WEEKLY COMMODITY NEWS: Silver Prices Fell Sharply

DATE: 28/03/2015

Precious Metals

Silver prices fell sharply by Rs 197 to Rs 38,900 per kg in futures trade today due to profit- booking at existing levels and weak trend overseas.At the Multi Commodity Exchange, MCX Silver for - delivery in July traded lower by Rs 197, or 0.50 per cent, to Rs 38,900 per kg in a business turnover of just three lots.Also, the white metal for delivery in May declined by Rs 171, or 0.44 percent, to Rs 38,442 per kg in a business volume of 478 lots. In international market, silver prices fell by 0.4 percent to $17.05 an ounce in Singapore.Market analysts said apart from the profit-booking by participants, a weak trend in global markets led to the fall in silver prices at futures trade here.

Base Metal

Crude Oil futures tumbled in the domestic market on Friday as investors and speculators booked profits in the energy commodity after a surge in prices in recent sessions as bombing by Saudi Arabia and its allies against Shiite rebel targets in Yemen sparked fears over disruptions of oil supplies from the Middle East. China’s industrial profits fell by 4.2 percent in the first two months of 2015 from the same period a year ago, signaling weakness in the world’s second biggest economy, darkening the demand outlook for the fuel. At the MCX Crude oil futures, for the April 2015 contract, is trading at Rs 3,187 per barrel, down by 2.03 percent, after opening at Rs 3,214, against the previous close price of Rs 3,253. It touched an intraday low of Rs 3,176.

Agro

Chana edged up by 0.19 percent to Rs 3,618 per quintal in futures trade today as speculators created fresh positions on improved demand in the spot market. Besides, expectations of lower output fuelled the upside. At the National Commodity and Derivatives Exchange, NCDEX Chana for delivery in April moved up by Rs 7 or 0.19 percent, to Rs 3,618 per quintal with an open interest of 1,36,550 lots. Similarly, the commodity for delivery in May traded higher by a similar margin to Rs 3,641 per quintal in 1,06,030 lots. Analysts said apart from a firm trend at spot market on pick up in demand, lower output reports helped chana prices to trade higher at futures trade.