Commodity Report by Mit
-
Upload
nishantjain95 -
Category
Documents
-
view
212 -
download
0
Transcript of Commodity Report by Mit
-
8/22/2019 Commodity Report by Mit
1/2
Commodity Report
Gold
Open High Low Close
1277.14 1286.40 1275.20
After the speech of Ben Bernake on Wenseday , 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. dolar index ticked up, strengthening the dollar angainst 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 apptite 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 High Low Close
108.63
The U.S. dollar strengthend 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
curreny 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 depress
the value of dollar. Ther increase in the demand from the U.S. the largest consumer of crude oil is alsohelping oil price to lift up. The Egypt crisis are disrupting the supply of the crude oil from the middle east
countries
-
8/22/2019 Commodity Report by Mit
2/2
Agro commodity
Sugar
Macro EconomicsIndian 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 festivals.
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 toprotect farmers and traders as domestic sugar prices have been witnessing a negative trend as a result ofample 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 rain in the countrys main growing region is set to disrupt harvesting.