MTECHTIPS COMMODITY MARKET NEWS 2

MTECHTIPS:-Gold near unchanged after Australian jobs data
Gold prices were largely unchanged during Asian trading on Thursday as investors priced in economic data that showed that the Australian job market was stronger than expected.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down just 0.01% at USD1,678.55 a troy ounce in Asian trading, up from a session low of USD1,677.25 and down from a high of USD1,679.75 a troy ounce.Gold futures were likely to test support at USD1,668.85 a troy ounce, the low from Wednesday, and resistance at USD1,683.75, Tuesday's high.Earlier on Thursday, data released in Australia showed that the employment situation in the country was improving to a greater extent than economists had anticipated. The numbers of employees increased by 10,400, more than the expected 5,000 and significantly more than the prior measure, which showed a decline of 3,800 jobs.With the added jobs, Australia’s unemployment rate stayed at 5.4%. Economists had expected it to tick up to 5.5%.At the same time, New Zealand’s employment situation also improved, with the unemployment rate in New Zealand dropping to 6.9% from 7.3%. Economists had expected a decline, but only to 7.1%.In Japan, core machinery orders increased 2.8% on a month-over-month basis. That’s more than the decline of 0.7% that economists had forecast, but less than the prior reading which showed an increase of 3.9%.

MTECHTIPS:-Crude oil posts slight rally after positive economic data
Oil prices rallied slightly in Asian trading on Thursday as traders priced in economic data that showed that the employment situation was improving in Australia and New Zealand. At the same time, investors eagerly awaited the European Central Bank’s interest rate decision.On the New York Mercantile Exchange, oil futures for March delivery were up just 0.14% at USD96.75 per barrel in Asian trading, up from a session low of USD96.70 and down from a high of USD96.89 per barrel.Oil futures were likely to test support at USD95.14 per barrel, the low from yesterday, and resistance at USD97.90, a high from February first.Crude oil, as the primary energy source for the world’s developed economies, is sensitive to economic indicators, particularly those that suggest jobs growth. With more people employed, the demand for energy would tend to increase.Earlier on Thursday, jobs data released in both Australia and New Zealand showed that the employment was growing in both nations. Australia's unemployment rate was unchanged at 5.4% (economists had forecast an increase in the rate to 5.5%) while New Zealand’s unemployment rate decline to 6.9% from 7.3%.At the same, in Japan, data showed that core machinery orders had increased 2.8% in the last month; economists expected the figure to show a decline of 0.70%. If machinery orders are increasing, demand for oil Japan may likewise increase. MTECHTIPS:-MCX

Crude PalmOil bullish; support at 445 and 472resistance

Crude Palm Oil (CPO) futures for March delivery on India's Multi Commodity Exchange was positive on seasonal fall in palm oil production in Malaysia, the second largest CPO producer in the world.“Over all trend for CPO March delivery is looking bullish at current level for short and medium term. Support is there at 445 and 472 is the resistance.“Traders are advised to buy above 472 level with the stop loss of 445 for target 492,” he added.MCX CPO futures was up by 0.63 percent at Rs.461.30 per 10 kg for March delivery as of 11.10 AM IST on Thursday.In India, traders have started to build edible oil inventories for short term with the anticipation of rise in the edible oil

prices in coming days, this trend has limited the up-tick movement of MCX CPO futures and spot market prices.

MTECHTIPS:-Price gains inbase metals for 2013 limited by higher inventory,excess capacity
The price gains in base metals complex may be limited by higher inventories and excess capacity in 2013 coming close on the heels of a disappointing market in 2012, according to Natixis.“In particular, the disappointing pace of growth last year led to a rise in stockpiles of most base metals, which may limit potential price gains in 2013. Our optimism regarding growth across the developing world suggests that base metal prices can rise this year, even if this price appreciation is likely to be limited by high inventories and excess capacity for many metals.”Potential downside risks exist with respect to China growth, US economic recovery and even though the worse may be over the for Europe‟s fiscal crisis, Natixis said. “Amid the chaos in Europe over the past three years, we may have become too complacent about the economic and political risks in developing countries. Across the developing world, debt issuance has expanded rapidly in recent years as investors have sought alternatives to low-yield/high-risk debt from European countries. As these bonds mature in coming years, there is substantial scope for disappointment among investors who were seeking yield enhancement through diversification into these new markets.”

MTECHTIPS:-India GDP may grow 5% in 2012-13: Govt.
India's Gross Domestic Product (GDP) growth is estimated at 5.0 percent for 2012-13 when compared to the growth rate of 6.2 per cent in 2011-12, according to the data released by Central Statistical Organisation (CSO) and Ministry of Statistics and Programme Implementation.GDP for the year 2012-13 is likely to attain a level of Rs.55,03,476 crores, as against the first revised estimate of GDP for the year 2011-12 of Rs. 52,43,582 crore, released on 31st January 2013, the report added.There may be slow growth in the sectors of 'agriculture, forestry and fishing' (1.8%), manufacturing (1.9%) and electricity, gas & water supply (4.9%). The growth in the mining and quarrying sector is estimated to be (0.4%).The „agriculture, forestry and fishing‟ sector is likely to show a growth of 1.8 per cent in its GDP during 2012-13, as against the previous year‟s growth rate of 3.6 per cent.The production of cotton and sugarcane is also expected to decline by 4.0 per cent and 6.5 per cent, respectively, in 2012-13. Among the horticultural crops, production of fruits and vegetables is expected to increase by 3.5 per cent during the year 2012-13 as against 5.1 percent in the previous year.

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