1/20/2011 06:21:00 PM
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Commodity Updates
MCX Updates
Gold prices were trading lower in the international markets today,mainly on account of strong economic data from China. At 4.00 pm IST, spot gold prices were trading at $1364.35/oz, down around 0.4percent. On the MCX, gold futures declined more than 0.5 percent and were hovering at RS 20, 285/10 gms around the same time.
Crude oil prices declined around 0.4 percent on the Nymex today, on account of worries over China’s steps to curb inflation. However, sharp declines were cushioned due to expectations of decline in the US inventories and weakness in the dollar today. Crude oil prices touched an intra-day low of $90.17/bbl and were hovering around $90.46/bbl till 4.00 pm IST. The US Energy Department (EIA) is expected to release its weekly inventory data later in the evening today. According to the Reuters poll, crude oil inventories are expected to decline by 0.6 million barrels for the week ended 14th January.
There is host of economic data to be released from the US today- Unemployment Claims, Existing Home sales, Philly Fed Manufacturing and CB leading index. Base metal and crude oil prices are expected to trade lower despite positive data from China because investors are currently factoring in the rise in interest rates by the central bank of China. Gold prices are expected to trade lower, but a weaker US dollar would cushion sharp downside in the yellow metal prices.
NCDEX Review
Pepper prices in the intraday are expected to trade firm due to lower arrivals and better offtakes. 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. Black pepper production is likely to be lower by around 9 percent to 1 lakh tonnes as compared to 1.10 lakh tonnes the previous year. In the short term (till January), Pepper prices will depend on demand from the overseas and domestic market and fresh arrivals in the physical mandi in Kochi.
Turmeric prices in the intraday will trade sideways with positive bias due to improved buying by the market participants. 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 term increase in the arrivals ahead of better production.
Jeera prices in the intraday may trade with positive bias owing to expectation of fresh export enquires from the overseas buyers. In medium to long term (February onwards), Jeera prices will depend on the demand from the overseas and domestic buyers and fresh arrivals in the domestic mandis.
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