Gold eases on profit taking

Gold futures on the Comex division of the New York Mercantile Exchange slipped more than US$2.50 an ounce Tuesday November 30 2004, on bullion bank selling and speculative liquidation sparked by upbeat economic data and a brief short-covering rally in the US dollar versus the euro. February contract (100 ounces each) settled US$2.60 lower at US$453.20 per ounce. March silver moved in line with gold and settled 4.8 cents lower at US$7.777 after having rose to US$7.87.

At the domestic front, gold further eased from profit booking and fall in international prices. In Mumbai, standard gold (99.5) closed at Rs6,665, down Rs20. Tracking decline in gold prices, silver too ended marginally lower at Rs12,130.

Crude eases as dollar recovers

Crude oil futures on international markets were dragged down as weather forecasts suggested winter to be less chill. Softening in US heating oil futures turned crude oil futures down. January Nymex WTI slipped 63 cents to US$49.13 a barrel by the end of trading in New York. IPE Brent crude futures for January delivery gave up 24 cents to US$45.51 a barrel in London. Brent was pushed higher by the disruption of more than 200,000 barrels a day of oil in the North Sea after two platforms were evacuated following a gas leak. Nymex December heating oil futures were 3.5 cents lower at US$1.4090 a gallon, and Nymex December gasoline futures were 1.7 cents down at US$1.2860.

CRB index hits 23-year high

The Reuters CRB Index hit a fresh 23-year high on Tuesday November 30, 2004. The index that tracks 17 commodities garnered strength from high crude oil prices, gold. The CRB index hit a high of 292.49 points, before easing to 291.31, a marginal increase on the previous close. The benchmark US crude futures moved above US$50 a barrel. However, a subsequent easing in oil prices and a fall in gold and base metal prices later in the session softened the rise in the commodity index. Meanwhile, coffee prices have jumped substantially. Coffee futures in London reached a five-month high of £772 a ton on increased speculative interest.

SAIL to hike HR prices

Steel Authority of India Ltd (SAIL), the largest domestic steel maker, has decided to increase the prices of various hot-rolled steel products with effect from Wednesday. The net hike in prices of various HR categories of steel would be about Rs500 to Rs800 per ton.

RBC launches interbank market making service in gold and silver

RBC Capital Markets, the corporate and investment-banking arm of RBC Financial Group, announced it will offer an interbank market-making service in gold and silver for spot, forward and options from December 1, 2004.

India gold production crosses 5750 kg

Gold production in India has been 5,752kgs during April-October, 2004 against 4,941.369kgs during the same period last year. Out of this Hutti Gold Mines Limited (HGML) has produced 2,213kgs and Hindalco Industries Limited (HINDALCO) produced 3,539kgs. According to a press release, the gold production in October, 2004 has been 1,136.67kgs against a target of 1,287.955kgs. Out of this, HGML has produced 273.674kgs and HINDALCO 863kgs. HGML produces gold from the ore and HINDALCO produces as a by-product while producing copper.

Mixed trend in rubber prices

Mixed trends in spot rubber prices observed on Tuesday November 30, 2004. While ungraded rubber and ISNR 20 made losses, the other grades remained steady with less trading interest. Rubber futures weakened with December delivery quoting at Rs51.21 (51.78) a kg, January was quoted at Rs52.35 (52.81), February at Rs53.29 (53.60) and March at Rs54.35 (54.65) per kg for RSS 4. Spot rubber prices of RSS 4 Rs50.25 per kg (50.50), RSS 5 Rs48.75 (48.75), ungraded Rs46.50 (46.75), ISNR 20 Rs49.25 (49.50), latex 60% Rs37.50 (37.50).

Meanwhile the Cochin Rubber Merchants Association (CRMA) has urged the Union Government to allow unrestricted exports of natural rubber with full cash incentives to keep the nations presence felt in the international market.

No excise duty on refining of edible oil: SC

Refining of vegetable oil, which was edible oil even prior to refining, does not amount to manufacture and, hence, does not attract excise duty that can be levied on manufacture of refined oils, the Supreme Court has held. Disposing of a civil appeal by Shyam Oilcake Ltd, a Rajasthan-based company, against the judgment of CEGAT (Customs, Excise and Gold (Control) Appellate Tribunal), the court said: Neither in the section note nor in the chapter note nor in the tariff item do we find any indication that the process indicated is to amount to manufacture.

Excise duty on manufacture of refined oil, which was withdrawn in 1996, was re-introduced in 2003. Refiners have since then been protesting against the levy, but the Government has stood its ground.

Currently, excise duty on manufacture of refined oil is Rs1,000 a ton and Rs1,250 on vanaspati.

Global sugar price set to scale higher

World raw sugar futures on the New York Board of Trade could hit 15-16 US cents a pound in 2005, almost double the current close for the prompt March contract of 8.89 cents/lb. Nybot sugar appears to be establishing a primary positive cycle with the 15-16 cents area an interim target, well up for the prompt contract and up from a recent low in May of around 7.00 cents/lb.

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