daily commodity roundup as on - systematix...
TRANSCRIPT
Daily Commodity Roundup as on Friday, November 16, 2018
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 1
14.30CRUDE $
56.46
0.10 0.13 0.37
IN
TER
NA
TIO
NA
L M
AR
KET U
PD
ATE GOLD $
1214.47SILVER $
USDJPY113.403
0.06 0.11 -0.12EURUSD
1.1334GBPUSD
1.27883
LME
NICKEL
11300
-0.12 0.19 -0.22
LME
COPPER
6195 LME
ZINC
2573
$ INDEX97.00
0.15 -0.13 -0.11
LME ALUMINIUM
1941 LME
LEAD
1943
DJIA25081
0.34 0.38 -0.81SENSEX
35261NIFTY
10617
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 2
NIKKEI21691
-0.5 -0.76 -0.52USDINR
72.05 S&P
INDEX
2702
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MCX Gold Dec 2018
Gold prices inched up as the dollar slipped following reports that China delivered a written response to U.S. trade demand.
Gold prices inched up as the dollar slipped following reports that China
delivered a written response to U.S. trade demand, and that the two
nations resumed talks earlier in the week to diffuse their trade disputes.
Federal Reserve chairman Jerome Powell said in Dallas that the U.S.
economy is “in such a good place right now” and that markets should be
prepared that the central bank could raise rates at any time starting in
2019. Powell reiterated the central bank is independent and would
continue to do what is best for the U.S. economy. His comments came
after Trump accused the Fed of raising rates too fast during his
administration. U.S. retail sales rebounded sharply in October as
purchases of motor vehicles and building materials surged, likely driven
by recovery efforts in areas devastated by Hurricane Florence. The report
from the Commerce Department also showed broad gains in sales ahead
of the holiday shopping season, which bodes well for consumer spending
and the overall economy as the fourth quarter gets under way. Retail
sales increased 0.8 percent last month after a downwardly revised 0.1
percent dip in September. The lowest unemployment rate in nearly 49
years is boosting wages, with annual wage growth recording its biggest
increase in 9-1/2 years in October. Jobs market strength was
underscored by a separate report from the Labor Department on
Thursday showing a marginal increase in the number of Americans filing
for unemployment benefits last week. Technically market is under fresh
selling as market has witnessed gain in open interest by 0.25% to settled
at 8817, now Gold is getting support at 30715 and below same could see
a test of 30609 level, And resistance is now likely to be seen at 30932, a
move above could see prices testing 31043.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
30924
SUPPORT 3
31149 31043 30932 30715 30609 30498
30937 30720 30821 0.00 8817
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 3
Trading Ideas :Gold trading range for the day is 30609-31043.
Federal Reserve chairman Jerome Powell said in Dallas that the U.S. economy is “in such a good place right now”.
Powell reiterated the central bank is independent and would continue to do what is best for the U.S. economy.
India's Oct Gold Imports Down 42.9 Percent Y/y To $1.68 Billion - Trade Ministry
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MCX Silver Dec 2018
Silver gained as investors sought cover from market turmoil after Britain’s long-awaited draft agreement to leave the European Union was thrown into chaos
Silver on MCX settled up 0.54% at 36691 as investors sought cover from
market turmoil after Britain’s long-awaited draft agreement to leave the
European Union was thrown into chaos. British Prime Minister Theresa
May battled to save a draft divorce deal with the EU after her Brexit
secretary and other ministers quit in protest and eurosceptic lawmakers
stepped up efforts to topple her. U.S. consumer prices increased by the
most in nine months in October amid gains in the cost of gasoline and
rents, pointing to steadily rising inflation that will likely keep the Federal
Reserve on track to raise rates again next month. A “really strong” U.S.
economy is likely to continue growing, but softness in housing and high
levels of corporate debt have caught the Federal Reserve’s eye, Chairman
Jerome Powell said. Powell, quizzed by Dallas Federal Reserve President
Robert Kaplan in an hour-long conversation, was not asked directly about
possible further rate increases, but said nothing to counter the
expectation that the Fed will raise rates again when it meets in
December. However he did enumerate a set of concerns that have begun
to arise among Fed officials as they debate how much further and how
fast to raise their short-term policy rate, a benchmark for other borrowing
costs in the economy. “Slowing growth abroad. The tax cuts and spending
increases that were enacted are providing some real boost right now, but
that impetus is going to wear off over time,” Powell said when asked to
list the “headwinds” the economy may face in coming months. Technically
now Silver is getting support at 36474 and below same could see a test of
36257 level, And resistance is now likely to be seen at 36854, a move
above could see prices testing 37017.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
36569 36800
37234 37017 36854 36474 36257 36094
36420 36691 0.54 27234
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 4
Trading Ideas :Silver trading range for the day is 36257-37017.
U.S. consumer prices increased by the most in nine months in October amid gains in the cost of gasoline and rents, pointing to steadily rising inflation.
A “really strong” U.S. economy is likely to continue growing, but softness in housing and high levels of corporate debt have caught the Federal Reserve’s eye.
The trade war shows signs of possibly easing, with U.S. President Trump expected to meet Chinese President Xi Jinping at a G20 summit in Argentina this month.
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MCX Crudeoil Nov 2018
Crude oil dropped as concern over the prospect of an oversupplied market next year continued to weigh on prices.
Crudeoil on MCX settled down -0.46% at 4070 as concern over the
prospect of an oversupplied market next year continued to weigh on
prices despite OPEC's message that it may cut crude output. The
Organization of the Petroleum Exporting Countries (OPEC), led by Saudi
Arabia, is considering a cut of up to 1.4 million barrels per day (bpd) next
year to avoid the kind of build in global inventories that prompted the oil
price to crash between 2014 and 2016. The International Energy Agency
(IEA) and OPEC warned of a sizeable surplus at least in the first half of
2019, and possibly beyond, given the pace of growth in non-OPEC
production and slower demand in heavy consumers such as China and
India. The oil price has lost about a quarter of its value in only six weeks,
pressured by a slowing global economy and soaring crude output led by
the United States. The American Petroleum Institute said that crude
inventories rose by 8.8 million barrels in the week to Nov. 9 to 440.7
million, compared with expectations for an increase of 3.2 million barrels.
Meanwhile, the Washington-based Energy Information Administration
(EIA) said nearly 38 million barrels had been added to crude inventories
in the U.S. in the past seven weeks. Total U.S. crude production,
meanwhile, stands at a record 11.6 million bpd, making the country the
world’s biggest oil producer ahead of Russia and Saudi Arabia. Technically
market is under long liquidation as market has witnessed drop in open
interest by -12.74% to settled at 9278 while prices down -19 rupees, now
Crudeoil is getting support at 4015 and below same could see a test of
3959 level, And resistance is now likely to be seen at 4123, a move
above could see prices testing 4175.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
4054 4119
4231 4175 4123 4015 3959 3907
4011 4070 -0.46 9278
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 5
Trading Ideas :Crudeoil trading range for the day is 3959-4175.
OPEC led by Saudi Arabia, is considering a cut of up to 1.4 mbpd next year to avoid the kind of build in global inventories that prompted the oil price to crash.
The EIA data showed that crude oil inventories increased by 10.27 million barrels in the week to November 9.
The American Petroleum Institute said that crude inventories rose by 8.8 million barrels in the week to Nov. 9 to 440.7 million.
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MCX Copper Nov 2018
Copper gained boosted by news that China’s top trade negotiator was preparing to visit the United States ahead of a meeting between the two countries’ leaders.
Copper on MCX settled up 0.96% at 436.65 boosted by news that China’s
top trade negotiator was preparing to visit the United States ahead of a
meeting between the two countries’ leaders. A tight copper market may
be set to get a lot tighter, if a report this week from the world’s biggest
miner of the metal is any indication. The International Copper Study
Group forecasts a production deficit of 90,000 metric tons this year, more
than double the shortfall forecast in April. Lower grades were partly offset
by a 2 percent increase in metal recovery, but output for the first nine
months of the year was still 41,000 tons lower than in 2017. China's
industrial output and investment growth beat forecasts, suggesting a
flurry of support measures may be starting to take hold, but other
indicators pointed to continued pressure on the economy. Retail sales
slowed more than expected, while growth in October real estate
investment eased to a 10-month low and home sales fell again as
developers held back expansion plans in the face of softening demand.
Loan growth in top copper consumer China slowed sharply in October,
despite pressure by regulators on banks to help keep cash-starved
companies afloat, pointing to further weakening in the economy in
coming months. The outlook for copper demand in the mid to long term
remains healthy despite current trade friction between China and the
United States as a renewable energy revolution will require vast amounts
of the metal. Technically market is under short covering as market has
witnessed drop in open interest by -8.4% to settled at 12286, now
Copper is getting support at 433 and below same could see a test of
429.2 level, And resistance is now likely to be seen at 440.3, a move
above could see prices testing 443.8.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
433.50
SUPPORT 3
447.6 443.8 440.3 433.0 429.2 425.7
440.00 432.70 436.65 0.96 12286
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Copper trading range for the day is 429.2-443.8.
China Oct refined copper output +3.8 pct y/y at 736,000 tonnes - stats bureau
The International Copper Study Group forecasts a production deficit of 90,000 metric tons this year, more than double the shortfall forecast in April.
Warehouse stock for Copper at LME was at 166450mt that is down by -625mt.
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 6
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MCX Zinc Nov 2018
Zinc gained supported by expectations of potential stimulus measures in China to boost the economy after recent data pointed to cooling growth.
Zinc on MCX settled up 2.03% at 188.3, supported by expectations of
potential stimulus measures in China to boost the economy after recent
data pointed to cooling growth. The global zinc market deficit narrowed to
54,700 tonnes in September from a revised deficit of 81,800 tonnes in
August, data from the International Lead and Zinc Study Group (ILZSG)
showed. The August data was revised after it gave an initial estimate for
a deficit of 76,200 tonnes. In the first eight months of the year the zinc
market had a 305,000 tonne deficit, compared with a deficit of 398,000
tonnes in the same period last year. On top of slow credit growth, China's
retail sales last month also posted their smallest increase since May,
pointing to a consumption slowdown even as industrial output and
investment picked up, government data showed. China has delivered a
written response to U.S. demands for wide-ranging trade reforms, three
U.S. government sources said, a move that could trigger negotiations to
bring an end to a withering trade war between the world's top economies.
China's new home prices accelerated in October, led by gains in smaller
cities, suggesting a key driver of the country's economic growth remained
intact despite slower investment and increasing economic headwinds. The
US consumer prices increased by the most in nine months in October
amid gains in the cost of gasoline and rents, pointing to steadily rising
inflation that likely will keep the Federal Reserve on track to raise interest
rates again next month. Technically now Zinc is getting support at 185.1
and below same could see a test of 181.9 level, And resistance is now
likely to be seen at 191.4, a move above could see prices testing 194.5.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
185.1
SUPPORT 3
197.7 194.5 191.4 185.1 181.9 178.8
191.3 185.1 188.3 2.03 3002
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Zinc trading range for the day is 181.9-194.5.
China Oct zinc output -7.6 pct y/y at 501,000 tonnes - stats bureau
The global zinc market deficit narrowed to 54,700 tonnes in September from a revised deficit of 81,800 tonnes in August, data from the ILZSG showed.
Warehouse stock for Zinc at LME was at 125400mt that is down by -5500mt.
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 7
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MCX Nickel Nov 2018
Nickel dropped on late profit booking after prices seen supported with investors looking to potential stimulus spending in China.
Nickel on MCX settled down -0.53% at 810.9 on late profit booking after
prices seen supported with investors looking to potential stimulus
spending in China after weak retail and credit growth data in October.
Some 600 mt in metal content of high-grade nickel pig iron (NPI) output
will be affected in November as the second round of national
environmental review spread to Shandong province on China’s eastern
coast. Affected production accounts for some 1.7% of domestic high-
grade NPI output in October. As of November 15, one local NPI plant has
been required to shut down two out of its three submerged-arc furnaces
of 25000KVA. The mill produces around 900 mt in metal content of high-
grade NPI upon regular operation, taking up 2.5% of China’s monthly
output. From late October, five inspection teams from the central
government started to settle in Shanxi, Liaoning, Jilin, Anhui, Shandong,
Hubei, Hunan, Sichuan, Guizhou and Shaanxi provinces to supervise local
environmental conditions and review the implementation of rectification
plans that were made during previous environmental checks. In October,
China’s value adds by industrial enterprises above a designated size
gained 5.9% year on year, compared to September’s gain of 5.8%,
showed data by the National Bureau of Statistics (NBS). Retail sales of
consumer goods grew 8.6% year on year in October, slower from the
9.2% growth in September. Investment in fixed assets in urban areas
rose 5.7% year on year during January-October, but the growth ratio fell
0.3 percentage point compared to a year ago. Technically now Nickel is
getting support at 803.2 and below same could see a test of 795.4 level,
And resistance is now likely to be seen at 823.4, a move above could see
prices testing 835.8.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
815.9
SUPPORT 3
843.6 835.8 823.4 803.2 795.4 783.0
828 807.8 810.9 -0.53 16096
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Nickel trading range for the day is 795.4-835.8.
In October, China’s value adds by industrial enterprises above a designated size gained 5.9% year on year, compared to September’s gain of 5.8%.
Some 600 mt in metal content of high-grade NPI output will be affected in November as the second round of national environmental review.
Warehouse stock for Nickel at LME was at 216174mt that is down by -132mt.
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 8
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NCDEX Jeera Dec 2018
Jeera dropped on profit booking after prices gained amid reports of lower sowing so far.
Jeera on NCDEX settled down by -2.77% at 20020 as demand in the spot
market is sluggish as traders don't want to buy produce at higher prices.
Further, farmers are selling old stock in the market as sowing for new
season is going to start soon. Jeera exports dropped by 20.8% to 10,769
tons in August compared to 13,597 tons in the same period a year ago,
according to Ministry of Commerce data. However, Jeera arrivals in Unjha
mandi, Gujarat, were 6,410 bags compared to 11,870 bags on the
previous day. Jeera sowing has commenced in Gujarat and has been
planted on 36,600 hectares, showed Gujarat state agriculture data.
However, as per reports the carry over stock of cumin was lowered to
200,000 - 300,000 bags from expected stock of 500,000 bags this
season. Traders are expecting higher sowing this year because of
prevailing high prices but lack of rains may impact yield. Moreover,
participants are expecting lower jeera sowing this year as moisture in the
soil is not sufficient to grow the produce because of deficient rainfall in
major producing regions. Meanwhile, carryover stock of jeera was lowered
to 200,000-300,000 bags from expected stock of 500,000 bags this
season. Sowing was expected to be higher due to prevailing high prices
but lower rains in producing areas of both the states may impact the yield
and overall output. Gujarat and Rajasthan are facing water shortage due
to erratic monsoon rains. In Unjha, a key spot market in Gujarat, jeera
edged up by 11.9 Rupees to end at 20483.35 Rupees per 100
kg.Technically now Jeera is getting support at 19740 and below same
could see a test of 19455 level, And resistance is now likely to be seen at
20430, a move above could see prices testing 20835.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
19950
SUPPORT 3
20745 20460 20215 19685 19400 19155
20175 19645 19970 -0.25 5364
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Jeera trading range for the day is 6657-6657.
Jeera sowing has started in Gujarat on a poor note and farmers sown the spice on 1,500 hectares only.
NCDEX accredited warehouses jeera stocks gained by 221 tonnes to 3346 tonnes.
In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 20044 rupee per 100 kg.
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 9
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NCDEX Turmeric Dec 2018
Turmeric prices dropped on profit booking after prices gained amid concerns that drought condition in Maharashtra and Karnataka will affect standing crop.
Turmeric on NCDEX settled down by -0.3% at 6604 on profit booking
after prices gained amid concerns that drought condition in Maharashtra
and Karnataka will affect standing crop. As per reports, standing crop
likely to damage around 10 - 20% currently, if higher temperature will
continue next 15 - 20 days damage percentage may go up to 30-40%.
Moreover, turmeric sowing in all major producing states is higher than
last year as weather remained favourable. 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 this year 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.
In Andhra Pradesh, farmers planted turmeric over area 18,000 hectares,
up from 14,000 hectares a year ago. However, there are drought
condition in Maharashtra and Karnataka affect Turmeric standing crop.
Deficit rainfall reported in Maharashtra Marathwada turmeric growing
regions like Hingoli, Sangli, Nanded, Basmat etc. affecting turmeric
standing crop. As per local trade information, standing crop likely to
damage around 10 - 20% currently, if higher temperature will continue
next 15 - 20 days damage percentage may go up to 30 - 40%. In
Nizamabad, a major spot market in AP, the price ended at 7235 Rupees
dropped -6.65 Rupees.Technically market is under fresh selling as market
has witnessed gain in open interest by 1.17% to settled at 13005 while
prices down -20 rupees, now Turmeric is getting support at 6578 and
below same could see a test of 6554 level, And resistance is now likely to
be seen at 6638, a move above could see prices testing 6674.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
6622
SUPPORT 3
6698 6674 6638 6578 6554 6518
6650 6590 6604 -0.30 13005
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Turmeric trading range for the day is 6554-6674.
As per reports, standing crop likely to damage around 10 - 20% currently, if higher temperature will continue next 15 - 20 days.
NCDEX accredited warehouses turmeric stocks dropped by 2961 tonnes to 3472 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 7235 Rupees dropped -6.65 Rupees.
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 10
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MCX Menthaoil Nov 2018
Mentha oil prices rallied due to bullish demand outlook from domestic market as well as exporters.
Mentha oil on MCX settled up by 0.4% at 1804.7 due to bullish demand
outlook from domestic market as well as exporters. Spot markets are also
witnessing strong consumption demand amid restricted supplies. 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.
Besides, farmers are likely to hold back the stocks as the present prices
are not remunerative for them. However, in recent years, the growth in
production and consumption of synthetic mentha has influenced the
demand for natural mentha. As per sources, India contributes around
80% to the total global mentha oil production. Total global production
stood at around 48,000 tonnes, out of which India produces between
30,000-40,000 tonnes. According to estimates, mentha oil production in
India for crop year 2016-17 will be around 38,000 tonnes. Mentha oil
spot at Sambhal closed at 1950.90 per 1kg. Spot prices was up by
Rs.14.10/-.Technically market is under short covering as market has
witnessed drop in open interest by -2.31% to settled at 1186 while prices
up 7.2 rupees, now Menthaoil is getting support at 1794.9 and below
same could see a test of 1785 level, And resistance is now likely to be
seen at 1817.8, a move above could see prices testing 1830.8.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
1806.00
SUPPORT 3
1840.7 1830.8 1817.8 1794.9 1785.0 1772.0
1820.90 1798.00 1804.70 0.40 1186
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Menthaoil trading range for the day is 1785-1830.8.
Mentha oil spot at Sambhal closed at 1950.90 per 1kg. Spot prices was up by Rs.14.10/-.
Spot markets are also witnessing strong consumption demand amid restricted supplies.
Bumper crop harvest has been discounted in the market and market is moving upwards on rising demand from end users.
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 11
TIME ZONE Forecast
CommodityLME STOCK Stock
COPPER -625 166450
ALUMINIUM 675 1058125
NICKEL -132 216174
LEAD -75 110900
ZINC -5500 125400
4552 22420 19970 4729 6604 4177 524.2 3427
DAILY MARKET TRADING LEVEL
COMMODITIESNCDEX CHANA Dec
2018
NCDEX Cotton Nov
2018
NCDEX Jeera Dec
2018
NCDEX Guarseed10
Dec 2018
NCDEX Turmeric
Dec 2018
NCDEX Rmseed Dec
2018MCX CPO Nov 2018
NCDEX Soyabean
Dec 2018
NCDEX
Ref.Soya oil
Dec 2018
739.1CLOSE
P. POINT 4558 22420 19930 4723 6614 4171
4601 22460 20215 4769 6638 4201
RESISTANCE
4694 22540 20745 4854 6698 4254
524.5 3431 737
748
4651 22500 20460 4808 6674 4224 535.2 3464 744
540.4 3479
529.7 3446 741
4638 6554 4118 513.8 3398 730
4508 22380 19685 4684 6578 4148 519.0 3413
727
Cng in OI -3.13 0.37 -3.56 -2.79 1.17 -5.19 -9.08 -0.50 -6.26
SUPPORT
4415 22300 19155 4599 6518 4095 508.3 3380
734
4465 22340 19400
Short Covering
LME DAILY STOCK POSITION ECONOMICAL DATA
DATA Previous
12:30pm EUR German WPI m/m 0.002 0.004
TREND Long Liquidation Fresh Buying Long Liquidation Short Covering Fresh Selling Short Covering Long Liquidation Short Covering
2:00pm EUR ECB President Draghi Speaks 0 0
3:30pm EUR Final CPI y/y 0.022 0.021
3:30pm EUR Final Core CPI y/y 0.011 0.011
Tentative EUR Italian Trade Balance 2.87B 2.56B
6:30pm EUR German Buba President Weidmann Speaks 0 0
7:45pm USD Capacity Utilization Rate 0.783 0.781
7:45pm USD Industrial Production m/m 0.002 0.003
0 0 0 0 0
0 0 0 0 0
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 12
-625
675
-132 -75
-5500-6000
-5000
-4000
-3000
-2000
-1000
0
1000
COPPER ALUMINIUM NICKEL LEAD ZINC
LME STOCK
NEWS YOU CAN USE
China’s factory-gate inflation slowed for the fourth month in October amid cooling domestic demand for raw materials and ebbing manufacturing activity, underscoring
rising economic pressure in the face of simmering trade frictions with the United States. The consumer price index (CPI), meanwhile, remained steady in October from the
previous month with food prices stable, official data from National Bureau of Statistics (NBS) showed. The producer price index (PPI), a measure of the prices businesses
receive for their goods and services, rose 3.3 percent in October from a year earlier, easing from 3.6 percent in September, the statistics bureau said. Underlying factory-
gate inflation in recent months has been crimped by easing consumption, with China’s fixed-asset investment growth hovering around record lows and industrial firms’
profits falling since May. Beijing’s clamp-down on financial risks had also slowed credit demand somewhat, while some mid-sized companies have struggled to pass on
higher prices to consumers. Private and official factory surveys have shown worrying months-long downturn on export orders, suggesting Beijing’s intensifying trade
dispute with the United States is starting to put a strain on businesses. Government data on exports, however, has shown remarkable strength, likely due to shippers
rushing to beat higher U.S. tariffs on Chinese goods due to come into effect at the start of next year.
British finance minister Philip Hammond raised the prospect of looser budget policy after Brexit and said faster growth was the best way to cut Britain's debt burden, but
insisted he was still committed to ultimately running a budget surplus. Hammond's annual budget last week reinforced some analysts' doubts about his commitment to a
budget surplus, after he used a tax windfall to fund public spending commitments rather than to make faster progress at reducing public debt. Prime Minister Theresa May
said last month that austerity was ending after a series of cuts to public services and welfare benefits since 2010, and had previously announced a big rise in public
healthcare spending. The non-partisan Institute for Fiscal Studies said Hammond's actions suggested that the idea he really intended to eliminate the budget deficit by
the mid-2020s was "surely for the birds".Asked by a parliamentary committee if the Treasury had given up on the prospect of running a budget surplus in the next
decade, Hammond said: "No, it hasn't been abandoned." However, he declined to say when he expected a surplus. Budget forecasts last week showed government
borrowing as a share of national income on track to fall to 0.8 percent in 2023/24 from a lower-than-expected 1.2 percent -- or 25.5 billion pounds ($33.3 billion) -- this
financial year.
China is likely to open its doors to soyabean from India after allowing the import of non-basmati rice and raw sugar to address the worsening trade imbalance between
the two countries, according to senior government officials. “With China no longer willing to purchase soyabean from the US due to the on-going trade discord between
the two, there is a big opportunity for Indian soyabean in the Chinese market. Senior trade officials from both countries discussed the steps to start imports from India
during a recent meeting in Shanghai,” an official told. Soyabean is one of the items on which China imposed retaliatory duties of 25 per cent against the US in response to
similar levies imposed by the Trump administration on Chinese products. “China, which buys more than half of the world’s soyabean produce, is importing huge quantities
from Brazil to replace what it sourced from the US. Once it gives clearance to Indian exporters, it can start buying from India too,” the official said. China had already cut
import tariffs on soyabean and soyabean meals from Bangladesh, India, Laos, South Korea and Sri Lanka in July to prepare for more imports from these countries
following its reduced purchases from the US. “Earlier, Beijing had quality issues with Indian soyabean but several steps have been taken in India to ensure compliance
with globally accepted norms. Hopefully, quality won’t be an issue now,” the official said.
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 13
Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 14
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