6/08/2011 05:39:00 PM
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MCX Commodity News
Spot gold gained marginally by 0.1 percent on account of mixed sentiments in the global financial markets. Dollar weakness cushioned downside in the metal as investors remain cautioned ahead of the European Central Bank (ECB) rate decision on Thursday. It touched an intra-day high of $1550/oz and closed at $1543/oz yesterday.
We expect the DX to weaken today as latest comments by Fed Chairman indicate further monetary stimulus measures. Also, expectations of rate hike by the ECB in the near future have also deteriorated the appeal of the dollar. A weaker dollar coupled with concerns with respect to the growth in the US will help bullion to trade higher today.
BASE Metal Trend
We expect base metals to trade lower today as latest comments by US Fed Chairman Ben Bernanke has affected global market sentiments. This coiuld lead to reduced demand for riskier investments. However, in the case of Copper and Lead we expect an upside bias to prevail. Copper prices will be supported on the back of supply disruptions, and dollar weakness will add fuel to the fire. Lead on the other hand is expected to gain on account of demand expectations in China.
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NCDEX Commodity News
Guar futures might recover slightly during the intraday as the commerce ministry withdraws its notification on permissible chemical contents. However, prices may decline in the short term owing to forecast of normal and timely arrival of monsoon over Rajasthan on one hand and reports of fresh export enquires are likely to support prices. Prices are expected to trade in the range of Rs. 3150-3400 per qtl levels in the short term. Robust export demand for Indian Guargum from Oil companies may support Guar prices in the long term (September). However, in the next 2 months (July – August), rainfall distribution over Northwest India would be an important factor to be watched for as the price movement during this period mainly depends on monsoon.
Jeera News
Jeera prices in the intraday will trade sideways due to weak trades at the domestic market. However, any reports of crop damage in Syria might support prices in the short term. In medium to long term (July onwards), Jeera prices will depend on the demand from the overseas and domestic buyers. Prices will also take cues from the production of this spice in Syria and Turkey the other major producers.
Turmeric News
Turmeric spot prices at Nizamabad and Erode were quoted at lower rates due to dull demand from the local stockists. Futures settled 1.29% down due to selling by the market participants.
According to the trade sources area under Turmeric in the chief growing areas of Nizamabad and Erode is likely to decline owing to steep fall in the prices and remunerative prices in other cash crops articularly cotton. (Source: Reuters) Turmeric stocks in the NCDEX warehouse are at 1354 MT as on 20th May 2011.
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