Commodity Tips

There is a decline in international cotton prices due to overstocking and lower global mill demand during the last Cotton Season. Domestic cotton prices have followed the global price decline trend, but less steeply, so that the differential between international and domestic prices has narrowed considerably and at times become negative, Shri Anand Sharma, Minister of Textiles.

India's cotton exports for 2011-12 Cotton Season reached 129 lac bales which is the highest ever export performance. For Cotton Season 2012-13, the Cotton Advisory Board has estimated a production of 334 lakh bales and an exportable surplus of 70 lac bales. Export registrations of 4.5 lac bales have been reported till November 5, 2012. Cotton Trade follows well established trade routes. There is no ban on cotton exports category for Cotton Season 2012-13. Cotton exports are currently on Open General License subject to a prescribed procedure of registration.

Commodity Tips

The MCX Silver futures broke above Rs 61000 per kg levels today as a good amount of fresh buying helped the metal amid mostly positive movement in global risky assets. The US dollar slipped as US Congressional leaders met with President Barack Obama on Friday and said they would work to find common ground on taxes and spending. This boosted hopes that the world's largest economy would be successfully able to combat with the looming "fiscal cliff". Gains in other industrial commodities like Copper and Crude oil also boosted the metal. COMEX Silver futures are trading at $32.60, up 2.3 cents or 0.73% on the day.

Silver futures extended a downward run from its highs near $35 per ounce achieved in the first week of October 2012. LME Copper tested its two-month lows and kept Silver in tight ranges. Silver is linked directly to industrial activity and safe haven demand and a drop in copper is normally supposed to have a negative influence on the white metal. The commodity tested its two-month lows near $30 per ounce and closed at $32.37, up nearly 5% on the fortnight. The prices have been locked in a broad range of $30-35 per ounce over last few days and a break on the either side is needed for further direction.

Precious metals consultancy GFMS estimates that industrial demand for silver fell 6% in 2012, driven by weak economic growth in developed countries. Manufacturers continued to find ways to substitute cheaper raw materials in place of silver. Meanwhile, consumers have cut purchases of silverware and shifted away from costly precious metals in their jewelry purchases. The trend was partially offset by rising sales in emerging markets, particularly China, GFMS said. While the industrial demand dropped, silver mine supply rose for the 10th consecutive year in 2012, and is expected to total 797.0 million ounces, up 4.3% from 763.8 million ounces in 2011, according to the consultancy.

The white metal had neared $32.30 per ounce levels earlier in the session but edged up quite impressively thereafter, adding one full dollar during the day. The Asian equities added good gains following a near 1.5% surge in Japanese stocks while the European stocks are also up by nearly 1%. MCX Silver futures are trading at Rs 61038, up Rs 168 or 0.26% on the day. The open interest in the counter is up nearly 4% - indicating fresh buying.

Commodity Gold Tips

Gold futures zoomed on speculation that Barrack Obama will win the election and also on speculation that US will extend stimulus measures to boost the economy.
The metal climbed 1.8% yesterday, the most since September 13, on speculation the Federal Reserve will add to measures to spur growth whether President Barack Obama or Republican challenger Mitt Romney wins. The Fed said on October 24 it will maintain $US 40 billion in monthly purchases of mortgage debt and probably hold interest rates near zero until mid-2015.
Traders say one of the most pressing issues facing the U.S. is the looming "fiscal cliff,'' a combination of higher taxes and government spending cuts that automatically takes effect unless Congress acts by Jan. 1. The total impact next year could be as high as $800 billion.
Investors are also watching developments in Greece, where a political crisis could derail an austerity package that is required for the country to receive its next batch of bailout funds. Without the money, Greece faces the prospect of going bankrupt this month and possibly leaving the euro.
Also on the radar: Thursday's opening of China's Communist Party congress _ the once-in-a-decade forum to name China's top leadership. Although current Vice President Xi Jinping is almost certain to be China's next leader, markets will be looking for hints on how the new leadership plans to tackle the nation's economic slowdown.
MCX December gold futures may open today’s session near Rs 31300 levels with resistance near Rs 31400 and Rs 31550 levels.
Asian stock markets fell Wednesday as traders watched the final hours of a cliffhanger U.S. presidential election whose conclusion would allow leaders of the world's biggest economy to focus on issues other than the campaign.
Dow Jones Industrial Average futures fell 105 points to 13,096.00; S&P 500 futures declined 13.50 to 1,411.70 while Nasdaq 100 futures lost 20 points to trade at 2,655.75. Stocks gained sharply in regular U.S. trading on Tuesday as investors hoped that the election would put an end to the uncertainty that has dogged markets in the run-up to Election Day.

Commodity Tips

U.K. house prices gained 0.6 percent month-on-month in October, offsetting September's 0.4 percent drop, figures from the Nationwide Building Society showed Thursday. A typical house in the U.K. now costs GBP 164,153. House prices increased more-than-expected in October, but the volatility in the monthly variation provides no particular direction to the house price movement.

However, monthly price changes have failed to establish a strong trend in either direction over the past six months, Nationwide's Chief Economist Robert Gardner said. House prices dropped 0.9 percent annually in October, slower than the 1.4 percent fall in September.

Commodity MCX Copper Tips

Copper recovered from multi month lows on Monday as hopes of recovery of US economy resulted in return of some buying in the metal. London Metal Exchange Copper was trading up by $ 58 per tonne, at $ 7823 per tonne. MCX Copper is expected to open up from last week settlement of Rs 425.9 per kg. Resistance for the contract is at Rs 427 per kg. Supports for the contract are at Rs 423 per kg.

Although, fund managers are still betting bearish on Copper, prices moved up after last week report of US GDP provided necessary support. US Bureau of Economic Analysis said that GDP rose to a seasonally adjusted annual rate of 2.0%, from 1.3% in the preceding quarter.

The Commodity Futures Trading Commission Managed money funds slashed bullish bets on Comex copper futures and options in the week ended Oct. 23. Traders in the category sold 3938 long positions, or bets on higher prices, and added 1771 short positions, or bets on lower prices. This took their net positions down 24% to 18067 long contract from 23776 long contracts a week earlier.

LME Aluminium three month forwards were unchanged at $ 1924 per tonne. MCX Aluminium ended last week trades at Rs 102.7 per kg, up 0.15%. International Aluminium Institute (IAI) said total world aluminum inventories in September fell by 63000 metric tons to 2.332 million tons. World stocks in August stood at 2.395 million tons. September stocks were down 197,000 tons compared with the same month of 2011, when inventories were recorded at 2.529 million tons, the IAI said.

Commodity economic buzz

The Spanish economy contracted by 0.4% in the third quarter of 2012 amid challenging economic conditions and persistent government austerity measures, according to a latest report from the Bank of Spain today. The contractionary course on which the Spanish economy had embarked a year earlier continued in the central months of the year, in a setting marked by financial conditions that were adverse though somewhat slacker than in the previous quarter, the bank noted.

The as-yet incomplete conjunctural information available suggests that GDP declined at a quarter-on-quarter rate of 0.4%, similar to that in Q2. The profile of demand during the quarter was affected by spending decisions being brought forward in light of the VAT rise announced for 1 September. National demand fell at a somewhat lower rate than in the previous quarter (-1.2% against -1.4%), as a result of more moderate declines in all the private components of expenditure, in particular in household consumption, where the above-mentioned VAT effect was concentrated.

The contractionary trajectory of government consumption is expected to have intensified while employment is estimated to have contracted at a similar rate to the previous quarter (at around a year-on-year rate of -4.5%). Spain in Eurozone's fourth-largest economy, which had barely emerged from the last recession at the end of 2010, started to contract in mid-2011.

Commodity MCX News

MCX Comex was up by 0.39% to 3775.96 for the week till Thursday. MCX Metal was down by 0.12% to 5259.38 and MCX Energy was up by 1.75% to 3470.47.

Bullion:

Gold December 12 contract was up by 0.17% to Rs 31375.00 per 10 grams, Gold M December 12 contract was up by 0.14% to Rs 31393.00 per 10 grams, Gold guinea November 12 contract was up 0.08% to Rs 25330.00 per 8 grams, Gold Petal November 12 contract was down by 0.32% to Rs 3160.00 per gram and Gold Petal Del December 12 contract was down 0.90% to Rs 3176.00 per gram. Silver December 12 contract was down by 1.69% to Rs 60732.00 per kg, Silver M November 12 contract was down by 1.69% to Rs 60754.00 per kg, Silver MIC November 12 contract was down by 1.68% to Rs 60756.00 per kg and Silver 1000 November 12 contract was down by 1.64% to Rs 60818.00 per kg.

Metals:
Copper M November 12 contract was up by 1.35% to Rs 443.80 per kg, Copper November 12 contract was up by 1.36% to Rs 443.80 per kg, Lead October 12 contract was up by 0.48% to Rs 115.45 per kg, Lead mini October 12 contract was up by 0.48% to Rs 115.45 per kg, Aluminium December 12 contract was up by 1.07% to Rs 108.95 per kg, Aluminium December 12 contract was up by 1.11% to Rs 105.70 per kg while Nickel November 12 contract was down by 0.65% to Rs 934.30 per kg, Nickel M December 12 contract was down 0.63% to Rs 941.00 per kg, Zinc October 12 contract was down 1.17% to Rs 101.45 per kg and Zinc Mini October 12 contract was down by 1.17% to Rs 101.45 per kg.

Energy:

Natural gas November 12 contract was up by 1.80% to Rs 209.00 per MMBTU, Brent Crude oil November 12 contract was up by 0.25% to Rs 6042.00 per barrel and Crude oil November 12 contract was up by 1.74% to Rs 4975.00 per barrel.

Agriculture:


Kapas khali December 12 contract was up by 0.03% to Rs 1429.50 per 100 kgs, Cotton November 12 contract was up by 3.77% to Rs 16510.00 per bales, Mentha oil October 12 contract was up by 3.15% to Rs 1189.80 per kg while CPO October 12 contract was down by 2.42% to Rs 419.60 per 10 kgs and Cardamom December 12 contract was down by 3.82% to Rs 943.00 per kg.

Commodity Tips

Commodity Tips :-

MCX Gold futures witnessed a decent recovery in afternoon trades as the global prices edged up above $1740 per ounce though the sentiments could remain depressed following worries over demand in the near term. The metal has been trading lower in the last few days and tested a one month low on COMEX yesterday as the downward correction extended further. Latest Chinese import figures reflect a mild softening in the demand from the world's largest consumer. COMEX Gold futures are quoting at $1742, up four dollars per ounce on the day.

Trade statistics released last week showed mainland Chinese imports of gold from Hong Kong slowed dramatically in August. Hong Kong shipments of the metal to mainland China for the month totaled 54 tons, a drop of 29% from the 76 tons shipped in July, according to data from the Hong Kong Census and Statistics Department. The yellow metal has witnessed a sizeable fall in last two sessions, shedding nearly 50 dollars per ounce amid a flurry of profit selling as the inability of the metal to break above $1800 per ounce levels had a depressing effect on the sentiments. The commodity normally follows risky assets and yesterday's massive jump in stock markets should have helped it.

Meanwhile, the US retail sales were boosted yesterday by the launch of iPhone 5 and registered 1 a rise of 1.1% in September. Equity markets were further helped on media reports that Spain is ready to make a formal request for aid, allowing the European Central Bank to buy its sovereign debt, but is delaying an announcement due to concern about the effect on other euro-zone members.

European equities edged mostly higher today and some buying has emerged in Gold as well. Euro also gained, breaking above 1.3000 levels against the US dollar. This has helped it gain some ground from its one-month low levels of $1728 per ounce and it would be interesting to see how the New York session pans out. The local MCX Gold futures broke under Rs 31000 per 10-gram mark yesterday and witnessed a steady recovery in tune with the global prices. The benchmark December contract on MCX is trading at Rs 30973, down Rs 4 per 10 grams on the day after testing a low of Rs 30862 per 10 grams earlier in the day.