Commodity Online
Globally equity markets are on an upswing thanks to economic recovery hopes strengthening. The S&P 500 and the Nasdaq hit 10-month intraday highs, while the Dow industrials rose to their highest level in nine months. The S&P 500 is now up 51.7 percent from its 12-year closing low set on March 9. India’s BSE sensex is expected to reach 17000 levels by December.
The commodity exchanges in the country clocked a total turnover Rs 21,23,637 crore in the first four months of the current fiscal, a rise of 28.35 per cent over the same period last year. According to the fortnightly data released by commodity market regulator Forward Markets Commission (FMC), the total value of trading between April and July last year was about Rs 16,54,443 crore.

India will import more pulses, edible oil as the nation heads for a drought this season. Finance Minister Pranab Mukherjee said that which ever commodity is in short supply would be imported.

India Government hashiked the minimum support price, or floor price, for paddy by Rs 100/qtl and pulses by up to Rs 240 a quintal. The hike in support for paddy for the current marketing year (2009-10)—up by 11.76% to Rs 950/qtl and Rs 980/qtl for Common and Grade A varieties—was in line with the recommendations of the Commission for Agricultural Costs and Prices (CACP) which has spread positive sentiments in the market.

After falling for three weeks in a row, the inflation rate rose to -1.53 per cent for the week ended August 8, primarily due to dearer primary articles, especially food items.The inflation rate for the previous week ended August 1 was -1.74 per cent and stood at 12.82 per cent during the corresponding period in 2008.
Explore Commodity Online Mobile Services

Precious Metals
The Bullion pack traded higher for the past week with Spot Gold trading close to $958 levels. Silver prices also moved in tandem with gold prices trading higher. The sharp fall in the Dollar Index (DX) - (the USD pegged against 6 major currencies) supported the rally in the bullion pack as assets traded in USD dollar terms appreciate in value terms when the Dollar weakens. A further sustained fall in the USD would lead to a sharp rally in the bullion pack. Investment/Fabrication demand shall continue to play a crucial role in coming weeks. Crude prices too moved up substantially, almost trading around $73 levels, raising inflationary concerns and thus, further supportive for the bullion pack. Spot Gold shall meet with resistance around $970 - $975 zone whereas crucial support is seen around $900 - $910 zone. Domestic gold prices closed above the Rs.15000 mark last week. For this week, we expect prices to trade higher with resistance seen at 15120/15235 whereas support is seen at 14855/14695.

Base Metals
Base metals traded sharply higher last week & particularly on Friday as improving US Home Sales figures & constructive comments by Fed Chairman Bernanke cheered investors, and shorts were forced to cover ahead of the weekend. Copper jumped above $6,200 per tonne, up by almost four percent, although gains elsewhere were tempered, with other metals closing higher between one and two. Overall, it was a week of high volatility and low liquidity. The continued weakness in the US Dollar fuelled a rash of fund buying, while broader markets were upbeat about the economic outlook in Europe as well as the US, overcoming for now jitters over the strength or pace of revival. A sharp fall in weekly crude inventory data this week also raised hopes that demand is in the process of recovery. As August continues and physical trade stays low, investment demand, patchy and erratic in nature, will remain key for direction, and metals will continue to be buffeted by the fears and favours of investors. Next week, a quiet Monday will be followed by a bag of data including durable orders, consumer confidence, new home sales and preliminary GDP out of the US. Copper, the leader of the base metals pack, shall have crucial support around 293/279 levels whereas resistance is seen around 312/317 levels for this week.

Crude Oil
Crude Oil prices made smart gains last week with NYMEX futures advancing to its highest level this year tracking equity markets and on expectations of global recession easing. Euro strengthening against dollar investors seemed to e moing to equities , commodities and credit markets.

Nymex crude oil for October delivery gained 2.15 %, to $74.48 a barrel, the highest intraday price for a contract nearest to expiration since October 21. Nymex September futures expired on Thursday at $72.54. The switchover to October crude as the front month contract helped put oil prices near their previous highest level of the year.

Some predict a steady trend for crude oil in the coming week while still others expect US economic The U.S. Energy Department reported on Aug. 19 that crude inventories last week fell 8.4 million barrels to 343.6 million barrels, contrary to analyst expectations for a rise of 1.2 million barrels.

OPEC members will ship the same amount of oil in the four weeks to September 5 as they did in the previous month. Crude oil has gained 62 percent this year but it will need to sustain above $73 resistance levels if it is to move higher or else a slip to below $60 can’t be ruled out in the near term.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook