Due to the decision of US Fed, there has been a fall in the price of gold. The luster of silver has also faded. On Comex, gold is at a month and a half and silver is at a one-month low. Gold has come down to Rs 47,500 on MCX.
Base metals were under pressure due to a firming dollar and reports of a sell-off in China’s reserves. Copper slips to 2-month low. Aluminum and zinc are also sold. Funds have also reduced long positions in metals.
After the initial weakness, there has been a recovery in crude from lower levels. Brent price is above $74. MCX crude is up about half a percent. Prices are being supported by rising demand and falling inventories in the US. Iran’s crude exports are also not expected to increase.
Talking about Agri, after two days of spectacular rally, the selling is dominating again in edible oils. Soybean is broken about 1.5 percent on NCDEX. CPO, soya oil and mustard also declined.
In the domestic market, there is a stormy increase in maize. Its price has crossed 1600 on NCDEX. But there is a slight softening in US corn futures. Strong demand is supporting the prices.
On the other hand, to curb the rising prices of pulses, the government took several major actions with the opening of imports, after which the prices are being softened. But the traders complain that the wholesale price has gone below the MSP as well.
trading in pulses
After the opening of pulses imports, there is a fall in the prices. 50 thousand tonnes of tur import agreement has been signed with Malawi. An agreement has been signed to import 2.5 lakh tonnes of urad from Myanmar. An agreement has been signed to import 1 lakh tonnes of tur from Myanmar. Private traders will be able to import these pulses. Till May 31, traders have declared a stock of 1.5 million tonnes.
Price below MSP
Wholesale prices of most pulses are below MSP. Wholesale price is below MSP but retail price is higher. Traders claim that the retail price is higher in the process cost. Chana is about Rs 200 cheaper than MSP and Moong is about Rs 500 cheaper. Wholesale market price of Masoor, Tur is around MSP.
Investment Advice by Navneet Damani of Motilal Oswal
GOLD AUG BUY AT 47425 SL 47270 TGT 47750
CRUDEOIL JUNE BUY AT 5315 SL 5270 TGT 5385
ZINC JUNE BUY AT 239.50 SL 238 TGT 242 .50
Investment Advice by Anuj Gupta of IIFL Securities
SELL SOYABEAN JULY 6620 TGT 6400 SL 6750
BUY MENTHA OIL JULY 970 TGT 1050 SL 940
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