The construction sector in China is undergoing a sharp slowdown as real estate prices have fallen in 699 of the 700 districts for the last two quarters. Iron ore prices have fallen from USD 130 per ton in the beginning of the year to USD 72.10 per ton. This is a five and half year low prices for Iron ore prices.
According to Karvy, NCDEX December soybean contract might trade on a bearish note. The oncerns of bird flu across Kerala and possibility of spreading in the nearby states might impact the soybean prices as the demand of soybean meal might come down.
Gold and Silver prices are expected to trade lower as the inflation hedge appeal of the yellow metal has been declining with falling oil prices. Waning investment interest, strength in the dollar will also exert downside pressure, says Angel Commodities.
By sticking to its output target of 30 million barrels per day, "OPEC is clearly signaling that it will no longer bear the burden of market adjustment alone and this decision puts the onus on other producers, especially US tight oil to adjust as well," Barclays analysts said in a note.
Watch the interview of Richard Mallinson, Geopolitical Analyst of Energy Aspects with Menaka Doshi on CNBC-TV18. He gives his take on the OPEC decision and the big fall in prices that we have seen currently.