In global 
Coffee Futures have surged 66 percent this year, heading for the biggest annual gain since 1994. May-delivery rubber on the Tokyo Commodity Exchange climbed to as high as 400.9 yen per kilogram ($4,784 a metric ton
MAJOR HEADLINES
-Turnover in Indian commodity exchanges is expected to touch Rs 110 lakh cr in FY11: FMC.
-Iran is phasing out energy subsidies and replacing them with cash payments to the poor, under a five-year plan promoted by President Mahmoud Ahmadinejad as an “economic revolution, Bloomberg reported.
-Global natural rubber output will go up by 6.6% in 2010 desppite production losses in third quarter: ANRPC
-The euro is likely to struggle anew in the upcoming week as markets remain fearful about sovereign debt issues in the peripheral euro zone economies, and investors are well-advised to be short the currency going into 2011, Reuters reported
-India may relaunch sugar futures next week
Precious Metals
Gold rose this weekend as concern that Europe’s fiscal crisis will deepen boosted demand for the metal. Gold futures dipped 0.4 per cent this week. On Friday gold climbed in London as weak dollar boosted the demand for the commodity. Gold futures for February delivery rose $8.20, or 0.6 percent, to settle at $1,379.20 an ounce on the Comex in New York.
In the weekend, Indian gold was also subdued as banks closed for a public holiday, and dealers said trading was expected to remain thin as the wedding season came to an end.
MCX February Gold Futures rose opened higher in the week at 20,512 and gained marginally while clos8ing at Rs 20,519 in the weekend, a gain of 0.035%. MCX Silver March gained by 2.08% to Rs 44,343 .
Precious metals will continue to gain strength when central banks keep interest rates low and investment demand remains strong. Among other precious metals, Silver futures for March delivery rose 35.1 cents, or 1.2 percent, to $29.133 an ounce on the Comex, up 1.8 percent for the week. Palladium futures for March delivery dropped $3.95, or 0.5 percent, to $738.60 an ounce on the New York Mercantile Exchange. The price is up 0.8 percent this week. Platinum futures for January delivery declined 10 cents to $1,698.50 an ounce. The price is up 1.4 percent this week.
Crude Oil
Crude oil gained this as the index of U.S. leading economic indicators increased in November, a signal that the recovery will strengthen next year and boost fuel demand. A weaker U.S. currency enhances commodities’ investment appeal and renewed concerns about euro zone debt problems added the gain. NYMEX Crude oil rose 0.3 per cent this week.
On Friday Crude for January delivery climbed 32 cents to settle at $88.02 a barrel on the New York Mercantile Exchange. Brent crude for February settlement gained 7 cents to $91.67 a barrel on the ICE Futures Europe exchange in London. Oil may decline next week on speculation the U.S. Energy Department will report an increase in supplies after the biggest drawdown in more than eight years in this week’s data.
At MCX, Crude oil February contract increased from Rs.4074 to Rs.4117 higher by 1% per cent while January contract gained by 0.86% per cent as it rose from 4024 to Rs. 4059. OPEC raised its forecast for 2011 crude production from outside the group on increases from Russia and China. Non-OPEC supply will climb by 410,000 barrels to 52.62 million barrels a day next year, OPEC said in its monthly.
Base Metals
Copper futures continued uptrend this week as European Union leaders agreed on a plan to contain future debt crises and as economic reports in the U.S. and Germany bolster prospects for metal demand. Other metals like aluminium, lead, tin and zinc also rose tracking the global cues while nickel remains unchanged. On Friday, Copper futures for delivery in March added 2.7 cents, or 0.7 percent, to $4.143 a pound on the Comex in New York. On the London Metal Exchange, copper for delivery in three months rose $74.50, or 0.8 percent, to $9,065.50 a metric ton ($4.11 a pound).
Latest data from ETF Securities showed that the amount of copper held to back a physical copper exchange traded product jumped by about 570 tonnes to 595.2 tonnes. India copper futures gained on Friday tracing firm overseas markets, where strong US data supported the red metal. At MCX, Copper February contract rose from Rs 412.60 to Rs 419.30 levels, higher by 1.63 per cent on global cues.
| Major Indices | Closing Data for Friday, 17thDecember 2010 | Percentage Change |
| Dow Jones | 11491.91 | 0.55 |
| MCX COMDEX | 3208.42 | 0.61 |
| BSE Sensex | 19,864.85 | 1.33 |
| NSE | 5,942.20 | 0.58 |
| Continuous Commodity Index (CCI) | 603.35 | 0.059 |
| Reuters Jeffrey/CRB Index | 320.62 | 0.23 |
Pepper
India pepper futures recovered this week on delayed arrivals due to bad weather. The bulk demand from Sabarimala pilgrims added to the gain of pepper prices. But demand from overseas markets remained sluggish. Unseasonal rains would delay pepper arrivals in India's main producing state of Kerala, tightening supplies and keeping prices firm in the medium term, but would not significantly affect production, industry officials had earlier said.
In Kochi, on Friday pepper spot rose 221.7 rupees to be at 21,759.8 rupees per 100 kg. Pepper may trade in the range of 21,600-22,650 rupees next week, according to indications.The International Pepper Community (IPC) expects 2011 world output at 309,952 tonnes, lower than 316,380 tonnes in 2010, due to diversion of cultivated land to to rubber in Malaysia and tin mining in Indonesia.
NCDEX Pepper December contract opened this week at Rs.21600 and closed higher by 1.009 % to Rs.21816 per quintal, whereas the January contract traded in the range of Rs.21950-Rs. 22437, a weekly gain of 0.94% on close.
Chana
Chana futures rose this weekend on firm spot demand and delayed arrivals. On Friday, in the Delhi spot market spot price jumped by 39 rupees to 2,500 rupees per 100 kg. Traders are expecting prices to move up in short-term due to arrival delay and strong demand said an analyst at Angel Commodities.
Given the current scenario, overall acreage is still expected higher due to increased MSP and better soil moisture level. Thus long term trend would depend on the weather conditions and thereby the production estimates. Chana acreage in 2010/11 is likely to rise by 15-20 percent due to abundant soil moisture and higher government support price, which is encouraging farmers to increase area under cultivation
NCDEX December delivery contract rose by 2.23% from Rs.2460 to Rs.2515 before hitting a high of 2547, while the January contract gained by 0.27 per cent to Rs.2532 per quintal. Chana output in 2010-11 stood at 7.35 million tonnes compared to 7.06 million tonnes in 2009-10. For 2011-12 also, Government has targeted 6.58 million tonnes of production. As on 26th November 2010, area sown under Chana stood at 62.19 lakh hectares against 63.29 lakh hectares sown during the same period last year.
India's pulses imports from Myanmar nearly halved on month in October to 37,243 tn, on an increase in local output, the USDA said in a report. India has raised minimum support price (MSP) of chana by 19.3 percent to 2,100 rupees per 100 kg.
Rubber
India rubber gained this week mainly on fresh buying and short covering. The unexpected changes in weather also supported the gain. In global market also rubber extended a rally to a record as heavy rains in the south of Thailand increased concerns that supply was trailing demand. Rubber rose 4.4 per cent this week.
On Friday, May-delivery rubber on the Tokyo Commodity Exchange climbed to as high as 400.9 yen per kilogram ($4,784 a metric ton) and ended at 400.5 yen. May-delivery rubber in Shanghai gained as much as 3.4 percent to 36,245 yuan ($5,442) a ton before closing at 36,145 yuan.
Global demand for natural and synthetic rubber is forecast to increase by 15.3 percent this year to 24.3 million tons, according to the International Rubber Study Group.
Rubber futures may extend gains and climb to 480 yen by June as plantations in Thailand and Indonesia enter their low- production season known as wintering, said senior director at Newedge Japan Inc. this week.
At NMCE, January contract gained from Rs.20275 to Rs.20896, higher by 3.06 per cent whereas January contract rose to Rs.21278, an increase of 3.04 per cent. Friday’s spot prices per Kg were: RSS-4: Rs 203.00, RSS-5: 197.00, Ungraded: 193.00.
Soybean
India’s soybean market gain initially tracking global trends but higher arrivals, and weak palm oil prices limited gains. Higher rapeseed acreage also contributed to weaker sentiments in soy complex. In global market, Soybean futures for March delivery rose 10 cents, or 0.8 percent, to $13.105 a bushel in Chicago on Friday, up 2.9 percent for the week.
A jump in oil meal exports and lower veg oil imports in November limited the downside. India's vegetable oil imports in November fell 11.3 percent from a year earlier on higher local soybean crushing compared with the previous month, a leading trade body said.
During the month, India's oilmeal exports jumped 42 percent from a year earlier, for the fifth straight month, due to robust demand from traditional buyers in China, Japan and Vietnam. On Friday, in the Indore spot market, soybean fell by 15 rupees to 2,177 rupees per 100 kg and soyoil by 3.55 rupees to 573.65 rupees.
NCDEX December soybean prices fell 0.11% to Rs 2178.50 while Jan Soybean prices fell from Rs 2248 to Rs 2256, a rise of 0.35%. Jan soyoil prices rose marginally to 595.05 per 10 kg.
USDA’s Weekly export sales report released on Thursday, which showed that that soybean sales came in at 637,800 metric tonnes for old crop and 233,000 for new crop for a total of 870,800.
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