Riding on the back of stronger Euro, most of the base metals are up from the last week close. The worries regarding US fiscal deficit and European debt that was in limelight all through last week has been put aside for some time by traders. Dollar-denominated commodities appear cheaper to holders of other currencies when the greenback retreats. The EUR/USD is at 1.2762 versus 1.2735 on Friday last week.
Even after bets of weak COMEX Copper by money managers, LME Copper was up by 1 percent from last week, trading at $ 7659 per tonne. These are the same levels from which LME Copper slipped in the beginning of the month. This is indicative that some selling pressure in red metal near resistances of $ 7660 and 7680 per tonne.
The Commodity Futures Trading Commission (CFTC) managed money funds remained betting on weakness in Comex Copper futures for coming days as per Commitment of Traders report for the week ended 13 November 2012.
Traders in the category sold 1937 bullish bets on Copper while adding another 966 short positions, or bets on lower prices. This took their net positions down 60 percent to 831 short contracts from 2072 long contracts a week earlier.
Indian Copper futures generated a return of 1.2 percent in the week ending 17 November 2012. The prices remained elevated due to fall in Indian Rupee against the Dollar. INR tested an eight week low of 55.2 against the Dollar last week. MCX Copper November ended at Rs 421.8 per kg.
Aluminium inventories showed sharp increase in Shanghai and LME. Shanghai inventories of Aluminium were up by 6673 tonnes to 460649 tonnes. Shanghai Aluminium inventories have gained by 108% in 2012. On LME, inventories moved up by 18325 tonnes to 5105425 tonnes on Friday.
Meanwhile, China Bureau started buying metals in a restocking exercise though falling short of initial targets. The Bureau purchased 100000 tonnes Zinc and Aluminium. Total Zinc purchases were 159000 tonnes in between December 2008 and February 2009. State bureau has planned to purchase 150000 tonnes of Zinc and 160000 tonnes of Aluminium.
LME Aluminium was up by $ 5 per tonne, at $ 1946 per tonne. MCX Aluminium ended at Rs 107.2 per kg on Friday. The metal is expected to trade in a range of Rs 109 and 105 per kg in short term.
In economic report, U.S. industrial production fell unexpectedly last month, official data showed on Friday. In a report, the Federal Reserve said that industrial production fell to -0.4%, from 0.2% in the preceding month whose figure was revised down from 0.4%. Analysts had expected industrial production to rise 0.2% last month.
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India Infoline News Service / 11:17, Apr 24, 2015
The ice-cream market in India is estimated at Rs 3,500 crore and Gujarat is the largest market.