Posts Tagged ‘except nickel’

WEEKLY COMMENTARY

Bulls added more strength to precious metals and base metals while energy and most of the agro commodities back pedaled during the last week. Fear of crisis in Dubai resulted in more capital inflow in precious metals, which resulted in nonstop seven week rally in gold.

It made a high of 18294 and $1226.40 on MCX and COMEX respectively. However, in the later part of the week, we saw a halt in rally and prices corrected marginally on Friday. On Friday, December contract expired on MCX, because of which it traded down. Silver followed the footsteps of gold.

Many base metals made higher trading range last week on improvement of economic releases, except nickel. Lead performed better on technical support. Similar to precious metals, base metals saw profit booking on Friday. Red metal copper fell from its 14 months high.

After the release of U.S. inventory data, which showed crude and gasoline inventories jumped last to last week, crude tumbled down. It breached the mark of $76 per barrel last week. Natural gas also slipped for the same reason of inventory rise amid low demand. Guar pack traded sideways to bearish bias in the week gone by.

Upside movement was capped in prices as investors booked their profits at higher levels. However, slack demand in physical market also added bearish sentiment to the market. In spices pack; pepper, jeera and turmeric along with chilli got hammered and settled in red territory.

Chilli futures settled down for the fourth consecutive week on account of reducing participation in the physical market. Harvesting of fresh produce has already been started and the ongoing dry weather is favorable for the post harvesting activities.

Turmeric prices once again settled down as demand is not picking up and traders are waiting for the arrival of fresh stock which may add bearish momentum to the trend. After witnessing three week rally, pepper prices cooled down in the week gone by on an account of profit taking and continuity of weak export demand.

Jeera futures which got under pinned and gained for seven straight weeks also took a breath of relief and settled down in absence of fresh cues due to closure of major spot market at Unjha for some local festivals.

Lack of buying activity on the futures platform also led to the fall in prices. In oil seeds section; soya bean futures started the week with positive note but later on some profit booking at higher levels pressurized prices to settle near the opening price. Mustard seed futures ended the week on positive note on firm demand in spot market.