Informist, Thursday, Jun 2, 2022

By Sandeep Sinha

MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India today tracking firm cues from the Shanghai Futures Exchange on improved risk sentiment and weakness in dollar.

* The London Metal Exchange is closed today for spring bank holiday. The exchange will remain shut on Friday for the Queen's Platinum Jubilee celebration and will resume trading on Monday.

* The dollar index, which measures the dollar's strength against a basket of major currencies, fell 0.3% to 102.19. A weaker greenback makes dollar-denominated commodities such as base metals cheaper for holders of other currencies.

* COPPER prices were firm as output in Chile, the world's largest producer, fell by 9.8% on year to 421,742 tn in April.

* The US ISM manufacturing purchasing managers' index for May rose to 56.10 from 55.40 in April due to strong demand for goods supported the positive sentiment.

* Market participants await a speech by Federal Open Market Committee member Loretta Mester and ADP employment report later in the day for further cues. 

* ALUMINIUM prices rose due to short covering by traders on the domestic bourse. 

* ZINC contract gained as traders raised their long bets on the MCX, and also because stocks at LME-accredited warehouses were at 83,575 tn, the lowest since April 2020.

* At 1650 IST, on the MCX, the June futures contract of:

 --Aluminium was at 232.95 rupees, up 0.7%

 --Copper was at 795.90 rupees a kg, up 2.1% 

 --LEAD was at 185.45 rupees a kg, up 1%

 --Zinc was at 332.60 rupees a kg, up 0.9%

* Outlook for the evening session on MCX:

 --Aluminium contract seen at 230.0-236.0 rupees per kg

 --Copper seen at 780.0-800.0 rupees per kg

 --Lead seen at 183.0-187.5 rupees per kg

 --Zinc seen at 330.0–336.5 rupees per kg

End

US$1 = 77.61 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Aditya Sakorkar

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