Copper futures jump, crude oil futures down

Written by Commodities Bureau | Mumbai | Updated: Feb 10 2009, 04:13am hrs
Copper futures prices on the national futures exchanges rallied further on the week ended on Friday on reports that government spending in China will accelerate growth and revive demand for base metals. Crude oil futures prices on the domestic market fell further, mainly on continued selling pressure on reports of rising stocks in international markets amid low demand. Gold futures remained weak as a stronger dollar reduced demand for bullion as an alternative investment.

MCX copper February 2009 contracts firmed up further and rose by 8.70% to settle at Rs 169.90 per kg on Friday from Rs 156.30 over the previous week. Gross domestic product (GDP) in China may rise at an annual rate of 12% in the current quarter of 2009 after shrinking by 2.3% in the fourth quarter of 2008. Prices for copper are likely to rebound on renewed demand from Asian markets, said an analyst.

MCX crude oil February 2009 contracts slipped below the Rs 2,000-level and ended lower at Rs 1,962 per barrel on Friday over the previous weeks close of Rs 2,051 per barrel, down by 4.34%. Crude oil prices in the global markets remained near the $40 level for the past six trading sessions. Crude oil may trade between $39 and $43 a barrel in New York next week, as US stockpiles increase and Opec members reduce production to bolster prices. The Opec countries will keep oil shipments steady at a five-year low in the next four weeks, data from tanker-tracker oil movements showed. Unemployment in the US climbed in January to the highest level since 1992 and payrolls dropped more than forecast, as the recession showed no sign of abating.

MCX gold February 2009 contracts remained steady with limited downward movement and finished at Rs 14,229 per 10 gram on Friday over the previous weeks Rs 14,404 per 10 gram, down by 1.21%. On Friday, the yellow metal slipped to $914 an ounce in the morning fixing in London, used by some mining companies to sell production, from $920 at Thursdays afternoon fixing. MCX silver March 2009 contracts were traded higher at Rs 20,209 per kg on Friday from Rs 19,897 over the previous week, up by 1.57%.