Gold prices fell Rs 49 to Rs 26,698 per 10 grams in futures trade today as participants trimmed their positions, largely in tune with a weak trend overseas.
5. MCX - WEEKLY NEWS LETTERS
INTERNATIONAL NEWS
✍ PRECIOUS METAL
GOLD
Gold prices fell Rs 49 to Rs 26,698 per 10 grams in futures trade today as participants trimmed
their positions, largely in tune with a weak trend overseas.In futures trading, gold for delivery
in far-month February next year was trading Rs 49, or 0.18% down, at Rs 26,698 per 10 grams
at Multi Commodity Exchange with a business turnover of 12 lots.Also, the metal for delivery
in December shed Rs 44, or 0.17%, to Rs 26,511 per 10 grams in 358 lots. Analysts said a
weakening trend in the overseas markets where gold retreated from over one-week high as
Chinese markets reopened after a long break and investors awaited minutes from the Federal
Reserve's last meeting for clues on the timing of an interest rate increase, weighed on the
futures trade here. Globally, gold fell 0.3% to $1,141.76 an ounce in Singapore. Gold ticked
higher on Friday, recovering modestly from overnight losses, but uncertainty over whether the
Federal Reserve would hike U.S. rates this year weighed on the market. Spot gold edged up 0.1
percent to $1,140.10 an ounce by 0040 GMT, after dropping 0.6 percent in the previous session
following the release of minutes from the Fed's Sept. 16-17 meeting. The metal is up 0.2
percent for the week. The Fed thought the economy was
✍ SILVER
Amid a weakening trend overseas, silver prices tumbled Rs 651 to Rs 36,850 per kg in futures
trade today as speculators cut their positions. Silver for delivery in far-month March next year
contracts was trading sharply lower by Rs 651, or 1.74%, at Rs 36,850 per kg in a business
turnover of 1,663 lots in futures trading at Multi Commodity Exchange (MCX).On similar
lines, the white metal for delivery in December slumped Rs 643, or 1.68%, at Rs 37,590 per kg
with a business turnover of 29 lots. In the international market, silver traded 2.5% lower at
$15.65 an ounce in Singapore. Market analysts said a weak trend in precious metals in global
markets as investors awaited minutes from the US Federal Reserve's last meeting for clues on
the timing of an interest rate increase, kept pressure on silver futures.
✍ BASE METALS
✍ COPPER
Copper futures were up 1.50% at Rs 344.95 per kg today as speculators enlarged bets, largely
in step with a firming trend in base metals at the London Metal Exchange (LME). At Multi
Commodity Exchange, copper for delivery in November rose Rs 5.10, or 1.50%, at Rs 344.95
per kg, in a turnover of 4,681 lots. Metal for delivery in far-month February next year also rose
Rs 4.80 to trade at Rs 350.60 per kg, with trade volume of 86 lots. Analysts said gains in
copper and other metals overseas after Glen core has cut production this year and rising
demand at the domestic spot markets influenced metal prices at futures trade here.
6. ✍ NICKEL
Nickel prices moved up by 1.30% to Rs 678.20 per kg in futures market today after speculators
widened bets, tracking a firm trend in the spot market on increased demand from alloy makers.
At Multi Commodity Exchange, nickel for delivery in November gained Rs 8.70, or 1.30%, to
Rs 678.20 per kg in a business turnover of 116 lots.In a similar manner, the metal for delivery
in October rose Rs 8.30, or 1.28%, to Rs 671.30 per kg in 2,581 lots. Analysts said apart from
increased domestic demand from alloy makers and other consuming industries, strength in base
metals at the London Metal Exchange, influenced nickel futures here.
✍ LEAD
Taking positive cues from the global market and rising spot demand, lead futures traded over
2% higher at Rs 111.05 per kg today as participants enlarged positions. Lead for delivery in
October traded higher by Rs 2.35, or 2.16%, to Rs 111.05 per kg, in a business turnover of
1,847 lots in futures trading at the Multi Commodity Exchange.On similar lines, the metal for
delivery in November was trading higher by Rs 2.20, or 2.01%, at Rs 111.90 per kg in 101 lots.
Globally, lead gained as much as 1.9% at the London Metal Exchange (LME).Analysts said
besides better demand from battery makers in spot market, firm global trend in base metals as
commodity production were accelerating influenced lead prices at futures trade here.
✍ ZINC
Zinc futures climbed 3.78% to Rs 112.60 per kg today after speculators built up bets on the
back of a firming trend overseas amid rising demand in the domestic spot market. In futures
trading at the Multi Commodity Exchange, zinc for delivery in October surged Rs 4.10, or
3.78%, to Rs 112.60 per kg, in a business turnover of 4,848 lots. Also, metal for delivery in
November contracts gained Rs 3.95, or 3.60%, at Rs 113.60 per kg, with a business volume of
165 lots. According to marketmen, a firming trend in metal at the London Metal Exchange
(LME) after Glencore Plc announced a plan to cut output by about a third, adding to signs that
some commodity producers are willing to scale back supplies to combat slumping prices and
boosting the prospects for a global deficit. Furthermore, uptick in demand at domestic spot
markets from consuming industries too supported the upside in metal prices, they said. The
metal used to galvanize steel jumped as much as 4.8 percent to $1,747 per tonne at the LME,
the highest since September 18.
✍ ENERGY
Crude oil prices rose sharply by Rs 62 to Rs 3,279 per barrel in futures trade today as
speculators widened their bets after it extended recent rally in Asia. At Multi Commodity
Exchange, crude oil for delivery in October contracts was trading higher by Rs 62, or 1.71%, at
Rs 3,279 per barrel, with a business turnover of 8,967 lots.The oil for November delivery also
moved up Rs 55, or 1.68%, to Rs 3,329 per barrel, with a business volume of 910 lots.Market
7. men attributed the rise in crude oil futures to a firming trend in Asian trade on hopes that
increasing demand and a decline in US crude production would ease a supply glut that has
depressed the market for more than a year. Meanwhile, West Texas Intermediate crude prices
for November delivery climbed 0.49% to $49.67 a barrel, while Brent for November also
advanced 0.45% to $53.29 a barrel in late-morning trade on the New York Mercantile
Exchange.
✍ NCDEX - WEEKLY NEWS LETTERS
✍ JEERA
Jeera prices were up 0.65 per cent to Rs 16,160 per quintal in futures trade on Wednesday after
traders widened their positions taking positive cues from spot market.In futures trading at the
National Commodity and Derivatives Exchange, jeera for delivery in November rose Rs 105 or
0.65 per cent to Rs 16,160 per quintal with an open interest of 9,039 lots.The October contract
was trading higher by Rs 100 or 0.63 per cent to Rs 15,865 per quintal in 9,315 lots.The rise in
jeera futures prices to pick up in demand in the spot market against restricted supplies from
growing belts.
✍ MUSTARDSEED
Mustardseed futures traded Rs 67 lower at Rs 4,663 per quintal on tuesday after participants
booked profits at existing levels.Besides, rising supplies in physical market too weighed on
prices.
At the National Commodity and Derivatives Exchange, mustardseed for October month
delivery contract slipped by Rs 67, or 1.42 per cent to Rs 4,663 per quintal, with an open
interest of 46,140 lots.The November contract lost Rs 44, or 0.91 per cent to Rs 4,794 per
quintal, in an open interest of 48,720 lots.Fall in mustardseed futures was largley due to
profit-booking by participants and rising supplies in the spot market.
✍ SOYBEAN
Soybean prices are on the rise due to lower productions estimates for this kharif season.Within
a week, prices rose 20 per cent, more than Rs 600/100 kg gains, in spot markets due to the
lower production estimates.As per latest estimates, production this kharif season is likely to
stand at 8,642,600 tonnes, compared with last year’s revised estimate of 9,000,000 tonnes. This
year, the carryover stock is likely to be 900,000 tonnes.
Initial arrivals clearly indicated lower production. in October, arrivals in Madhya Pradesh
generally stand at 400,000-500,000 bags of 100 kg each but this year, the numbers are low.
Soybean production in Madhya Pradesh is the highest in the country.Currently, arrivals across
India stand at around 550,000 bags of 100 kg each, including average daily arrivals of 250,000
8. bags in Madhya Pradesh and 125,000 bags in Maharashtra and 75,000 bags in Rajasthan.Prices
at mandi auctions are Rs 3,450-3,800/100 kg, while plant delivery prices are Rs
3,650-3,800/100 kg. Analysts say prices have risen more than 20 per cent on futures exchanges
compared to mid-August.Initially, production estimates were higher, due to which prices went
down in August. But later, a dry spell and lower output fears pushed up prices.
Extending its upward journey, soyabean prices rose by another Rs 96 to Rs 3,882 per quintal in
futures trading on tuesday as traders engaged in building up huge positions amid positive
overseas cues.At the National Commodity and Derivatives Exchange, soyabean delivery for
March surged Rs 96, or 2.54 per cent, to Rs 3,882 per quintal, having an open interest of 40
lots.
The November contract added Rs 12, or 0.33 per cent, to Rs 3,693 per quintal in an open
interest of 82,630 lots.Soyabean for delivery in October was trading higher by Rs 7, or 0.19 per
cent, at Rs 3,688 per quintal in an open interest of 31,480 lots.Creation of huge positions by
speculators, tracking positive overseas cues, influenced soyabean futures here.Meanwhile, all
active contracts hit upper circuit limits in yesterday's trade.
Meanwhile, the Solvents Extractors Association of India has said India’s oilmeal exports rose
four per cent to 113,913 tonnes in September compared to the year-ago period. The rise,
however, was aided by a low base, it added.Exports of rapeseed fell 8.2 per cent to 60,211
tonnes.For April-September, overall oilmeal exports stood at 723,661 tonnes, compared with
1,024,370 tonnes during the corresponding period last year, down 29 per cent.For the
April-September period, soybean meal exports stood at 42,743 tonnes, compared with 111,027
tonnes in the year-ago period.
✍ CHANA
The government's decision to permit states to impose stock limits on commodities stored in
warehouses registered with the Warehouse Development and Regulatory Authority (WDRA)
has started impacting futures prices, especially that of chana.A fortnight ago, chana was quoted
at a discount of Rs 190-200 a quintal in New Delhi delivery on the National Commodity and
Derivatives Exchange (NCDEX).
While the fundamentals for chana have favoured bulls and prices have been going up in the
spot market, resulting in higher futures prices, traders have started taking their stock out from
WDRA-registered warehouses, which was otherwise was acting as a threat for futures as that
can be offloaded on exchanges if prices rise sharply. That threat of delivery is now evasive,
which has resulted in futures prices rising faster than spot.A few days ago, the Union Cabinet
had decided to extend stock limits on essential commodities such as oilseeds and pulses for a
year and permitted states to impose stock limits on WDRA-registered warehouses. Stocks
stored in such warehouses can only be delivered on futures exchanges.
9. ✍ TURMERIC
Turmeric prices were up by Rs 114 to Rs 8,130 per quintal in futures market on wednesday on
emergence of buying by traders, driven by rising demand in the spot market.At the National
Commodity and Derivatives Exchange, turmeric for delivery in November rose Rs 114, or 1.42
per cent, to Rs 8,130 per quintal with an open interest of 10,090 lots.The October contract
gained Rs 104, or 1.35 per cent, to Rs 7,800 per quintal in 16,155 lots.Pick up in demand at the
spot market, mainly helped the turmeric prices to rise.
10. 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.