has also prompted by stockpiling, over fears of a late harvest and delayed new-crop supplies. Commercial end-season stocks were seen soaring 29% to 1.94m tonnes as of the end of 2012-13, in part thanks to uncertainty over the approaching 2013 harvest, according to Defra.
Source by Commodity Insights

Economic Buzz: New Zealand Economy Grows Annually 2.50% In Q1

Gross domestic product (GDP) rose 0.3 percent in the March 2013 quarter, with the Canterbury rebuild and the 2013 drought having offsetting effects, Statistics New Zealand said today. This modest growth in economic activity follows a rise of 1.5 percent in the December 2012 quarter. Economic activity for the year ended March 2013 was up 2.5 percent when compared with the March 2012 year.Source by Commodity Insights

Wednesday, 19 June 2013

Copper Crushed Below $ 7000 On Wednesday Trades

Copper crushed below $ 7000 per tonne on Wednesday as the weight of FOMC decision seemed to be taking the toll on the metal. Federal Reserve Chairman Ben Bernanke will be speaking on the plans of monetary stimulus programme. LME metal three month prices of Copper were trading at $ 6998 per tonne when last checked which almost a two month is low for the metal.
Indian Copper futures ended the trading at Rs 410.1 per kg, up 0.16 percent. The prices tested a high of Rs 412.7 per kg and a low of Rs 408.6 per kg. The metal is expected to open lower considering the slowdown in LME and fall in Dollar against the Indian Rupee. INR was trading at 58.73 against the Dollar, up 0.07 percent.
Meanwhile, Central bank in China has said that there will not be any policy loosening. People's Bank of China (PBoC) Tuesday drained 2 billion yuan from the money market despite banks' reported call for cash injection, suggesting regulators are keen to keep liquidity tight amid growing jitters of China's financial risks. The 2-billion 91-day bills, though tiny by amount, were viewed as the central bank's commitment to squeezing out excessive funding.
China manufacturing data is also keenly watched by the traders as that will show the state of affairs in terms of demand for metals. In fundamental news, the possible restart of mining operations at Freeport Indonesia's Grasberg mine could pare the supply disruption premium factored into copper prices
Source by Commodity Insights

Gold In Cautious Mode Ahead Of Fed

Gold futures are trading in a cautious mode today as traders remain uncertainty that how long the central bank will maintain its $85 billion a month in bond purchases.
Investors are closely watching for any comments by the Fed about the future of its program of purchasing $85 billion a month in bonds, which is intended to stoke economic growth. The Fed will conclude its two-day meeting Wednesday and Fed Chairman Ben Bernanke will hold a news conference.
On the data front today, Japan's exports surged in May, as the yen traded at its weakest levels of the year, with the result leading to a smaller-than-expected trade deficit. Japanese exports rose 10.1% from a year earlier, the Finance Ministry reported Wednesday.
Gold for August delivery is trading down $1 at $ 1366 per ounce on Comex Division Of New Yrok Mercantile Exchange.
It dropped $16.20, or 1.2%, to close at $1,366.90 an ounce in Nymex floor trading as Fed officials began a two-day monetary-policy meeting. During the session, gold traded as low as $1,360.20, the lowest level for a most-active futures contract since May 23.
Economic data on Tuesday offered a mixed bag for Fed experts. Housing starts rebounded by a stronger-than-expected 6.8% in May, but consumer price inflation was more subdued than expected, posting a monthly rise of 0.1%.
MCX August gold futures may open today’s session below Rs 28000 with support around Rs 27850 levels and resistance near Rs 27970-90 levels.
Source by Commodity Insights

Economic Buzz: New Zealand's Q1 Current Account Deficit Drops

Statistics New Zealand said that New Zealand's current account balance fell to a seasonally adjusted -NZD 0.66B, from - NZD 3.26B in the preceding quarter. Analysts had expected New Zealand's current account balance to fall - NZD 0.60B in the last quarter.
Source by Commodity Insights

Oil Slips Ahead Of FOMC Outcome

Crude oil futures slipped along with the weak Asian equities on caution ahead of the Federal Reserve’s monetary-policy decision later in the day.
In Asia today, the Nikkei Stock Average outperformed regional markets by a wide margin, finishing the morning trading session 1.3% higher at 13,169.97. Australia’s S&P/ASX 200 gained 0.4%, and Taiwan’s Taiex added 0.2%. On the downside, the Shanghai Composite fell 1.5%, Hong Kong’s Hang Seng Index dropped 0.8%, and South Korea’s Kospi also eased 0.8%.
Crude for July delivery are trading 8 cents at $ 98.39 per barrel on the New York Mercantile Exchange. Yesterday, it added 67 cents, or 0.7%, to settle at $98.44 a barrel as Mideast tensions supported prices and fall in the crude oil supplies.
U.S. crude supplies dropped by 4.3 million barrels for the week ended June 14, the API said. A Platts survey of analysts forecast a 1 million-barrel decline. Gasoline inventories increased by 900,000 barrels, while distillate stockpiles dipped by 600,000 barrels. Analysts were looking for a rise of 1.2 million barrels in gasoline inventories and an increase of 300,000 barrels in distillate supplies.
More closely watched figures from the U.S. Energy Information Administration (EIA) are due Wednesday at 10:30 a.m. Eastern. Also, 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.
Syria is also in focus for energy investors, with the U.S. saying late last week it would increase aid to Syrian rebels who have been fighting against the regime of President Bashar al-Assad in a bloody civil war. U.S. oil futures on Friday surged 1.2% following the development.
MCX July crude oil futures may open today’s session near Rs 5790 levels with support around Rs 5745 levels.
Source by Commodity Insights

Monday, 17 June 2013

Indian Rupee Slips Back Below 58/$ Mark

The Indian rupee plunged once again, breaching the Rs 58 per dollar mark on Tuesday, June 18, 2013 due to renewed dollar demand from importers and appreciation of the US currency overseas. Meanwhile, a weak opening in the domestic stock market also put pressure on the rupee as investors await the outcome of a US Federal Reserve meeting due this week. The domestic currency opened weaker by 36 paise at Rs 58.23 to a dollar, registered an intraday high of 58.22 before slumping back to a low of 58.46 so far during the day. In the spot currency market, the Indian unit was last seen trading at 58.4250, lower by around 56 paise or near 1% as compared to previous close at 57.87.
Rupee fell on Monday as the central bank kept interest rates on hold and on caution ahead of the U.S. Federal Reserve's meeting this week, although a lower-than-expected trade deficit helped to cap the currency's losses. The Reserve Bank of India kept its repo rate steady, warning of upwards risks to inflation and global economic uncertainty, in a decision that had been widely expected. A rate cut benefits the rupee by increasing confidence on the economic outlook and sparks hopes of more foreign inflows. Meanwhile, markets are keenly awaiting US Federal Reserve's meeting on Wednesday where the US central bank will give guidance on its bond buyback programme. Fed action is likely to determine the rupee's further course. If US withdraws its bond buyback programme, rupee may slide further.
Meanwhile, a bout of volatility was witnessed in early trade as key benchmark indices slipped into the negative terrain after opening slightly higher. Asian shares were pressured on Tuesday despite an overnight rise in global markets, with investors awaiting for news of the Fed's plans for its stimulus programme from the two-day monetary meeting starting later in the session. Foreign institutional investors (FIIs) sold Indian shares worth a net Rs 165.09 crore on Monday, 17 June 2013, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was down 78.39 points or 0.41% to 19,247.48 while the CNX Nifty was down 23.90 points or 0.41% to 5,826.15.
The U.S. dollar hovered above a two-month low against the yen on Tuesday but uncertainty ahead of the outcome of the U.S. Federal Reserve meeting is likely to cap further gains. The euro stayed above 1.33 to the dollar. The dollar index was sub 81 mark. However, the yen slipped slightly against the dollar.
Source by Commodity Insights

Copper Pares Some Losses, Decisive Move Will Come After Fed Meet

Copper pared some losses by the end of ring trades on LME but still lacked he confidence to end in green. The data from US soothed the nerves and helped in recovery. It is the Federal Reserve meet that is watched more keenly by the speculators. In economic reports, business conditions index rose to 7.84 in June from -1.43 in May, beating consensus forecasts of an increase to zero.
Meanwhile, Dollar remain whopping between losses and gains against the Euro. The greenback ended at 1.3361 per Euro, down 0.11 percent. The clarification from Ben Bernanke on the bond purchases might give some strength to the US Dollar. Rupee remained struggling against the Dollar and settled near all time lows at 57.85 against the Dollar.
One concern that has mitigated in recent times is the supply of Copper. Earlier, it was said that the Grasberg mine of Freeport will hit the supplies. However, restart of Sterlite industries Tuticorin Smelter will address that issue. The smelter was shut down from March 2013 from emission concerns.
Inventories data showed a rise of 11400 tonnes in LME Copper warehouses. Stocks have reached 629475 tonnes. Inventories have gained by more than 90 percent in 2013.
LME Copper three month prices closed at $ 7065 per tonne, down $ 20 per tonne. A decisive move will come in the metal only after Federal Reserve Committee meet. MCX Copper settled at Rs 409.45 per kg, up 0.37 percent. The metal tested a high of Rs 412.2 per kg and a low of Rs 407.1 per kg. Resistance for the contract is at Rs 414 per kg while support is at Rs 408 per kg.
Source by Commodity Insights

Friday, 14 June 2013

Economic Buzz: New Zealand Manufacturing Activity At 9-Year High

New Zealand's manufacturing index rose to 59.2 in May, the highest reading since June 2004, from 55.2 in April. Readings above 50 indicate expansion in activity. Manufacturing activity rose to its highest level in almost nine years in May, results of a survey by BNZ and BusinessNZ showed Friday. Looking at the May results, the value was the highest since the survey began in 2002.
New orders again led the way with its highest result since July 2004. This was followed by production, which was at a similar level to February this year. Employment increased during the month to record its strongest result since November 2007.
Source by Commodity Insights

Copper Tries Go Gain Momentum After Slack Thursday Trades

Copper is trying to gain momentum after a slack Thursday trades that has taken the prices to a six week low. The metal closed at $ 7093 per tonne, down $ 27 per tonne. The prices are trading with gains in Asian trades on Friday at $ 7121 per tonne.
US Dollar was trading higher against the Euro at 1.3346, up 25 pips. Indian Rupee was trading a bit higher after the all time lows brought some bottom fishing in the metal. The Rupee was trading at 57.72, down 0.37 percent.
Indian Copper prices ended at Rs 408.3 per kg, down 0.78 percent. Battery material lead was the most underperforming metal in the pack with prices paring 1.2 percent to close at Rs 120.95 per kg.
Shanghai Copper benchmark prices were still trying to mitigate with losses with prices at 51700 yuan per tonne, down190 yuan per tonne. This is the second straight day when Copper has opened in losses in China after resuming trades.
In economic report, the U.S. Commerce Department said retail sales rose 0.6 percent last month after rising just 0.1% in April. Economists expected an increase of 0.4 percent. Core sales excluding automobiles, gasoline and building materials, rose 0.3 percent in May after 0.2 percent increase in April.
The Labor Department said initial claims for jobless benefits fell by 12000 last week to 334000. The less volatile four-week moving average fell by 7250 to 345250.
Source by Commodity Insights

Wednesday, 12 June 2013

Economic Buzz: Bank of Korea Keeps Rate On Hold

The Bank of Korea left its benchmark interest rate at 2.50%, following a surprise rate cut in May. The central bank said it will aim monetary policy at improving economic growth potential, and named the U.S.'s possible withdrawal of its extraordinary monetary easing as a key downside risk.
The uncertainties related to the possibility of an earlier-than-expected tapering off of U.S. quantitative easing policy and the implementations of fiscal consolidation in major countries remain as downside risks to growth, the BOK said in a statement after its monthly policy review earlier in the day.
The bank said it expects the Korean economy to maintain its modest uptrend in line with the gradual recovery of the global economy. But it said the Japanese yen's heightened volatility, and possible domestic production setbacks due to an expected shortfall in power supply following the suspension last month of two nuclear reactors, are posing threat to growth.
The BOK said it will closely monitor changes in external risk factors. It will conduct monetary policy focused on keeping consumer price inflation within a target range over a medium-term horizon, and on ensuring growth potential isn't eroded by current slowing growth.
Source by Commodity Insights

Economic Buzz: World Bank Cuts 2013 Global Growth Estimate

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. In its semiannual Global Economic Prospects report, the multinational development agency also 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%.Source by Commodity Insights

LME Inventories Data- 12 June 2013

Source by Commodity Insights

Gold Flat After Yesterday's Fall

Gold futures are trading flat in the Asia electronic trades today after it fell nearly $10 at $ 1377 per ounce on disappointment that Bank of Japan offered no additional stimulus at its policy meeting and the strong Yen hurt the risk appetite in market.
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.
Other major indexes fell more modestly, with Australia’s S&P/ASX 200 down 0.9%, and South Korea’s Kospi losing 0.3%, while Singapore’s Straits Times Index and New Zealand’s NZSX 50 each lost 0.3%.
Markets in China — including those in Hong Kong and Shanghai — were closed for the Dragon Boat Festival.
The sharp fall in the US dollar was also of little help to the gold and other commodities. The dollar fell by almost 2 full yen overnight, with the greenback sitting at ¥96.48 midday in Tokyo after buying more than ¥98 at Tuesday’s Japan stock close.
The dollar traded above ¥100 early last week but hasn’t moved above that level since Japanese Prime Minister Shinzo Abe announced a slate of economic reforms — referred to as the “third arrow” of his three-pronged push to revive the nation’s fortunes, along with fiscal stimulus and monetary easing
Gold for August delivery is trading at $ 1377.2 up 2 cents an ounce on COMEX division of New York Mercantile Exchange. Yesterday, it ended Nymex floor trading down $9 at $1,377 an ounce. Earlier, the August contract traded as low as $1,364.50, its lowest intraday level since April 15.
MCX August gold futures may open today’s session near Rs 27900 levels with resistance near Rs 27950 levels and support near Rs 27750 levels.
Source by Commodity Insights

Copper Down For Fifth Straight Session

Copper declined for the fifth consecutive day on Wednesday on the speculation that the US Federal Reserve will not be continuing with its stimulus plans. The outlook of demand from China also posted big pressure on the prices.
LME three month prices were last seen trading at $ 7064 per tonne, compared to $ 7070 per tonne on Tuesday. The metal declined by $ 80 per tonne last night. On MCX, Copper was stable until the evening trades but reversed all the gains and chopped 1.5 percent of its value to end at Rs 410.8 per kg.
The metal tested a high of Rs 421.5 per kg and a low of Rs 410.6 per kg. Inventories of Copper were at 609250 tonnes on 11 June. The total stockpiles have increased by 90.3 percent on Monday. The worries of heavy stocks of Copper were tamed a bit after the report of Force Majeure in Freeport Grasberg mine.
The mine is expected to restart in about three month's time and till that period the supplies will remain disrupted. Refined Copper markets showed a production surplus of 40000 tonnes in February 2013, this was due to low refined metal demand.
RBI intervention has given Indian Rupee some leg space. The domestic currency was sharply moving downwards until last night and tested a record low of 58.38 against the US Dollar. RBI purchases of Rupee have brought some gains in early Asian trades. The currency was trading at 58.24 per Dollar.
Other metals like Nickel also faced a sharp contraction when prices slipped to $ 14550 per tonne, down $ 395 per tonne on Tuesday. MCX Nickel was the worst performer in the base metals pack, ending at Rs 844.1 per kg, down 2.7 percent.
Source by Commodity Insights

Tuesday, 11 June 2013

Economic Buzz: Australia Business Conditions Improve Slightly; Says NAB

Australia's business conditions improved marginally in May, while confidence remained unchanged, the latest survey by National Australia Bank, or NAB, showed Tuesday. The business conditions index rose to -4 in May from -6 in April. The business confidence index remained at -1. The indexes, however, suggested that both business conditions and confidence stayed at low levels. The survey report found that business conditions improved in wholesale, manufacturing and construction, but worsened in mining were capital spending was at record low. NAB expects near-term demand to remain weak with forward orders, capacity utilization and employment conditions staying well below their average levels. Any confidence gained from falling dollar and May rate cut by the Reserve Bank of Australia have been undermined by domestic weakness, the report said.
Meanwhile, the bank has downwardly revised its forecast for the Australian dollar as the currency continues to tumble in the face of a resurgent US dollar. In the lender's survey of business confidence and conditions for May, NAB said it forecast the Australian dollar to fall below 93 US cents by the end of 2013. The lender expected the currency to drop as low as 87 US cents by early 2014.
Source by Commodity Insights

Monday, 10 June 2013

Copper Drops More Than 2% Today

Copper has so far declined by 2.3 percent after the weakness shown in the export figures of China. LME Copper was seen trading at $ 7138 per tonne, down $ 177 per tonne. MCX Copper June expiry was trading at Rs 415 per kg, 0.44 percent.
China's industrial output rose by a less-than-forecast 9.2% in May from a year earlier, while consumer prices fell more-than-expected. The report from National Bureau of Statistics in China showed that Chinese exports rose at the slowest pace in almost a year in May, up 1%, well below expectations for gains of 7.3%. Imports unexpectedly fell last month, dropping 0.3%, compared to expectations for a 6% rise.
The data from Chinese imports didn't support the fate of Copper. The data has shown that China unwrought Copper and Copper product imports have appreciated by 21.3 percent to 358672 tonnes in May 2013 compared to 295799 tonnes in April this year. The decline in imports on a yearly basis spoiled the mood of the traders. Chinese imports declined by 14.5 percent on a yearly basis from 419741 tonnes in May 2012.
Among other metals, LME Aluminium inventories jumped by as much as 18750 tonnes in the single day on 9 June 2013. Imports of unwrought Aluminium in China were 72662 tonnes in May, up 13.3 percent from 64134 tonnes in April 2013. Imports declined by 20.2 percent from 91083 tonnes in May 2012.
The LME Aluminium 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 1.2 percent mainly due to decline of Rupee to all time lows against the Dollar. Rupee was trading at 58.14 when last checked, up 1.9 percent.
Steel makers have continued to face depressing times in terms of demand. The slowdown in demand is troubling major Chinese steel makers. China steelmaker Baosteel has again decided to decline the prices of its products for July booking.
Baosteel will cut July prices of hot-rolled coil mainly for manufacturing by 200 yuan ($32.61) a tonne and for cold-rolled coil, principally for autos and domestic appliances, by 200 yuan a tonne.
Source by Commodity Insights

Commodities Buzz: Canadian Wheat Plantings Progressing At Impressive Pace

The Wheat plantings in Canada are progressing at an impressive pace. Farm officials in Saskatchewan said that growers in Canada's top grain-growing province had planted 83% of their spring crops as of Monday, up 26 points week on week, and putting sowings narrowly ahead of the typical seeding pace.

The heavy rains which have put farmers in the neighbouring US state of North Dakota on course potentially for a 30-year low in spring wheat sowings stretched into some southern portions of Saskatchewan, where officials reported that continuous rainfall has delayed seeding in some areas.

The crop is in strong condition, with the proportion of spring wheat rated, at worst, 65% in good or excellent in Saskatchewan's south east, rising to as high as 98% for the west central area.

The Saskatchewan data also come amid a debate on Canada's wheat production prospects. According to the Canadian farm ministry, the country's wheat crop is expected to rise by 1 million (m) tonnes to 29.4 m tonnes.
Source by Commodity Insights

Economic Buzz: Japan's Final Annualized Q1 GDP Beats Expectations

The Cabinet Office said that Japan's GDP rose to a seasonally adjusted 1.0%, from 0.9% in the preceding quarter. Analysts had expected Japan's GDP to rise 0.9% in the last quarter. Meanwhile, the final GDP annualized Q1 stood at 4.1% against an expected 3.5% and 3.5% last estimates.
Source by Commodity Insights

Thursday, 6 June 2013

Economic Buzz: Australia's Construction Activity Contracts For Third Straight Year

Australia's construction activity marked a third consecutive year of contraction in May, as per a survey by Australian Industry Group and the Housing Industry Association on Friday showed. The Performance of Construction Index remained broadly unchanged at 35.3 compared with 35.2 in April, suggesting continued sharp decline in activity during the month. Readings below 50 indicates contraction in activity. The May reading marked the thirty-sixth consecutive month that the index has been below 50.
Source by Commodity Insights

Commodities Buzz: MMC Norilsk Nickel Approves Dividends

OJSC MMC Norilsk Nickel, the largest global nickel and palladium producer, announces today that its Annual General Meeting of Shareholders (the AGM) approved the consolidated 2012 IFRS financial reports and dividends for the year in the amount of RUB 400.83 per ordinary share. Shareholders also approved reduction of the share capital by RUB 13,911,346 to RUB 158,245,476 by cancellation of 13,911,346 ordinary shares (8.08% of the share capital).
Source by Commodity Insights

Copper Prices Move Down On Demand Concerns

Copper prices moved down on demand concerns in major economies although China Jinchuan Group declared Force Majeure at the Copper plant. After Freeport Closure, Jinchuan becomes the second plant that has declared stoppage.
China's Jinchuan Group said that it is due to equipment failure and is likely to reduce Copper supply by 50% in the next few months. The country's third-largest copper producer by output has sent out a notice to its buyers, notifying them of the possible supply disruption.
The force majeure would translate into a short-term supply disruption of 20,000 tons a month in the domestic market, given that Jinchuan typically contributes 40,000 to 50,000 tons of refined copper a month, industry participants said.
Meanwhile, Copper prices remained moving down on the concerns that demand will remain under pressure both in China and other major consumers like Europe and US. LME Copper was trading at $ 7355 per tonne, down $ 105 per tonne. Copper inventories were down by 1925 tonnes to 610375 tonnes.
Indian Copper was trading at Rs 419 per kg, down 1.3 percent. The metal has tested a opening high of Rs 423.7 per kg and a low of Rs 418.5 per kg when last checked.
LME Nickel prices were seen extending their losses on the back of heightened profit booking after a rise that took prices to a fortnightly high. LME Nickel was seen at $ 15033 per tonne, down from $ 15335 per tonne. Nickel has been one of the metals that has suffered losses of 28.5 percent this year.
Source by Commodity Insights

Wednesday, 5 June 2013

Economic Buzz: U.S Non-Manufacturing Sector Grow In May

The economic activity in the non-manufacturing sector grew in May for the 41st consecutive month, said the nation's purchasing and supply executives in the latest Non-Manufacturing ISM report on business on Wednesday.

The NMI registered 53.7 percent in May, 0.6 percentage point higher than the 53.1 percent registered in April. This indicates continued growth at a slightly faster rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 56.5 percent, which is 1.5 percentage points higher than the 55 percent reported in April, reflecting growth for the 46th consecutive month. The New Orders Index increased by 1.5 percentage points to 56 percent, and the Employment Index decreased 1.9 percentage points to 50.1 percent, indicating growth in employment for the 10th consecutive month. The Prices Index decreased 0.1 percentage point to 51.1 percent, indicating prices increased at a slower rate in May when compared to April. According to the NMI, 13 non-manufacturing industries reported growth in May. The majority of respondents' comments are optimistic about business conditions. However, there is a degree of uncertainty about the long-term outlook.
Source by Commodity Insights

Economic Buzz: U.S April Factory Orders Increase 1%

New orders for manufactured goods in April, up two of the last three months, increased $4.9 billion or 1.0 percent to $474.0 billion, the U.S. Census Bureau reported on wednesday. This followed a 4.7 percent March decrease. Excluding transportation, new orders decreased 0.1 percent.
Source by Commodity Insights

Tuesday, 4 June 2013

Gold Jumps As Equities Bump

Gold  .........
Gold futures jumped in the Asia electronic session today as the dull equity markets attracted investors towards the yellow metal.
Asian stocks fell Wednesday after U.S. equities lost ground overnight amid concerns the Federal Reserve may taper its bond purchases, while Japanese shares seesawed as investors awaited a key policy speech from Prime Minister Shinzo Abe.
Australia’s S&P/ASX 200 fell 1.2%, extending losses after data showed the domestic economy expanded at a slower-than-expected rate during the January-March quarter. Elsewhere, the Shanghai Composite eased 0.1%, Hong Kong’s Hang Seng Index fell 0.7%, and South Korea’s Kospi gave up 0.6%.
In Japan, the Nikkei Stock Average and the broader Topix index slipped 0.1% each ahead of Abe’s widely anticipated outline of his economic growth strategy, due later in the day. The Japanese benchmarks swung between gains and losses, changing direction several times.
Gold for August delivery is trading up $9 at $ 1406 per ounce on the Comex division of the New York Mercantile Exchange. It dropped $14.70, or 1%, to settle at $1,397.20 an ounce yesterday.
The move came a day after gold prices tacked on $18.90 an ounce, or 1.4%, to close at $1,411.90, helped by a decline in the dollar on data showing a contraction in U.S. manufacturing in May. Prices for the August gold contract had lost $19 on Friday.
On Tuesday, U.S. equities moved lower in afternoon trading as Fed worries weighed. Separate data showing the fastest home-price growth in more than seven years and the U.S. trade gap widening less than expected took a back burner.
The markets will further assess the Fed’s bond buying — aimed at stimulating economic growth — when the widely watched U.S. employment report for May is released on Friday. An employment report from ADP comes out on Wednesday.
MCX August gold futures may open today’s session near Rs 27250 levels with resistance near Rs 27350 levels.
Source by Commodity Insights

Economic Buzz: China Service-Sector Growth Remains Weak- HSBC

China's service-sector growth remained at low levels in May though activity still increased, HSBC reported Wednesday. The bank's China Services Business Activity Index edged up to 51.2 from April's 51.1 but was still one of the lowest readings in the series history, HSBC said.
Source by Commodity Insights

Economic Buzz: Australia Holds Interest Rates Steady

The Reserve Bank of Australia held its policy interest rate unchanged on Tuesday, in a widely expected move, with the central bank citing reasonable prospects for a pick-up in global growth next year. In a statement accompanying the decision, RBA Gov. Glenn Stevens said that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand. The Australian currency showed brief volatility after the move but quickly stabilized, buying 97.26 U.S. cents, up modestly from 97.14 U.S. cents minutes ahead of the decision. The Aussie dollar had traded above parity with its U.S. rival at the time of the May rate cut but began losing ground following the easing.
Source by Commodity Insights

Economic Buzz: U.S Construction Spending Improves In April

The U.S. Census Bureau of the Department of Commerce announced Tuesday thatconstruction spending during April 2013 was estimated at a seasonally adjustedannual rate of $ 860.8 billion, 0.4 percent  above the revised Marchestimate of $ 857.7 billion. The index  registered a drop of  0.8% inthe the previous month. Analysts expected 0.8% growth. The April figure is 4.3percent  above the April 2012 estimate of $ 825.1 billion. During the firstfour months of this year, construction spending amounted to $ 250.7 billion, 4.5percent above the $ 239.8 billion for the same period in 2012 .

 Source by Commodity Insights

Oil Dips Below $93; API Data Due


Crude oil futures dipped below $93 a barrel in the mixed movement in the Asian equities today. The traders also await the API data later today.
Crude for July delivery fell 42 cents, or 0.5%, to $93.03 in electronic trade during Asian trading hours on the New York Mercantile Exchange. Yesterday, it rose $1.48, to settle at $93.45 a barrel
Most Asian markets endured wide swings between gains and losses Tuesday as buying in the wake of an overnight advance on Wall Street was countered by concerns over China’s growth trajectory.
Oil prices on Monday climbed 1.6% following better-than-expected May readings on manufacturing activity throughout Europe, and as political instability in the Middle East fed supply concerns.
After the close of trade on the New York Mercantile Exchange on Tuesday, investors will receive a weekly update about U.S. crude inventories. Analysts polled by Platts expect crude-oil stocks to have declined by 1 million barrels during the week ended May 31. Analysts also forecast a rise of 1 million barrels in gasoline stocks, and an increase in distillate stocks by 1.4 million barrels.
The American Petroleum Institute is scheduled to release its weekly report at 4:30 p.m. U.S. Eastern time. The more closely watched data from the U.S. Energy Information Administration is due Wednesday at 10:30 a.m. Eastern time.
Last week, crude supplies, as reported by the EIA, unexpectedly jumped 3 million barrels to 397.6 million barrels, bringing inventory to the highest level since the EIA began collecting data in 1978.
Despite high production from the Organization of the Petroleum Exporting Countries and the U.S., oil ministers at an OPEC meeting Friday agreed to keep their output target at 30 million barrels a day for the rest of the year, with many members expressing satisfaction with current price levels of about $100 a barrel for Brent crude.
MCX June crude oil futures may open today’s session near Rs 5250 levels with support around Rs 5205 and Rs 5170 levels.
Source by Commodity Insights

Gold Flattens After Gains

Gold flattened in the Asia electronic session today after the metal jumped above $1410 lifted by a weaker dollar in the wake of data showing a contraction in U.S. manufacturing in May. The non farm payrolls data will be the big news this week, further putting light on the QE program.
Gold for August delivery is trading 0.7 at $ 1411 an ounce on the Comex division of the New York Mercantile Exchange. It rose $18.90, or 1.4%, to settle at $1,411.90 an ounce on Monday
On Monday, the dollar also fell sharply after the ISM figures, providing support for gold and other commodities.
On Friday, gold prices fell $19 an ounce after better-than-expected data about manufacturing activity in the Chicago area, and after a gauge on U.S. consumer sentiment in May reached the highest level since 2007.
Data Monday showed that the Institute for Supply Management’s index fell to 49.0% last month from 50.7% in April. That marked the first contraction since November.
China experts weighed conflicting data on the nation’s manufacturing sector, with HSBC reporting Monday that the sector contracted in May, while government numbers released earlier pointed to a pickup in activity.
Meanwhile, manufacturing PMI for the euro zone climbed to 48.3 from 46.7 in April, marking the highest level in 15 months. But the reading still indicated contraction.
MCX August gold futures may open today’s session near Rs 27300 levels with support near Rs 27230- 200 levels.
Source by Commodity Insights

Monday, 3 June 2013

Lead Gallops Higher

Lead prices are galloping higher on account of recovery in China PMI from official sources. The data showed a rise of 50.8 in May compared to 50.6 in the month of April. The three month lead prices were last seen trading at $ 2217 per tonne on Monday, up 1.4 percent.
Lead has been in the news these days for all the right reasons. The inventories of lead have been moving down while the demand from automobiles has resulted in spot prices jumping up. The spot prices of lead have been running at a premium of $ 8 per tonne against three month prices. The spot prices were last seen at $ 2224 per tonne.
LME Lead inventories have been down by 31 percent this year and this is one metal that has seen a considerable drawdown in warehousing inventories compared to some of the other big names like Copper and Nickel.
Indian Lead futures were trading at Rs 125.6 per kg, up 1.17 percent. Though the prices are in a overbought zone they can seen some more recovery towards Rs 126-127 per kg.
Source by Commodity Insights

Sunday, 2 June 2013

Copper Is Likely To Get Underpinned By Chinese PMI

Copper prices are likely to get underpinned by Chinese PMI data. The data released last night had shown that official Purchase Manager's Index rose to 50.8 in May compared to 50.6 in the month of April. This reading is also stronger than expectations of 50.1 figure. Metals are expected to open with a positive undertone in India.
Meanwhile, Fund managers has been staying away to take any fresh long positions in the COMEX Copper contracts. The report showed that the short positions were declined but that decline didn't shift to a material increase in long positions.
COMEX Copper fund managers, Commitment of traders report for week ending 28 May 2013 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.
COT report showed that long contracts decreased by just 728 contracts and were at 27120 contracts from 27848 contracts a week before. Total net short positions therefore moved to 8918 contracts from 6158 contracts on 21 May.
LME Copper settled at $ 7270 per tonne on Friday, against $ 7275 per tonne last week. Most active Copper contract on MCX closed the last week trading at Rs 411.85 per kg, down 1 percent in the week. Resistance for the contract is at Rs 414 per kg. Downtrend can take Copper towards Rs 408 per kg.
Source by Commodity Insights