1/17/2011 05:51:00 PM
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MCX Commodity Updates
Spot Silver prices declined more than 1 percent in the Asian trade today on the back of strength in the US dollar. Moreover, investors also remained skeptical ahead of China’s data to be released this week as the white metal is also widely used in industries. On the MCX, silver prices were down 0.5 percent and were hovering at `43481/kg till 4.00 pm IST. Spot gold prices declined around 0.2 percent in the Asian trade today and were hovering around $1358.55/oz around the same time. However, on the MCX, gold prices were trading slightly higher at `20,258/10 gm due to Rupee deprecation today.
Crude oil prices came under pressure in today’s trading session mainly taking cues from stronger US dollar and mixed European and Asian equities. Prices declined almost 0.5 percent on the Nymex, touching an intra-day low of $90.83/bbl till 4.00 pm IST. On the MCX, oil prices witnessed minimal losses mainly due to depreciation of the Indian Rupee.
There is no major economic data to be released from US today, as the markets will be closed on observance of Martin Luther King Day. Base metal prices will mainly take cues from the movement in the US dollar today. But, sharp movements may not be witnessed on the absence of major market driver. Hence, we expect metal prices to trade slightly lower mainly taking cues from strength in the US dollar. Crude oil prices may receive some support on the back of hopes of increase in heating oil demand from colder regions. But sharp rise will be capped on the back of strength in the US dollar and mixed sentiments in the global equity markets. Gold prices may receive slight support ahead of the Euro zone financial ministers meeting which has began today.
NCDEX Commodity Review
Guar futures may trade firm in the intraday on expectations of improved demand from local stockists. In the short term we expect Guar prices to gradually to recover from term, the current levels as the arrivals will continue to decline with harvests nearing its end, while demand from the overseas market may see an improvement in the coming weeks. term, In the medium term prices would be influenced by the final crop estimates of Guar by the Rajasthan farm department and the demand from the overseas markets.
In the intraday, Sugar prices are expected to remain firm as the government has given a positive decision with regards to the exports under OGL. Currently Sugar prices at Kolhapur are trading around Rs. 2815 per qtl levels. We expect Spot prices at Kolhapur to trade in the range of Rs. 2750 and Rs. 3000 per qtl levels for the rest of the month. Ongoing crushing may put some pressure on the prices. However, any significant decline in the prices due to crushing may be treated as a good buying opportunity for the medium term. In the medium to long term domestic Sugar prices are expected to recover due to supply tightness in the global markets amidst higher parity of the international Raw as well as white sugar.
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