COMMODITY UPDATES

Base metals are mixed in tight ranges as the market remains focused on a meeting of eurozone finance ministers regarding Greece's bailout package. The meeting is scheduled to start later in the global trading day. Last week business confidence data and fall in Dollar elevated the base metals.
Germany business climate index increased to 101.4 in October compared to 100 in the month of September. In France, the business confidence rose more than expected. INSEE said that French Business Confidence increased to 88 in the quarter ending September 2012, compared to 85 in the previous quarter.
In US, Federal Reserve Chairman Ben Bernanke warned on the US budget crisis. Bernanke remained worried on the pace of recovery and improvement in jobs markets at a slower pace. Bernanke remained worried on the percentage of budget deficit. The budget deficit now stands at 7 percent of the GDP.
World Bureau of Metal Statistics (WBMS) showed that copper market recorded a deficit of 267000 tonnes in January to September 2012 which follows a surplus of 248000 tonnes in the whole of 2011. The total reported stocks rose by 3700 tonnes during September and ended the month 129000 tonnes lower than at the end of 2011.
World Lead market was in surplus of 11000 tonnes in January- September 2011. Lead markets were in surplus of just 600 tonnes in full year ended 2011. The total stocks at the end of September were 86200 tonnes lower than at the end of 2011.
In currency markets, Dollar slowed sharply down against the Euro ending at 1.2977 compared to 1.2827 on Monday. Dollar is now seen trading at 1.2956 against Euro and is expected to bring some profit booking in the metals space.
LME Copper ended the last session at $ 7692 per tonne, down $ 42 per tonne. MCX Copper ended at Rs 431 per kg, compared to Rs 425 per kg at the beginning of the week. MCX Nickel closed at Rs 920 per kg last week compared to Rs 916 per kg on Monday. LME Nickel three month forwards closed at $ 16595 per tonne, down $ 130 per tonne.

COMMODITY UPDATES

Gold futures are little changed since the morning as the floor trading remains shut on occasion of the Thanks Giving Day in US.

Since last few days gold has traded in a quite tight range as the as investors are clueless with regard to congressional leaders’ negotiations on the deficit reduction issue and unabated debt crisis in the euro zone.

An ounce of gold on COMEX division of New York Mercantile Exchange is trading up $5.5 at $ 1729.1 in early European session today.

COMEX division of the New York Mercantile Exchange will remain closed on Thursday on account of Thanksgiving Day and will close earlier than normal trading hours on Friday.

According to a data provided by the International Monetary Fund, central banks from emerging markets continued to increase their holdings in October. Brazil, Turkey and Kazakhstan, all increased their gold holdings with an aim to diversify their foreign kitty in the back drop of growing macroeconomic uncertainty and ultra period of ultra loose monetary policies-which threatens currencies debasement.

On the data front today, Chinese manufacturing activity expands for the first time in more than a year in November, preliminary HSBC data show, suggesting the economy may really be in recovery mode at last.

MCX December gold futures are trading up by nearly Rs 15 at Rs 31827 per 10 grams. The counter may face a resistance near Rs 31900 levels in the near term.

Commodity MCX Cardamom Updates

Cardamom ended up for the second day on short covering and festive demand. MCX cardamom November contract ended the day at Rs 847.20, up Rs 4 or 0.47% from the last close.

The average prices of cardamom in the auction held at Mas Enterprises, Vandanmettu on Friday (as on 26th October 2012) stood at Rs 744.56 and maximum price was at Rs 1018 per kg. The arrivals and offtakes stood at 22808 kg and 21423 kg respectively.

Cardamom plunged sharply in the last two months with November contract hitting the contract lows of Rs 830 a kg. The counter edged up with contract hitting the high at Rs 853.50 and contract ended the day at Rs 847.20, up Rs 4 or 0.47% from the last close. The open interest dropped 51 positions to 4,523 lots, indicating long liquidations.

Gold News

Gold futures are trading flat in the Asia electronic trades today with lack of cues in the markets right now. The Asian equities are trading higher, crude oil futures are also trading steady above $92 a barrel, however silver and other base metals were trading slightly lower this morning.
Gold for December delivery are trading flat at $ 1771 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it closed up $5.5, or 0.3%, to $1,770.6 and during the intraday trading it rose to a high of $1,774.5. 
The US dollar softened yesterday after series of gains since Standard & Poor's Ratings Services had cut Spain's credit rating to BBB-, just one notch above junk status. The ICE dollar index, which measures the greenback against a basket of six other currencies, fell by almost 0.25% on Thursday.
In news yesterday, the Labor Department in US reported that number of U.S. workers who filed new applications for unemployment benefits dropped sharply, by 30,000, last week to 339,000, the lowest level in more than four years. 
Separate report showed that the trade deficit widened to $44.2 billion during August after the prior month's reading was revised down to $42.5 billion. Market had expected that the deficit would come in at $43.6 billion.
MCX December gold futures may open today’s session near Rs 31350-70 levels with resistance near Rs 31410-20 levels. 
Next week, the minutes of the Reserve Bank of Australia’s latest monetary policy meeting will dominate the markets. Also due next week are the consumer price index figures in the United States, and Chinese inflation. In the corporate world, a number of miners will release quarterly production reports including Rio Tinto, BHP Billiton and Fortescue Metals.

Commodity updates

Advisory Data:-

Non ferrous metals were trading on a weak note on expectations of dejection from Chinese trade data due to be released on Saturday. The inflation numbers from China will be released on Monday next week. Many investors still opted to stay on the sidelines before the Chinese trade data. China is a major consumer of metals in the world therefore caution before the trade data is quite high.
Today, Shanghai weekly inventory of Copper increased by 18967 metric tonnes or 11.7% to 181514 metric tonnes on 12 October 2012. London Copper inventories declined marginally by 3630 tonnes on Friday to 215900 metric tonnes. LME Copper three month forwards were trading at $ 8164 per tonne, as against $ 8212 per tonne on Thursday.
Refined Copper production is likely to increase by only 1.5% to 19.95 million tonnes in 2012 compared to 20 million tonnes in the previous year. ICSG expects world apparent refined usage in 2012 to grow by 2.6% from that in 2011 to 20.4 million tonnes.
MCX Copper November expiry declined in the weekend trading at Rs 435.8 per kg, up 0.4%. The prices tested a high of Rs 437.7 per kg. Resistances for the contract are at Rs 441 and 443 per kg. supports for the contract is at Rs 432 per kg.
London Aluminium was at one month low as it slipped to $ 2003 per tonne on Friday. The metal settled at $ 2019 per tonne after the day's low. MCX Aluminium performed the worst among metals trading at Rs 105 per kg and bearing losses of 0.61%. This week, mining major Alcoa has moderated its 2012 global aluminum demand forecast to 6%, down from 7%.