Base Metals Higher, Precious Metals Lower

Favorable home sales data from the US acted as a supportive factor for the base metals on the LME on Thursday. Additionally upbeat sentiments in the global markets also lead upside in the metal prices yesterday.

Lead
Lead was the top performer of the day, as the metal rose around 1.7 percent on the LME and by 2 percent on the MCX on Thursday.

The metal received support from fall in inventories on the LME warehouses. Lead inventories declined almost 1 percent to 353,250 tonnes yesterday.

On the MCX, Lead December contract touched an intra-day high of Rs105.90/kg and closed its trading session at the level of Rs105.60/kg on Thursday.

Courtesy: Angel Commodities


Crude oil edges higher on global supply concerns

Nymex crude oil prices increased by 0.3 percent in yesterday’s trading session on speculations that escalating tension in the Middle East may disrupt supplies. Additionally, revival in the global markets due to favorable home sales data from the US also helped upside in prices. However, sharp gains were capped due to rise in US crude oil inventories data yesterday.

Oil prices closed at $99.7/bbl after touching an intra-day high of $99.92/bbl on Thursday. On the MCX, prices declined by 0.4 percent and closed at Rs.5304/bbl after touching an intra-day low of Rs.5247/bbl yesterday.

EIA Inventories Data
As per the US Energy Department (EIA) report last night crude oil inventories increased by 3.9 million barrels to 327.5 million barrels for the week ending on 23rd December, 2011. Gasoline stocks fell by 700,000 barrels to 217.7 million barrels and whereas distillate stockpiles increased by 1.2 million barrels to 140.4 million barrels in the last week.

Courtesy: Angel Commodities


Precious metals slump on US sales data

In the first half on the session, spot gold prices declined sharply by almost 2 percent on Thursday to touch an intra-day low of $1521/oz.

But in the later part of the trade, the yellow metal recovered most of its losses on account of revival in the global markets due to upbeat home sales data from the US. Gold closed its trading session at the level of $1546/oz yesterday.

On the MCX Gold February contract declined by 1.6 percent on Thursday and touched an intra-day low of Rs26,517/10 gms. The yellow metal closed at the level of Rs26,836/10 gms yesterday.

Silver
In the initial part of the trade spot silver prices declined sharply by almost 3.3 percent and touched an intra-day low of $26.14/oz. But in the second half of the session, the white metal recovered its losses and gained sharply by 2.6 percent to touch an intra-day high of $27.85/oz.

Rise in risk appetite in the global markets due to improved data from US supported silver prices yesterday. Silver being an industrial metal also took cues from upside in base metals on Thursday. On the MCX, Silver March contract declined around 0.8 percent and touched an intra-day low of Rs48,562/kg yesterday.

Courtesy: Angel Commodities


India soy complex settles lower on profit booking

Soybean prices gained through out the day while towards closing it ended marginally lower due to profit booking on the previous rally. Spot prices were around `2450-2500/quintal across major markets.

CBOT soybean prices closed lower yesterday on predictions of few showers across Latin American countries. Year end profit booking also added to the losses of soybean prices in the international markets.

Soy oil prices gained in the first session while towards closing it ended the day in red. Profit booking at higher price levels prompted prices to end the day in red.

CBOT soy oil prices ended lower due to year end profit booking and limited activities due to New Year holidays.

Mustard seed prices sustained gains in Indian markets as the spot prices surged steeply by `50-80/quintal across major spot markets.

Good demand for edible oil and increase in the ex-factory prices of the meal is supported price gain. Seed prices sprung up substantially as mustard seed production estimates were released.

Courtesy: Karvy Comtrade Ltd.