Commodity Reports

THIS WEEK RANGES FROM PROCOMMODITY REPORT 1st TO 6th DECEMBER 2008:-

U.S
GOLD 790$-888$
SILVER 9.80$ - 11.20$
COPPER 1.57$-1.85$
CRUDE OIL 51$- 65.60$

MCX
GOLD 12300-12640,12900,13090,13220 ,13750
SILVER 16550-16850,17775,18050,18255,18560
COPPER 183-189,193.60,195,199,202
CRUDE OIL 2558-2638,2680,2757,2798,2850.

AGRI
CARDAMOM :-547-555,585,593,604,618,638,648.
KAPAS :- 477-480,482,485,495,502
Kapas khalli :-487- 494,511,529,536.
Menthaoil :- 450-,462 472,483,505,525,534

LAST WEEK REVIEW:-
As We told last week bullions and agri market closed higher compare to the previous week

NOTE :

1. We are bullish in bullions and agri buy on support
2. Expecting copper range bound 186- 195 once it breaks 197 and settles it can test 202 in the coming days stop loss sugested was 183.30
3. Expecting zinc in the ranges of 57.50 -63 once it breaks 63 and settles can test 67.50in coming days stop loss suggested was 56.80 moreover fundamentals also favoring it read those news below.
4. Expecting nickel in the ranges of 503-534 once it breaks 534 and settles can test 550 in coming days stop loss suggested was 494 moreover fundamentals also favoring it read those news below

Retail survey fails to lift economic gloom
Retail sales showed some resilience in October but continued house price falls and the threat of more shockwaves from the financial crisis gave little reason for cheer.
The Confederation of British Industry's retail sales balance stayed at -27 in October, wrongfooting analysts who had forecast a slide to -35 and holding well above August's series low of -46

Be it ever so humble
Cash-strapped consumers embrace 'home for the holidays'
Motor club AAA is forecasting the first drop in Thanksgiving holiday traveling since 2002. Approximately 41 million Americans will travel 50 miles or more from home during the Thanksgiving weekend. That's equivalent to 1.4%, or 600,000 travelers, fewer than last year. Moreover, this is the fourth straight holiday this year.

Public finances deteriorate sharply
The budget deficit swelled to its largest in at least 60 years in the six months to September, and analysts say the government coffers look set to deteriorate further as the economy slows.
Chancellor Alistair Darling's forecast for a full-year deficit of 43 billion pounds now looks very optimistic, but he has said borrowing will need to rise to boost the economy, which is nearing its first recession since the early 1990s

Gold Has Biggest Monthly Gain in Nine Years on Demand for Haven
Gold prices rose in New York, capping the biggest monthly increase in nine years, on demand for a haven following terrorist attacks in India. Platinum had the biggest weekly gain since May

South African gold production continues to plunge
The South African Chamber of Mines reports that South Africa's fall from its world No. 1 gold producer status, which, according to most figures occurred last year in favour of China, continues as a number of factors have already made this a difficult year and output continues to fall.
According to the Chamber, South Africa's total gold production in the third quarter decreased by 2.1% to 55,725 kilograms (1.79 million ounces) when compared to the second quarter of 2008 - which itself showed a sharp decline from a year earlier. This suggests that South Africa's full year output could be as much as 1 million ounces lower this year than last

China looks at buying 'cheap' base metals as strategic reserve.
China is looking at buying base metals as state or commercial reserves to take advantage of the lowest prices for years and bolster weak demand, industry sources said on Friday.
They said Beijing may be considering at least two proposals -- one for all base metals and another just for copper and aluminium. The metals could be purchased by the State Reserve Bureau (SRB) or commercial entities controlled by the government.
"The proposal was for all base metals," an analyst at a state research unit said, without giving details.
But a senior executive at a large aluminium smelter said the Ministry of Industry and Information Technology had proposed the government increase state copper and aluminium reserves. He did not provide proposed tonnages or timing.
A sales manager at an aluminium smelter said he had heard that the proposal advocated the government use 20-30 billion yuan ($2.93 billion-$4.39 billion) to buy up base metals for its reserves

Recession reports - Nyrstar halts zinc output at Balen
Nyrstar said that it would temporarily suspend production and initiate a care and maintenance program at its Balen plant due to poor economic circumstances. Nyrstar said that the program, which will take place before year end was needed to address the sudden decline in customer demand and reduce the accumulation of surplus zinc stocks in the market.Nyrstar also said that the suspension would minimize losses at the plant which have been caused by the low price of zinc, down 58% from its 2008 peak combined with Balen's high energy and production costs. Balen currently has the highest labor cost across the Nyrstar Group and its energy cost has increased by more than 50% in the last 12 months

Nickel
Mr Alwin Syah Loebis president director of PT Aneka Tambang said that it cuts its production target by almost 30% to 12,000 tonnes for 2009 on lower demand. He added that global consumption of nickel would go below 1 million tonnes in 2009 from 1 million tonnes in 2008, in particular because of the forecast reduction in world economic growth.

Mentha oil
Mentha oil futures on Multi Commodity Exchange (MCX) has advanced on follow-through buying and positive cues from spot market. Good demand is being witnessed in the spot market amid restricted supply. A major exporter is reported to be active in the market.

The most active Mentha oil has surged by Rs 7.30 to trade at Rs 514.20 a kg with volume of 69 lots. December Mentha oil has gained Rs 7.70 to Rs 520.50 a kg and January Mentha oil has improved by Rs 0.80 to Rs 513.60 per kg. Volumes in December and January are 159 and 31 lots respectively.

Data to watch

On Monday
The Institute for Supply Management will release its manufacturing survey for November. Construction spending figures for October will also be released.

Tuesday
U.S. auto sales while Wednesday will bring the November ADP employment survey of the private sector, productivity figures for the third quarter and the ISM's November survey of the service sector of the economy.

Wednesday
The Fed is expected to release its Beige Book of economic conditions, which is "likely to paint an even bleaker picture than the October report," as it captured a near seizure in credit markets "and the resulting knock-out punch to consumers and businesses," said Sal Guatieri, senior economist at BMO Capital Markets.

Thursday
weekly jobless claims. Federal Reserve Chairman Ben Bernanke is also expected to speak on housing at a Fed conference in Washington.
Also on tap, the European Central Bank and the Bank of England are expected on Thursday to make decisions on interest rates.

Friday
The jobs report. BMO Capital expects the economy to have shed 350,000 jobs in November, and the unemployment rate to have risen to 6.8%, from 6.5% in October

IMPORTANT NOTE:
To Receive Daily Premium updates free of cost
Contact us at:-
Procon Advisory Services India ( P) ltd
58/1.Frst Foor , Tamil sangam road
Madurai 625001
Email:proconmadurai@gmail.com
PH:-0452- 4246135
MOB:-09994988433
http://www.indiaprocon.com/

Procon Advisory Services India (P) ltd
G-13 Swarna Jayanthi Complex,
East Block , Ameerpet,
Hyderabad- 500016.
Email:-proconhyderabad@gmail.com
PH: - 040-40037124
MOB:-09949169279
http://www.indiaprocon.com/

SOURCE: reuters.co.uk., marketwatch.com ,minesweb.com.

Disclaimer:The views mentined here are based on the historiacal price and news . we will not be responsible for any loss incured in trading at these levels .we recommend to consult with the financial advisor/broker for trading. All future trading entail significant risk, which should be fully understood prior trading.