1/14/2011 06:17:00 PM
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Commodity Trend
MCX Trend
China’s move to control the country’s inflation, led to downside pressure on Base Metal prices today. In addition to this, strength in the US dollar coupled with mixed sentiments in the global equity markets also acted as a negative factor for metals. Nickel declined the most amongst the base metal pack in today’s trading session. The metal declined almost 1.5 percent on the LME, touching an intra-day low of $25,250/tonne till 4.00 pm IST today. On the MCX, prices witnessed less declines due to depreciation of the Indian Rupee today. Spot Rupee declined more than 0.5 percent today.
Gold still remains attractive from a short-term to long-term perspective but prices may come under pressure today as investors may shun commodities and equities on news of China. Also, the news has come in at the last trading day of the week amid already existing economic concerns. On the back of this dollar is expected to strengthen and this factor too may put downside pressure on gold prices today.
NCDEX Trend
Jeera prices in the intraday will trade bearish due to lacklustre trades at the domestic market. Fresh arrivals in the domestic mandi in the short term may also help bears in the market. In medium to long term (February onwards), Jeera prices will depend on the demand from the overseas and domestic buyers and growth of the sown jeera crop particularly in Rajasthan and Gujarat.
Turmeric prices in the intraday will trace arrivals in the domestic mandi. Price trend in the short term are likely to depend on the arrivals and demand from the overseas and domestic buyers. In the medium to long term prices are likely to trade bearish due to increase in the arrivals ahead of better production.
Pepper prices in the intraday are expected to trade sideways with bullish note due to improved buying by the market. In the short term (till January), Pepper prices will depend on demand short from the overseas and domestic market and fresh arrivals pattern in the physical mandi in Kochi.In the medium to long term (February onwards), price trend will depend on pepper stocks with major producers and Black pepper production estimates of Vietnam for 2011.
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