MCX Report By Ways2Capital 03 Sep 2014

INDORE, India - Sept. 3, 2014 - PRLog -- MCX - WEEKLY NEWS LETTERS

✍ INTERNATIONAL NEWS

LME Copper stocks jumped by 0.8 percent on Tuesday.

Total inflow in Indian equities and debt markets $29.79 bn till date.

U.S. crude stocks declined by 2.1 million barrels last week.

German Import Prices dropped by 0.4 percent in the last month.

Economic data - Germany Unemployment rate, CPI; Euro-zone- Confidence Numbers (Economic, Industrial, Consumer and Service), US - Jobless claims, Q2 revised GDP, Personal Consumption and Pending Home Sales.

SOURCES : Reuters

Indian Currency - The US Dollar Index (DX) declined around 0.3 percent yesterday on the back of upbeat market sentiments which led to decline in demand for the low yielding currency. Further, estimates of marginal plunge in economic growth in US exerted downside pressure on the currency.

The Indian Rupee traded on a flat note and appreciated marginally in yesterday’s trading session. The currency appreciated on the back of inflow of foreign funds in equities and debt markets. The total inflow in the both the markets accounted to around $29.79 billion till date in the current year. Upbeat domestic market sentiments also acted as a positive factor.

✍ PRECIOUS METALS

In the month of August, gold prices have already declined by more than 2% and looks like the trend may remain bearish. Gold holdings at the SPDR gold trust, the world’s largest ETF stay near the 800 MT, almost flat for past many weeks. In the meanwhile, global equities trade higher with gains of more than 1% in a single week is further pulling gold prices lower and likely that the same trend may continue in the next week. Another major factor that is pulling gold lower is the anticipated cues from Jackson Hole economic symposium which is expected to focus on an important economic issue that faces the US and world economies. We believe looking at the recent economic development, especially the economic data coming in better than expected from the US, it might have incessant negative pressure on gold prices. Besides, the euro and gold which generally shaped by the USD performance are likely to move along and any further decline in the euro currency or strong appreciation in the USD would weaken gold prices. Looking at the above scenario, the commodity may remain depressed in the near term wherein we suggest selling from higher levels.

Gold once again had a very shallow day of trade with the commodity trading in a small range for most part of the day before closing 0.15% lower to $1283 per ounce mark for active December expiry at Comex.

In India, moderate disconnect continued as local MCX gold prices for October expiry closed lower by 0.4% to Rs 27780 per 10 /Gms. It is likely that Bullion may open marginally positive today, as they regain some of the additional lost ground yesterday meanwhile Gold Comex too trades marginally higher in early Asian trade.

✍ BASE METALS

LME Copper prices slipped by 0.5 percent on 27 Aug Trading session, after a report showed profit growth at industrial companies in China slowed to 13.5 percent in July from 17.9 percent in June, the fastest rate in seven months. Also, weak German Consumer Climate data coupled with 0.8 percent gain in inventories exerted downside pressure on prices.

However, expectations of prompt supportive action from Beijing, with officials stepping in to ensure the economy achieved its 7.5% annual growth target restricted sharp fall. The red metal touched an intraday low of $6994/tonne on Wednesday.

On the MCX, red metal prices plunged by 0.7 percent and touched an intra day low of Rs.421.75/kg before closing at Rs.422.9/kg on Wednesday.

✍ ENERGY

Natural gas prices on the NYMEX gained by around 1 percent on bargain buying at lower levels while MCX futures gained by around 1.09 percent and closed at Rs.241.40/Mmbtu. EIA Natural gas inventories due tonight is expected to show a surplus of 78Bcf of gas.

Oil prices declined on both sides of the Atlantic as expectations of ample supply weighed on prices. Global oil supply is expected to exceed demand this year, cooling prices. Oil futures on both sides of the Atlantic Basin are on track to post a second monthly decline.

Hopes that the presidents of Russia and Ukraine could reach a ceasefire deal dimmed after Ukraine accused Russia of launching a new military incursion across its eastern border on Wednesday. U.S. crude stocks fell 2.1 million barrels last week, more than expected, but Cushing inventories rose 508,000 barrels, data from the Energy Information Administration showed on Wednesday. On the MCX, crude prices declined by around 0.4 percent in line with weakness in international markets and closed at Rs.5675/bbl.

NCDEX - WEEKLY NEWS LETTERS

✍ CHANA

Chana continued to trade weak due to lack of demand .The domestic demand has risen in the mandis but that got adversely affected at the higher levels as traders waited for some dips before initiating fresh demand in the mandis. amid rains in Central and North-West India supporting the Kharif Pulses crop prospects kept overall trend weak.

The sowing for Kharif Pulses has picked up over last few weeks and that had been preventing strong uptrend for Chana rates despite improved demand in mandis. Repeated efforts by the Govt to keep tab on hoarders—mainly for essential Food items are also keeping the uptrend limited.

As per latest reports of sowing of kharif crops as on 22nd August, kharif sowing area stood at 935.06 lakh hectare. It is reported that pulses has been sown in 92.62 lakh ha vs 99.39 lakh ha same time last year.

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