COPPER & CRUDE OIL DRIVERS FOR APRIL,5

IF high unemployment levels alongside weak HSBC PMI of the Euro-zone and the feeble UK HSBC PMI data was not enough to slide down the prices of commodities, then lower than expected US non-farm payroll data did impede on their prices.

Earlier this month Copper and Crude has already faced the adversary of low HSBC PMI data of UK and the entire Euro-zone, further the unemployment levels of the Euro-zone for February came out to be as high as 12%. The increase in the US jobless claims of 28,000 was also disheartening to the traders and investors.

The US Non-farm payroll data for March edged up 88,000 against the expected figure of 193,000. The unemployment however did improve slightly from 7.7% in Feb to 7.6% in March. The weak data was enough to pull down the prices of the red metal and crude.

Copper on the MCX for its April end contract closed at Rs.406.25, a change of -0.68 percent from its previous closing price of Rs. 409.05. Copper made a high of Rs. 409.75 and a low of Rs.405.3 whereas its Open Interest stood at 34783(lots). For its June delivery Copper closed at Rs.412.9 from its PCP of Rs. 415.55- a decrease of 0.67 percent. The June contract made high of Rs. 416.15 and a low of Rs.412.20 with an OI of 4885 (lots).  

Copper inventories at the LME rose by 6850 tons to 579175 tons.  At the COMEX Copper for its May13 contract closed at 334.40 USD/lb with a change of -0.22%.  

Crude Oil for its April contract closed at Rs. 5087 with a change of -0.14% from its previous closing price of Rs.5094. It made a high of Rs. 5130 and a low of Rs.5056 with an OI of 22318 (lots). At the NYMEX Crude Oil (WTI) was priced at 92.70 USD/bbl with a percentage change of -0.60% for its May 13 contract. For the same May 13 contract Crude Oil (Brent) was priced at 104.12 USD/bbl with a change of -2.09%.  

The drop in the prices of Crude was capped by a weakening Dollar; determined by the speculation that the Fed Reserve would continue with quantitative easing. The US Dollar Index dropped to 82.57, a change of -0.18%. The Dollar fell to $1.304 per dollar, its lowest level since March, 25. US Crude inventory was at 388.6 million barrels with an increase of 2.71 million barrels by the last week of March. The US crude stockpiles were at its highest level since 1990.