10/14/2010 05:55:00 PM
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MCX Metal Trend
Spot gold prices gained around 0.5% today, but the yellow metal prices were off its record highs in the afternoon trade. Spot gold prices touched a new record high of $1387.15/oz in the morning today, but later pared gains on the back of profit booking at the higher levels. On the MCX platform, gold prices touched the much awaited Rs 20,000 mark in the early trade, but wiped out major intra day gains. At 4.00 pm IST, the December gold contract on the MCX was trading at Rs 19,198 per 10 gms. Moreover, gold prices on the MCX also faced pressure from the appreciating Rupee. Spot Rupee gained slightly less than 1% in today’s trading and was trading at 44.14 at 4.00 pm IST.
Copper prices gained around 0.3% on the LME and were trading at $8426/tonne till 4.00 pm IST today. The red metal prices touched an intra-day high of $8,470/tonne on LME today. The red metal prices extended gains in the international markets today taking cues from the weakness in the DX However, on the MCX, red metal prices declined merely by 0.1% to close at Rs.374.30/kg till 4.00 pm IST today. Sharp appreciation in the Rupee capped gains in copper
prices on the Indian bourses today. Copper inventories on the LME increased by 225 tonnes to reach 371,500 tonnes today.
Crude oil prices gained marginally by 0.2% on the Nymex today and were trading around $83.37/bbl till 4.00 pm IST. OPEC meeting is scheduled in Vienna today and the members are expected to keep production quotas unchanged at 24.84 million barrels per day. Moreover, the pension reform strike in France has become even more serious as entering in its 18th day, adding on to the supply concerns. The IEA has forecasted the global oil consumption to reach 86.9
million barrels a day in 2010 and 88.2 million barrels a day in. On the MCX platform, crude oil prices dropped slightly by 0.1% and were hovering at Rs.
3686/bbl till 4.00pm IST. Appreciation of the INR resisted gains in oil prices in the domestic markets today.
Profit booking at higher levels brought some corrections to Turmeric rates in the Futures market as overall trend is expected to remain firm in the mandis. Some export queries from mid-east Asian countries have been noted. Moderate domestic demand too has been there. Arrivals remained low. Good crop prospects from good rainfall activities in the growing areas have been there. Stockists reportedly held back their stocks in anticipation of a rising demand in coming days. Exports are also expected to rise and that could support the prices in the medium term. Short term trend would remain volatile as traders wait for corrections for buying opportunities.
According to the market sources, MSP of Chana which was set at Rs. 1760 per qtl in the last year may increase to Rs. 2100 per qtl. This will support the Chana prices as, no farmer will sell their produce below Rs. 2100 per qtl. Overall fundamentals are not supportive for the prices to rise in the medium term (November) as India is going to harvest record pulses crop in Kharif 2010. The acreage under pulses has expanded by a whopping 20 lakh hectares
from last year.
