The Hindu Business Line : Commodity market rallies on global trend

We expect the markets to rise but then consolidate, as there is weak physical demand as there is not much floor activity in jewellery stores at high process, said Mr. Debjyoti Chatterjee, bullion analyst at MAPE Admisi Commodities.

Also the appreciating rupee will keep the domestic prices under control, he added. Silver trading at Rs 17,940 per kg in the domestic future exchange was heading for Rs 18,000 per kg in the following trading session, said Mr. Chatterjee.

Despite the rally in the base metals following the rate cut in the US, there remains inherent bearishness in the fundamentals of copper and zinc, he added.

Base metals rallied in the London Metal Exchange as the interest rate cut indicated that the US financial crisis would end giving rise to potential demand, he said.

Copper was quoted at a high of Rs 314.2 per kg on the domestic future exchange after the dollar hit a record low. Zinc was quoted at a high of Rs 120.10 per kg in the futures exchange.

Unless there is no fresh buying by China, the world largest copper consumer, prices remain weak on the fundamental causes.

Reuters reports

Soya oil futures fell on Thursday, weighed down by rising imports and weaker prices of rival Malaysian palm oil.

The October futures on the National Commodity and Derivatives Exchange was down 0.4 per cent at Rs 485.85 per 10 kg. The November contract fell 0.87 per cent to Rs 481.80.