✍ MCX - WEEKLY NEWS LETTERS
INTERNATIONAL NEWS

The Swiss National Bank shocked financial markets on Thursday by scrapping a three-year-old cap on the franc, sending the currency soaring against the Euro and stocks plunging on fears for the export-reliant Swiss economy.
The Reserve Bank of India cut interest rates on Thursday by 25 basis points to 7.75 percent in a surprise inter-meeting cut, yielding to growing signs of slowing inflation and a flagging recovery.
U.S. producer prices in December recorded their biggest fall in more than three years on tumbling energy costs while underlying inflation pressures were tame, a cautionary note for the Federal Reserve as it ponders its next step on monetary policy.
The Labor Department said on Thursday its producer price index for final demand declined 0.3 percent, the biggest drop since October 2011, after falling 0.2 percent in November.
The collapse in oil prices is starting to slow growth in U.S. output, OPEC said on Thursday, although the slowdown will not prevent demand for the exporter group's oil falling in 2015 to its lowest in a decade.
1. RBI slashed repo rate by 25 basis points to 7.75 percent.
2. Copper continues its downward trajectory on Wednesday.
3. US Core Retail Sales plunged by 1 percent in December.
4. Euro Zone’s Industrial Production gained 0.2 percent in November

PRECIOUS METAL
Gold rose as much as 3 percent to a four-month high on Thursday after Switzerland's central bank unexpectedly abandoned its three-year cap on the franc sent global shares and bond yields into turmoil.
Swiss franc soared nearly 28 percent against the dollar, and the euro slid as much as 30 percent below the 1.20 cap to a record low of 0.8500 francs per euro.
Gold has benefited from years of increased central banks' liquidity following the 2008 financial crisis, but more monetary stimulus in the euro zone could result in a stronger dollar and, in turn, lower gold prices. UBS lowered its gold price forecast for the year to $1,190 from $1,200, saying it had underestimated the downside risks.
The US Dollar Index (DX) traded on a negative note yesterday declining by 0.2 percent as retail sales in the U.S. slumped in December by the most in almost a year, pushing back the time line for the Federal Reserve to raise interest rates.

BASE METAL
Copper rose on Thursday on a mix of bargain-hunting, short-covering and hedging by consumers, a day after its biggest slide in more than three years, but more losses were expected.
The price tumbled more than 8 percent at one point in Wednesday's session, to a 5-1/2 year low of $5,353.25 a tonne, after a downward revision to global growth by the World Bank and falls in oil prices amplified fears about the outlook for the economy and demand. Supporting the market, investors bet on an increased chance of policy stimulus after disappointing China bank loan data. But adding to bearish sentiment, Japan's core machinery orders rose less than expected in November, as renewed global growth concerns appeared to temper corporate spending plans and cast fresh doubts over how quickly the economy can recover from recession. In other markets, a shock move by Switzerland to abandon its more than three-year-old cap on the franc sent the currency soaring and Europe's shares and bond yields tumbling.

ENERGY
Oil prices declined on Thursday as an erratic dollar and expectations of weakening demand dashed hopes that a strong rally Wednesday might have signaled a bottom to the seven-month price rout. Wednesday's surge was the biggest in 2-1/2 years and continued early Thursday, with both benchmarks breaking above $50 before giving back gains.
Trading was choppy as U.S. crude briefly surged ahead of Brent early in the day. The move came on the last day of trading for the Brent contract.
The Swiss National Bank abandoned its cap against the euro, pushing the Swiss currency up sharply and depressing the euro. But the dollar's movements were erratic over the course of the day, and expectations of lessening demand across the globe depressed the markets. Jobless claims in the U.S. are up, while factory activity is down, according to reports from the Labor Department and Philadelphia Federal Reserve Bank. Christina Lagarde, managing director of the International Monetary Fund, said investment and consumption were weak in many economies, including China, the world's second-biggest consumer.
U.S. natural gas futures lost 2.3 percent in volatile trade on Thursday on forecasts calling for slightly less cold over the next two weeks despite a bigger-than-expected storage draw. The latest weather models for the lower 48 U.S. states called for slightly less frigid, but still below-normal temperatures over the next two weeks, especially at the end of the month, with an expected 492 heating degree days (HDD). The U.S. Energy Information Administration said utilities pulled 236 billion cubic feet of gas from storage during the cold weather last week, topping analysts estimates in a Reuters poll for a draw of 224 bcf. That was the biggest weekly decrease since the polar vortex blanketed much of the nation last February and easily topped the 131-bcf draw in the previous week and the five-year average draw of 190 bcf. It was well short of the record 268-bcf decrease of a year earlier

NCDEX - WEEKLY NEWS LETTERS
RM SEED
The recent rains in some areas in growing states of Rajasthan, Gujarat and UP—reportedly good for the standing crop kept trend weak for RMSeed. Though demand for Mustard Oil remained strong in domestic markets but the higher levels were not sustainable due to the recent rains even as overall firmness was noted in Oil complex sector.
Reports of crop damage from parts of Rajasthan from recent rains also kept prices firm. Demand rose further for Mustard Oil amid falling stocks ahead of the Festival season. Cool weather in growing states keep production prospects good though reports of damage to crop in some areas in Rajasthan from the recent rains supported the market sentiments.
As per Ministry of Agriculture, Rajasthan area coverage in Rabi season 2014-15 till 24 December was 26.40 lakh ha vs 29.73 lakh ha in 2013-14. The government has set a target of 29 lakh for this year. The fall in area was due to high temperature in Oct and lack of rains. Farmer are reportedly shifting to Barley and Wheat. Crops also faced germination problem due to the high Temperature. Mustard area coverage in All over India is 63.79 lakh Ha during Rabi 2014-15 and 67.00 lakh ha in 2013-14, area coverage during Rabi 2014-15 is lower.
As per latest reports from Oil World, the output of mustard in Europe is expected to decline near 15% to 205 lakh tons, the lowest level in past 30 years, while it was 240 lakh tons last year. There is outbreak of insects on the mustard cops in Europe, as per the Oil World re-port, which may reduce the yield.

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