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Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 1
Daily Commodity Roundup as on Friday, December 07, 2018
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 2
NIKKEI21524
0.4 -3.24 0.1USDINR
70.95 S&P
INDEX
2700
DJIA25027
-1.59 -1.69 -3.10SENSEX
35312NIFTY
10601
$ INDEX96.78
0.23 -0.40 -0.02
LME ALUMINIUM
1946 LME
LEAD
1986
10890
0.25 -0.15 0.28
LME
COPPER
6150 LME
ZINC
2606
IN
TER
NA
TIO
NA
L M
AR
KET U
PD
ATE GOLD $
1240.00SILVER $
USDJPY112.751
0.03 -0.06 0.03EURUSD
1.1380GBPUSD
1.27723
LME
NICKEL
14.48CRUDE $
51.49
0.22 0.33 -2.65
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#
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#
RESIST 1 SUPPORT 1 SUPPORT 2
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 3
Trading Ideas :Gold trading range for the day is 30915-31383.
Fed's Powell: Financial stability is now more integral for monetary policy
Fed Vice Chair Clarida the central bank should continue to gradually raise interest rates, but it was “especially important” to monitor economic data.
The U.S. Mint sold 8,000 ounces of American Eagle gold coins in November, down 67.3 percent from the previous month, according to the latest data.
Gold steadied as the dollar declined amid expectations of a slowdown in the pace of U.S. interest rate hikes.
Gold steadied as the dollar declined amid expectations of a slowdown in
the pace of U.S. interest rate hikes, with investors seeking refuge in the
bullion from a sell-off in global stocks. The dollar fell about 0.5 percent as
U.S. Treasury yields tumbled and traders scaled back expectations on the
number of hikes the Fed would implement amid weakening economic data
and market volatility. The dollar index inched lower, weighed down by
worries about lower U.S. long-term Treasury yields and expectations of a
fewer rate hikes by the U.S. central bank. Atlanta Federal Reserve bank
president Raphael Bostic on Thursday said he felt the Fed should continue
raising rates towards a "neutral" level, noting that despite recent market
volatility and increasing uncertainty, he did not see "any indications of a
material weakening in the macroeconomic data at the moment." The
Federal Reserve is “helping community banks remain competitive” and
continue to play a central role in rural communities, in part by reducing
regulations for smaller banks, Fed Governor Randal Quarles told the
Stanford Institute for Economic Policy Research. He did not comment on
the economic outlook or monetary policy in his prepared remarks, which
focused on banks in the Western United States. Gold-backed exchange-
traded funds (ETFs) registered inflows in all the world's major regions in
November, as volatile stock markets fuelled flight-to-safety buying, the
World Gold Council said on Thursday. Technically market is under short
covering as market has witnessed drop in open interest by -1.57% to
settled at 13073 while prices up 14 rupees, now Gold is getting support at
31002 and below same could see a test of 30915 level, And resistance is
now likely to be seen at 31236, a move above could see prices testing
31383.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
31150
SUPPORT 3
31470 31383 31236 31002 30915 30768
31296 31062 31089 0.05 13073
RESIST 3 RESIST 2
MCX Gold Feb 2019
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SUPPORT 2 SUPPORT 3
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 4
Trading Ideas :Silver trading range for the day is 36809-37721.
Fed's Beige Book: wages rising broadly in addition to nonwage benefits/compensation
Fed policymakers will gather at a Dec. 18-19 meeting, at which the central bank is widely expected to raise interest rates.
The market now awaits Friday's U.S. non-farm payrolls data for November, which is expected to show unemployment remains at 3.7 percent.
Silver dropped tracking weakness in crude oil and base metals prices despite an inversion in part of the US yield curve raised a red flag for a potential recession.
Silver on MCX settled down -0.56% at 37218 tracking weakness in crude
oil and base metals prices despite dollar has been under pressure as an
inversion in part of the US yield curve raised a red flag for a potential
recession. The U.S. economy is "performing very well overall," Federal
Reserve Chairman Jerome Powell said, capping a week of widespread
market nervousness with a reminder that the U.S. economy continues to
expand. Fed policymakers are still widely expected to raise interest rates
again at their December 18-19 meeting, but the market focus is on how
many rate hikes will follow in 2019. Atlanta Fed President Raphael Bostic
on Thursday said the central bank may not have to go much further with
interest rates to achieve a proper balance between slowing and
overheating. The two-year/10-year spread was at its flattest this week in
more than a decade amid a sharp fall in long-term rates. A flatter curve is
seen as an indicator of a slowing economy. The upcoming Federal
Reserve policy decision is also expected to be in focus, as the Dec. 18-19
meeting looms just over the horizon. The greenback came under pressure
last week when the market took comments from Fed chairman Jerome
Powell as signalling a slower pace of rate hikes. Markets still expect the
Fed to move forward with a quarter-point hike this month but have
interpreted cautious remarks from policymakers to mean that further
tightening in 2019 will have to be reevaluated on economic and inflation
data. Technically now Silver is getting support at 37013 and below same
could see a test of 36809 level, And resistance is now likely to be seen at
37469, a move above could see prices testing 37721.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
37421 37517
37925 37721 37469 37013 36809 36557
37061 37218 -0.56 23766
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1
MCX Silver Mar 2019
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SUPPORT 2 SUPPORT 3
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 5
Trading Ideas :Crudeoil trading range for the day is 3423-3891.
Oil producers have been hit by a 30-percent plunge in crude prices since October as supply surges just as the demand outlook weakens amid a global economic slowdown.
Oil output from the OPEC, Russia and the United States - has increased by 3.3 million bpd since the end of 2017, to 56.38 million bpd.
Crude stockpiles in the United States plunged last week for the first time in 11 weeks, the EIA said, announcing a drawdown of 7.3 million barrels.
Crude oil fell after OPEC and allied exporting countries ended a meeting without announcing a decision to cut crude output, and prepared to debate the matter the next day.
Crudeoil on MCX settled down -4.81% at 3619 after OPEC and allied
exporting countries ended a meeting without announcing a decision to cut
crude output, and prepared to debate the matter the next day. Oil
producers have been hit by a 30-percent plunge in crude prices since
October as supply surges just as the demand outlook weakens amid a
global economic slowdown. Oil output from the world's biggest producers -
OPEC, Russia and the United States - has increased by 3.3 million bpd
since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of
global consumption. That increase alone is equivalent to the output of
major OPEC producer the United Arab Emirates. The surge is largely down
to soaring U.S. crude oil production, which has jumped by 2.5 million bpd
since early 2016 to a record 11.7 million bpd, making the United States
the world's biggest oil producer. Crude stockpiles in the United States
plunged last week for the first time in 11 weeks, the Energy Information
Administration (EIA) said, announcing a drawdown of 7.3 million barrels
in the week to Nov. 30, compared with analysts’ expectations for a
decrease of just 942,000 barrels. More staggering than the weekly drop in
crude stockpiles was EIA data showing the United States shipped 3.2
million barrels per day of oil last week, the highest ever for a country that
ended its self-imposed four-decade old oil exports embargo just two years
ago, at the height of the first shale crude glut of 2014-2017. Technically
market is under fresh selling as market has witnessed gain in open
interest by 30.17% to settled at 19599 while prices down -183 rupees,
now Crudeoil is getting support at 3521 and below same could see a test
of 3423 level, And resistance is now likely to be seen at 3755, a move
above could see prices testing 3891.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
3760 3793
3989 3891 3755 3521 3423 3287
3559 3619 -4.81 19599
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1
MCX Crudeoil Dec 2018
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#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Copper trading range for the day is 424.8-438.6.
China and US agreed to a truce in their months-long trade war, with U.S. President Donald Trump agreeing to refrain from raising tariffs on Jan. 1.
But he has also warned that the U.S. will revert to tariffs if the two sides cannot resolve their differences before the stipulated 90 days.
Warehouse stock for Copper at LME was at 124950mt that is down by -3250mt.
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 6
Copper prices dropped as worries over weak demand caused by Sino-U.S. trade tensions persisted.
Copper on MCX settled down -1.27% at 431.65 but prices sharply gained
from the day's low as reports that the U.S. Federal Reserve could pause
from raising interest rates helped the metal recover from its steepest
slide in five weeks in the prior session. The U.S.-China trade dispute
remains the largest downside risk for the global and Chinese economic
outlook. While demand from top copper consumer China is weaker this
month, as market sentiment for next year remains positive as China
heads into the 70th year since its founding. Last night most base metals
ended in negative territory whereby LME nickel slumped over 3%,
aluminium dropped 1.6%, copper slid some 1% and zinc lost 0.4% while
lead gained 0.4%. The US dollar weakened against major peers on
Thursday as US Treasury yields tumbled and traders scaled back
expectations on the number of rate hikes the Fed would implement amid
weakening economic data and heightened market volatility. Data showed
private employers hired fewer workers than expected in November,
pointing to a moderation in the pace of job growth. Also the number of
Americans filing applications for jobless benefits fell less than expected
last week while the four-week moving average of claims rose to its
highest level since April, suggesting some loss of momentum in the labor
market. Now a day ahead Economic data slated for release today include
China’s November foreign exchange reserves, the eurozone’s third-
quarter GDP growth and US November nonfarm payrolls report, the
University of Michigan’s December consumer confidence index and
October wholesale inventories. Technically market is getting support at
428.3 and below same could see a test of 424.8 level, And resistance is
now likely to be seen at 435.2, a move above could see prices testing
438.6.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
433.85
SUPPORT 3
442.1 438.6 435.2 428.3 424.8 421.4
435.10 428.20 431.65 -1.27 13737
RESIST 3 RESIST 2
MCX Copper Feb 2019
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#
#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Zinc trading range for the day is 183.6-190.
China's factory activity grew slightly in November, though new export orders extended their decline in a further blow to the sector already hurt by the Sino-U.S. trade frictions.
The premium for cash LME zinc over the three-month price soared to $113 a tonne, the highest since 1997.
Warehouse stock for Zinc at LME was at 111225mt that is up by 525mt.
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 7
MCX Zinc Dec 2018
Zinc dropped as worries over weak demand caused by Sino-U.S. trade tensions persisted.
Zinc on MCX settled down -0.82% at 187.15 on long liquidation while
prices recovered some earlier losses tracking bounce from LME Zinc which
closed at $2,610/mt as support seen from low inventories sustains,
weakening consumption by year-end could limit upside room for zinc
prices. Last night most base metals ended in negative territory whereby
LME nickel slumped over 3%, aluminium dropped 1.6%, copper slid some
1% and zinc lost 0.4% while lead gained 0.4%. The US dollar weakened
against major peers on Thursday as US Treasury yields tumbled and
traders scaled back expectations on the number of rate hikes the Federal
Reserve would implement amid weakening economic data and heightened
market volatility. The dollar has been under pressure this week as an
inversion in part of the US yield curve raised a red flag for a potential
recession. While Fed policymakers are still widely expected to raise
interest rates again at their December 18-19 meeting, but the market
focus is on how many rate hikes will follow in 2019. Separately, data
showed private employers hired fewer workers than expected in
November, pointing to a moderation in the pace of job growth. Now a day
ahead Economic data slated for release today include China’s November
foreign exchange reserves, the eurozone’s third-quarter GDP growth and
US November nonfarm payrolls report, the University of Michigan’s
December consumer confidence index and October wholesale inventories.
Technically market is under long liquidation as market has witnessed drop
in open interest by -19.07% to settled at 2711 while prices down -1.55
rupees, now Zinc is getting support at 185.5 and below same could see a
test of 183.6 level, And resistance is now likely to be seen at 188.7, a
move above could see prices testing 190.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
187.6
SUPPORT 3
191.9 190.0 188.7 185.5 183.6 182.3
188.2 185.0 187.2 -0.82 2711
RESIST 3 RESIST 2
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#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Nickel trading range for the day is 745.9-799.9.
The Philippine Nickel Industry Association (PNIA) is projecting a decline in nickel production of 10-20% in 2019
Indonesia has granted permission for two commodity companies in the country to restart exports of nickel ore as they have made progress on smelter projects.
Warehouse stock for Nickel at LME was at 210876mt that is down by -408mt.
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 8
MCX Nickel Dec 2018
Nickel dropped as pressure after the arrest of a top Chinese executive in Canada dampened hopes for a resolution to the U.S.-China trade conflict.
Nickel on MCX settled down -3.22% at 767.60 tracking other metals
prices which came under pressure in line with broad market weakness in
equities, bond yields and increased trade tensions between the United
States and China seem to be weighing on sentiment. The base metals
prices have lost the shine they garnered in the aftermath of the positive
trade developments seen at this past weekend’s G20 meeting, but most
are holding up in or near recent high ground – the exception being copper
that has given back all of its post-G20 gains. We still feel that the trade
truce offers an opportunity for stronger growth but it looks as though the
market is waiting for evidence of this before it restocks. Last night most
base metals ended in negative territory whereby LME nickel slumped over
3%, aluminium dropped 1.6%, copper slid some 1% and zinc lost 0.4%
while lead gained 0.4%. The US dollar weakened against major peers on
Thursday as US Treasury yields tumbled and traders scaled back
expectations on the number of rate hikes the Federal Reserve would
implement amid weakening economic data and heightened market
volatility. Separately, data showed private employers hired fewer workers
than expected in November, pointing to a moderation in the pace of job
growth. Now a day ahead Economic data slated for release today include
China’s November foreign exchange reserves, the eurozone’s third-
quarter GDP growth and US November nonfarm payrolls report, the
University of Michigan’s December consumer confidence index and
October wholesale inventories. Technically market is getting support at
756.8 and below same could see a test of 745.9 level, And resistance is
now likely to be seen at 783.8, a move above could see prices testing
799.9.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
785.7
SUPPORT 3
810.8 799.9 783.8 756.8 745.9 729.8
789 762 767.6 -3.22 15620
RESIST 3 RESIST 2
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#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Jeera trading range for the day is 6223-6223.
However, good physical domestic and exports to China and Bangladesh limited the downside.
NCDEX accredited warehouses jeera stocks gained by 9 tonnes to 2098 tonnes.
In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19148 rupee per 100 kg.
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 9
NCDEX Jeera Jan 2019
Jeera prices dropped on expectation of improving acreage on reports of providing water in canal for irrigation for rabi crop.
Jeera on NCDEX settled down by -1.03% at 18810 on expectation that
the area may increase on assure irrigation to Gujarat farmers. However,
good physical domestic and exports to China and Bangladesh limited the
downside. As per data release by State Agriculture Department of
Gujarat, area under cumin in the state is pegged at 122,000 ha (vs
44,200 ha last week) as on 26-Nov, down 36% on year. Last year area
was 191,400 ha during the same time. During monsoon season, Jeera
producing districts of Gujarat received scanty rains, but Gujarat govt.
announced assured irrigation for rabi crops. According to Commerce
Ministry data, exports of jeera is down, 35% on year in September at
9,855 tonnes compared to 15,167 tonnes last year. However, jeera
exports in 2018/19 (Apr-Aug) has crossed 1 lakh tonnes, up 54.8%
compared to exports last year. Jeera sowing in Gujarat fell to 44,200
hectares from 130,100 hectares a year ago due to lack of water, state
government data showed. Sowing is likely to pick up in the coming
weeks; however, there are doubts of any increase in acreage due to dry
weather. Sowing is likely to pick up in the coming weeks; however, there
are doubts of any increase in acreage due to dry weather. Moreover,
concern that standing cumin crops might get affected amid scanty
rainfalls also supported upward trend in prices. In Unjha, a key spot
market in Gujarat, jeera edged down by -149.9 Rupees to end at
19253.55 Rupees per 100 kg.Technically now Jeera is getting support at
18690 and below same could see a test of 18575 level, And resistance is
now likely to be seen at 18970, a move above could see prices testing
19135.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
18890
SUPPORT 3
19200 19045 18860 18520 18365 18180
18890 18550 18670 -0.74 2943
RESIST 3 RESIST 2
#
#
#
#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Turmeric trading range for the day is 6526-6670.
Turmeric output this year is expected to be higher in the states of Tamilnadu, Karnataka and Maharashtra.
NCDEX accredited warehouses turmeric stocks dropped by 89 tonnes to 3170 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 7037.5 Rupees gained 1.15 Rupees.
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 10
NCDEX Turmeric Apr 2019
Turmeric dropped due to lower exports and anticipation of good crop next season.
Turmeric on NCDEX settled down by -0.96% at 6580 due to lower exports
and anticipation of good crop next season. Pressure also seen amid
increased acreage of turmeric in Tamilnadu, Karnataka and Maharashtra
and slip in exports. According to farmers and traders this year production
in Maharashtra can be less than last year. Deficit rainfall in Maharashtra
and Karnataka affected Turmeric standing crop. Lower rainfall reported in
Maharashtra Marathwada turmeric growing regions like Hingoli, Sangli,
Nanded, Basmath affect Turmeric standing crop. Turmeric output this
year is expected to be higher in the states of Tamilnadu, Karnataka and
Maharashtra. According to the Department of Horticulture and Plantation
Crops of Tamil Nadu, acreage of turmeric in Erode may jump nearly 80%
on year to 5,300 hectare in 2018-19 (Jul-Jun) because of very good
rainfall and availability of other water sources. In Telangana, turmeric
acreage rose to 47,790 hectare compared to 44,956 hectare a year ago,
state government data showed. As per data released by Commerce
Ministry, turmeric exports during the month of Sep 2018, up 16.5% on
year to 9,064 tonnes. Turmeric exports in 2018/19 (Apr-Sep) is up
10.6% at 65,547 tonnes compared to 59,285 last year for the same time.
During the November, arrivals of turmeric have been higher at 12,067 t
(Vs 9,547 t) compared last year, as per data. In Andhra Pradesh farmers
planted turmeric over an area 18,000 hectares up from 14,000 hectares a
year ago. In Nizamabad, a major spot market in AP, the price ended at
7037.5 Rupees gained 1.15 Rupees.Technically now Turmeric is getting
support at 6554 and below same could see a test of 6526 level, And
resistance is now likely to be seen at 6626, a move above could see
prices testing 6670.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
6642
SUPPORT 3
6698 6670 6626 6554 6526 6482
6642 6570 6580 -0.96 13205
RESIST 3 RESIST 2
#
#
#
#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Menthaoil trading range for the day is 1579.3-1643.3.
Mentha oil spot at Sambhal closed at 1797.70 per 1kg. Spot prices was down by Rs.-4.60/-.
According to preliminary estimates, mentha oil production in 2018-19 would be 40,000-45,000 ton against last year's production of 35,000 tons.
However, there could be chances of crop damage to certain extend due to unfavourable weather condition.
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 11
MCX Menthaoil Dec 2018
Menthaoil settled down as spot markets are witnessing low demand amid adequate supply which weighed on prices.
Mentha oil on MCX settled down by -0.16% at 1613.8 as spot markets are
witnessing low demand amid adequate supply which weighed on prices.
Low demand outlook in mentha oil in domestic as well as global market
due to expectation of recovery in Indian Rupee against the U.S dollar.
Bumper crop harvest has been discounted in the market and market is
moving upwards on rising demand from end users. Arrivals in Sambhal
stood at 400 drums compared to 350 drum a day ago while in Barabanki
supplies rose to 500 drums from 450 drums a day earlier. According to
preliminary estimates, mentha oil production in 2018-19 would be 40,000-
45,000 ton against last year's production of 35,000 tons. There could be
chances of crop damage to certain extend due to unfavourable weather
condition. Mandi Department, which assumes Mentha as an agricultural
product and receives the mandatory duty of one and a half percent, the
GST of the same commerce tax department, Mentha crop, is not
considered as agricultural product and 15 percent GST is charged. Due to
this double tax, the price of mentha product increases, whereas synthetic
mentha is much cheaper, so many companies making mentha products
have started using synthetic mentha.S Mentha oil spot at Sambhal closed
at 1797.70 per 1kg. Spot prices was down by Rs.-4.60/-.Technically
market is under fresh selling as market has witnessed gain in open
interest by 4.39% to settled at 1093 while prices down -2.6 rupees, now
Menthaoil is getting support at 1596.6 and below same could see a test of
1579.3 level, And resistance is now likely to be seen at 1628.6, a move
above could see prices testing 1643.3.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
1619.00
SUPPORT 3
1660.6 1643.3 1628.6 1596.6 1579.3 1564.6
1626.00 1594.00 1613.80 -0.16 1093
RESIST 3 RESIST 2
TIME ZONE Forecast
CommodityLME STOCK Stock
COPPER -3250 124950
ALUMINIUM -1475 1043775
NICKEL -408 210876
LEAD -300 104550
ZINC 525 111225
8:30pm USD Prelim UoM Consumer Sentiment 97.1 97.5
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 12
7:00pm USD Non-Farm Employment Change 200K 250K
7:00pm USD Unemployment Rate 0.037 0.037
3:30pm EUR Revised GDP q/q 0.002 0.002
7:00pm USD Average Hourly Earnings m/m 0.003 0.002
2:30pm EUR Italian Retail Sales m/m -0.002 -0.008
3:30pm EUR Final Employment Change q/q 0.002 0.002
1:15pm EUR French Industrial Production m/m 0.008 -0.018
1:15pm EUR French Trade Balance -6.0B -5.7B
Long Liquidation
LME DAILY STOCK POSITION ECONOMICAL DATA
DATA Previous
12:30pm EUR German Industrial Production m/m 0.003 0.002
TREND Fresh Buying Long Liquidation Fresh Selling Fresh Selling Fresh Selling Fresh Selling Long Liquidation Fresh Selling
723
Cng in OI 11.06 -3.64 11.73 9.98 1.97 21.84 -4.61 8.48 -1.43
SUPPORT
4502 21420 18180 4245 6482 3962 480.0 3274
729
4533 21590 18365 4290 6526 3979 484.0 3297 726
4572 21690 18520 4329 6554 3990 488.2 3310
492.2 3333 732
741
4673 22130 19045 4458 6670 4035 500.4 3369 738
504.6 3382
496.4 3346 735
P. POINT 4603 21860 18705 4374 6598 4007
4642 21960 18860 4413 6626 4018
RESISTANCE
4712 22230 19200 4497 6698 4046
4611 21790 18670 4368 6580 4000 492.5 3324
DAILY MARKET TRADING LEVEL
COMMODITIESNCDEX Chana Jan
2019
NCDEX Cotton Dec
2018
NCDEX Jeera Jan
2019
NCDEX Guarseed10
Jan 2019
NCDEX Turmeric
Apr 2019
NCDEX Rmseed Jan
2019MCX CPO Dec 2018
NCDEX Soyabean
Jan 2019
NCDEX
Ref.Soya oil
Jan 2019
730.05CLOSE
-3250
-1475
-408-300
525
-3500
-3000
-2500
-2000
-1500
-1000
-500
0
500
1000
COPPER ALUMINIUM NICKEL LEAD ZINC
LME STOCK
NEWS YOU CAN USE
Euro zone manufacturing activity expanded at its weakest rate in over two years in November as new orders contracted for a second month, further evidence the bloc’s
economic growth is past its peak, a survey showed. Policymakers at the European Central Bank are due to draw a line under their 2.6 trillion euro asset purchase program
at the end of the year and the survey will likely make disappointing reading. IHS Markit’s November final manufacturing Purchasing Managers’ Index fell for a third month,
coming in at 51.8 from October’s 52.0, although above a flash reading of 51.5 and still exceeding the 50 level separating growth from contraction. But that was its lowest
level since August 2016 and an index measuring output, which feeds into a composite PMI that is seen as a good guide to economic health, stumbled to 50.7 from 51.3 -
its lowest since mid-2013. The preliminary estimate was 50.4. With new orders falling for a second month, factory managers don’t see any pick up soon and optimism
remained low. The future output index only nudged up to 56.3 from a near six-year low of 56.1 in October. The darker outlook is linked to a U.S.-led trade war with China,
which economists say is damaging to global growth, and intensifying political uncertainty in the currency bloc, IHS Markit said.
Asia’s economic prospects looked gloomy as factory activity and export orders weakened across the region in November with analysts expecting no quick rebound amid
simmering global trade frictions. In a sign corporate sentiment was taking a hit from worries over protectionism, manufacturers’ activity slipped in November in countries
as varied as Indonesia, Taiwan and South Korea the IHS Markit Purchasing Managers’ Index showed. While factory activity rose slightly in China, new export orders
extended their decline in a further blow to a sector already hurt by Sino-U.S. trade frictions. The IHS Markit survey results came on the heels of data out earlier on
Monday showing a sharp slowdown in Japan’s capital expenditure, which had been considered a key driver of the export-reliant economy. China’s manufacturing sector
activity grew slightly in November but new export orders shrank, reflecting weakening global demand, a private survey showed. The downbeat readings backed Friday’s
official PMI survey for November showing growth in China’s vast factory sector sliding to its lowest in more than two years. A revised survey showed Japan’s
manufacturing activity expanded in November at the slowest pace in more than a year as growth in new orders slowed, a worrying sign that economic expansion may be
muted in the fourth quarter.
India’s soymeal exports slumped 40% on year to around 60,000 tn in October, an official with The Soybean Processors’ Association of India said. “Soymeal exports in
October are around 60,000 tn while they were recorded over 100,000 tn during same period last year. Export demand for soymeal was bleak in October but is seen robust
in Nov-Dec,” the official said, adding that exports declined sharply in October due to waning purchases from major buyers. Demand was subdued in October also as
stockists and millers were not clear about the spot price of soybean following Flat Bhavantar Bhugtan Yojana this season introduced in Madhya Pradesh, the largest
soybean producer in the country. Under the Flat Bhavantar Bhugtan Yojana that was rolled out from Oct 20, the state government is paying farmers 500 rupees per 100
kg for soybean, irrespective of the price they sell it at in the open market. Last year, soybean prices had crashed in spot markets when the state government
implemented the Bhavantar Bhugtan Yojana, under which it had agreed to compensate farmers the difference between modal price and the minimum support price. This
time around, prices have been inching up despite a larger crop, as the state government has tweaked the compensation scheme scheme, and also as carryover stocks
from last season low. Carryover stocks for the season started Oct 1 were estimated at 200,000 tn, sharply lower than 1.3 mln tn a year ago due to a smaller crop in 2017-
18 (Jul-Jun), the official said. According to trade estimates, deals have been signed for export of 500,000-600,000 tn of soymeal during Oct-Dec compared with actual
export of 447,920 tn in the year ago period.
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 13
Date : Friday, December 07, 2018 URL : www.systematixshares.com Page No : 14
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