Gold sheds US$2.20 per ounce

Gold futures on the Comex division of the New York Mercantile Exchange lost more than US$2 an ounce Tuesday December 7, 2004 on speculative profit taking and bullion bank sales spurred by the steady tone of the US dollar and downdraft seen across the commodity markets through the day. The most-active February contract (100 oz each) settled US$2.20 lower at US$453.70 per ounce. Taking a lead from gold, silver too plunged by the end of trading session. After opening high around US$7.945 silver sank to US$7.86 on the light fund and bullion bank selling. On the London Bullion Exchange, the PM Gold Fix settled at US$451.80 down from previous close at US$453.05. Mar silver settled at US$7.885, down $0.078.

In the domestic bullion markets precious metals continued its downward journey. The standard gold ended Rs30 lower at Rs6,545 per 10 gm. Silver .999-finess lost Rs125 to end at Rs12,140.

Crude price ends marginally lower

Crude price ended marginally lower at US$42.63 a barrel on the Comex division of New York Mercantile Exchange. Lower demand from the US is guiding crude prices lower. In the last few trading sessions, crude has lost more than 23% from its record high. At the International Petroleum Exchange (IPE), the Brent has declined below US$40 marks. Brent crude for January fell 44 cents to US$39.21. The US energy department depicted higher inventory levels of distillates and other petroleum products.

Thai Govt nods duty-free soya imports

The Thai cabinet approved the duty-free import of an unlimited amount of soybean in 2005. According to the Thai official, the cabinet agreed to nil tariff on the condition that importers must buy domestic soybean at the fixed prices in order to protect farmers. The Government has fixed the domestic soyameal at a minimum of 10.0 baht (Rs11) per kg.

Groundnut oil slips further

Groundnut oil and RBD palmolein fell further on the local oilseed market on Tuesday December 7, 2004. Lack of buying support coupled with increased inflow pushed edible oil prices lower. Groundnut oil raw was down Rs2 at Rs482 per 10 kg. RBD palmolein was down a rupee at Rs365 per 10 kg.

Rubber eases on weak demand

Rubber prices in the domestic market eased further from fresh selling and weak demand. Major buyers retreated to the sideline expecting fresh drop in rubber prices. All the grades except latex and ungraded rubber quoted lower over their previous close. RSS4 declined to Rs50 per kg (Rs50.25), RSS5 Rs48 (Rs48.50), ungraded remained unchanged at Rs46.25, ISNR20 Rs48.50 (Rs49) and latex 60% Rs38.50 (Rs38.50).

US to respond WTO appeal on Monday

US government official will reach to Geneva, Switzerland, on Monday December 13, 2004 to respond WTO allegation on US cotton subsidies. The organization termed the subsidies extended by the US Government to its farmer as illegal. The hearing scheduled on Monday is a part of the appeal phase that was initiated on October 18 2004, when US filed a formal appeal responding to the WTO decision in favor of Brazil. The WTO ruled that cotton export subsidies given U.S. farmers provide a competitive edge over the world market. Sharply reacting to this the US has said that conclusions are based on erroneous findings.

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