Commodity Report Gold

Open 1277.14 High 1286.40 Low 1275.20 Close

After the speech of Ben Bernake on Wenseday , he said that the Fed Reserve will decide on the Quantitive Easing program based on the growth of the economy which is now showing the sign of improvement. The U.S. dolar index ticked up, strengthening the dollar angainst the Euro after the statement. The gold in the previous session touched a fresh high of 3 weeks to $1299.70 which then ended on a negative note after the speech at $1277 an ounce. This drop was majorly because of increase in the risk apptite of people for the higher return. People parked their investments in the dollar for the higher return and divested from the gold as it is not going to give high returns in short term. Today the gold was on a bit bullish end and no significant movement was observed.

Crude Oil
Open 108.63 High Low Close

The U.S. dollar strengthend after the statement assuring the continuation of the bond buying program by Fed Reserve. This made crude oil more expensive , as oil is dollar priced commodity, the other weaker curreny in exchange will have to pay more in terms of dollar to purchase crude oil. This lead to decrease in the demand of the crude and ultimately the push down in the price of crude oil. The crude oil got lift from the inventory data released for oil which dropped by 6.9 million barrels and crude oil went up from 105.80 to 106.09. The Feds program stands as one of the main indicator for the commodity prices as it tends to depress the value of dollar. Ther increase in the demand from the U.S. the largest consumer of crude oil is also helping oil price to lift up. The Egypt crisis are disrupting the supply of the crude oil from the middle east countries

Agro commodity Sugar Macro Economics

Indian sugar futures fell on Thursday to their lowest level in two weeks as subdued demand from bulk consumers amid ample supplies outweighed a likely rise in demand due to festivals. The august contract on NCDEX was down 0.43 percent at 3,029 rupees ($50.92) per 100 kg after falling to 3,028 rupees earlier, the lowest level since July 3. Mills are not interested in lowering prices in tenders, but demand is very weak from bulk buyers. Retail demand is also modest. Spot sugar edged down 5 rupees to 3,068 rupees per 100 kg at the Kolhapur market in Maharashtra state. India's sugar output in the 2013/14 is likely to drop 5.2 percent from a year earlier to 23.7 million tonnes, compared with a local demand of around 23 million tonnes. Sugar is likely to fall more because Government to raise sugar import duty from 10% to 15% in order to protect farmers and traders as domestic sugar prices have been witnessing a negative trend as a result of ample supply.
Overseas Sugar production in Thailand, the world's second largest sugar producer after Brazil is expected increase by 10% to a record 11 million tons in the season. Sugar gained to a one-week high in New York as Brazils rain in the countrys main growing region is set to disrupt harvesting.