How to tackle the inflationary effect of oil price decontrol? Minister of State for Petroleum and Natural Gas, Jitin Prasada recommends raising the price at which government buys grains from local farmers to offset the 5% hike in diesel prices. He has suggested this proposal to Agriculture Ministry. He said the farm sector accounts for 12 percent of over 60 million tonnes of diesel consumed every year in the country.
POINTERS
Comexes turnover up 57%
Turnover of commodities exchanges rose by 57 per cent at Rs 24.55 lakh crore during the first quarter of the current fiscal compared to the same year-ago period on the back of higher value of trade in bullion, according to data released by market regulator the Forward Markets Commission (FMC).
Commodities exchanges had posted a turnover of Rs 15.64 lakh crore in the corresponding period last fiscal. The country has 23 commodity exchanges, out of which four are national exchanges and rest are regional. The turnover in bullion grew by 68.52 per cent at Rs 11.25 lakh crore during April-June 2010 period as against Rs 6.67 lakh crore in the same period last fisca
NMCE hikes membership fee
The National Multi Commodity Exchange of India Ltd on Friday said it has increased its annual membership fee from August 1.
The fees for all three categories trading membership, trading-cum- clearing membership, and institutional clearing membership, have been increased from Rs 60,000 to Rs 85,000; Rs 3.20 lakh to Rs 7.25 lakh; and Rs 23 lakh to Rs 27.5 lakh, respectively.
In addition to this, a new category, called institutional trading-cum-clearing member is being introduced for which the Membership fee will be Rs 15.5 lakh.
There is an increase in the number of active commodities in both the agricultural and non-agricultural segments. The rise in turnover by 270 per cent in 2009-10 compared with the year before has been significant, said Ms Poonam Verma, Vice-President, Business Development.
Raw Jute production up
Raw jute production has witnessed a substantial rise, higher than anticipated, thanks to better price for raw jute and favourable weather conditions.
Based on estimates available, the raw jute production is likely to be 115-120 lakh bales (of 180 kg each)in 2010-11 against the earlier estimate of 107 lakh bales, an increase of more than 12 per cent.The increase is almost 33 per cent over the production of 90 lakh bales last season.
Higher prices and good weather, adequate water, sunlight and humidity are the key reasons for the excellent crop this season, said Mr Manish Poddar, Chairman of Indian Jute Mills' Association.
The ex-Kolkata, TD-4 variety of raw jute price of Rs 3,300 a quintal is believed to have encouraged farmers to increase its cultivation this year.
India GDP growth to be 9%
India's gross domestic product growth is expected to return to "9 percent plus" this year, Trade Minister Anand Sharma said on Friday, led by strong corporate performance and rising savings levels.
Sharma also said he expected inflation, which is fuelled by food demand, to be brought under control. "We are seeing strong economic growth. We are going back this year to plus 9 percent GDP growth," Sharma told reporters in Singapore at the end of a two-day trip aimed at drumming up investment in the infrastructure sector.
Precious metals
After attaining a record high of $1,266.50 an ounce gold has been struggling near $1200 levels and falling below. However, this prompted bargain buying in many countries that once again pushed up prices. The overall gains for gold this week was 0.2% while it has climbed 10% this year. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion has dropped 0.3% to 1,316.036 tonnes from an all-time high on June 29.
The fund's holdings have retreated 4.4 tonnes from the record 1,320.436 tonnes they stood at in late June, as the safe haven-related inflows seen in recent months dried up.
Gold futures for August delivery rose $13.70, or 1.1 percent, to $1,209.80 on the Comex in New York, the biggest gain since June 17. On July 7, the metal touched $1,185, the lowest level for the most-active contract since May 24.
Among the factors that supported precious metals include the fall of Euro against the dollar. Gold reached all- time highs in euros, U.K. pounds and Swiss francs last month on demand for a haven from Europe s fiscal woes. The recovery in gold looks remarkable considering the fact that the yellow metal fell to $1185.
Silver futures for September delivery rose 20.1 cents, or 1.1 percent, to $18.073 an ounce on the Comex, capping a 2 percent gain for the week.
Platinum futures for October delivery climbed $16.80, or 1.1 percent, to $1,533.20 an ounce on the New York Mercantile Exchange. Palladium futures for September delivery gained $12.55, or 2.8 percent, to $456.95 an ounce, also on the Nymex. Platinum rose 2 percent this week and palladium jumped 7 percent, the first weekly gain since June 18.
In the week ended July 6, speculative long positions, or bets prices will rise, outnumbered short positions by 209,042 contracts on the Comex in New York, U.S. Commodity Futures Trading Commission data showed today. Net-long positions fell by 35,683 futures contracts, or 15 percent, from a week earlier. MCX Aug gold has weakened to 18411 with key supports at Rs 18230,18050, resistances at 18580,18750.
Crude Oil
Crude oil prices have started climbing up after falling to a low of $72 last week on demand optimism. US Crude for Aug was up at $76.09 gaining 5.5% this week, the biggest weekly gain since the week of May 28. Investors often see rising equities markets as a sign of economic growth, which generally spurs demand for oil.
Crude oil was supported by increase in consumption of distillate fuel, a category that includes heating oil and diesel, which bolstered speculation that supplies will drop. Oil market fundamentals remain positive even as GDP growth prospects in many nations continue to be muted putting downside risks to oil price forecasts for 2010 and 2011. U.S. crude was still below a 19-month peak above $87 reached in early May, having rebounded sharply from a trough below $65 on May 20.
Crude inventories in the United States dropped 5 million barrels last week, more than twice as much as expected, the Energy Information Administration said. Markets awaited Chinese trade data, to be published on Saturday, for further price direction.
Heating oil for August delivery increased 2.08 cents, or 1 percent, to $2.0261 a gallon in New York. The contract is up 5.8 percent this week.
Total U.S. fuel demand rose 3.2 percent to 19.6 million barrels a day in the week ended July 2. It was the biggest weekly gain since April 30. Brent crude for August settlement climbed 66 cents, or 0.9 percent, to $75.37 a barrel on the London-based ICE Futures Europe exchange
Oil in New York has traded within about an $8 price range for the past month, between $71.09 and $79.38 a barrel.
Crude Oil has support from the positive outlook for global economic growth at 4.6% for 2010 in its revised World Economic Outlook. This along with falling US supplies may be bullish for oil.
MCX July Crude gained handsomely last week at Rs 3555 and has support at 3490, resistance at 3685
POINTERS
Comexes turnover up 57%
Turnover of commodities exchanges rose by 57 per cent at Rs 24.55 lakh crore during the first quarter of the current fiscal compared to the same year-ago period on the back of higher value of trade in bullion, according to data released by market regulator the Forward Markets Commission (FMC).
Commodities exchanges had posted a turnover of Rs 15.64 lakh crore in the corresponding period last fiscal. The country has 23 commodity exchanges, out of which four are national exchanges and rest are regional. The turnover in bullion grew by 68.52 per cent at Rs 11.25 lakh crore during April-June 2010 period as against Rs 6.67 lakh crore in the same period last fisca
NMCE hikes membership fee
The National Multi Commodity Exchange of India Ltd on Friday said it has increased its annual membership fee from August 1.
The fees for all three categories trading membership, trading-cum- clearing membership, and institutional clearing membership, have been increased from Rs 60,000 to Rs 85,000; Rs 3.20 lakh to Rs 7.25 lakh; and Rs 23 lakh to Rs 27.5 lakh, respectively.
In addition to this, a new category, called institutional trading-cum-clearing member is being introduced for which the Membership fee will be Rs 15.5 lakh.
There is an increase in the number of active commodities in both the agricultural and non-agricultural segments. The rise in turnover by 270 per cent in 2009-10 compared with the year before has been significant, said Ms Poonam Verma, Vice-President, Business Development.
Raw Jute production up
Raw jute production has witnessed a substantial rise, higher than anticipated, thanks to better price for raw jute and favourable weather conditions.
Based on estimates available, the raw jute production is likely to be 115-120 lakh bales (of 180 kg each)in 2010-11 against the earlier estimate of 107 lakh bales, an increase of more than 12 per cent.The increase is almost 33 per cent over the production of 90 lakh bales last season.
Higher prices and good weather, adequate water, sunlight and humidity are the key reasons for the excellent crop this season, said Mr Manish Poddar, Chairman of Indian Jute Mills' Association.
The ex-Kolkata, TD-4 variety of raw jute price of Rs 3,300 a quintal is believed to have encouraged farmers to increase its cultivation this year.
India GDP growth to be 9%
India's gross domestic product growth is expected to return to "9 percent plus" this year, Trade Minister Anand Sharma said on Friday, led by strong corporate performance and rising savings levels.
Sharma also said he expected inflation, which is fuelled by food demand, to be brought under control. "We are seeing strong economic growth. We are going back this year to plus 9 percent GDP growth," Sharma told reporters in Singapore at the end of a two-day trip aimed at drumming up investment in the infrastructure sector.
Precious metals
After attaining a record high of $1,266.50 an ounce gold has been struggling near $1200 levels and falling below. However, this prompted bargain buying in many countries that once again pushed up prices. The overall gains for gold this week was 0.2% while it has climbed 10% this year. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion has dropped 0.3% to 1,316.036 tonnes from an all-time high on June 29.
The fund's holdings have retreated 4.4 tonnes from the record 1,320.436 tonnes they stood at in late June, as the safe haven-related inflows seen in recent months dried up.
Gold futures for August delivery rose $13.70, or 1.1 percent, to $1,209.80 on the Comex in New York, the biggest gain since June 17. On July 7, the metal touched $1,185, the lowest level for the most-active contract since May 24.
Among the factors that supported precious metals include the fall of Euro against the dollar. Gold reached all- time highs in euros, U.K. pounds and Swiss francs last month on demand for a haven from Europe s fiscal woes. The recovery in gold looks remarkable considering the fact that the yellow metal fell to $1185.
Silver futures for September delivery rose 20.1 cents, or 1.1 percent, to $18.073 an ounce on the Comex, capping a 2 percent gain for the week.
Platinum futures for October delivery climbed $16.80, or 1.1 percent, to $1,533.20 an ounce on the New York Mercantile Exchange. Palladium futures for September delivery gained $12.55, or 2.8 percent, to $456.95 an ounce, also on the Nymex. Platinum rose 2 percent this week and palladium jumped 7 percent, the first weekly gain since June 18.
In the week ended July 6, speculative long positions, or bets prices will rise, outnumbered short positions by 209,042 contracts on the Comex in New York, U.S. Commodity Futures Trading Commission data showed today. Net-long positions fell by 35,683 futures contracts, or 15 percent, from a week earlier. MCX Aug gold has weakened to 18411 with key supports at Rs 18230,18050, resistances at 18580,18750.
Crude Oil
Crude oil prices have started climbing up after falling to a low of $72 last week on demand optimism. US Crude for Aug was up at $76.09 gaining 5.5% this week, the biggest weekly gain since the week of May 28. Investors often see rising equities markets as a sign of economic growth, which generally spurs demand for oil.
Crude oil was supported by increase in consumption of distillate fuel, a category that includes heating oil and diesel, which bolstered speculation that supplies will drop. Oil market fundamentals remain positive even as GDP growth prospects in many nations continue to be muted putting downside risks to oil price forecasts for 2010 and 2011. U.S. crude was still below a 19-month peak above $87 reached in early May, having rebounded sharply from a trough below $65 on May 20.
Crude inventories in the United States dropped 5 million barrels last week, more than twice as much as expected, the Energy Information Administration said. Markets awaited Chinese trade data, to be published on Saturday, for further price direction.
Heating oil for August delivery increased 2.08 cents, or 1 percent, to $2.0261 a gallon in New York. The contract is up 5.8 percent this week.
Total U.S. fuel demand rose 3.2 percent to 19.6 million barrels a day in the week ended July 2. It was the biggest weekly gain since April 30. Brent crude for August settlement climbed 66 cents, or 0.9 percent, to $75.37 a barrel on the London-based ICE Futures Europe exchange
Oil in New York has traded within about an $8 price range for the past month, between $71.09 and $79.38 a barrel.
Crude Oil has support from the positive outlook for global economic growth at 4.6% for 2010 in its revised World Economic Outlook. This along with falling US supplies may be bullish for oil.
MCX July Crude gained handsomely last week at Rs 3555 and has support at 3490, resistance at 3685
