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.