MCX , NCDEX - Commodity Updates 17'SEP

Copper Trend
Copper ended on a positive note at 355.40 after a lack of proper direction in the price trend. Looking at the straight bull rally in the last week, copper future remains under pressure in the entire present week due to lack of volume and mixed macro economic outlook from China and USA.
On Friday, Copper September delivery contract opened slightly higher in morning trades at Multi Commodity Exchange (MCX) by 0.72 percent with total volume of 23360 lots.

Copper may fall further in the coming days on reversing earlier gains after advancing by the most in the last two weeks. Fundamentally, Copper seems to be strong as it’s heavily used in industry. But near term bearishness might keep Copper prices on limbo.

MCX – Gold Review
Gold demand remained weak for a fourth straight day on Friday in India, the world's biggest consumer, as buyers struggled to digest the bullion rally, bank dealers and jewellers said. Gold futures on Multi Commodity Exchange of India (MCX) were steady 19,171 rupees per 10 gram, after hitting a record high of 19,257 rupees earlier in the week. Traditionally, demand for gold in India remains strong during the September-November festival season. Dhanteras, considered auspicious day for buying gold, is in November. "For the last 3-4 days demand has been very weak.

NCDEX- Turmeric
NCDEX turmeric touched the upper circuit on Thursday lead by short covering and fresh buying. The October contract ended the last session higher by 3.77 percent at Rs 12262 after hitting the high of Rs 12290 per 100 kg. The open interest in the contract added 13.45 percent to 5,230 tonnes from 4,610 tonnes as on last day.

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MCX , NCDEX - Commodity Updates

Mcx Update
Earlier, the MCX had made it mandatory for traders to maintain a deposit worth at least 30 per cent of the value of futures contracts sought to be traded. The 20 per cent reduction in the margin applicable in turmeric contracts will come into effect from today, according to a circular issued by the exchange.

Experts said the deposit money for turmeric traders was reduced in the wake of sharp fall in turmeric futures prices. Turmeric futures prices have declined from a high of Rs 15,000 per quintal to Rs 11,800 per quintal in a span of three months.
MCX-SX on Thursday traded 40,32,061 USD-INR currency futures with a total value amounted to Rs.18,680.17 crore.

Out of which September contract traded 38,16,449 volumes while October contracts traded 1,86,402 volumes as against an RBI reference rate of 46.3000.
Best buying price was recorded for February contract at 47.1250 while lowest buying price was recorded for August contract with Rs 46.2075.
Best selling price was recorded for February 2011 contract at Rs 47.2500 while lowest selling price was recorded for August contract at Rs 46.2150.
Pepper futures for the benchmark October delivery on NCDEX ended the last session lower by 1.10 percent at Rs 20084 after hitting the low of Rs 19693 per 100 kg.

NCDEX Pepper Extends Looses
In today's early trading session, pepper for the October delivery slumped by another Rs 136 or 0.67 percent to the session low of Rs 19948 per 100 kg. The session high was Rs 20,208 and the counter is currently trading lower at Rs 20059, down Rs 25 from the last close. The open interest in the contract added 2.35 percent to 12,110 tonnes from 11,825 tonnes as on last day, indicating short selling. Volume traded as of now stood at 3,385 tonnes.

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MCX Update for the day

Central banks help gold rise
The shift marks a turnaround after heavy disposals by European central banks over the past 10 years, when gold was seen as a non-yielding unattractive asset. Monetary institutions then swapped their bullion for yielding sovereign debt.
Gold prices will hit $1500 by the end of the year or first half of 2011, and the yellow metals pricing at the bottom of the next bear market will be more than $1000 an ounce, Jeffrey Nichols said.

-The base metals market is quiet with thin trading as market movement is paused with players are waiting for fresh direction.

-There is some selling into rallies across the complex as profit taking kicks in. Zinc remained the top loser on LME with down by one and half percent, while nickel saw some buying and remained positive.

-Copper was struggling to hold above $7,600, trading at $7,590 per tonne, nearly one percent loss from the previous session. But inventories resumed their downtrend, falling a net 1,025 tonnes to 389,500 tonnes, the lowest since November 9, 2009.

-There was also a 21 percent jump in cancelled warrants to 27,675 tonnes.

-On the US front, core retail sales increased by 0.6% in August as against expectations of an increase by 0.3%. Sales increased for a second consecutive month in August.

-Copper has resistance of $7800 at LME and `356 in MCX with support lies at 352. And Zinc has support of 98.5 and resistance of 99.5.

-Nickel getting support at 1070 and resistance near 1085.

-Lead has support at 101.5 & resistance at 103 

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Commodity Market Update

Spot gold prices closed at $1244.55/oz on Monday.
14 September 2010 | Spot Gold prices ended on a flat note on Monday to close at $1244/oz. On the MCX platform, the yellow metal prices closed at Rs 18,861, slightly lower than its earlier close of Rs 18,864. Positive sentiments in the global financial markets capped gains in gold prices yesterday. Investors flocked towards the higher- yielding equities, decreasing demand for gold as a safe-haven investment. The SPDR gold holdings slipped to 1292.619 metric tonnes on September 13th from 1293.531 on September 10th.

Nymex crude oil prices closed at $77.19/bbl on Monday.
14 September 2010 | Crude oil prices touched an intra-day high of $78.04/bbl on Monday, before closing at $77.19/bbl. On the MCX platform, crude oil prices closed above Rs 3500/bbl, gaining around 1%.Crude oil prices will take cues from the inventory data to be released by the American Petroleum Institute (API) later in the evening today.

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Crude prices bounced back, surges by more than 2% on rise in risk appetite.

Crude prices rebounded on Wednesday after two straight days of decline and rose more than 2 percent, on getting strong manufacturing data from US and China, reviving risk appetite, also the dollar weakened against a basket of other currencies. Though the US Energy Information Administration (EIA) data showed crude oil stockpiles rose 3.43 million barrels last week, more than expected, but the US manufacturing sector grew faster than expected in August and relieved the concern about tepid oil demand.

Meanwhile in a survey, it was shown that OPEC crude oil supply fell in August to the lowest since November 2009 as reduced supplies from Nigeria, the United Arab Emirates and Iraq offset increased output in Angola.

Benchmark crude for October delivery rose $1.99, or 2.77 percent, to settle at $73.91, after trading in a range of $71.67 to $74.48 on the New York Mercantile Exchange. In London Brent crude for October rose $1.93 to $73.85 on the ICE.

Gold and Silver daily review.

MARKET ROUNDUP

U.S. gold futures rallied to a two-month high on Tuesday, as uncertainty about the economic recovery boosted the metal's appeal as an alternative investment.

IN FOCUS

- The world's largest gold-backed exchangetraded fund, SPDR Gold Trust, said its holdings rose to 1,302.508 tonnes by Aug. 31, from 1,298.556 tonnes on Aug. 27. The holdings hit a record at 1,320.436 tonnes on June 29.

- The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings stood at 9227.13 tonnes as of August 31, rose by 76.1 from the previous business day.

- Northgate Minerals Corp discovers fault offset of the Magdala and Golden Gift orebodies at its Stawell Gold Mine and says diamond drilling at its Stawell GoldMine has intersected a new zone of goldmineralization

- Jaguar Mining Inc announces first gold pour at caet. Reiterates its gold production target at new caeté operation will total approximately 20,000 ounces in Q4 2010

FUNDAMENTAL OUTLOOK

Precious metals prices edged lower on COMEX today. Our outlook in gold remains bullish on the back of uncertain economic outlook that is likely to drive the gold prices up. Buying at every dip should be the investor's strategy today.