1/19/2011 06:19:00 PM
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Commodity MCX, NCDEX Trend
MCX Updates
Spot gold prices received support mainly from the weaker US dollar, but subdued trading was witnssed across the bourses. The yellow metal prices gained around 0.4percent in the Asian trade today and were hovering around $1373.15/oz at 4.00 pm IST. On the MCX, gold prices were trading slightly higher by 0.2 and touched an intra- day high of `20,385/10 gm around the same time. Appreciation of the domestic currency capped further gains in gold prices on the Indian exchange today.
Copper prices hit a fresh record high of $9781/tonne in today’s trading session. The red metal prices rose more than 0.5 percent and were hovering at $9731/tonne till 4.00 pm IST today. Factors that influenced the prices were – weakness in the US dollar and improved outlook for demand of copper as an industrial metal from China, the world’s largest metal consumer.
We expect metal prices to trade on a positive note today mainly taking cues from weakness in the US dollar. But, in the evening session, volatility may be witnessed ahead of a host of economic data to be released from China tomorrow. Although GDP growth is expected to slow down in the fourth quarter with moderating inflation, industrial production is expected to increase m-o-m in December 2010. Crude oil prices are expected to trade higher today on expectations of decline in US crude oil inventories and hopes of increasing demand in the current year. Moreover, weakness in the US dollar will also support an upside in prices today. Gold prices may be cushioned by a weaker US currency but we don expect prices to trigger in today’s session.
NCDEX Updates
Guar futures may trade firm in the intraday on expectations of improved demand from local stockists. Guar Seed Chart In the short term (2 - 3 weeks) we expect Guar prices to improve due to weeks), increase in the fresh export enquires and trade in the range of Rs. 2600 and Rs. 2750 per qtl levels. In the medium term (2 months), prices would be dependent on the overseas demand scenario.
Sugar prices are expected to remain decline in the intraday due to sufficient supplies in the domestic markets. Currently, Sugar prices at Kolhapur are trading around Rs. 2800 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 price movement would be dependent on the permissible sugar exports from the country. Domestic sugar could gain if exports are allowed given the high sugar prices prevailing in the global markets.
Turmeric prices in the intraday will trade bearish due to fresh arrivals Turmeric Chart in the domestic market and lacklustre trades. 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.
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