Gateway to the commodities-jungle

The dollar has firmed on reports that North Korea has test-fired several "short-range missiles". South Korea's Yonhap news agency has reported that North Korea has fired several missiles off the west coast into the Yellow Sea. If confirmed, it would mark the second missile test by the communist state in three weeks.
   
"We're seeing some very moderate risk aversion, which has brought the pound down and has given markets an excuse to sell the euro back down to yesterday's lows," said Daragh Maher, currency strategist at Calyon.
   
However, he noted that effects on carry trades are small so far, with some high-yielding currencies, like the New Zealand dollar, rema ining firm.
   
At 11.34 am, the euro was trading at 1.3469, having been at 1.3493 an hour earlier, while the pound was trading at 1.9878, down from 1.9924.

Mumbai, June 07 - Burma urad FAQ variety plunged sharply in the absence of buyers at the higher level during the last session of trade at the Mumbai pulses market Thursday. Meanwhile, Burma tur along with imported peas offered steady on some buying support.
 

Burma urad FAQ slipped by Rs. 50 to Rs. 2,531 as buyers were not very keen to make deal at the higher rates. However, shortage of ready stock kept Burma urad SQ variety stable at Rs. 2,801 per quintal.

Burmese tur - lemon new and old - remained unaltered at Rs. 2,400 and 2,300 per quintal on consistent buying queries. Similar tone was observed in gravity tur and both new and old quoted at Rs. 2,450 and Rs 2,350 respectively.

Imported white peas of Canadian and Ukrainian closed on steady note at Rs. 1,691-1,701 and Rs. 1,611 per quintal. France origin white peas also quoted steady at Rs 1,661 per quintal. Green peas from Canada and America that got into trade stable at Rs. 1,550 and Rs. 1,625 per quintal on sluggish buying support from flour mills.

Australia chana in forward segment quoted unchanged to Rs 2,551 per quintal due to lack of sufficient offers at higher level despite some upward gain on futures as well as on spot market Delhi and Indore.

In other news, desi chana prices improved at benchmark markets of Delhi and Indore. Rajasthan-line quoted Rs. 25 higher to Rs. 2,200-2,215 per quintal and Maharashtra-line at Rs. 2,425-2,450 per quintal in Delhi. At Indore, desi chana was priced at Rs. 2,180-2,185, up Rs. 15 per quintal. 

Burma Kabuli ruled stable at Rs 2,201 per quintal on sluggish off-take.

Mumbai, June 07-On London Metal Exchange[LME], Nickel prices dipped on short selling steered by the introduction of stringent lending regime for its Nickel contracts by the exchange. In addition stock deliveries on LME warehouses and use of substitutes by the stainless steel industry added to the downside pressure. Nickel stocks jumped up by 198 tonnes to a fresh eleven month high of 8,604 tonnes.

Nickel for three month delivery is currently trading choppy at $43,750/tonne, down by 15.5% from an all time high of $51,800/tonne. It fluctuated in the range $43,402-45,650/tonne. Nickel cash/three spread eased at $1,200/1,400. A London based trader says that the next target for Nickel could be $43000 or even $38,000.

The LME has amended its lending guidance on dominant long positions for its nickel contract from Thursday, lowering the threshold from where members or clients that hold long positions are required to lend to the market.

The lending guidance is a measure to prevent trading from becoming disorderly when one or more market participants have a dominant long position in the market.

According to the new norms, if at any time two members or clients hold 25% or more of the warrants on nickel stocks each, both should be ready to lend--at no more than 0.25% of the cash price--to reduce their position below 25%.

Copper for three month delivery retreated by $71/tonne to currently trade at $7,385/tonne. It tossed in the range $7,360-7,476/tonne. The downside in the red metal was limited due to falling inventories and strike concerns at Grupo Mexico.

On benchmark LME warehouses, Copper stocks decreased for the fourteenth time in a row by 775 tonnes to 1,22,275 tonnes, the lowest level since October 24 and down by almost 43% from a three-year high of 216,100 tonnes in February 2006.

Zinc for three month delivery currently traded at $3,632/tonne, down by $38/tonne. It tossed in the range $3,630-3,700/tonnes. Aluminium for three month delivery currently traded at $2,740/tonne, down by $19/tonne. It swayed in the range $2,730-2,774/tonne. [All fig correspond to 17.46 hrs IST]