Commodities
Domestic producers may be hit
Zinc prices in the international markets have been retreating relentlessly in the last few months. At the end of June, prices have dipped to $870 per tonne from the levels of $1,018.50 per tonne at the beginning of the year.

Firm tone in gold likely to continue
GOLD was generally strong last week eventhough the market showed two-way movement reaching a high of $278 per ounce and low of $268/oz. Despite profit-taking and some not-so-positive news, a firm undertone ensured an eventual bounce-back in prices.

Technical Analysis
NY cotton may hover around 30 cents area
NYCE cotton futures started the week positively with the spot July contract rocketing to a five week high as Hohenberg a trading firm stopped the bulk of July deliveries. Hohenberg could be long 85 per cent of open interest for the spot contract, leaving little liquidity for commercial shorts needing to exit before expiration. This was followed by an unexpectedly low monthly consumption report which again saw prices fall back below the 43 cents area. Consumption was expected to be bad and get worser.

Uptrend seen in palm oil
Malaysia's palm oil futures ended the week in a very positive tone on a technical rally and confidence over duty draw backs by India. Weather is still playing a crucial part in China with expectations that the country would import more palm oil. The mark ets are very closely watching the weather developments there.

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