Commodity Report

Gold
Open
1277.14

High
1287.58

Low
1274.78

Close
1277.17

After the speech of Ben Bernake on Wednesday, he said that the Fed Reserve will decide on the Quantitive Easing program based on the growth of the economy which is now showing the sign of improvement. The U.S. dollar index ticked up, strengthening the dollar against the Euro after the statement. The gold in the previous session touched a fresh high of 3 weeks to $1299.70 which then ended on a negative note after the speech at $1277 an ounce. This drop was majorly because of increase in the risk apatite of people for the higher return. People parked their investments in the dollar for the higher return and divested from the gold as it is not going to give high returns in short term. Today the gold was on a bit bullish end and no significant movement was observed.

Crude Oil
Open
108.63

High
108.70

Low
108.03

Close
108.61

The U.S. dollar strengthened after the statement assuring the continuation of the bond buying program by Fed Reserve. This made crude oil more expensive, as oil is dollar priced commodity, the other weaker currency in exchange will have to pay more in terms of dollar to purchase crude oil. This lead to decrease in the demand of the crude and ultimately the push down in the price of crude oil. The crude oil got lift from the inventory data released for oil which dropped by 6.9 million barrels and crude oil went up from 105.80 to 106.09. The Feds program stands as one of the main indicator for the commodity prices as it tends to d epress the value of dollar. The increase in the demand from the U.S. the largest consumer of crude oil is also helping oil price to lift up. The Egypt crisis are disrupting the supply of the crude oil from the Middle East countries.

Copper:
Open
469.30

(In INR)

High
471.20

Low
468.90

Close
469.60

Copper, the leader of the base metals pack declined around 0.1 percent today on the back of forecast that Chinese economy will not grow as expected by the IMF. Further, strength in the DX exerted downside pressure on prices. However, sharp downside in prices was prevented on account of decline in LME copper inventories by 0.1 percent which stood at 640,600 tonnes coupled with upbeat global markets. Depreciation in the Indian Rupee supported an upside in prices on the MCX. We expect precious metals, base metals and crude oil prices to trade higher on the back of expectation of favorable economic data from the US.

Agro commodity Sugar Macro Economics

Indian sugar futures fell on Thursday to their lowest level in two weeks as subdued demand from bulk consumers amid ample supplies outweighed a likely rise in demand due to ramzan The august contract on NCDEX was down 0.43 percent at 3,029 rupees ($50.92) per 100 kg after falling to 3,028 rupees earlier, the lowest level since July 3. Mills are not interested in lowering prices in tenders, but demand is very weak from bulk buyers. Retail demand is also modest. Spot sugar edged down 5 rupees to 3,068 rupees per 100 kg at the Kolhapur market in Maharashtra state. India's sugar output in the 2013/14 is likely to drop 5.2 percent from a year earlier to 23.7 million tonnes, compared with a local demand of around 23 million tonnes. Sugar is likely to fall more because Government to raise sugar import duty from 10% to 15% in order to protect farmers and traders as domestic sugar prices have been witnessing a negative trend as a result of ample supply.

Overseas
Sugar production in Thailand, the world's second largest sugar producer after Brazil is expected increase by 10% to a record 11 million tons in the season. Sugar gained to a one-week high in New York as Brazils real (currency) rain in the countrys main growing region is set to disrupt harvesting. Raw sugar for October delivery gained 0.5 percent to 16.16 cents a pound on ICE Futures U.S. in New

York. The price touched 16.29 cents a pound, the highest for a most-active contract since July 11. White sugar for October delivery was up 0.6 percent at $462.50 a ton on NYSE Liffe in London.

Other Commodities:
CONTRACT
NATURALGAS - Jul'13 SILVERM Nov13 LEAD Jul13 NICKEL Aug13

LAST
225.5 41350 121 839.50

CHANGE %
4.25 0.92 0.67 0.60