MTECHTIPS:-BNP
Paribas sees Tin prices stay under pressure
Weak
demand and a sell-off in risky assets have pressured tin prices, with values
for the metal down 9% in four trading days, and the near-term outlook for tin
is unlikely to change, said BNP Paribas S.A. (Euronext: BNP) in a commodity
research note.Stephen Briggs, senior metal strategist at BNP Paribas said that,
“he is cutting his growth forecast in global demand in 2012 to less than 1%
from 2% because of lackluster demand. A pick-up is probable in 2013, but the
expected rate of just 2.5% will leave tin still lagging far behind other base
metals.”He continued that, “tin prices have dropped further than the base
metals group as a whole, which fell 4% during the past four days. Part of it is
a lack of liquidity; however, tin is down 30% from its February high and 50%
from its all-time high set in April 2011.”The main reason tin has fallen in
2012 is because of particularly weak demand, which was estimated down 6% in the
first quarter globally, with Chinese demand down 5%. “This tipped the market
into a small underlying surplus, even though tin production remained sluggish,”
Briggs added.
MTECHTIPS:-Increased
Sugar arrivals from Brazil eases global prices
Global
sugar prices are likely to ease further as the produce from Brazil, the largest
sugar producer in the world, started reaching the markets. While, the sweetener
in India is likely to stay firm on damages caused by dry weather.Due to heavy
rains, the sugar shipments and harvest of sugar from Brazil was delayed,
pushing the prices upwards and with present drier weather, the commodity
started reaching the global market easing the prices.Meanwhile, in India, the
sugar prices are firm as the traders are concerned over the production for
2012-13 as delayed monsoon and dry weather crops badly.In India's National
Commodity and Derivatives Exchange (NCDEX) for the month of July till 28th for
August delivery traded up 12.40% to Rs 3370 per qtl.The acreage under sugarcane
has been also lower this year compared to 2011-12 as the farmers received lower
price for the produce on surplus production.
MTECHTIPS:-Gold
witnesses an uptick in range, not yet bullish
Gold
has witnessed an uptick in range but $1640 level still appears formidable,
according to a report from Barclays.This week's FOMC meeting, ECB press
conference and BoE MPC meeting will determine whether gold will extend its
gains and breach its $1640/oz cap. While further quantitative easing bodes well
for gold, if the market is disappointed, gold will be back to searching for its
floor set by the physical market and theresilience of ETP holdings.Price forecast: Q3 12: $1665/oz; 2012
annual average: $1672/oz Support: 1600, 1565, Resistance: 1660, 1640Barclays
stated that forex markets continue to be bearish for gold and expects US Dollar
strength to persist into year-end, aided by relative economic outperformance
and the absence of QE3.The 1-week rolling correlation between gold and the
EUR/USD has turned negative but the three- and six-month rolling correlations
remain firmly positive in the mid 50s.