MTECHTIPS COMMODITY MARKET NEWS 1 MTECHTIPS:-Gold slightly higher after Cyprus rejects deposit tax Gold futures are trading modestly to the upside in the early part of Wednesday’s Asian session after Cyprus’ parliament rejected the controversial bank deposit levy plan set forth by the European Union and the International Monetary Fund. The vote is seen as imperiling the island nation’s ability to secure vital bailout assistance. On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose 0.06% to USD1,612.20 per troy ounce in Asian trading Wednesday after settling up 0.43% at USD1,611.50 a troy ounce in U.S. trading on Tuesday. Gold futures were likely to test support USD1,590.80 a troy ounce, Monday's low, and resistance at USD1,619.40, the high from Feb. 26.Late Tuesday, Cypriot policymakers rejected the highly unpopular plan that would tax bank deposits in the country of less than EUR100,000 at a rate of 6.75% and deposits north of that amount at a rate of 9.9%. The vote casts doubt on the ability of the country to secure bailout funding and has prompted fears Cyprus could go bankrupt and be forced out of the euro zone. While Cyprus has rejected one plan, some market participants expect another plan will be forthcoming as European policymakers do not want to tempt fate and risk the departure of any of the euro zone member states. MTECHTIPS:-Oil rises despite Cyprus’ rejection of deposit tax Oil futures are trading slightly higher during the early going in Wednesday’s Asian despite news that Cyprus’s parliament rejected the plan offered by the European to tax bank deposits in the tiny island nation. On the New York Mercantile Exchange, light, sweet crude futures for April delivery rose 0.01% to USD92.53 per barrel in Asian trading Wednesday after falling slightly during Tuesday’s U.S. session. New York-traded oil prices held in a range between USD93.69 a barrel, the daily low and a session high of USD94.45 a barrel, which was strongest level since February 25.Traders appear to be focusing more on Cyprus than the most recent economic data out of the U.S., the world’s largest oil consumer. In economic news, the Commerce Department said U.S. housing starts increased 0.8% last month a to seasonally-adjusted rate of 917,000. Permits to build new homes rose 4.6% to 946,000 units, the best rate since June 2008. Single-family housing starts increased 0.5%.Late Tuesday, Cypriot policymakers rejected the highly unpopular plan that would tax bank deposits in the country of less than EUR100,000 at a rate of 6.75% and deposits north of that amount at a rate of 9.9%. The vote casts doubt on the ability of the country to secure bailout funding and has prompted fears Cyprus could go bankrupt and be forced out of the euro zone.While Cyprus has rejected one plan, some market participants expect another plan will be forthcoming as European policymakers do not want to tempt fate and risk the departure of any of the euro zone member states. MTECHTIPS:-NCDEX Sugar: Sell at 3020 with stop loss 3045; target 2990 Sugar futures for April delivery on India's National Commodity and Derivatives Exchange (NCDEX) is expected to trade negative in upcoming sessions, according to our analyst“The commodity has good resistance at 3045 while 2990 is the support. Traders are advised to take short sell position near 3020 with the stop loss of 3045 for the target of 2990,Earlier, NCDEX sugar prices edged down on fresh selling and closed at 3012. Sluggish demand from the bulk buyers followed by higher supply are the key reasons for the negative trend in both spot and futures market.Meanwhile, sugar mills in Maharashtra have stopped their crushing process due to non availability of sugar cane.India's sugar production in 2013-14 may fall to around 24 mn tn against current year’s output of 24.5 mn tons, according to a statement by the union Agriculture Minister Sharad Pawar.India's sugar output for the season 2013 – 14 is set to fall below demand for the first time in four years as a result of severe water shortage in key sugar cane growing areas MTECHTIPS:-NCDEX Chana range bound; trading range 3350-3450 On the NCDEX, chana for April delivery is looking range bound for the day. The commodity's trading range is likely to be between 3350- 3450, according to our analyst.The contract was trading on a positive note at Rs. 3407, a gain of 0.24% as of 11.34 AM IST, Wednesday.“Trend of chana for April delivery is looking range bound and 3350-3450 is likely to be the range for the commodity. Either side break out will give clear direction to the prices,Chana acreage has increased to 94.78 lakh ha vs 89.92 lakh ha last year. Good weatherconditions in growing areas in MP, Maharashtra and Rajasthan have been responsible for the improved productivity and production prospects.Regular imports are also preventing major uptrend for Chana rates. Raising of MSP for Chana last year has resulted in higher acreage for the Rabi crop this year in states of Madhya Pradesh and Maharashtra. Conducive weather in growing states have been creating a bearish impact on the commodity rates for last few months. MTECHTIPS:-NCDEX Coriander down on profit booking; positive for short term Coriander futures for April delivery on India's National Commodity and Derivatives Exchange (NCDEX) is down on profit booking, however the commodity looks positive for short term, according to our analyst.“Intra-day sellers can get benefit of the profit booking by selling with some gains, while buyers may buy on dips,“Short term traders can buy around 6550 with the stop loss of 6400 for the target 7050. The commodity has support at 6400 while 7050 is the resistance,” he added.NCDEX coriander for April delivery was down by 1.27 percent at Rs.6789 per 100 kg as of 11.44 PM IST on Wednesday.Rising arrivals in physical markets are expected to keep coriander prices down. However, for long term the commodity looks positive to bullish on lower production estimates. MTECHTIPS:-NCDEX Soy Oil range bound; trading range 665-675 Soy oil on the NCDEX for April delivery is looking range bound. Trading range of the commodity is likely to be between 665-675, as per our analyst.The contract was trading on a positive note at Rs.669.6, a gain of 0.07% as of 11.59 AM IST, Wednesday.“Trend for soy oil for April delivery is looking range bound and 665-675 is likely to be the range for the commodity. Either side break out will give clear direction to the prices,India's import of vegetable oils during February 2013 is reported at 969,175 tons compared to 876,669 tons in February 2012, consisting of 954,176 tons of edible oils and 14,999 tons of non-edible oils, up by 10.55 %.The overall import of vegetable oils during Nov.’12 to Feb.’13 is reported at 3,735,263 tons compared to 3,061,923 i.e. up by 21.99%. MTECHTIPS:-NCDEX Castor Seed likely to be negative; support at 3500 On India’s NCDEX, castor seed for April delivery is likely to be negative. The commodity is likely to have support at 3500 and resistance at 3740 level, as per our analyst.The contract was trading on a positive note at Rs.3625, a gain of 0.78% as of 02.34 PM IST, Wednesday.“Castor seed on the NCDEX is looking negative and sell on rise is advised to the traders. Support for the commodity is likely to be at 3500 while resistance is at 3740 level,Castor seed output of India may fall to the lowest levels since 2010- 11 at around 1.14 mt for2012- 13, according to estimates. Inadequate water availability has affected the castor crop prospects in India, the world’s largest producer of the oilseed.Production fall is seen in Gujarat and Rajasthan, two major castor growing states, at around29% and 11%, respectively. Total area under castor crop in the country has been registered at around 1.1 mn hectares (ha) this year against 1.14 mn ha, lower by about five per cent on year- on- year basis. MTECHTIPS:-Gold futures hold steady near 3-week high ahead of Fed decision Gold futures were little changed near the previous session’s three- week high on Wednesday, as investors looked ahead to the outcome of the Federal Reserve’s policy meeting later in the day. Uncertainty remained over the situation in Cyprus, where the country’s parliament rejected a proposed bank deposit tax, which formed part of a EUR10 billion international bailout deal.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,610.60 a troy ounce during European morning trade, nearly flat on the day.Prices held in a tight USD5- trading range between USD1,609.70 a troy ounce, the daily low and a session high of USD1,613.90. Comex gold prices rose to USD1,614.60 a troy ounce on Tuesday , the strongest level since February 26.Gold prices were likely to find support at USD1,560.60 a troy ounce, the low from March 8 and near-term resistance at USD1,619.40, the high from February 26.Market players were looking ahead to the outcome of the Federal Reserve’s two-day policy meeting, as investors try to assess the central bank's attitude towards monetary stimulus.Data on Friday showed that U.S. inflation was contained in February, leaving the way clear for the central bank to continue its bond-buying program.Fed Chairman Ben Bernanke is to give a press conference after the release of the policy statement.Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed could bring quantitative easing to an end this year. MTECHTIPS:-Crude oil futures edge higher ahead of U.S. supply data, Fed meeting Crude oil futures edged higher during European morning hours on Wednesday, as traders looked ahead to closely-watched weekly supply data on U.S. stockpiles of crude and refined products from the U.S. Energy Information Administration later in the day.Investors were looking ahead to the outcome of the Federal Reserve’s policy meeting, as well as developments surrounding a bailout deal for Cyprus.On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD92.78 a barrel during European morning trade, up 0.3% on the day.New York-traded oil prices held in a range between USD92.36 a barrel, the daily low and a session high of USD92.95 a barrel.Oil traders looked ahead to data from the U.S. government on oil and fuel supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.The report was expected to show that U.S. crude oil stockpiles increased by 2 million barrels last week, while gasoline inventories were forecast to fall by 2.1 million barrels.After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories unexpectedly fell by 0.4 million barrels last week, while gasoline stocks rose by 0.3 million barrels.Market players also looked ahead to the outcome of the Federal Reserve’s two-day policy meeting later in the day, as investors try to assess the central bank's attitude towards monetary stimulus.Fed Chairman Ben Bernanke is to give a press conference after the release of the policy statement. MTECHTIPS:-Copper futures bounce off 7-month low with Fed, Cyprus in focus Copper futures regained strength during European morning hours on Wednesday, bouncing off a seven-month low as investors were looking ahead to the outcome of the Federal Reserve’s policy meeting later in the day, as well as developments surrounding a bailout deal for Cyprus.Weakness in the U.S. dollar also contributed to copper’s strength. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.2% to trade at 82.98.On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.438 a pound during European morning trade, up 1% on the day.New York-traded copper prices rose by as much as 1.2% earlier in the day to hit a session high of USD3.444 a pound.New York-traded copper prices fell to USD.3389 a pound on Tuesday, the weakest level since August 21, as worries over a controversial bailout deal for Cyprus and concerns over a slowdown in demand from top consumer China weighed on the industrial metal.Cyprus’s President Nicos Anastasiades called an emergency meeting with political leaders to look at alternatives after parliament rejected the terms of the bailout agreement on Tuesday.Following the vote, the European Central Bank said it will provide liquidity to Cypriot banks within existing rules.Market sentiment remained supported amid growing expectations that the European Union will renegotiate a deal with Cyprus to keep the country in the euro zone.