MCX Metal updates, NCDEX Review

MCX Updates

Spot Gold prices were trading around 1291/oz till 4.00 pm IST today, slightly below its all time high of $1296/oz touched in yesterday’s session. The yellow

metal prices were trading on a flat note in the afternoon trade today after posting strong gains in the last couple of sessions. On the MCX, gold prices gained around 0.2% around the same time as the Rupee depreciated for the first time in this week. This factor helped gold prices to extend gains on the Indian

exchanges.On the MCX platform, copper prices gained around 0.5% and the red metal prices were trading at 360.5/kg around the same time. The US Dollar Index (DX) gained for the first time in this week after falling below 80 against a basket of currencies in the previous session. The DX was trading at 80.14 at 4.00 pm IST. Euro zone Manufacturing PMI reported today indicated that the index fell to 53.6 in August from 55.1 in the previous month.

Crude oil prices declined around 0.8% on the Nymex today and are hovering around $74.09/bbl till 3.45pm IST. Oil prices are currently witnessing downside

disruption in oil exploring activities is unlikely. Moreover, concerns over slow economic growth have also kept the crude oil prices under pressure in thispressure on the back of increasing inventories in the US, a top consumer of the commodity. Moreover, the peak hurricane season is near its end and any week. 

NCDEX Updates

Chana futures declined sharply during the last week on expectations of better Kharif Pulse crops and existing huge stocks of Chana in the domestic markets. Prices continued to trade lower on Tuesday due to huge selling pressure in the markets.
In long term (November onwards), bumper crop of Chana in the year 2009-2010 coupled with good carryover stocks will resist prices from trading higher. Prices will also take cues from price quotes of other major pulses. Steady to weak sentiments prevailed across major Spot markets of Chana due to sluggish trading activities. Chana futures ended negatively due to selling pressure amidst huge stocks of Chana in the domestic markets.

Daily arrivals of soybean were at 7,500 bags yesterday in Indore mandi (4000 bags new crops and 3500 bags old soybean) and 75,000 bags in M.P. (bag=100 kg). The US Department of Agriculture announced yesterday a sale of 225,000 tonnes of US soybeans to China, which is also added bullish market sentiments.
NCDEX October Soybean futures closed slightly higher on short covering after yesterday’s sharp fall. Spread between NCDEX October and November contract is Rs-15.50 against previous day of Rs -25.50 per 100 Kg.
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