TODAY'S COMMODITY REPORT 28/5/2013

Precious Metals

D A I L Y B U Z Z

Gold fell on Tuesday as Asian stock markets and the dollar firmed after a turbulent week, undermining the metal's appeal as a safe haven and prompting more selling in bullion-backed exchange traded funds.

Demand in the physical market continued to hold prices near $1,400 an ounce as the recent drops in the spot market lured buyers to invest in bullion.

Bullion is being sold at high premiums compared to spot prices as there is not enough supply in the market to meet the strong demand.

Gold prices remain near a two-year low of $1,321.35 hit in mid-April as investors flock to higher-yielding stocks.

Base Metals & Energy

D A I L Y B U Z Z

Crude oil futures prices today fell by 0.80 per cent to Rs 5,227 per barrel, after speculators reduced exposures amid weak trend in Asian trade.

Oil for the July delivery contracts moved down by Rs 38, or 0.72 per cent, to Rs 5,256 per barrel in a turnover of 609 lots.

The trading sentiment turned weak at futures trade as crude prices declined in Asian trade, dragged down by prospects of weaker crude demand form China and a buildup in US stockpiles, analysts said.

Meanwhile, crude oil for the July delivery dropped 64 cents to $ 93.51 a barrel on the New York Mercantile Exchange.

Agro Outlook

D A I L Y B U Z Z

Chana prices fell by 0.80 per cent to Rs 3,352 per quintal in futures trade today on profit booking byspeculators amid subdued demand in physical markets.

Increased supply from major producing regions of Madhya Pradesh and Rajasthan also put pressure on chana futures prices.

Menthol prices fell by Rs 10 per kg in the national capital today owing to reduced offtake by consuming units amid adequate stocks.

Increased arrivals from producing belts in Uttar Pradesh and weakening trend in futures market also weighed on the menthol prices.