Informist, Friday, Oct 7, 2022
By Sandeep Sinha
MUMBAI – Most base metals futures traded mixed on the Multi Commodity Exchange of India, despite weak cues from London Metal Exchange today as investors await the US non-farm payrolls report later today.
* “Holding any sort of risk in non-ferrous metals has become a bit of a lottery with the macro uncertainty and price patterns leaving many on the sidelines and therefore the high-frequency programs dominate,” Al Munro at broker Marex said in a note.
* The sentiment was further dented by US Federal Reserve members maintaining a hawkish stance stating that bringing inflation under control remains a key priority.
* Trading in base metals has been subdued as the Chinese market is shut for the National Day/Golden Week Holiday and will open on Monday. The country is the biggest producer and consumer of base metals.
* COPPER fell on fears of global slowdown and a sharp jump in LME inventory by 3,575 tn. The price on LME has slipped below the 8-day moving average at $7,543 per tn.
* “Commodities may trade sideways to lower as global risk appetite is likely to be limited today ahead of US labour report”, Kotak Securities said in a report.
* However, the downside was capped in non-ferrous metals due to weakness in the dollar index against a basket of major currencies. A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.
* ALUMINIUM prices rose on a decline in LME stocks by 1,225 tn and market players raised fresh long positions on the MCX.
* ZINC contract slipped on profit-booking and traders increasing fresh short positions on the domestic bourse.
* At 1809 IST, on the MCX, the October futures contract of:
–Aluminium was at 206.95 rupees a kg, up 0.3%
–Copper was at 653.95 rupees a kg, down 0.4%
–LEAD was at 182.40 rupees a kg, up 0.3%
–Zinc was at 280.20 rupees a kg, down 0.8%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 204.0-210.0 rupees a kg
–Copper seen at 649.0-662.0 rupees a kg
–Lead seen at 180.0-184.0 rupees a kg
–Zinc seen at 277.0–285.0 rupees a kg
US$1 = 82.32 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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