Daily Commodity Market News By Epic Research - 24th February 2014

COMMODITY WRAPUP

GOLD

MCX Gold April as seen in the weekly chart prices rallied sharply breaking both the resistance levels towards 30,260 levels, but

could not sustain corrected back towards 29,900 levels. For the next week we expect gold prices to find support around 29,300 levels.

Trading consistently below 29,300 levels would lead towards the strong support at 29,050 levels and then finally towards the major

support at 28,800 levels. On the other side Resistance is now observed around 30,500 levels. Trading consistently above 30,500 levels

would lead towards the strong resistance at 31,000 levels, and then finally towards the Major resistance at 31,500 levels.

BUY GOLD(APR) ABOVE 29980 TGTS 30060/30200 SL 29860

SELL GOLD(APR) BELOW 29790 TGTS 29710/29610 SL 29910

 

SILVER

March Silver opened week at 47, 492 levels and made weekly low of 46,932 levels and high of 48,090 levels and manage to close near

to the same opening levels. For the next week we expect silver prices to find support around 46,850 levels. Trading consistently below

46,850 levels would lead towards the strong support 46,000 levels. On the other side Resistance is now observed around 48,200 levels.

Trading consistently above 48,200 levels would lead towards the strong resistance at 49,200 levels, and then finally towards the Major

resistance at 50,000 levels.

BUY SILVER ABOVE 47700 TGTS 47900/48200 SL 47350

SELL SILVER BELOW 47250 TGTS 47000/46650 SL 47600

GUARGUM

March Guargum traded standstill in NCDEX the whole day and closed weak. A day before Guargum remained choppy on

Spot market too.

BUY GUARGUM ABOVE 13350 TGTS 13410,13480 SL 13250

SELL GUARFUM BELOW 13180 TGTS 13120,13050 SL 13280

SPECIAL NEWS

US soybean stocks are to near-double to their highest in eight years, with corn inventories seen hitting their highest in a decade, officials said in their first full crop estimates for next season. Soybean inventories in the US, which spars with Brazil as the top grower of the oilseed, will end 2014- 15 at 285m bushels, as even record exports of 1.6bn bushels, up 6.0% year on year, prove unable to erode supplies

lifted by a harvest seen hitting a record high. Corn’s global trade over the next decade is expected to in-

crease by 30% while soybean global trade is expected to expand by almost 40%, said chief economist for the USDA.

He added that he expected to see a 15% increase in global trade of wheat during the same time period. In his prepared comments at the Feb. 20-21 USDA Agricultural Outlook Forum, the U.S. could expect robust export competition from Brazil in soybeans and corn and the Black Sea Region in wheat and corn. India’s gold demand remained buoyant in 2013 and rose by 13 % to 975 tonne vs 2012, despite govt putting in several restrictions to curb imports. Gold demand in the country was 864 tonnes during 2012. China became the largest gold market in the world for the first time in 2013, noted the WGC. Demand for gold in China set a remarkable new record of 1,066 tonnes, a rise of 32% year on year.

COMMODITY BUZZ

The Gems and Jewellery Export Promotion Council has de- manded the government to reduce import duty on gold from the existing 10 per cent to two per cent. The council comes under the ministry of commerce. In a memorandum to the ministries of commerce and finance, GJEPC said the govern- ment, with duty hike on gold imports, had managed to bring the current account deficit under control. “Since the imposi- tion of 80:20 scheme (under which 20 per cent of imported gold should be supplied to jewellery exporters), the desired curb in the total import of gold has now been duly achieved. So the import duty should be rolled back to much lower rate, say two per cent,” said Vipul Shah, chairman of GJEPC. FMC and NCDEX is planning to apply for approval of the re- launch of futures trading in tur, urad and rice. This comes in

the wake of the FMC chairman Ramesh Abhishek stating in Panji on Thursday that the regulator is considering favorably to bring back futures trading in tur, urad and rice shortly. Oil prices fell in Asian trade after a closely-watched index showed that China’s key manufacturing sector contracted further in February to hit its lowest level in seven months. US benchmark WTI for March dropped 17 cents to $103.14 in late morning trade, while Brent North Sea crude eased 56 cents to $109.91 for its April delivery.

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