Copper prices held the ground and traded above $8,000 after consolidating form recent sharp losses as macroeconomic concerns supported the prices. LME Copper traded above $8,050/t today, and INR 418 at MCX as successful French and Spanish bond auctions eased some fears over the eurozone debt crisis, however weaker US economic data kept some check on prices.
US jobless claims and homes sales numbers fell unexpectedly which indicates lower demand for copper in US. Further, copper prices are also getting support from optimism for more Chinese monetary easing via cutting RRR. We may see some rebound in base metals whereas copper has support resistance at $8250 and 422 while support lies at $7,950 and 413. Lead and zinc prices are also expected to hold their earlier gains.
Crude Oil Steadies Below $103 On Positive Spanish Bond Auction
Crude oil futures traded steadied below $103 on positive Spanish bond auction and weak US job market and housing data. The Brent‐WTI spread widen to $15.50 from $14.50 after Brent oil prices rose after Spain and France meet maximum target in bond auction.
Natural gas prices fell almost 2% traded near $1.91 on bearish inventory data. We expect oil prices to trade sideways to up on positive EU economic sentiment. The speculation over QE3 may also kept momentum in oil prices holding a narrow range in absence of any key economic data in the evening session. Crude oil has important resistance at INR 5435 and support at INR 5350.
NCDEX Ref Soya Oil Gains On Strong Export Demand
NCDEX refined soya oil settled up because of strong export demand and lower production data in the market. When NCDEX soybean settled up due to lower sowings data and strong export and domestic demand in the market and then also soyabean prices is likely to gain up to Rs.3400 per quintal due to strong demand and lower production data from USDA release. NCDEX RM seed settled up by more than 1 percent on account of lower sowings and weak arrivals in the market and is expected to rise up to Rs.4200 in next couple of days.
NCDEX Sugar Gains As Government May Allow More Exports
Yesterday NCDEX sugar prices increased by more than 0.50 percent because the government will consider allowing more exports of the sweetener in the current marketing year ending September. The government has already permitted export of 3 million tonnes of sugar in three equal tranches in the 2011‐12 marketing year (October‐September) as the country is expected to have a surplus production.
Zero import duty on sugar for another three months extended. EGOM to decide on further exports of sugar. While MCX mentha oil prices declined and settled with lower circuit of 4 percent for third consecutive days on back of sluggish offtake by traders and exporters at higher levels along with expectation of strong production in the current year.