Commodity Daily Report-June 8, 2012 by AlankitAssignments

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									             Daily Commodity Watch


                                            June 8, 2012                                               www.alankit.com
                                                                            Gold Intraday Chart
News Highlights:

 The US Federal Reserve on Thursday warned that the deepening
  Eurozone debt turmoil and the prospect of fiscal tightening in the US
  are a significant risk to the US economy, dimming the demand
  outlook for major commodities including crude oil and copper. The
  Fed did not offer any plans of immediate stimulus to spur growth in
  the world’s largest economy. Crude Oil futures and Copper futures
  fell in the domestic market on Thursday on concerns that a slowing
  US economy may crimp demand for the commodities.

 Crude Oil futures also fell amid worries that the deepening debt
  turmoil in Europe may curb fuel demand. Crude futures fell after
  Fitch downgraded Spain’s credit rating by three notches to BBB from       Crude oil intraday chart
  A as Europe’s debt contagion escalates, dimming the demand
  outlook for the fuel.

 Chinese policymakers on Thursday lowered interest rates for the first
  time since 2008 to bolster growth in Asia’s largest economy. China’s
  central bank lowered the lending and deposit rates by 25 basis
  points. Policy easing in China raised optimism of a pickup in the
  nation’s economic activity and improved the demand outlook for
  major commodities, curbing the losses in domestic crude oil futures
  and copper futures on Thursday.

 Gold futures plummeted in the domestic and overseas market on
  Thursday as the Federal Reserve Chairman Ben Bernanke offered no
  hints of an imminent stimulus to bolster growth in the world’s largest
                                                                            Copper intraday chart
  economy, dampening the appeal of the precious metal, considered a
  hedge against the inflationary risk of monetary stimulus.

 US jobless claims fell last week for the first time since April, a sign
  that hiring is picking up. Jobless claims fell 12,000 to 377,000 last
  week, the Labour Department said. Gold futures also fell as robust
  US jobless claims data weakened the case for additional monetary
  easing in the US.
         Daily
Daily Commodity Watch

 Market Overview                                                                                        Commodity Indices at MCX
                                                                                           Indices          Close                PCP           %Chg
 On June 07, 2012 (Thursday), the domestic commodity markets turned bearish, and
                                                                                        MCXCOMDEX          3632.65              3677.83        (1.22)
 ended on a negative note as the statement from Federal Reserve Chairman Ben
                                                                                        MCXMETAL           4903.81              4985.49        (1.63)
 Bernanke yesterday dimmed the hopes for further additional measures to spur the
                                                                                        MCXENERGY          3147.40              3182.92        (1.11)
 economy. However, a weaker U.S. dollar helped in limiting some losses in metals
 and energy commodities. The euro touched a two-week high at 1.2625 against the         MCXAGRI            2787.35              2787.89        (0.01)
 U.S. dollar as German Chancellor Angela Merkel said the nation is ready to back
 euro-area financial instruments.                                                                                Index at NCDEX
                                                                                            Index           Close                PCP           %Chg
 On Thursday, all the four indices, at the Multi Commodity Exchange (MCX), settled        Dhaanya          2354.02              2360.72        (0.28)
 in the negative terrain. MCXCOMDEX closed at 3,632.65 (down by 1.22 per cent),
 MCXMETAL closed at 4,903.81 (down by 1.63 per cent), MCXENERGY closed at                                   Top Gainers at MCX
 3,147.40 (down by 1.11 per cent), and MCXAGRI closed at 2,787.35 (down by 0.01).
                                                                                        Commodity       Expiry       Close (`)      PCP (`)   % Chg
                                                                                        Nickel M        Aug          933            911.70    2.34
 MCXMETAL was the top losers among all the indices due to significant fall in the
                                                                                        Nickel          June         917.70         896.80    2.33
 precious metals. Gold prices declined below 30,000 levels, retreating from all-time
                                                                                        Nickel          Aug          933.50         912.60    2.29
 high of `30,295 per 10 grams, in the domestic bullion market on fed’s comment
                                                                                        Nickel M        June         917.20         896.80    2.27
 that reduced hopes for further stimulus, tempering optimism over a cut in Chinese
                                                                                        Nickel M        Sep          940            920.30    2.14
 interest rates. Gold prices touched an all-time high of `30,295 per 10 grams on June
 06, 2012 on speculation that country’s central bank would provide stimulus to spur
 economic growth, boosted demand prospects for precious metals. The Federal                                  Top Losers at MCX
 Reserve Bank of Atlanta President Dennis Lockhart stated this week that fragile        Commodity       Expiry      Close(`)       PCP (`)    % Chg
 recovery, due to worsening of Euro region debt crisis, may require more                Natural Gas     June        126.30         134.40     (6.03)
 accommodative policy. The European Central Bank President Mario Draghi also            Natural Gas     July        130.20         138.30     (5.86)
 showed interest towards the requirement of more stimulus to support the                Natural Gas     Aug         134            141.90     (5.57)
 economy.                                                                               Cardamom        Aug         1168.80        1217.50    (4.00)
                                                                                        Cardamom        July        1193           1242.70    (4.00)
 MCXENERGY also ended on a negative note as natural gas dropped around 6 per
 cent in the domestic market after the Energy Information Administration (EIA)                            Top Gainers at NCDEX
 reported a bigger-than-expected build in the U.S. natural gas stockpiles, raising      Commodity       Expiry      Close(`)       PCP (`)    % Chg
 concerns that demand for heating fuel is faltering in the world’s biggest fuel         Cot. Oil Seed   June        1159           1114       4.04
 consuming nation. The U.S. Energy Department reported yesterday that the natural       Chilli          June        4752           4608       3.13
 gas storage climbed by 62 billion cubic feet (Bcf) to 2,877 Bcf in the week ended      Soybean         June        3433           3369       1.90
 June 1, 2012 from 71 Bcf in the prior week. An injection of 57 Bcf was expected.       Cot. Oil Seed   July        1194           1174       1.70
                                                                                        Chilli          July        4854           4776       1.63
 On the Agri-commodity front, Soybean futures continued to trade on a bullish note
 for a second day on account of short covering and fresh buying at lower levels. Firm                      Top Losers at NCDEX
 overseas market coupled with lower supply of domestic soybean also provided            Commodity       Expiry      Close (`)      PCP (`)    % Chg
 support to the prices. At NCDEX, soybean futures for June contract ended 1.90 per      Gold            Aug         29256          30047      (2.63)
 cent higher at `3,433 per quintal.                                                     Silver          July        54199          55607      (2.53)
                                                                                        Pepper          Aug         39070          39925      (2.14)
 On Thursday, at MCX, the top traded commodities in terms of volume were Silver         Chana           Sep         4252           4345       (2.14)
 Micro for June 2012 contract with 310513 lots, Crude Oil for June 2012 contract        Chana           July        4095           4183       (2.10)
 with 245135 lots, Silver M for June 2012 contract with 229969 lots, Copper for June
 2012 contract with 211882 lots and Gold Petal for June 2012 contract with 183224
 lots.
         Daily
Daily Commodity Watch

                                                         Fundamental Market Overview
                                                                MCX Crude Oil (`/barrel)
    Contract                 Close           Open              High       Low          PCP                    % Chg               Volume (In Lots)
    June, 2012                4694            4721              4764            4665            4720           -0.55                  245,135
    July, 2012                4736            4767              4804             4708          4760            -0.50                   21,583

                                           Crude Oil futures ended lower in the domestic and overseas market on Thursday on concerns that a slowing US
                                           economy may curb the demand for the fuel. Crude Oil futures fell after the US Federal Reserve Chairman Ben
                                           Bernanke warned that the deepening Eurozone debt turmoil and the prospect of fiscal tightening in the US are a
                                           significant risk to the US economy, dimming the demand outlook for the fuel. Adding to the disappointment, the
                                           Federal Reserve failed to offer any plans of immediate stimulus to spur growth in the world’s largest crude oil
     Crude oil futures fell in the         consumer. Bernanke said that the central bank will have to access conditions before deciding to undertake
     domestic and overseas market          further monetary easing. Moreover, fuel demand remains weak in the US. Gasoline stockpiles rose 3.35 million
     on Thursday amid concerns             barrels to 203.5 million barrels in the week ended June 1, while demand for the fuel fell 3.2 per cent last week to
     that a slowing US economy             8.65 million barrels per day.
     may curb the demand for the
     fuel
                                           Crude futures also fell amid worries that the deepening debt turmoil in Europe may curb fuel demand. Crude
                                           futures fell after Fitch downgraded Spain’s credit rating by three notches to BBB from A as Europe’s debt
                                           contagion escalates, dimming the demand outlook for the fuel. However, the losses in the fuel were curbed by
                                           optimism that policy easing in China may bolster economic activity in the world’s second largest crude oil
                                           consumer, and spur demand for the fuel. Chinese policymakers lowered interest rates for the first time since
                                           2008 to bolster growth in Asia’s largest economy. China’s central bank lowered the lending and deposit rates by
                                           25 basis points. At the MCX, crude oil futures for the June 2012 contract fell as much as 1.17 per cent at `4,665
                                           per barrel and settled at `4,694 per barrel, down by 0.55 per cent.

       Currently, crude oil futures for the July 2012 contract in the overseas market are trading at $83.17 per barrel, down by 1.97 per cent at 10:10 AM IST.

                                                                 MCX Gold (`/10 grams)
    Contract                 Close           Open              High        Low         PCP                     % Chg               Volume (In Lots)
    August, 2012             29317           30070             30070            29214          30065            -2.49                   75,098
    October,2012             29671           30296             30302            29565          30405            -2.41                     2,481

                                              Gold futures plummeted in the domestic and overseas market on Thursday as the Federal Reserve Chairman
                                              Ben Bernanke offered no hints of an imminent stimulus to bolster growth in the world’s largest economy,
                                              dampening the appeal of the precious metal, considered a hedge against the inflationary risk of monetary
                                              stimulus. Federal Reserve Chairman Ben Bernanke said that the Fed will have to assess conditions before it
                                              decides to undertake further monetary easing as the deepening debt turmoil in Europe and the domestic fiscal
                                              cliff challenges raise the downside risks to US economic outlook. Bernanke’s comments overshadowed
     Gold futures slumped in the              optimism that China’s decision to cut interest rates for the first time since 2008 may bolster the demand for
     domestic market on Thursday as           the precious metal.
     the Fed offered no hints of an
     imminent stimulus, dimming the           Moreover, US robust jobless claims data also weakened the case for additional monetary easing in the US. US
     appeal of the precious metal             jobless claims fell last week for the first time since April, a sign that hiring is picking up. Jobless claims fell
                                              12,000 to 377,000 last week, the Labour Department said. Moreover, the European Central Bank offered no
                                              fresh policy easing measures, dimming the appeal of gold. Gold futures have struggled this year as the
                                              deepening debt turmoil in Europe dimmed the demand for the previous metal as an alternative asset. On the
                                              MCX, gold futures for the August 2012 contract fell as much as 2.83 per cent to touch a day’s low of `29,214
                                              per 10 grams and settled at `29,317 per 10 grams, down by 2.49 per cent.

                                              Currently, Gold futures for the June 2012 contract in the overseas market is trading at $1,568.30 per ounce,
                                              down by 1.15 per cent at 10:35 AM IST.
         Daily
Daily Commodity Watch

                                                                    MCX Copper (`/Kg)
    Contract                   Close            Open           High       Low         PCP                   % Chg              Volume (In Lots)
    June, 2012                 411.05           411.75        414.85        406.25         411.90           -0.21               211,882
    August, 2012               415.95           416.60        419.70        411.40         416.90           -0.23                13,028

                                          Copper futures fell more than 0.20 per cent in the domestic market on Thursday on worries that a slowing US
                                          economy and a worsening debt contagion in Europe may dampen the demand for the base metal. Copper futures
                                          fell after the US Federal Reserve Chairman Ben Bernanke warned that the deepening Eurozone debt turmoil and
                                          the prospect of fiscal tightening in the US pose a significant risk to the US economy, dimming the demand outlook
                                          for the base metal. Adding to the disappointment, the Federal Reserve failed to offer any plans of immediate
     Copper futures closed lower in
                                          stimulus to spur growth in the world’s largest economy. Copper futures also fell amid worries that a worsening
     the domestic market on
                                          outlook in the Euro area, the second largest global copper consumer, may crimp the demand for the base metal.
     Thursday amid worries that a
                                          Sentiment weakened after a report said that the upcoming elections in Greece may be derailed, while Fitch
     slowing US economy and a
                                          downgraded Spain’s credit rating by three notches to BBB from A, a sign that Europe’s debt woes are deepening,
     worsening debt crises in
                                          and dimming the demand outlook for the base metal.
     Europe may curb the demand
     for the base metal
                                          However, the losses in the base metal were stemmed by hopes that further policy easing in China may spur
                                          economic activity in the world’s largest copper consumer, and bolster the demand for the base metal. Chinese
                                          policymakers lowered interest rates for the first time since 2008 to bolster growth in Asia’s largest economy.
                                          China’s central bank lowered the lending and deposit rates by 25 basis points. On the MCX, Copper futures for the
                                          June 2012 contract fell as much as 1.37 per cent at `406.25 per Kg and settled at `411.05 per Kg, down by 0.21 per
                                          cent. Currently, Copper futures for the June 2012 contract in the overseas market, are trading at $3.3235 per
                                          pound, down by 1.37 per cent at 10:43 AM IST.


                                                           Today’s Economic Calendar
    Date            Time (IST)                      Economic Data              Country                         Forecast                   Prior
     8-06-2012       02:00 PM                        PPI Input m/m                         GBP                                             -1.2%
                     06:00 PM                      Employment Change                       CAD                                             249K
                     06:00 PM                        Trade Balance                         U.S.                                           -49.3B


                                                   LME statistics as on June 7, 2012 (In US$/ton)*
    Commodity                           Lead         Aluminum            Copper           Nickel                       Tin                 Zinc
    Cash Buyer                        1915.50             1946.50            7480                 16440               19610               1897.50
    Cash Seller & Settlement           1916                1947             7480.50               16450               19620                1898

                                                   LME Index Value as on June 7 2012- 3,241.9*
        *Last available public data on LME website

                                                    Major Support & Resistance Levels at MCX
    Commodity                  Expiry             PCP         R2           R1           Pivot                        S1            S2          Trend
    Gold                       Aug,12            29317              30350        30000              29510           29100        28846            Down
    Silver                      July,12          54090              56590        55841              54500           53630        53100            Down
    Crude Oil                    June             4694               4778         4745               4705            4660         4620            Down
    Copper                     June,12           411.05              417         414.6              411.8           407.75       403.6            Down
    Natural Gas                  June             126.6             131.5        129.7              127.6           124.8        122.1            Down
    Nickel                       June             916.2              932           924              918.2            901           885             Up
    Lead                         June            105.85             110.4        107.9              106.6           104.1        102.7            Down
    Zinc                         June             104.7             108.3        106.3                105            103         101.9            Down
         Daily
Daily Commodity Watch

  Abbreviations:
  MCX      :        Multi Commodity Exchange
  NCDEX :           National Commodity & Derivatives Exchange
  PCP      :        Previous Closing Price
  NYMEX :           New York Mercantile Exchange
  COMEX :           Commodity Exchange
  LME      :        London Metal Exchange
  OPEC     :        Organization of Petroleum Exporting Countries
  EIA      :        Energy Information Administration
  ECB      :        European Central Bank
  OPEC     :        Organization of Petroleum Exporting Countries




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