Daily Commodity Roundup as on Thursday, July 26, 2018
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Daily Commodity Roundup as on Thursday, July 26, 2018 Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 1
1231.01 15.57 69.39
INTERNATIONAL MARKET UPDATE
GOLD $ SILVER $ CRUDE $
-0.03 -0.04 1.27
1.1731 1.31985 110.792
EURUSD GBPUSD USDJPY
0.04 0.07 -0.14
LME 6332 LME 2587 LME 13700
COPPER 0.41 ZINC 0.12 NICKEL -0.11
2077 LME 2166 94.17
LME $ INDEX
ALUMINIUM 0.63 LEAD 0.56 -0.04
36858 11132 25242
SENSEX NIFTY DJIA
0.09 -0.02 0.79
68.81 S&P 2820 22592
USDINR NIKKEI
-0.17 INDEX 0.48 -0.1
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 2
MCX Gold Aug 2018
Gold prices traded in range lack of clarity over where a brewing trade spat between the United States and Europe.
Gold prices traded in range lack of clarity over where a brewing trade spat
between the United States and Europe. U.S. President Donald Trump and
European Commission President Jean-Claude Juncker agreed to work
towards eliminating trade barriers. The European Central Bank is all but
certain to keep policy on hold, arguing that the risks from an amplifying
global trade conflict don't warrant a deviation from its plan to gently exit
its easy-money policy of the last few years. The Bank of Japan will
consider at next week's rate review changing the composition of
exchange-traded funds (ETF) it buys as part of is massive stimulus
programme, the Nikkei newspaper reported. Rising investor interest in
gold can be seen in the holdings of the largest gold-backed, exchange-
traded fund, New York’s SPDR Gold Trust, which are up more than 1
percent to 25.803 million ounces since July 18. SPDR holdings have been
trending down since April 30, partly due to higher U.S. interest rates,
raising the cost of holding gold, which earns no income, interest or
dividends and costs money to store and insure. China's gold output
dropped by 7.9 percent in the first half of this year to 190.28 tonnes due
to an environmental crackdown on illegal mining, Xinhua News Agency
reported on Wednesday, citing figures from the China Gold Association.
The U.S. central bank raised interest rates in June for the seventh time
since December 2015. Technically market is under short covering as
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
market has witnessed drop in open interest by -10.55% to settled at
4892 while prices up 52 rupees, now Gold is getting support at 29808 and 29811 29988 29791 29915 0.17 4892
below same could see a test of 29701 level, And resistance is now likely
to be seen at 30005, a move above could see prices testing 30095. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
30202 30095 30005 29808 29701 29611
Trading Ideas :
# Gold trading range for the day is 29701-30095.
# Rising investor interest in gold can be seen in the SPDR holdings which are up more than one percent to 25.803 million ounces since July 18.
# Investors are also awaiting the second-quarter U.S. economic growth data which is due on Friday, where they expect growth to top current forecasts of 4.1%.
# The U.S. central bank raised interest rates in June for the seventh time since December 2015, expectations are for two more rises this year.
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 3
MCX Silver Sep 2018
Silver prices traded in range as investors awaited U.S. economic growth data due later this week.
Silver prices traded in range as investors awaited U.S. economic growth
data due later this week. The office of the US Trade Representatives is
holding an official hearing on Tuesday and Wednesday on proposed tariffs
on Chinese products worth $16 billion, before presenting policy
suggestions to the US President. The dollar came under pressure,
prompting a bid in safe-havens ahead of a meeting on trade between
President Donald Trump and European Commission President Jean-Claude
Juncker. Threats from both sides ahead of the meeting has dented
expectations that the talks could mend the rift between the United States
and the European Union. The Germany's Ifo business climate index this
month fell to 101.7 from June's 101.8, but it did not register as big a drop
to 101.5 as forecast. The economists maintained their 2018 gross
domestic product (GDP) growth forecast for Germany at 1.8%. The US
new home sales fell 5.3% to a seasonally adjusted annual rate of 631,000
units last month, the lowest since October 2017. May's sales pace was
revised down to 666,000 units from the previously reported
689,000. New home sales in the south, which accounts for the bulk of
transactions, declined 7.7% in June. Sales fell 5.2% in the west and
tumbled 13.4% in the mid-west. While the drops were largely driven by
supply constraints, there are concerns that persistent weakness could
eventually spread to the broader economy. Key things to watch today will
be the European central bank's rate decision for July, the US durable OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
goods orders and wholesale inventories last month, as well as its weekly 38369 38683 38350 38559 0.28 21673
jobless claims. Technically now Silver is getting support at 38379 and
below same could see a test of 38198 level, And resistance is now likely
to be seen at 38712, a move above could see prices testing 38864. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
39045 38864 38712 38379 38198 38046
Trading Ideas :
# Silver trading range for the day is 38198-38864.
# U.S. President Donald Trump and European Commission President Jean-Claude Juncker agreed to work towards eliminating trade barriers.
# Euro zone business growth slowed more than expected this month as fears over a trade war with the US and a weaker global expansion put another dent in optimism.
# Holdings at ishares silver trust dropped by 0.20% i.e. 20.48 tonnes to 10211.41 tonnes from 10231.89 tonnes.
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 4
MCX Crudeoil Aug 2018
Crude oil prices settled higher after data showed a large draw in U.S. crude stockpiles as imports fell sharply.
Crudeoil on MCX settled up 0.7% at 4778 after data showed a large draw
in U.S. crude stockpiles as imports fell sharply. Saudi Arabia suspended
crude shipments through a strategic Red Sea shipping lane. Saudi Arabia,
the world's biggest oil exporter, said that it was "temporarily halting" all
oil shipments through the strategic Red Sea shipping lane of Bab al-
Mandeb after an attack on two big oil tankers by Yemen's Iran-aligned
Houthi movement. Saudi Energy Minister Khalid al-Falih said in a
statement that the Houthis had attacked two Saudi Very Large Crude
Carriers (VLCCs) in the Red Sea on Wednesday morning, one of which
sustained minimal damage. U.S. crude stocks fell last week, while
gasoline and distillate inventories also declined, the Energy Information
Administration said. Crude inventories fell by 6.1 million barrels in the
week to July 20, compared with expectations for a decrease of 2.3 million
barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.1
million barrels, EIA said. Refinery crude runs rose by 46,000 barrels per
day, EIA data showed. Refinery utilization rates fell by 0.5 percentage
points. Gasoline stocks fell by 2.3 million barrels, compared with analysts'
expectations in a Reuters poll for a 713,000-barrel drop. Distillate
stockpiles , which include diesel and heating oil, fell by 101,000 barrels,
versus expectations for a 207,000-barrel increase, the EIA data showed.
Russia's energy ministry revised higher its forecast for 2018 domestic
crude oil output Wednesday after the OPEC/non-OPEC deal agreed last OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
month eased curbs on production. Technically now Crudeoil is getting 4747 4798 4701 4778 0.70 10061
support at 4720 and below same could see a test of 4662 level, And
resistance is now likely to be seen at 4817, a move above could see
prices testing 4856. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
4914 4856 4817 4720 4662 4623
Trading Ideas :
# Crudeoil trading range for the day is 4662-4856.
# Crude inventories fell by 6.1 million barrels in the week to July 20, compared with expectations for a decrease of 2.3 million barrels.
# Russia's oil production this year will increase to 551 million tonnes, a new 30-year high and up by around 3.5 million tonnes, Energy Minister Alexander Novak said.
# The market has also been supported by a report from the IMF about skyrocketing inflation in Venezuela, limiting its ability to boost oil output.
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 5
MCX Copper Aug 2018
Copper gained as threats of a strike at the Escondida mine in Chile provided support to prices.
Copper on MCX settled up 0.27% at 430.10 gained on fresh buying as
LME Copper held at two-week highs on Wednesday after jumping nearly 3
percent the previous session, as the market awaited a resolution to wage
talks at the world’s largest miner of the industrial metal. BHP’s Escondida
mine in Chile said on Tuesday it had made a final offer to the union
representing its rank-and-file workers that includes a beefed up contract
signing bonus and a 1.5 percent increase in wages. There was no
immediate response from the union, which had asked for a 5 percent pay
rise. LME copper ended 0.1 percent lower at $6,290 per tonne, after
Tuesday’s surge that was the biggest since January. Failure to reach a
labour deal at Escondida last year led to a 44-day strike that jolted the
global copper market. The possibility of another strike there pushed
benchmark copper prices in London to a near 4-1/2 year high of $7,348 a
tonne on June 7, before fears that a U.S.-China trade war could crimp
demand pushed the price below $6,000 tonne last week. LME copper
stood above $6,300/mt and hit a high of $6,331/mt due to a weakened
US dollar and possible strike at the world’s largest copper mine Escondida
in Chile. Now day ahead key things to watch today will be the European
central bank's rate decision for July, the US durable goods orders and
wholesale inventories last month, as well as its weekly jobless claims.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
Technically now Copper is getting support at 427.2 and below same could
see a test of 424.1 level, And resistance is now likely to be seen at 432.9, 428.70 432.40 426.75 430.10 0.27 22025
a move above could see prices testing 435.5.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
438.6 435.5 432.9 427.2 424.1 421.5
Trading Ideas :
# Copper trading range for the day is 424.1-435.5.
# China June scrap copper imports dropped 39.8 pct year-on-year to 200,000 tonnes China’s General Administration of Customs said.
# Short holdings in Comex copper surged in the latest week, data from the U.S. regulator showed.
# Warehouse stock for Copper at LME was at 252400mt that is down by -2025mt.
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 6MCX Zinc Jul 2018
Zinc dropped as prices failed to hold gains amid pressure from concerns over the trade spats between the US and EU.
Zinc on MCX settled down -0.72% at 179.80 dropped on long liquidation
tracking weakness from LME zinc which failed to stand firm above
$2,600/mt with pressure from concerns over the trade spats between the
US and EU. It dipped to a low of $2,573/mt but received support from the
five-day moving average. While Maintenance across smelters continued
to weigh on supplies. There were also no large inflows of imported
materials this week while downstream consumption fell to the lowest
level in a seasonal lull. Market participants should monitor developments
of the negotiation between smelters and miners on treatment charges
(TCs). Separately, brisk trades following the rebound in zinc prices eased
after the Shanghai Futures Exchange raised transaction fees for closing
out positions opened on the same day, for the zinc September contract.
Fees grew from 3 yuan/lot to 15 yuan/lot, effective from the night trading
session of July 23. Last night the US dollar dipped to around 94, and
closed at 94.19. Base metals were under pressure from ongoing worries
over a trade war even though the EU and US declared a ceasefire. Now
day ahead key things to watch today will be the European central bank's
rate decision for July, the US durable goods orders and wholesale
inventories last month, as well as its weekly jobless claims. Technically
market is under long liquidation as market has witnessed drop in open
interest by -6.76% to settled at 5405 while prices down -1.3 rupees, now OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
Zinc is getting support at 178.4 and below same could see a test of 177.1 180.7 182.4 179.1 179.8 -0.72 5405
level, And resistance is now likely to be seen at 181.7, a move above
could see prices testing 183.7.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
185.0 183.7 181.7 178.4 177.1 175.1
Trading Ideas :
# Zinc trading range for the day is 177.1-183.7.
# social inventory in Shanghai, Guangdong and Tianjin inched up nearly 700 mt from last week to 99,900 mt
# Shanghai Futures Exchange zinc stocks dropped to 58,016 tonnes, their lowest since February 2008.
# Warehouse stock for Zinc at LME was at 247450mt that is down by -2200mt.
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 7MCX Nickel Jul 2018
Nickel recovered from lows amid low inventories across LME and domestic warehouses, tight supply of nickel pig iron.
Nickel on MCX settled up 0.26% at 936.70 while prices on LME finished
0.6 percent weaker at $13,680 hovered around its daily moving average
after it broke pressure at $13,800/mt and touched $13,840/mt. It closed
at $13,715/mt with LME inventory falling 318 mt to 260,400 mt. We see
upward room in the nickel prices, given low inventories across LME and
domestic warehouses, tight supply of nickel pig iron, and more
downstream demand for stainless steel. China is still the driver of
industrial metal prices, and signs of a loss of growth momentum in the
world’s single largest metals user formed the backdrop for the current
blood-bath. China bears can take their pick of factors, from a crackdown
on the shadow finance sector, slowing property investment or sliding
manufacturing indices. These concerns have been around for many
months. As far back as January Goldman Sachs, telling investors not to
worry about the Chinese property market. Trade tensions between the
United States and China have simply served to stoke further such pre-
existing fears. Trade tensions between the United States and everyone
else raise the risk of a global hit on manufacturing growth, the engine on
which industrial metals run. Last night the US dollar dipped to around 94,
and closed at 94.19. Base metals were under pressure from ongoing
worries over a trade war even though the EU and US declared a ceasefire.
Now day ahead key things to watch today will be the European central
bank's rate decision for July, the US durable goods orders and wholesale OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
inventories last month, as well as its weekly jobless claims. Technically 932 946.3 928.5 936.7 0.26 8147
market is getting support at 928.1 and below same could see a test of
919.4 level, And resistance is now likely to be seen at 945.9, a move
above could see prices testing 955. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
963.7 955.0 945.9 928.1 919.4 910.3
Trading Ideas :
# Nickel trading range for the day is 919.4-955.
# A high-grade nickel pig iron (NPI) plant in north China has suspended its production since last week on environmental concerns.
# The global nickel market deficit widened to 15,400 tonnes in May from a revised deficit of 14,700 tonnes in the previous month, INSG said.
# Warehouse stock for Nickel at LME was at 260400mt that is down by -318mt.
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 8NCDEX Jeera Aug 2018
Jeera dropped on profit booking after prices gained amid improved physical and exports due to good demand from China and Bangladesh.
Jeera on NCDEX settled down by -1.09% at 19520 on profit booking after
prices gained amid improved physical and exports due to good demand
from China and Bangladesh. Mandi sources maintained that export
enquiries have been good as India is the only jeera supplier to the world
market currently. Jeera output is expected to be bumper and supplies are
likely to increase in the coming days. The Federation of Indian Spices
Stakeholders (FISS) - projected India's 2017-18 jeera output at 6.92
million bags up 19% on year on the back of higher acreage and
favourable weather. India is expected to export a record 175,000 tn of
jeera in 2018-19 (Apr-Mar), primarily because supply from its competitors
has taken a hit making it the sole supplier of the largely sought after
spice, trade officials said. Supply of jeera from Syria and Turkey--India's
main rivals in the global jeera export market--has been hit both in terms
of quantity and quality due to adverse weather, according to exporters.
Having hit a record high of 155,000 tn in 2014-15, jeera exports fell to
97,790 tn in 2015-16, and 143,670 tn in the year ended March, according
to data from Spices Board India. According to export data released by
Commerce ministry, exports in May surged 96% on yea 27,790 tonnes.
In Unjha, a key spot market in Gujarat, jeera edged up by 75 Rupees to
end at 19270.85 Rupees per 100 kg.Technically market is under fresh
selling as market has witnessed gain in open interest by 5.23% to settled
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
at 6699 while prices down -215 rupees, now Jeera is getting support at
19345 and below same could see a test of 19170 level, And resistance is 19720 19815 19405 19520 -1.09 6699
now likely to be seen at 19755, a move above could see prices testing
19990. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
20165 19990 19755 19345 19170 18935
Trading Ideas :
# Jeera trading range for the day is 6507-6507.
# Jeera output is expected to be bumper and supplies are likely to increase in the coming days.
# NCDEX accredited warehouses jeera stocks dropped by 15 tonnes to 2270 tonnes.
# In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19271 rupee per 100 kg.
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 9NCDEX Turmeric Aug 2018
Turmeric prices dropped amid reports of improved sowing in turmeric growing areas of Tamilnadu, Karnataka and Maharashtra.
Turmeric on NCDEX settled down by -1.79% at 7242 amid reports of
improved sowing in turmeric growing areas of Tamilnadu, Karnataka and
Maharashtra. In Andhra Pradesh, Turmeric sowing reported 8,809
hectares as compared to 7,528 hectares in the corresponding period last
year, 49% sowing completed from season normal. Farmers and stockists
were holding back their old stocks on expectation of higher prices in
coming days as current year production is likely to decline due to lower
acreage by 40-45% in Tamil Nadu. As per market sources, currently
Nizamabad turmeric stocks were estimated around 1.20 lakh bags as
compared to around 2.00 lakh bags same time last year. Sources
revealed that, currently all India Turmeric stocks reported around 20 - 25
lakh bags as compared to last year 35 – 40 lakh bags. In Nizamabad
market, supply reported up by 108,000 bags during the period and up by
70,000 bags during corresponding period of last year. New crop supply
continued in the Nizamabad market. Currently, around 14 - 25%
moisture content supplies reported, which is lower from last week. Spot
turmeric prices increased at the markets in Erode on quality arrivals and
emergence of upcountry demand. Prices of both the varieties increased.
Arrivals of the spice too doubled to 4,800 bags. Some traders purchased
good quality turmeric for their North Indian orders. In Nizamabad, a
major spot market in AP, the price ended at 7420 Rupees dropped -50
Rupees.Technically market is under long liquidation as market has OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
witnessed drop in open interest by -2.49% to settled at 12925 while 7326 7368 7170 7242 -1.79 12925
prices down -132 rupees, now Turmeric is getting support at 7152 and
below same could see a test of 7062 level, And resistance is now likely to
be seen at 7350, a move above could see prices testing 7458. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
7548 7458 7350 7152 7062 6954
Trading Ideas :
# Turmeric trading range for the day is 7062-7458.
# In Andhra Pradesh, Turmeric sowing reported 8,809 hectares as compared to 7,528 hectares in the corresponding period last year.
# NCDEX accredited warehouses turmeric stocks dropped by 79 tonnes to 5335 tonnes.
# In Nizamabad, a major spot market in AP, the price ended at 7420 Rupees dropped -50 Rupees.
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 10MCX Menthaoil Aug 2018
Mentha oil prices ended with gains amid rise in demand from consuming industries at the spot market.
Mentha oil on MCX settled up by 1.65% at 1555.8 amid rise in demand
from consuming industries at the spot market. Further, restricted supplies
from the major producing belts of Chandausi in Uttar Pradesh too
supported mentha oil prices’ uptrend. 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. The Multi Commodity
Exchange of India will double the total additional margin to 10% on both
buy and sell side of all running as well as yet-to-be-launched contracts of
mentha oil from Monday. Despite the peak season of harvest in June,
prices of mentha oil have risen over 20% since the beginning of June as
farmers held back stocks. Farmers are holding back stocks as they are
expecting prices to rise to 1,800 rupees a kg in the next two-three
months. As per preliminary estimates, acreage under mentha crop will
rise this year as the farmers are encouraged by higher price in recent
past. As per trade sources, all the major markets are likely to witness
higher inflow of the produce. 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. Mentha oil spot at Sambhal closed at 1803.40
per 1kg. Spot prices was up by Rs.20.60/-.Technically market is under
fresh buying as market has witnessed gain in open interest by 10.81% to OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
settled at 1610 while prices up 25.2 rupees, now Menthaoil is getting 1546.60 1581.90 1544.70 1555.80 1.65 1610
support at 1539.7 and below same could see a test of 1523.6 level, And
resistance is now likely to be seen at 1576.9, a move above could see
prices testing 1598. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
1614.1 1598.0 1576.9 1539.7 1523.6 1502.5
Trading Ideas :
# Menthaoil trading range for the day is 1523.6-1598.
# Mentha oil spot at Sambhal closed at 1803.40 per 1kg. Spot prices was up by Rs.20.60/-.
# Spot markets are also witnessing strong consumption demand amid restricted supplies.
# There could be chances of crop damage to certain extend due to unfavourable weather condition.
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 11DAILY MARKET TRADING LEVEL
NCDEX
NCDEX CHANA Aug NCDEX Cotton Jul NCDEX Jeera Oct NCDEX Guarseed10 NCDEX Turmeric NCDEX Rmseed Aug NCDEX Soyabean
COMMODITIES MCX CPO Jul 2018 Ref.Soya oil
2018 2018 2018 Oct 2018 Aug 2018 2018 Oct 2018
Aug 2018
CLOSE 4099 22270 19520 4140 7242 4126 617.2 3337 742
4299 22546 20165 4346 7548 4190 624.9 3390 750
RESISTANCE 4228 22443 19990 4283 7458 4171 621.3 3372 747
4163 22356 19755 4211 7350 4149 619.2 3354 745
P. POINT 4092 22253 19580 4148 7260 4130 615.6 3336 742
4027 22166 19345 4076 7152 4108 613.5 3318 740
SUPPORT 3956 22063 19170 4013 7062 4089 609.9 3300 737
3891 21976 18935 3941 6954 4067 607.8 3282 735
Cng in OI -6.26 -8.19 5.23 1.83 -2.49 -4.33 -1.99 -4.02 -3.21
TREND Long Liquidation Short Covering Fresh Selling Fresh Selling Long Liquidation Long Liquidation Short Covering Long Liquidation Long Liquidation
LME DAILY STOCK POSITION ECONOMICAL DATA
0 TIME ZONE DATA Forecast Previous
COPPER ALUMINIUM NICKEL LEAD
-75 ZINC 11:30am EUR German GfK Consumer Climate 10.7 10.7
-500 -318
12:30pm EUR Spanish Unemployment Rate 0.158 0.167
Commodity
LME STOCK Stock
COPPER -2025 252400
-1000 Tentative All OPEC-JMMC Meetings 0 0
ALUMINIUM -2900 1209225
NICKEL -318 260400
5:15pm EUR Main Refinancing Rate 0 0
-1500 LEAD -75 127600
ZINC -2200 247450
6:00pm EUR ECB Press Conference 0 0
-2000
-2025 6:00pm USD Core Durable Goods Orders m/m 0.005 0
-2200
-2500 6:00pm USD Durable Goods Orders m/m 0.027 -0.004
-3000 6:00pm USD Unemployment Claims 215K 207K
-2900
6:00pm USD Goods Trade Balance -67.0B -64.8B
-3500
6:00pm USD Prelim Wholesale Inventories m/m 0.004 0.006
LME STOCK
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 12NEWS YOU CAN USE China's government plans to adopt both fiscal and financial measures to underpin domestic demand as worsening trade relations with its major trading partner, the US, limited the impetus to growth from exports. The State Council meeting, chaired by Premier Li Keqiang, decided to take more "proactive" fiscal steps to help the economy grow in a reasonable pace amid external uncertainties, but to avoid a strong stimulus. Proactive fiscal measures will cover deeper tax cuts, additional deductions to companies on research and development expenditure and issuing special bonds to local government to fund infrastructure projects. The policy is expected to cost CNY 65 billion this year. Li urged solid implementation of lending to small and micro businesses. The council also vowed to maintain appropriate credit growth under prudent monetary policy. Li agreed to improve the transmission mechanism of monetary policy. The announcement came after the central bank injected a record CNY 502 billion into the banking system via medium-term lending facility. Recently, the People's Bank of China stepped up liquidity injection measures and lowered reserve requirement ratios for three times this year. In the second quarter, China's economic growth slowed to 6.7 percent from 6.8 percent a quarter ago. This was the slowest since the third quarter of 2016. #REF! With the revival of monsoon in the central and nothern India, Kharif sowing has picked up pace, compared to the previous weeks. But this is still about 10 per cent lower than last year. Sowing of groundnut and cotton crops has fallen significantly. Both the crops are grown mainly in Gujarat, where the southwest monsoon was almost 43 per cent deficient. Groundnut sowing is almost 36.37 per cent less than last year, while for cotton, there is almost a 15 per cent fall. Meanwhile, latest data from the department of agriculture shows that till July 13, kharif crops have been sown in around 50.16 million hectares, which was 10.01 per cent less than the area covered during the same period last year. Compared to normal sowing, which is the average of last five years, the area covered in 2018 is 3.02 per cent less than last year. Usually, crops are sown in around 105.81 million hectares of land, of which sowing is done in about 47 per cent. Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 13
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SCSPL generally prohibits its analyst(s), persons reporting to analyst(s), and members of their households from maintaining a financial interest in the commodities or commodity derivatives that the analyst(s) cover. Our salespeople, traders, and other professionals or affiliates may
provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein. Our proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations
expressed herein. The views expressed in this research report reflect the personal views of the analyst(s) no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in
this report. The compensation of the analyst who prepared this document is determined exclusively by SCSPL however, compensation may relate to the revenues of the Systematix Group as a whole, of which investment banking, sales and trading are a part. Research analyst(s) and
sales persons of SCSPL may provide important inputs to its affiliated company(ies).
Foreign currency denominated commodities, wherever mentioned are subject to exchange rate fluctuations, which could have an adverse effect on their value or price, or the income derived from them. In addition, the values of which are influenced by foreign currencies effectively
assume currency risk.
SCSPL, its directors, analyst(s) or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on basis of this report including but not restricted to changes in the currency rates, reduction in
the income, etc.
SCSPL and its affiliates, officers, directors, and employees may: (a) from time to time, have long or short positions in, and buy or sell the commodities/commodities derivatives thereof, of company(ies) mentioned herein or (b) be engaged in any other transaction involving such
commodities/commodity derivatives and earn brokerage or other compensation (financial interest) or act as a market maker in the financial instruments discussed herein or have other potential material conflict of interest with respect to any recommendation and related information and
opinions. The views expressed are those of the analyst and the Company may or may not subscribe to the views expressed therein.
SCSPL, its affiliates and any third party involved in, or related to, computing or compiling the information hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of this information. Without
limiting any of the foregoing, in no event shall SCSPL, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind. The Company accepts no liability whatsoever for the actions of third parties. The
Report may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the Report refers to website material of the Company, the Company has not reviewed the linked site. Accessing such website or following such link through the report or the website of
the Company shall be at your own risk and the Company shall have no liability arising out of, or in connection with, any such referenced website
SCSPL shall not be liable for any delay or any other interruption which may occur in presenting the data due to any technical glitch to present the data. In no event shall the SCSPL be liable for any damages, including without limitation, direct or indirect, special, incidental, or
consequential damages, losses or expenses arising in connection with the data presented by SCSPL through this presentation.
Neither SCSPL, nor any of its other group companies or associates, shall be responsible for any decisions taken on the basis of this report. Investors are advised to consult their Investment and Tax consultants before taking any investment decisions based on this report.
Systematix Commodities Services Private Limited.:
Registered and Corporate address: The Capital, A-wing, No. 603 – 606, 6th Floor, Plot No. C-70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
CIN - U01119MH1994PTC266348 | MCX SEBI Reg No.: INZ000043009 | NCDEX SEBI Reg No.: INZ000043009 Member Code: MCX: 29790 | NCDEX: 534
Date : Thursday, July 26, 2018 URL : www.systematixshares.com Page No : 14You can also read
