Thursday 30 May 2013

Economic Buzz: U.S Q1 Core Personal Consumption Expenditure Rises

The US Commerce Department informed that the US inflation, measured by the Personal Consumption Expenditures, rose 1.0% QoQ during the first quarter, surpassing the median at 0.9%. The core reading, which strips the food and energy costs, rose 1.3% QoQ.
Source by Commodity Insights

Copper Dwells Between Profits And Losses

LME Copper dwelled in profits and losses after the European trades. The prices were lower in Asian session but a minor pickup has been noted in the opening of European markets. Last night the calls of fall in China GDP brought pressure on the benchmark prices. When last seen Copper was trading at $ 7260 per tonne, up $ 25 per tonne. MCX Copper opened at Rs 410.5 per kg and was at Rs 411.5 per kg when last checked. The prices tested a intra day low of Rs 405.1 per kg before recovering.
Source by Commodity Insights

Economic Buzz: Euro Zone Consumer Confidence, Economic Sentiment Improves

The European Commission said that Euro zone Consumer Confidence increased to -21.9 in May, from -22.3 in April, the European Commission reported on Thursday. This result is in line with market consensus. Euro zone Economic Sentiment Indicator rose to 89.4 in May from 88.6 recorded the previous month, above forecasts of growing to 89.

The Business Climate improved to -0.76 in May, from -1.04, above expectations of rising to -0.87.Industrial Confidence decline slowed down from -13.8 in May to -13, slightly above projections of -13.1. Services Sentiment grew to -9.3 in May from -11.1 and above market consensus of -10.8.
Source by Commodity Insights

Friday 24 May 2013

MCX Weekly Wrap Up: COMDEX Up Marginally


MCX Comdex was up by 1.23% to 3565.36 for the week till Thursday. MCX Metal was up by 1.55% to 4448.04 and MCX Energy was up by 0.75% to 3679.80.

Bullion:
Gold June 13 contract was up by 1.18% to Rs 26440.00 per 10 grams, GoldM July 13 contract was up by 1.29% to Rs 26542.00 per 10 grams, Goldguinea July 13 contract was up by 1.25% to Rs 21307.00 per 8 grams, GoldPetal July 13 contract was up by 1.45% to Rs 2663.00 per gram and GoldPetalDel May 13 contract was up by 2.53% to Rs 2757.00 per gram. Silver July 13 contract was up by 0.71% to Rs 43571.00 per kg, SilverM June 13 contract was up by 0.68% to Rs 43591.00 per kg, SilverMIC June 13 contract was up by 0.68% to Rs 43594.00 per kg and Silver1000 June 13 contract was up by 0.68% to Rs 43591.00 per kg.

Metals:
Aluminium July 13 contract was up 2.55% to Rs 104.55 per kg, alumini July 13 contract was up 2.20% to Rs 104.30 per kg, lead May 13 contract was up by 4.12% to Rs 113.65 per kg, lead mini May 13 contract was up by 4.12% to Rs 113.65 per kg, zinc July 13 contract was up by 2.80% to Rs 104.35 per kg, zinc mini July 13 contract was up by 2.81% to Rs 104.35 per kg, nickel July 13 contract was up by 1.96% to Rs 846.00 per kg, nickelm June 13 contract was up by 1.97% to Rs 837.90 per kg, copper June 13 contract was up by 1.99% to Rs 408.45 per kg and copperm June 13 contract was up by 1.99% to Rs 408.45 per kg while Steel RPR June 13 contract was down by 2.16% to Rs 27630.00 per MT.

Energy:
Natural gas May 13 contract was up by 9.88% to Rs 236.80 per MMBTU while Brent crude oil June 13 contract was down by 0.54% to Rs 5683.00 per barrel and Crude oil June 13 contract was down by 0.48% to Rs 5215.00 per barrel.
Source by Commodity Insights

Commodities Buzz: UK Wheat Imports Seen Up Nearly 10%

The UK lifted its estimate for wheat imports following poor weather which has boosted demand for the grain, besides cutting yields last year to a 20-year low. The UK farm ministry, Defra, upgraded its forecast for UK wheat imports in 2012-13 by 275,000 tonnes to 2.54m tonnes yesterday- marking a rise of 10%.

The upgraded figure is far bigger than exports, which Defra pegged at 800,000 tonnes in its official forecast. The upward estimates also reaffirmed the UK's unusual slip into net imports of wheat. The estimate for feed use, however, was raised, by 229,000 tonnes to 6.69m tonnes, reflecting the lingering impact from the poor weather last year, the UK's second wettest on record, in boosting demand besides lowering yields.

The wet summer/autumn and delayed spring have necessitated an increase in the use of grain for animal feed in place of forage and grazing, Defra noted. The continuation of the poor weather into a cold spring has also prompted by stockpiling, over fears of a late harvest and delayed new-crop supplies. Commercial end-season stocks were seen soaring 29% to 1.94m tonnes as of the end of 2012-13, in part thanks to uncertainty over the approaching 2013 harvest, according to Defra.
Powered by Commodity Insights

Thursday 23 May 2013

Economic Buzz: U.S. Manufacturing PMI Falls


The Markit Flash U.S. Manufacturing Purchasing Managers' Index  ( PMI )  fell for the second month running in May, falling to its lowest readingsince last October. At 51.9, down marginally from April's 52.1, the flash PMIindex, which is based on around 85% of usual monthly replies, was consistentwith a moderate improvement in overall manufacturing business conditions.
Commenting on the flash PMI data, Chris Williamson, Chief Economist at Markitsaid: "With the PMI hitting a seven-month low, the U.S. manufacturingeconomy continues to show signs of weakening. Growth has slowed sharply inrecent months, down from an annualized pace of 4.9% in the first quarter to just1% in May. "The goods-producing sector is therefore likely to have providedonly a modest boost to the U.S. economy in the second quarter, providing furtherworrying signs that growth remains lackluster. "Slower growth could belinked to a combination of fiscal drag hurting demand at home while at the sametime many export markets remain in fragile states. The latter led to a reneweddecline in export orders in May. "There was also disappointing news inrelation to job creation. With employment growing at the slowest rate since lastOctober, the survey suggests that the Fed cannot risk tapering its stimulus anytime soon."
Source by Commodity Insights

Wednesday 22 May 2013

Commodities Buzz: Global Soybean Prices Hit Eight Month Highs On Tight US Supplies

Global Soybean and soymeal futures soared to eight-month highs yesterday on worries about the tightness of US supplies, which spurred ideas that imports will set a record by a bigger distance than has been initially thought. Chicago soybeans for July closed at $14.78 ¼ a bushel, a gain of 0.9% - the contracts highest close since late September last year. The benchmark July soymeal contract stood at $438.70 a short ton, up 0.8%, also marking the highest close for the counter since September.

However, the soya oil prices, despite the latest gains, are hovering just under 50 cents per pound level- maintaining a broad downward trajectory after hitting four month highs near 55 cents levels in late January this year.

The dynamic is also being spurred by ideas of strong demand not just from domestic buyers, but foreign consumers - at a time when port workers in Argentina, the top soymeal exporter, are on strike. US export sales of soymeal, at 8.55m tonnes so far in 2012-13, are within 5% of the level the US Department of Agriculture has forecast for the whole season, with more than three months yet to go.

Indeed, the extent of the drawdown in stocks may yet force the US, historically the largest soybean exporter, to import the oilseed in 2012-13 in greater quantities than the 544,000 tonnes the USDA is forecasting.

Oil World, the influential edible oil analysis group, on Tuesday forecast that imports would hit 870,000 tonnes (32m bushels), nearly double the previous record, set last season, and bought partly from Canada and partly from South America.

US importers have already made a series of purchases of South American soybeans, including three cargoes soybeans sold for shipment to the east coast last week, Oil World said.
Source by Commodity Insights

Gold Down As Equities Rally on QE

Gold.......
Gold futures are trading lower as the equities cheered taking the Japanese stocks toward fresh multiyear highs on indication that the Federal Reserve Bank wasn’t close to slowing its asset purchases.
The rally in equity market has recently taken away the shine from gold as investors have taken away their money from gold and other commodities and have invested in the stock market.
U.S. stocks rose on Tuesday, with the Dow industrials and S&P 500 finishing at record highs, after comments from two Federal Reserve officials suggested that the central bank is not close to tapering its bond-buying program. The Dow Jones Industrial Average gained 52.30 points, or 0.3%, to end at 15,387.58, notching its 19th consecutive Tuesday rise. The S&P 500 index climbed 2.87 points, or 0.2%, to 1,669.16,
In Asia, the Nikkei Stock Average, which ended at multiyear highs in each of the last three trading sessions, climbed a further 1.1% to 15,555.82, while the broader Topix added 0.8%.
Gold for June delivery is trading down $2 at $ 1375 an ounce on the Comex division of the New York Mercantile Exchange. It shed $6.50, or 0.5%, to settle at $1,377.60 an ounce, paring losses that had taken prices to a low below $1,360.
On Tuesday, St. Louis Fed President James Bullard said the central bank should continue with its present bond-buying program and adjust the rate of purchases in view of incoming data on growth and inflation. In a separate speech, New York Fed President William Dudley said he’s not sure which way the Fed will adjust the size of its bond-purchase program.
The program has helped support gold as quantitative easing tends to pressure the dollar and can lead to inflation. Gold is often seen as a hedge against inflation.
Fed Chairman Ben Bernanke on Wednesday will testify before the Joint Economic Committee about the central bank’s economic outlook and the FOMC will release minutes from its most recent policy meeting.
MCX June gold futures may open today’s session near Rs 26100 levels with resistance near Rs 26200-300 and support near Rs 25950.
Source by Commodity Insights

Tuesday 21 May 2013

Gold Declines In Europe

Gold.........

Gold futures declined in the European session today as traders booked profits as soon as the metal reached the $1399.9 per ounce in Asia.
Gold traders are now looking ahead to Wednesday’s Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke.
Gold for June delivery is trading down 1 cent at $ 1384 per ounce on Comex division of the New York Mercantile Exchange. Earlier in the session it rallied to as high as $1399.9 an ounce.
European stock markets nudged lower in early trade on Tuesday, taking a breather after climbing to multiyear highs in the prior day's session. Germany's DAX 30 index shaved off 0.3% to 8,429.41, while the U.K.'s FTSE 100 index slipped 0.1% to 6,749.64. France's CAC 40 index fell 0.3% to 4,009.93.
The dollar on Monday also fell against major rivals after Chicago Federal Reserve Bank President Charles Evans said more time is needed to assess progress in the labor market. The Federal Reserve has said improvement in the jobs market will be key factor in deciding when it will begin tapering its purchases of bonds, which are aimed at stimulating economic growth.
Gold prices are still down about 6% this month, hurt in part by dollar strength and outflows from gold-backed exchange-traded funds, including SPDR Gold Trust.
MCX June gold futures fell down slightly after touching the high of Rs 26362 per 10 grams. Last it was seen trading at Rs 26103 up Rs 15. The counter should face a resistance near Rs 26450-500 levels today with support near Rs 25950 levels.
Source by Commodity Insights

Monday 20 May 2013

LME Metals Prices- 20 May 2013

Source by Commodity Insights

Commodities Buzz: Global Gold Exploration Activity Halves In Last One Year


The global fold exploration activity is down in dumps at the same time when prices slump to their two year low and show signs of ending their decade long bull run. Slumping metals prices, and falling equity valuations, reflect serious uncertainty about the world economy. 
The recent quarter ended with the Governor of the Bank of Japan announcing a huge monetary stimulus, Europe bailing out the banking system in Cyprus, disappointing employment figures in the USA and worrying signs of a slowdown in the crucial Chinese economy. This depressing scenario has had a knock-on effect over the minerals exploration sector.

Exploration activity has been trending down since the end of October 2011, and according to the latest 'State of the Market' report from IntierraRMG, there were drilling reports from only 355 prospects in March. Gold exploration has been particularly weak, with activity reported from just 172 prospects in March, compared with 382 in March 2012.
Source by Commodity Insights

Sunday 19 May 2013

Economic Buzz: Bank Of Japan Raises Economic Outlook

The Bank of Japan said in its May report issued Monday that the nation's economy was slowly improving, marking an upgrade from its views in the April update, according to reports. Japanese stocks traded solidly higher Monday, also helped by Friday's gains on Wall Street, with the Nikkei Stock Average up 1.5% in early afternoon action.
Source by Commodity Insights

Saturday 18 May 2013

Economic Buzz: University Of Michigan's Consumer Sentiment Rises

The Thomson Reuters/University of Michigan's preliminary consumer sentiment index of U.S rose to 83.7 in May from 76.4 in April, surging past expectations for a rise to 78.0.Source by Commodity Insights

Friday 17 May 2013

Copper Recovering Well On MCX

Copper.........

Afternoon trades have seen smart recovery in MCX Copper prices on the back of strong sentimental rally in the LME. Copper
three month prices on LME pushed itself to a level of $ 7320 per tonne, compared to close of $ 7125 per tonne a day before.
The downside risks were mitigated by the fact that Federal Reserve officials announced that they will be binding the stimulus measures by the end of this year. This has given hopes that economy of US is recovering and there will be elevation in the demand.
However, China still remains a worry for the metals. China consumes 43 percent of World Copper. The imports have been dwindling down and the rise of surplus is a big worry.
Meanwhile, Indian prices cheered the brief rally in metals and were trading at Rs 405 per kg, up 1.1 percent in the mid afternoon trades. The rally is expected to limit itself near Rs 407 per kg which is the next resistance level for the contract.
Source by Commodity Insights

Thursday 16 May 2013

Economic Buzz: Euro Zone Core CPI Eases In April

Eurostat said that euro zone core CPI, which excludes food, energy, alcohol, and tobacco costs slowed to 1% in April, in line with expectations and down from a preliminary estimate of 1.5%.
Source by Commodity Insights

Gold Tumbles Below $1400

Gold.......
Gold futures extended last days fall, tumbling below $1400 an ounce in the Asia electronic session today as the shining equities and rising US dollar waned the demand for yellow metal.
Gold for June delivery is trading down $3 at $ 1393 an ounce on the Comex division of the New York Mercantile Exchange. It fell $28.30, or 2%, to settle at $1,396.20 an ounce yesterday. Including Wednesday’s loss, prices have fallen for five straight sessions and lost more than 5% during that losing streak. The metal has fallen nearly 17% year to date.
July silver futures sank 72 cents for the session, or 3.1%, to end at $22.66 an ounce yesterday.
The decline in gold prices came as the U.S. dollar climbed against its major rivals, with the ICE dollar index at 83.848, compared with late Tuesday’s 83.575 level.
The euro dropped to a six-week low against the dollar on a closing basis Wednesday after data showed the French economy slid into a recession, with its gross domestic product slipping 0.2% in the first quarter from the three month period ended Dec. 31.
Figures released separately also showed Germany’s economy rose 0.1% during the first quarter, undershooting expectations for a 0.3% improvement.
The dollar has been shedding its haven status, rising with expectations of better U.S. economic growth and an expected end to the Federal Reserve’s quantitative easing. Those gains, combined with a broad, record-breaking rally in stocks, have curbed demand for gold as a hedge against dollar weakness and poor economic times.
MCX June gold futures may open today’s session near Rs 26300 with support around Rs 26200-100 levels.
Source by Commodity Insights


Wednesday 15 May 2013

LME Inventories Data- 15 May 2013

Source  by Commodity Insights

Commodities Buzz: CHALCO Plans To Sell Aluminium Processing Assets


Aluminum..................
Aluminum Corporation of China Limited (Chalco), the country's biggest aluminum producer by output, announced plans recently to sell its aluminum processing assets, a development which underlines the industry's vexing overcapacity problems.
Chalco intends to transfer stakes in eight subsidiaries valued at 2.09 billion yuan ($340.3 million) through the Beijing Equity Exchange, according to a filing the aluminum producer submitted to the Shanghai Stock Exchange Friday.
Friday also saw Chalco issue notices saying that it will sell off complete ownership rights in its northwest aluminum processing branch as well as the alumina production lines at its Guizhou branch to Chinalco, assets which were evaluated at 1.66 billion yuan and 4.43 billion yuan respectively at the end of last year.
Chalco wrote down a record loss of 8.23 billion yuan, a portion of which was attributed to several of the holdings it slated for sale last week. Chalco's tepid performance has carried up to the first quarter, when the company added another 975 million yuan in losses to its accounts.
Source by Commodity Insights

Hot Commodities: Gold Tumbles Towards $1400, Strong Dollar Hurts

Gold.....
Gold slumped towards $1400 per ounce yet again in global markets, cutting back on the recent gains and witnessing heavy selling pressure as gains in the US dollar hurt the sentiments. MCX Gold futures also witnessed a similar movement, extending its recent break under Rs 27000 per 10 grams level. The COMEX Gold futures quote at $1427.40, down $6.80 per ounce on the day. The counter had hit a high above $1440 per ounce earlier.

The euro slipped under 1.2900 against the US dollar today, extending the recent downward spell after quarterly economic reports from France and Germany missed expectations. With France now in recession and Germany posting weak growth in the first quarter, the dollar continued to benefit from relatively attractive growth prospects in the U.S.

French first-quarter GDP contracted by 0.2% compared with the fourth quarter of 2012, the third contraction in the last four quarters, according to the preliminary report from France's Insee agency. The German GDP edged up by 0.1% in the first quarter of 2013- managing to record nominal growth after stumbling in the previous quarter. In the last quarter of 2012, the German economy had suffered a major setback of -0.7%.

The US Federal Reserve should slow and then halt bond purchases when it's time to exit from the central bank's quantitative easing efforts, Philadelphia Fed President Charles Plosser stated yesterday. The Fed is buying $85 billion per month of Treasury and mortgage-backed securities- ensuring that the US dollar edges higher.

This has boosted the US dollar across the board and the persistently weak undertone in Japanese Yen has assisted the US dollar index to jump to its strongest level since July last year. Commodities are falling as a reason and Gold is getting hammered the most given the fragile sentiments after nerve wrecking collapse towards $1300 per ounce levels last month. MCX Gold futures for June tracked the global cues and tested lows near Rs 26400 per 10 grams. The counter has lost nearly Rs 300 today with a 4.75% increase in open interest indicating emergence of fresh shorts.

Source by Commodity Insights

Tuesday 14 May 2013

MCX Gold Slips Well Under Rs 27000

Gold.....

witnessed a bearish movement in the second session of the week. The counter slipped well under Rs 27000 per 10 grams today, unable to hold onto an intraday rally as global prices yet again neared their two week low amid a burst in dollar strength and a general weakness in commodity prices. The COMEX Gold futures quote at $1427.40, down $6.80 per ounce on the day. The counter had hit a high above $1440 per ounce earlier.

The Gold prices had witnessed a similar movement in the last session. US data out yesterday showed that the sales at US retailers edged up in April, helping ease concerns about consumer spending in the world's largest economy. The retail sales went up by 0.1% followed a 0.5% drop in March. Retail purchases climbed by the most in four months minus receipts from service stations, where cheaper gasoline prices dampened the dollar value of sales.

The US Federal Reserve should slow and then halt bond purchases when it's time to exit from the central bank's quantitative easing efforts, Philadelphia Fed President Charles Plosser stated today. The Fed is buying $85 billion per month of Treasury and mortgage-backed securities- ensuring that the US dollar edges higher. The German investor confidence index calculated by the ZEW economic institute edged up slightly by 0.1 point to 36.4 points in May after falling sharply last month.

Though this was a modest uptick, investors remained worried about the investment climate in the largest economy in the Eurozone. The reading comes after the index slumped to 36.3 in April, triggering worries about Germany's economic performance and the country's ability to pull the rest of Europe of sluggish growth.

In Europe today, euro-zone finance ministers are gathering in Brussels today to discuss the economic situation in the region. They are reviewing bailout programs in Cyprus and Spain, and may sign off on aid payments to Greece. This is also keeping investors nervous, leading to a general sell off in risky assets. MCX Gold futures for June had slipped under Rs 27 k yesterday and broke under another key support of Rs 26800 per 10 grams today. The counter quotes at Rs 26736, down Rs 118 per 10 grams or 0.44% on the day with a marginal increase in open interest.

Source by Commodity Insights

Economic Buzz: Euro Zone Annual Industrial Production Dips 1.70%

Year-on-year, industrial production in the Euro Zone fell at an annualized rate of 1.7% in March, after dropping at a rate of 3.2% in the preceding month. Analysts had expected industrial production to decline at an annualized rate of 2%.
Source by Commodity Insights

Monday 13 May 2013

Gold Edges Up As Dollar Dips

Gold.......

Gold futures edged higher in the Asia electronic session today as the US dollar dipped after three sessions of gains. The metal declined yesterday on strength in the US dollar and worries that the U.S. Federal Reserve will ease back on its easy monetary policy.
Gold for June delivery is trading up $6 at $ 1440 an ounce on the Comex division of the New York Mercantile Exchange. It fell $2.30, or 0.2%, to settle at $1,434.30 an ounce yesterday. The metal have tallied a loss of 2.7% in three sessions.
Investors considered the possible curtailing of monetary-policy stimulus by the Fed. The Fed has reportedly mapped out a plan for winding down its program of buying $85 billion in bonds each month.
The U.S. dollar pulled lower Tuesday, edging back from gains against Japan’s yen, and softening against the euro ahead of the release of economic reports from Europe.
The ICE dollar index, which measures the U.S. dollar’s moves against six other major currencies, fell to 83.015 from late Monday’s level at 83.276. The U.S. dollar bought 101.51 yen, down from ¥101.81 late Monday in North America.
Still, the yen waded at nearly five-year lows against the greenback, which pierced above the ¥100 mark last week, extending its gains on the back of the Bank of Japan’s major monetary stimulus program launched in April.
Investors later Tuesday will look for a report on euro-zone industrial production in March, as well as Germany’s gauge of investor confidence — the ZEW — for May. The German index, which measures investors’ expectations for the upcoming six months, may offer upbeat news amid a generally dim growth picture for the euro zone as a whole.
MCX June bullion futures may open higher near Rs 26900 with resistance near Rs 27050 levels and support near Rs 26800 levels.
Source by Commodity Insights

LME Metals Prices- 13 May 2013

Source by Commodity Insights

Sunday 12 May 2013

Oil Down As Dollar Gains Ground

Oil.....

Crude oil futures tumbled below $ 96 a barrel in the Asia electronic session today as the US dollar gained ground ahead of the release of monthly U.S. retail-sales data.
Crude oil for June delivery declined 72 cents, or 0.8%, to $95.32 a barrel during Asian hours on the New York Mercantile Exchange. The contract on Friday fell 35 cents, or 0.4%, as the U.S. dollar rose, though oil recovered from levels below $94 a barrel to end back above $96.
The dollar was extending gains against major rivals Monday, with Japan’s currency falling below the 102-yen level and the Australian dollar trading below parity. The ICE dollar index , which measures the U.S. dollar’s moves against six other major currencies, rose to 83.268, up from 83.132 late Friday in North America.
The moves came as the U.S. Federal Reserve had reportedly sketched out a plan for winding down its stimulus program of buying $85 billion in bonds each month.
Oil prices and the dollar may react later Monday to the U.S. Commerce Department’s report on retail sales for April, as the report could give signs about the outlook for oil demand.
On Friday, the Organization of the Petroleum Exporting Countries said demand grew less than expected in the first quarter of 2013, but it left its overall forecast unchanged at a rise of 800,000 barrels a day. OPEC, in a monthly report ahead of its May 31 summit, still expects consumption will increase in the second half of this year.
MCX May crude may open today’s session near Rs 5200 levels with support around Rs 5170-40 levels and a resistance near Rs 5240 levels.
In the week ahead, oil traders will be focusing on a flurry of U.S. economic reports, including data on retail sales, building permits, jobless claims as well as a closely watched report on consumer sentiment.
Investors will also be awaiting preliminary data from the euro zone and Japan on first quarter economic growth, as well as Chinese industrial production figures.
Powered by Commodity Insights

Copper and Copper Product Imports Of China Decline To June 2011 Levels

Copper.....
The Copper and Copper product imports in China declined to multi month low levels as per the data from China General Administration of Customs. The report showed that the Copper imports were 295799 tonnes in April 2013, down 7.4 percent from last month levels of 319603 tonnes. This is the lowest level seen in Copper imports since June 2011. The decline was more denting on a yearly basis by 21 percent from 375258 tonnes in April 2012
Source by Commodity Insights

Friday 10 May 2013

MCX Weekly Review: COMDEX Up Nearly 3%

MCX Comdex was up by 2.88% to 3566.25 for the week till Thursday. MCX Metal was up by 2.96% to 4509.58 and MCX Energy was up by 3.62% to 3665.76.

Bullion:
Gold June 13 contract was up by 0.94% to Rs 27166.00 per 10 grams, Gold mini June 13 contract was up by 0.93% to Rs 27169.00 per 10 grams, Gold guinea July 13 contract was up by 0.97% to Rs 21936.00 per 8 grams, Gold Petal July 13 contract was up by 0.92% to Rs 2742.00 per gram and Gold Petal Delhi July 13 contract was up by 2.43% to Rs 2779.00 per gram. Silver July 13 contract was up by 1.19% to Rs 45165.00 per kg, Silver mini June 13 contract was up by 1.15% to Rs 45182.00 per kg, Silver MIC June 13 contract was up by 2.84% to Rs 45545.00 per kg and Silver 1000 June 13 contract was up by 2.84% to Rs 45545.00 per kg.

Metals
Steel RPR July 13 contract was up by 0.29% to Rs 28060.00 per MT, Aluminium May 13 contract was up by 5.04% to Rs 102.20 per kg, Alumini May 13 contract was up 5.04% to Rs 102.20 per kg, Lead July 13 contract was up by 4.96% to Rs 111.20 per kg, lead mini May 13 contract was up by 4.58% to Rs 109.60 per kg, Zinc July 13 contract was up by 3.35% to Rs 103.25 per kg, Zinc mini May 13 contract was up by 3.27% to Rs 101.10 per kg, Nickel May 13 contract was up by 5.08% to Rs 835.30 per kg, Nickel mini May 13 contract was up by 5.04% to Rs 835.10 per kg, Copper June 13 contract was up by 8.18% to Rs 402.60 per kg and Copper mini June 13 contract was up by 8.20% to Rs 402.60 per kg. 

Energy
Brent crude oil June 13 contract was up by 2.98% to Rs 5671.00 per barrel, Crude oil May 13 contract was up by 4.19% to Rs 5227.00 per barrel while Natural gas July 13 contract was down by 0.76% to Rs 222.10 per MMBTU.
Source by Commodity Insights

Thursday 9 May 2013

Economic Buzz: RBA Lowers Inflation Outlook Amid Growth Worries

The Reserve Bank of Australia (RBA) has lowered its inflation outlook and reiterated its forecast for below trend growth this year, reflecting an elevated currency, a crest in resource investment and fiscal tightening. The outlook for non-mining business investment remains relatively weak over the next few months, the RBA said in its quarterly monetary policy statement today.

The approaching peak in resource investment, the high level of the Australian dollar and ongoing fiscal consolidation are all likely to weigh on growth over the next year or so. The approaching peak in resource investment, the high level of the Australian dollar and ongoing fiscal consolidation are all likely to weigh on growth over the next year or so. Consumer prices will rise 2% in the year to December 2013, compared with as much as 3 per cent forecast three months earlier, the central bank said. The RBA predicted 2013 growth of about 2.5%.

The bank cut the overnight cash-rate target to a record-low 2.75% this week as a benign inflation outlook gives him scope to boost industries including construction to rebalance growth away from resource investment. The RBA said there are signs the shift is occurring, while warning low rates threaten to ignite housing prices.

Source by Commodity Insights

Gold Extends Losses As Dollar Sharpens

Gold......
extended losses below $1460 an ounce in the Asia electronic session today as the US dollar sharpened above 100 yen level for the first time in four years.
Yesterday, the U.S. dollar rose above the 100 Japanese-yen-level on as recent stronger data points have eased investors’ fears about U.S. economic growth.
The dollar bought ¥101.16, up from late Thursday’s level of ¥100.48. The dollar managed to bounce above the ¥100 threshold after Thursday’s release of weekly U.S. jobless data, which came in better than anticipated.
Gold for June delivery is trading down $8.8 at $ 1459.8 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it fell $5.10, or 0.4%, to settle at $1,468.60 an ounce. Gold on Wednesday climbed $24.90, or 1.7%, to $1,473.70.
The dollar’s climb toward the ¥100 mark had accelerated after Japan’s central bank in early April unveiled a massive stimulus program, but greenback kept running into resistance in its tests of the triple-digit mark until Thursday.
The Aussie was little changed Friday after the Reserve Bank of Australia cut its 2013 inflation forecast, seeing the level at about 2.25% compared with its previous view of 2.5%. In a statement about monetary policy, the RBA also said it expects economic growth to be a little below trend over the rest of this year, before picking up pace through 2014. Earlier this week, the RBA cut its key interest rate by a quarter-percentage point to a record low 2.75%.
The euro traded at $1.3040, little changed from $1.3038 late Thursday. The British pound was also flat against the greenback Friday from late Thursday’s level of $1.5442.
MCX June bullion may open today’s session near Rs 27050 levels with support near Rs 27000 and Rs 26900 levels and resistance near Rs 27110 levels.
Powered by Commodity Insights

Wednesday 8 May 2013

Economic Buzz: China's Consumer Inflation Jumps 2.4%

China's consumer price index rose slightly more than expected in April, while wholesale prices extended their fall. The April CPI showed a gain of 2.4% from a year earlier, led by a 4% rise in food prices, the National Bureau of Statistics said Thursday. The gain was more than March's 2.1%, though below February's spike of 3.2%. The producer price index, meanwhile, fell by the most since October, dropping 2.6% against a decline of 1.9% in March. Chinese shares lost ground after the numbers, which would tend to reduce the odds of Beijing maintaining a loose monetary policy.
Source y Commodity Insights

Economic Buzz: Japan's Leading Index Down In March


Cabinet Office said that Japan's index of leading economic indicators dipped to a seasonally adjusted 97.6 in March, from 97.7 in the preceding month whose figure was revised up from 97.5. Analysts had expected Japan's index of leading economic indicators to rise 97.7 last month.
Source by Commodity Insights

Tuesday 7 May 2013

Economic Buzz: China Trade Balance Rises In April



National Bureau of Statistics of China said that Chinese Trade Balance rose to $18.16B, from -$0.88B in the preceding month. Analysts had expected Chinese Trade Balance to rise to $15.05B last month.
Source by Commodity Insights

Commodities Buzz: Crude Supply Up Less Than Expected- API Data

Oil........


rose much less than the analysts expected for the week ended May 3, according to data from the American Petroleum Institute issued late Tuesday. Crude supplies rose 680,000 barrels, while a Platts survey of analysts showed a forecast for a 1.9 million-barrel climb. Gasoline inventories fell 186,000 barrels and distillate stockpiles rose by 1.1 million barrels. Analysts were looking for a decline of 750,000 barrels in gasoline inventories and a rise of 1 million barrels for distillate supplies. The API data come ahead of the more closely watched U.S. Energy Information Administration report due Wednesday.
Source by Commodity Insights

Monday 6 May 2013

Commodities Buzz: Baoshan Iron And Steel Completes Output Of 80 Percent Of Share Buyback Program

Baoshan Iron and Steel Co (Baosteel), China's largest listed steel maker by output, has completed nearly 80 percent of the 5-billion yuan ($811 million) share buyback program it initiated in September 2012, the company announced Monday in its latest update on the matter.
As of May 2, Baosteel had spent 3.85 billion yuan repurchasing 807 million of its own shares at prices ranging from 4.51 yuan to 5 yuan each, according to a filing the steel maker made to the Shanghai Stock Exchange Monday.
Source by Commodity Insights

Economic Buzz: Australia's Trade Balance Rises In March


Australian Bureau of Statistics said that Australia's trade balance rose to a seasonally adjusted 0.31B in March 2013, from -0.11B in the preceding month whose figure was revised up from -0.18B. Analysts had expected Australia's trade balance to rise to 0.20B last month.

Source by Commodity Insights

Shanghai Copper Futures Jump By 2200 Yuan On Monday

Copper....

The pickup of prices in LME last week and the cut in benchmark interest rates by ECB is continuing to charge Copper in Shanghai futures exchange. The most active contract for July delivery in Shanghai was at 52970 yuan per tonne, up 2200 yuan per tonne. The markets activity seems to be ignoring the sentiments on LME that is rather cautious ahead of Chinese import figures. LME three month Copper settled trading at $ 7150 per tonne on 3 May, up 0.5 percent in the week.
Source by Commodity Insights

Sunday 5 May 2013

Economic Buzz: HSBC China Services Index Dips In April

The HSBC China Services Business Activity Index recording 51.1 in April, down from 54.3 in March, the services survey headline index signaled the weakest expansion of service sector activity since August 2011.

Commenting on the China Services and Composite PM data, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said: “The cooling of service sector activity in April likely reflected the knock-on effect of slower manufacturing growth, the impact of property tightening measures and the spreading bird flu. Again, this started to bite employment growth. All these are likely to add some risk to China's growth in 2Q, as there's still a bumpy road towards sustaining growth recovery.”

Source by Commodity Insights

Economic Buzz: Australian Retail Sales Fall In Marc

The Australian Bureau of Statistics said that Australian retail sales fell to a seasonally adjusted -0.4% in March, from 1.3% in the preceding month. Analysts had expected Australian retail sales to rise 0.2% last month.

Source by Commodity Insights

Saturday 4 May 2013

Economic Buzz: U.S ISM Non-Manufacturing PMI Registers Slight Increase In April

Economic activity in the non-manufacturing sector grew in April for the 40th consecutive month, said the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report on Business. The NMI registered 53.1 percent in April, 1.3 percentage points lower than the 54.4 percent registered in March. This indicates continued growth at a slightly slower rate in the non-manufacturing sector.
Source by Commodity Insights

Friday 3 May 2013

MCX Weekly Review: COMDEX Slips More Than 2%

MCX Comdex was down by 2.03% to 3466.27 for the week till Thursday. MCX Metal was down by 2.79% to 4379.78 and MCX Energy was down by 1.12% to 3537.60.

Bullion: 

Gold June 13 contract was down by 0.47% to Rs 26914 per 10 grams, Gold M July 13 contract was down by 0.66% to Rs 27042 per 10 grams, Goldguinea May 13 contract was down by 0.73% to Rs 21533 per 8 grams, gold Petal May 13 contract was down by 0.70% to Rs 2691 per gram and Gold Petal Del May 13 contract was down by 0.44% to Rs 2720 per gram. Silver July 13 contract was down by 2.51% to Rs 44633 per kg, Silver M June 13 contract was down by 2.51% to Rs 44668 per kg, Silver MIC June 13 contract was down by 2.50% to Rs 44675 per kg and silver1000 June 13 contract was down by 1.27% to Rs 44288 per kg.

Metals: 
Steel RPR May 13 contract was up by 0.79% to Rs 27910.00 per MT while Aluminum May 13 contract was down by 7.42% to Rs 97.30 per kg, Alumini May 13 contract was down 7.47% to Rs 97.30 per kg, lead May 13 contract was down by 6.97% to Rs 104.80 per kg, Lead Mini May 13 contract was down by 6.93% to Rs 104.80 per kg, zinc May 13 contract was down by 6.36% to Rs 97.90 per kg, zinc mini May 13 contract was down by 6.36% to Rs 97.90 per kg, nickel July 13 contract was down by 5.97% to Rs 810.80 per kg, Nickel M July 13 contract was down by 5.69% to Rs 810.40 per kg, Copper June 13 contract was down by 5.32% to Rs 372.15 per kg, Copper M June 13 contract was down by 5.33% to Rs 372.10 per kg.

Energy: 

Natural gas July 13 contract was down by 5.61% to Rs 223.80 per MMBTU, Brent crude oil May 13 contract was down by 1.91% to Rs 5490.00 per barrel and Crude oil June 13 contract was down by 0.94% to Rs 5046.00 per barrel.

Agri Commodities: 
Cardamom June 13 contract was up by 1.95% to Rs 792.80 per kg, Cotton July 13 contract was up by 0.88% to Rs 18340.00 per bale while Potato July 13 contract was down by 6.70% to Rs 951.20 per 100 kgs, Menthaoil May 13 contract was down by 3.83% to Rs 919.10 per kg, CPO May 13 contract was down by 1.13% to Rs 454.70 per 10 kgs, Kapaskhali May 13 contract was down by 0.35% to Rs 1419.50 per 100 kgs.
Source by Commodity Insights


Thursday 2 May 2013

USDA Estimates Recovery in U.S. Weekly Wheat Exports During April 18-25, 2013

As per the latest weekly release by the United States Department of Agriculture ( USDA ) , the weekly U.S. wheat net sales during April 18-25, 2013 were reported at 219,200 MT ( metric tonnes ) for delivery in the 2012/2013 marketing year were up noticeably from the previous week, but down 14 percent from the prior 4-week average.
Increases reported for Spain (70,000 MT, including 65,000 MT switched from unknown destinations), Egypt (64,700 MT, including 60,000 MT switched from unknown destinations), Sudan (58,800 MT, including 55,000 MT switched from unknown destinations), Nigeria (46,100 MT, including 14,000 MT switched from unknown destinations), Japan (45,300 MT), and Italy (41,400 MT), were partially offset by decreases for unknown destinations (225,700 MT), Trinidad (13,900 MT), and Honduras (2,000 MT).
Net sales of 497,300 MT for delivery in the 2013/2014 marketing year were primarily for Guatemala (184,000 MT), unknown destinations (100,800 MT), Thailand (55,000 MT), and Mexico (53,000 MT). Exports of 845,200 MT--a marketing-year high--were up 56 percent from the previous and 34 percent from the prior 4-week average.
Source by Commodity Insights

Maize To Extend Correction Though Bargain Hunting Could Emerge Soon

NCDEX Maize futures could ease further today though some bargain hunting can emerge in the counter given the recent correction. Maize futures witnessed some selling in last session. The commodity has mostly been pressed lower on good supplies in the current week. Market has been stressed on worries about bird flu in China and higher US stockpiles. The local arrivals are improving but the production is lower in India this time around. This could support prices once the peak procurement period starts in late May-June. NCDEX June futures closed at Rs 1169 per quintal today, down Rs 7 per quintal or 0.60 % with a 2.30% increase open interest.

Rabi Maize output is likely to be 15.59 Million Tonnes, down 5.50% over the year. Total Maize output is likely to be 21.06 Million Tonnes, down 3.22%, indicating a shortfall for the commodity on the whole. However, Maize supplies are rising and would keep a tab on prices in near term. The spot prices of the commodity slipped last week towards Rs 1400 per quintal during last week in Delhi.

The spot prices of industrial grade Maize in Delhi have been pushed lower on continued increase in the fresh arrivals of the commodity from Bihar. The increase in arrivals of other grains like Wheat and Barley could also underpin bearish mood in market. Prices are currently at their lowest level in two and a half months.
Source by Commodity Insights

Expecting ECB Rate Cuts Metals Jump To Profits

Copper........
Expecting a slash of interest rates by European Central Bank (ECB) metals are recovering some lost ground. The prices were at multi month lows until yesterday but expected cut of 25 basis points in interest rates by ECB is bringing some hope. Copper tested a 18 month lows on Wednesday and was last seen trading at $ 6911 per tonne, recovering from lows of $ 6897 per tonne.
Yesterday, International Copper Study Group (ICSG) has reported that the world copper markets were in surplus of 70000 tonnes in January 2013. World mine production of copper in January was 1467000 tonnes, up almost 14 percent compared to 1290000 tonnes in January 2012. Mine capacity utilization rates were 82.3 percent in the month of January compared to 75.4 percent in the previous year.
World refined copper production increased by 1.6 percent to 1708000 tonnes compared to 1681000 tonnes in January 2012. Meanwhile, refined copper usage in World markets declined by 6 percent to 1641000 tonnes in January 2013. The major decline in copper usage was noted in China where consumption fell by 6.8 percent. Chinese apparent net imports were down by 35 percent.
In other metals, Aluminium was trading at $ 1835.5 per tonne, up from $ 1828 per tonne. MCX Aluminium futures for May expiry were trading at Rs 97.9 per kg, up 0.72 percent. The prices tested a high of Rs 98.5 and a low of Rs 97.8 per kg so far in the day. Aluminium is at 31 month low on MCX.
Alcoa announced that it will review 460000 metric tons of smelting capacity over the next 15 months for possible curtailment to maintain the Company's competitiveness, as aluminum prices have fallen more than 33 percent since their peak in 2011. Currently, the company has 13 percent, or 568,000 metric tons of smelting capacity idle.
Nickel prices dipped to a 35 month lows on Thursday and tested a low of Rs 789.8 per kg on MCX platform. The worrying factor is that even after such carnage in Nickel the prices are not in a oversold position. On intraday charts, the sell off can move the metal towards Rs 736 per kg.
Source by Commodity Insights

LME Inventories Data- 2 May 2013

Source by Commodity Insights

Commodities Buzz: ALCOA To Review Smelting Capacity Over Next 15 Months

Alcoa announced that it will review 460000 metric tons of smelting capacity over the next 15 months for possible curtailment to maintain the Company's competitiveness, as aluminum prices have fallen more than 33 percent since their peak in 2011.
The review will include facilities across the Alcoa system and will focus on higher-cost plants and plants that have long-term risk due to factors such as energy costs or regulatory uncertainty. The possible curtailments could affect 11 percent of Alcoa's global smelting capacity. Currently, the Company has 13 percent, or 568,000 metric tons of smelting capacity idle.
“Because of persistent weakness in global aluminum prices, we need to review every option to maintain Alcoa's competitiveness,” said Chris Ayers, President of Alcoa's Global Primary Products. “Any action taken will only be done after a thorough strategic review and consultations with stakeholders.”
When reviewing smelting capacity for possible curtailment, Alcoa will consider a wide variety of alternative actions, ranging from discontinuing pot relining to full plant curtailments and/or permanent shutdowns. Alcoa's alumina refining system will also be reviewed to reflect any curtailments in smelting as well as prevailing market conditions.
Alcoa's review of its primary metals operations is consistent with the Company's 2015 goal of lowering its position on the world aluminum production cost curve by 10 percentage points and the alumina cost curve by 7 percentage points. Decisions on curtailments and/or closures will be announced as reviews are completed.
Source by Commodity Insights

Commodities Buzz: World Copper Surplus At 70000 Tonnes In January 2013- ICSG

Copper......
International Copper Study Group (ICSG) has reported that the world copper markets were in surplus of 70000 tonnes in January 2013. After making seasonal adjustments the Copper markets was in production surplus of 25000 tonnes. Copper was in deficit of 60000 tonnes in the corresponding period previous year. The agency has cited that the increase in surplus has been due to reduction of apparent copper consumption in major regions.
World mine production of copper in January was 1467000 tonnes, up almost 14 percent compared to 1290000 tonnes in January 2012. Mine capacity utilization rates were 82.3 percent in the month of January compared to 75.4 percent in the previous year. Major mine production increases were noted in Chile by 10 percent and in US by 17 percent. Peru which is another major mine producer saw a decline of 4 percent in the mine production.
World refined copper production increased by 1.6 percent to 1708000 tonnes compared to 1681000 tonnes in January 2012. Primary copper production was up by 1.3 percent to 1420000 tonnes in January 2013 compared to 1402000 tonnes last year. Chile which is the second largest producer of refined copper was down by 17.5 percent. China copper production increased by 7 percent in January while a rise of 8.5 percent and 22 percent was noted in Japan and Africa respectively.
Meanwhile, refined copper usage in World markets declined by 6 percent to 1641000 tonnes in January 2013. The major decline in copper usage was noted in China where consumption fell by 6.8 percent. Chinese apparent net imports were down by 35 percent. Excluding China world apparent usage of copper declined by 5 percent. On a regional basis, usage is estimated to have declined by 10% in Africa, by 3% in the Americas, by 6.5% in Asia and by 6% in Europe, while apparent usage is estimated to have increased in Oceania by 20%.
Source by Commodity Insights