commodity tips advisory.com

MCX benchmark gold futures are trading down over RS 150 at Rs 27521 per 10 grams. It may find support at Rs 27470-440 and RS 27390 levels. 

Projected U.S. sugar supply for fiscal year 2011/12 is decreased 578,000 tons, raw value, from last month, mainly due to lower imports from Mexico. Mexico's sugar exports are reduced to reflect lower availability, as production is dropped based on lower-than-expected sugarcane yields and sugar recovery from harvested sugarcane for the season to date. Also, Mexico's sugar imports are lowered to reflect the slow pace of entries under two previously announced tariff rate quotas (TRQ). Other reductions in U.S. supplies include a minor reduction in production (Texas) and TRQ imports from Dominican Republic. Sugar use in the United States is unchanged from last month.

Lower intake of end users has resulted in the jump of weekly Aluminium inventories reported on Friday. The overall inventory levels are now at 226927 tons on 13 Jan 2012, up 5303 tons from 221624 tons on 6 Jan 2012. China is approaching its Lunar New Year and due to these physical markets is witnessing lower demand and more spotlight is on stocking the material in the warehouses. 

China is a major Aluminium consumer in the world, with total demand expected to be 19 million tons in 2011 while a further jump towards 21.3 million tons is expected in the year 2012. Total world demand is expected to improve to 47 million tons in 2012 as per World major ALCOA.

LME three month forward prices is trading at $ 2165 per ton down by a marginal 0.1%. MCX Aluminium is trading at Rs 110.2 per kg, down 0.2%.

Indian red Chilli futures tumbled sharply on technical selling triggered by higher output estimations, weak exports and weakness in the spices complex. Most of the spices plunged today on selling and profit taking activities.

 Market sources are hoping higher chilli crop this year, almost 25% up from the previous year, a leading trader from the Guntur reported. 

According to latest data by the Spices Board of India, Chilli exports during April-November 2011, fell 23.6 percent on year to 132500 tonnes, but rose 20.2 percent in rupee terms to 12.66 bln rupees as the prices touched record high in April.

Therefore, the NCDEX red chilli extended the losses for the second day on profit taking. The most active Red Chilli February contract is currently trading lower at Rs 6,294, down by Rs 98 or 1.53% over the last close. The open interest added 1.18% to 3,405 tonnes, indicating short selling.

Indian Jeera futures eased from the high on short selling at higher levels amid weak spices complex. The most active February Jeera moved in the range of Rs 16,749-16,230 per quintal. The contract is currently trading at the end session at Rs 16,250, down Rs 300 or 1.81% over the last close. 

The open interest dipped 1.44% to 17,298 tonnes, indicating profit taking and the volume traded surged to 10,836 tonnes from 10,566 tonnes.

Mixed sort of trades were prevalent in the base metals on Friday. Euro was showing volatile moves ahead of the Italian debt sale on Friday though during most part of the day Dollar remained on a lower side. Dollar trades at 1.279 against the EURO after testing a high of 1.2773 and a low of 1.2878. Precarious situation persisted in the metals where traders opted to sell and book profits ahead of weekend while positive European currency moves provided buying.

LME Copper was well above $ 7940 mark in early Asian trades and picked up from two month high to reach $ 8023 per ton. LME Copper rallied by 6% this week. LME inventories data showed a decline of 1425 tons to 356825 tons. Indian Copper futures remained trading on a 4 month high levels. The markets tested a low of Rs 412 per kg before progressing towards Rs 417.5 per kg. 

Regards,

Commodity tips advisory.com