4. MCX - WEEKLY NEWS LETTERS
INTERNATIONAL NEWS
✍ BULLION
Gold scaled higher on Friday, further off a four-month low, as the dollar tumbled against the
euro on signs of progress in Greece's efforts to secure fresh funding. Spot gold was up 0.2 per
cent at $1,161.88 an ounce by 1029 GMT. Prices touched $1,146.75 on Wednesday, their
lowest since March 18, when the dollar was boosted by weakness in the euro on Greece and the
tumble in Chinese stock markets.
US gold for August delivery gained 0.2 per cent at $1,161.70 an ounce. The euro climbed 1.2
per cent against the dollar, making dollar-denominated assets such as gold cheaper for buyers
using other currencies. "Gold is getting some support from the stronger euro but if we get a deal
with Greece on Sunday, it should be bearish for gold because it removes any risk," Societe
Generale analyst Robin Bhar said. "The major driver is the U.S. because we have Yellen
speaking today and markets will be watching that for any clues about the rate hike." Federal
Reserve Chair Janet Yellen will speak on Friday on the U.S. economic outlook at 1630 GMT.
"No doubt, gold has been a profound disappointment for the bulls over the past few months ...to
see repeated rallies fizzle," INTL FCStone analyst Edward Meir wrote.
Physical demand remained tepid this week as prospective investors in China chased bargains in
equities after a market rout, while those in India delayed purchases. The metal in India was still
sold at a discount to the global benchmark. Chinese stocks rose sharply for a second day on
Friday after Beijing moved to arrest a rout that pulled down key indexes by around 30 per cent
from mid-June, banning shareholders with large stakes in listed firms from selling. Also aiding
gold, the International Monetary Fund trimmed its forecast for global economic growth this
year to 3.3 per cent from a previous estimate of 3.5 per cent, citing recent weakness in the
United States.
Silver was up 0.5 per cent at $15.44 an ounce, palladium rose 1.7 per cent to $648.50 an ounce
and platinum gained 1.4 per cent to $1,032.50 an ounce
✍ ENERGY
Crude oil prices bounced on Thursday on strong economic data from Japan and Germany, and
as Chinese shares picked up after the government launched new steps to halt a rout in its stock
markets. Front-month US crude futures were up 80 cents at $52.45 a barrel by 0745 GMT, but
were still almost 8 percent lower than at the end of last week. Brent crude was 70 cents higher
at $57.75 a barrel, though still 4 per cent below last Friday.Chinese stocks rallied on Thursday
after the securities regulator banned shareholders with large stakes in listed firms from selling,
in Beijing's most drastic step yet to stem a sell-off that has roiled global financial markets.
Chinese police were investigating clues pointing to potentially "malicious" short-selling of
Chinese shares, state news agency Xinhua said on Thursday. Demand for oil was also
5. supported by the return from maintenance of a 120,000 barrels per day crude crude distillation
unit in Japan, where machinery orders hit a 7-year high in May. German exports rose at their
fastest pace this year in May, boosting expectations that Europe's largest economy would pull
off stronger growth in the second quarter after expanding modestly in the first. Traders said
downward momentum in oil had been broken by two days of gains and sentiment was more
positive on Thursday. "Supports held after the sharp sell-off on Monday and these supports
were not seriously tested yesterday," said Tamas Varga, oil analyst at London brokerage . "Oil is
being pressured on multiple fronts, and China's equity wobble, the prospect of Iran's re-entry to
the market and low liquidity all add up to an extremely fraught environment," said Ole Hansen,
head of commodity strategy at Saxo Bank. A surprise increase in U.S. stockpiles despite the
peak-demand American summer driving season added to global oversupply as the Organization
of the Petroleum Exporting Countries and Russia produce at near-record levels.
✍ BASE METAL
Copper
Copper futures edged higher 0.32 per cent to Rs 360.80 per kg amid positive Asian cues and
pickup in spot demand at domestic markets. At the Multi Commodity Exchange, copper for
delivery in August rose Rs 1.15, or 0.32 per cent, to Rs 360.80 per kg, with a turnover of 1,219
lots. The metal for delivery in November contracts edged up by 95 paise, or 0.26 per cent, at Rs
367.20 in a volume of 11 lots ,The metal for delivery in November contracts edged up by 95
paise, or 0.26 per cent, at Rs 367.20 in a volume of 11 lots. Globally, copper for September
delivery climbed 0.3 per cent to 40,600 yuan (USD 6539) per tonne but at the London Metal
Exchange, the metal for delivery in three month fell 0.7 per cent to USD 5,590 per tonne.
Globally, copper for September delivery climbed 0.3 per cent to 40,600 yuan (USD 6539) per
tonne but at the London Metal Exchange, the metal for delivery in three month fell 0.7 per cent
to USD 5,590 per tonne. Market analysts attributed the rise in copper prices in futures trade to a
better trend in Asian trade and pickup in demand at domestic spot market.
✍ Zinc
Zinc futures today edged up 0.63 per cent to Rs 128.40 per kg as participants enlarged positions
amid a firming trend overseas and better domestic demand. At the Multi Commodity Exchange,
zinc for delivery in July rose by 80 paise, or 0.63 per cent, to Rs 128.40 per kg, with a business
turnover of 747 lots. Marketmen said improved demand at the spot market amid a firming trend
in base metals overseas, mainly influenced zinc prices in futures trade here.The metal for
delivery in August also rose by 70 paise, or 0.55 per cent, to Rs 128.90 per kg in a business
volume of 29 lots.
6. ✍ Nickel
Taking positive cues from global market and rising demand from domestic alloy-makers, nickel
futures climbed 1.13 per cent to Rs 737 per kg today.At the Multi Commodity Exchange, nickel
for delivery in current month contracts rose by Rs 8.20, or 1.13 per cent, to Rs 737 per kg in a
business turnover of 2,801 lots. Metal for delivery in August was also trading higher by Rs
8.20, or 1.11 per cent, at Rs 744.30 per kg in 161 lots.Analysts said besides rising spot demand,
a firming trend at the London Metal Exchange (LME), also boosted prices.Meanwhile, nickel
for delivery in three months at the LME rose 0.7 per cent to USD 11,580 per tonne. The metal
rose 4.9 per cent yesterday, posting the biggest two-day rally since 2012.
✍ NCDEX - WEEKLY NEWS LETTERS
✍ FMC reduces trading time
Commodity derivatives markets regulator Forward Markets Commission (FMC) has reduced
the trading time of the evening session in agricultural commodities by two hours and de-listed
four contracts from the evening session owing to the lack of liquidity.
With this, the trading time of the evening session in agricultural commodities ends at 9:00 pm
compared with 11:00 pm earlier in normal days. The closing time during US daylight saving
period has been advanced to 9.30 pm from 11.35 pm earlier.
✍ Mansoon Update
Maharashtra, which ranks second in soyabean and cotton production, is giving artificial rainfall
another shot in an attempt to save crops, 13 years after a similar experiment failed. Amid
worries that a dry spell may force re-sowing to take place, the state government has shortlisted
a private agency for cloud seeding to generate artificial rainfall during August to October.
About 80 per cent of the state's cultivable land depends on rainfall. The government wants to
ensure that kharif crops get at least one life-saving rainfall in those key months and is hoping
that advances in artificial rainfall will help. The state government is already assessing the
possibility of re-sowing in large parts of western Maharashtra, Khandesh and parts of
Marathwada and Vidarbha. "The situation is worrisome in these parts as there has been no rain
for more than 15 days," said a top official of the state's agriculture department. Another high
level official from Mantralaya, the state government's administrative headquarters in Mumbai,
said that in all probability, artificial rainfall will be required in the near future. "We will do
cloud seeding as an experiment. As the process requires large number of no objection
certificates from various government agencies, we have started preparations in order to keep
ourselves ready for any emergency in August-September," the official said.
7. Nearly 37 per cent sowing of various kharif crops, including oilseeds and pulses, has been
completed in Chhattisgarh in the ongoing crop season. "Farmers have completed sowing of
kharif crops on around 13.88 lakh hectares of land against the proposed target of 48.20 lakh
hectares in the state," an official statement said today. The Bilaspur division is leading the chart
with 37 per cent of the average sowing completed in its five districts, followed by Raipur
division (35 per cent), Bastar (20 per cent) and Surguja division (12 per cent), it said. Notably,
the Chhattisgarh Agriculture Department has set the target of cultivating cereals, pulses, oil
seeds and other crops on an area of 48.20 lakh hectares in the current kharif season. The target
has been set to grow paddy on 36.45 lakh hectares, corn on 2.25 lakh hectares, pulses on 3.79
lakh hectares and oilseeds on 3.44 lakh hectares.Moreover, an amount of Rs 1,356.61 crore has
been distributed to over 4.51 lakh farmers during the current kharif season by the Chhattisgarh
Primary Agriculture Co-Operative Samitis.
✍ Refined soya oil
Refined soya oil prices were traded higher 0.78 per cent to Rs 564.30 per 10 kg in futures
trading on thursday as speculators enlarged positions, supported by pickup in demand at the
spot market.At the National Commodity and Derivatives Exchange, refined soya oil for
delivery in October moved up by Rs 4.35, or 0.78 per cent to Rs 564.30 per 10 kg with an open
interest of 84,565 lots.Similarly, the oil for delivery in August contracts gained Rs 3.60, or 0.63
per cent to Rs 576.50 per 10 kg in 1,95,110 lots.Rise in refined soya oil futures to pickup in
demand at the spot market against restricted supplies from producing belts.
✍ Chana
Amid profit-booking by speculators at prevailing levels and easing demand at spot market,
chanaprices were down by 0.21 per cent to Rs 4,334 per quintal in futures market on Thursday
where as on Wednesday Chanapricesrose by 2% to Rs 4,282 per quintal in futures trade today
amid pickup in demand at the spot market and restricted arrivals from producing belts.On
Friday At the National Commodity and Derivative Exchange, chana for delivery in July month
eased by Rs 9, or 0.21 per cent to Rs 4,334 per quintal with an open interest of 13,040
lots.Also, the commodity for delivery in August contracts shed Rs 5, or 0.11 per cent to Rs
4,463 per quintal in 1,85,540 lots.Where as on wednesdaychana for delivery in July shot up by
Rs 84, or 2% to Rs 4,282 per quintal with an open interest of 28,360 lots.Similarly, the
commodity for delivery in August contracts traded higher by Rs 58, or 1.33% to Rs 4,404 per
quintal in 1,88,990 lots.Besides profit-booking by speculators at existing levels, fall in demand
in the spot market against adequate stock position mainly kept pressure on chana prices.
8. ✍ Costorseed
Domestic commodity markets are currently trading on a dull note in the morning trading
session where at the Multi Commodity Exchange (MCX); all of the four indices are trading
lower. Castorseed prices rose by 0.15 per cent on Monday at the National Commodity &
Derivatives Exchange Limited (NCDEX) as a result of the rise in demand from consuming
industries against restricted arrivals in domestic markets which in turn encouraged the investors
to enlarge their holdings.
9. LEGAL DISCLAIMER
This Document has been prepared by Ways2Capital (A Division of High Brow Market
Research Investment Advisor Pvt Ltd). The information, analysis and estimates contained
herein are based on Ways2Capital Equity/Commodities Research assessment and have been
obtained from sources believed to be reliable. This document is meant for the use of the
intended recipient only. This document, at best, represents Ways2Capital Equity/Commodities
Research opinion and is meant for general information only. Ways2Capital
Equity/Commodities Research, its directors, officers or employees shall not in any way to be
responsible for the contents stated herein. Ways2Capital Equity/Commodities Research
expressly disclaims any and all liabilities that may arise from information, errors or omissions
in this connection. This document is not to be considered as an offer to sell or a solicitation to
buy any securities or commodities.
All information, levels & recommendations provided above are given on the basis of technical
& fundamental research done by the panel of expert of Ways2Capital but we do not accept any
liability for errors of opinion. People surfing through the website have right to opt the product
services of their own choices.
Any investment in commodity market bears risk, company will not be liable for any loss done
on these recommendations. These levels do not necessarily indicate future price moment.
Company holds the right to alter the information without any further notice. Any browsing
through website means acceptance of disclaimer.
