Copper........Copper futures kept generating more gains although at a much slower pace than last night. There was a minor uptick after the inventories of this red metal showed a drop of 3150 tonnes to 614075 tonnes. The prices in early Asian trades were lackluster with limited energy level but after the announcement of stocks some bounce was noted. Rise in stocks and fall in demand has been one of the testing points for Copper.
Last month, International Copper Study Group (ICSG) stated in its recent update that the refined Copper markets showed a production surplus of 40000 tonnes in February 2013, this was due to low refined metal demand.
Further after making seasonal adjustments refined Copper markets were in production surplus of 46000 tonnes. The refined copper balance for the first two months of 2013, including revisions to data previously presented, indicates a production surplus of 127000 tonnes. This compares with a production deficit of 170000 tonnes.
LME three month benchmark prices for Copper was trading at $ 7400 per tonne, compared to $ 7365 per tonne on Monday. Markets are also keeping a close eye on the moves of Dollar that showed some decline against the Euro.
In currencies, greenback was trading at 1.3085 against the Euro, up 14 pips. Rupee gained ground against the Dollar and was at 56.45, down 0.55 percent.
On MCX, opening for the metal was in green but prices have extended the rally as the day progressed. The June expiry contract was seen trading at Rs 418 per kg, away from day's high of Rs 419.8 per kg. Further gains can take prices towards Rs 422 per kg. Supports for the contract are at
Rs 414-415 per kg.
Source by Commodity Insights
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