INDORE, India -- ✍ MCX - WEEKLY NEWS LETTERS

INTERNATIONAL NEWS

The ECB said it would buy government bonds from this March until the end of September 2016 despite opposition from Germany's Bundesbank and concerns in Berlin that it could allow spendthrift countries to slacken economic reforms. Together with existing schemes, the new quantitative easing program will pump 60 billion euros a month into the economy.

U.S. crude stocks rose much more than expected last week as refineries cut output, while gasoline stocks increased and distillateinventories fell, data from the Energy Information Administration showed on Thursday. Crude inventories rose by 10.1 millionbarrels in the last week, compared with analysts' expectations for an increase of 2.6 million barrels. Gasoline stocks rose by 588,000barrels, compared with analysts' expectations in a Reuters poll for a 1.2 million barrels gain. Distillate stockpiles, which include diesel and heating oil, fell by 3.3 million barrels, versus expectations for a 250,000 barrels increase, the EIA data showed.

ECB announced stimulus of €60 billion per month, starting in March.

US Unemployment Claims decreased to 307,000 in the last week.

UK’s CBI Industrial Order Expectations fell to 4-mark in January.

The US Dollar Index (DX) traded higher by 1.3 percent yesterday after the release of relatively positive U.S. jobless claims data. Also, the European Central Bank announced a large scale quantitative easing program gave support to the Greenback.

PRECIOUS METAL

Silver was up 1.6 percent at $18.40 an ounce.The European Central Bank took the ultimate policy leap on Thursday,launching a government bond-buying programme which will pumphundreds of billions in new money into a sagging euro zone economy.The ECB said it would purchase sovereign debt from this March untilthe end of September 2016, despite opposition from Germany'sBundesbank and concerns in Berlin that it could allow spendthriftcountries to slacken economic reforms.

Gold turned higher and touched a five-month high above $1,300 perounce on Thursday, after the European Central Bank (ECB) launched aMultibillion euro bond-buying program aimed at reviving a sagging eurozone economy.President Mario Draghi said the ECB would print money to buy up 60billion euros ($69 billion) worth ofsovereign bonds a month in the eurozone, where inflation at minus 0.2 percent is far below the central bank'starget of just under 2 percent.He said inflation was expected to increase gradually later in 2015 and in2016.The metal has risen around 10 percent since the beginning of the month,its strongest month so far in two years, underpinned by higher demandfor assets perceived as safer.

BASE METAL

Base metals on the LME declined on Thursday as the Eurozone economy is in doldrums and the monetary easing boost by the ECB to pump in 60 billion euros in the economy is a step in the right direction. Although, slowdown in China and Japan remains the concern for overall demand for base metals. In the Indian markets, all the base metals (except lead) traded lower in line with international markets.

Copper fell on Thursday as climbing inventories highlightedoversupply in the market and consumers waited for weaker prices. Also weighing on the market was profit-taking on long positionsbuilt up ahead of Thursday's European Central Bank (ECB)quantitative easing (QE) programme.Copper was also under pressure from news that investment thisyear by the Chinese State Grid will rise 9 percent, not the 24percent previously expected, after last year's investment figurewas released on Thursday and was higher than originally reported.Goldman Sachs said in a note on Wednesday that the impact ofgrid investment was overblown. Instead, copper's fortunes are farmore closely tied to the country's ailing property sector, theinvestment bank said.

ENERGY

U.S. natural gas futures ended down over 4 percent on Thursday afterearlier falling to the lowest since 2012 on a smaller-than-expectedstorage draw despite forecasts for colder weather.The U.S. Energy Information Administration said utilities pulled 216billion cubic feet of gas from storage last week, less than the 227-bcfdraw analysts forecast in a Reuters poll.That was also less than the 236-bcf decrease in the prior week, buttopped the 133-bcf draw in the same week a year ago and the 176-bcffive-year average draw.Thomson Reuters Analytics said the latest Global Forecast System (GFS)weather model for the lower 48 U.S. states called for slightly coldertemperatures over the next two weeks with an expected 485 heatingdegree days.

Oil prices declined on both sides of the Atlantic with WTI and Brent oil falling by 3.1 and 1 percent respectively. EIA report showed the biggest build in U.S. crude inventory in at least 14 years exerting downside pressure on prices. The spread between WTI and global benchmark Brent widened to as much as $2.53, the most since the settlement on Jan. 7, as U.S. crude tumbled more than 2 percent.

Oil prices declined on both sides of the Atlantic with WTI and Brent oil falling by 3.1 and 1 percent respectively. EIA report showed the biggest build in U.S. crude inventory in at least 14 years exerting downside pressure on prices.

The spread between WTI and global benchmark Brent widened to as much as $2.53, the most since the settlement on Jan. 7, as U.S. crude tumbled more than 2 percent.

NCDEX - WEEKLY NEWS LETTERS

RM SEED

Weakness persisted for RMSeed as the ongoing rains in Rajasthan are reportedly beneficial for the standing crop. Once the rains recede, markets are likely to pick up as demand for Mustard Oil remains strong in Indian markets.

Reports of crop damage from parts of Rajasthan from recent rains also kept prices firm. Demand rose further for Mustard Oil amidst 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 shift-ing 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.

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