Cotton prices gained on short covering after prices dropped on improved supply prospects and lack of demand.Late season rainfall favoured cotton through west-central India. Recently developed dry weather will also favour the maturing crop and the early harvest. Further, International Cotton Advisory Committee (ICAC) estimated global cotton production at 25.57 million tons for current year compared to 23.05 million tons last year while global consumption is expected to be at 25.22 million tons.
The inventories in the north Indian markets are also reportedly empty and hence upcountry dealers were actively covering. Export buying has slipped following a squeeze in availability of the exportable grade capsules. At the auction in Bodinayakannur conducted by the Cardamom Planters Association, 42 tonnes arrived and almost the entire quantity was traded. The auction average was up at Rs. 965.49 a kg (Rs929.02) and the maximum price was at Rs. 1,160 a kg.
As per Gujarat Govt. normal Jeera sowing area around 280,300 Hectares. Current year area sowing around 130,100 hectares as compared to last year 99,100 hectares. Major zone wise area reported 4900 hectares in Kutch, North Gujarat 64,000 hectares, Middle Gujarat 11,800 hectares, Saurashtra 49400 hectares. As per sources, current year Jeera sowing area likely to go up in Gujarat and Rajasthan due to higher prices throughout the year.
A report that China’s largest producer, Jiangxi Copper Co., had been ordered to halt output for a week had been one of the factors boosting prices, although prices did not weaken after Jiangxi denied the rumor. Lower copper prices come in a broader context of growing supply. Earlier US data showed the ISM manufacturing PMI rose to 59.7 in December from 58.2 in November, beating expectations of 58.1, while ISM manufacturing prices rose as well to 69.0 from 65.5 in November, beating forecasts of a dip to 64.8.
Silver looks to trade with weakness as the Fed appeared a tad more hawkish in the December meeting minutes and investors fretted over inflation implications. The Federal Open Market Committee increased their expectations for 2018 GDP growth from 2.1%, or about trend since the post-financial crisis recovery, to 2.5%. “Most participants indicated that prospective changes in federal tax policy were a factor that led them to boost their projections of real GDP growth over the next couple of years,” the minutes stated.
Gold prices looks to remain under pressure due to a firmer dollar on expectations of further U.S. interest rate hikes. Yesterday Gold Prices gained but today prices may see some weakness on account of profit booking as after minutes from the last Federal Reserve meeting showed that many policymakers continued to take the view that weak inflation is temporary.
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