Daily Commodity Roundup as on Wednesday, August 08, 2018
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Daily Commodity Roundup as on Wednesday, August 08, 2018 Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 1
1213.01 15.41 69.31
INTERNATIONAL MARKET UPDATE
GOLD $ SILVER $ CRUDE $
0.18 0.44 0.43
1.1620 1.29525 111.348
EURUSD GBPUSD USDJPY
0.19 0.12 -0.03
LME 6199 LME 2610 LME 13960
COPPER 0.69 ZINC 0.29 NICKEL 0.61
2042 LME 2154 95.05
LME $ INDEX
ALUMINIUM 0.44 LEAD 0.58 -0.15
37666 11389 25502
SENSEX NIFTY DJIA
-0.07 0.02 0.16
68.85 S&P 2850 22771
USDINR NIKKEI
-0.27 INDEX 0.35 0.48
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 2MCX Gold Oct 2018
Gold prices settled flat as the U.S. dollar fell versus China’s yuan against a backdrop of U.S.-China trade tensions.
Gold settled flat as the U.S. dollar fell versus China’s yuan against a
backdrop of U.S.-China trade tensions. U.S. data recently showed
investors added 13,931 contracts to their net short position in the week
to July 31, bringing it to 41,087 contracts, the biggest since records
became publicly available in 2006. Expectations for increased Chinese
stimulus helped take the edge off wider concerns about the worsening
Sino-U.S. trade dispute. The United States will begin collecting 25 percent
tariffs on another $16 billion in Chinese goods on Aug. 23, the U.S. Trade
Representative’s office said on Tuesday as it published a final tariff list
targeting 279 imported product lines. Companies doing business with Iran
will be barred from the United States, President Donald Trump said on
Tuesday, as new U.S. sanctions took effect despite pleas from
Washington’s allies. U.S. job openings held near record highs in June
amid a modest decline in hiring, pointing to a further tightening of labour
market conditions, which economists hope will soon spur faster wage
growth. The prospect of a “no-deal Brexit” appears to have grown after
the European Union’s negotiator rejected last month central elements of
Prime Minister Theresa May’s proposals for a new trade agreement. Gold-
backed exchange-traded funds (ETFs) saw outflows in North America,
Europe and Asia in July as a strong U.S. dollar helped weaken gold prices,
the World Gold Council said. SPDR Gold Trust, said its holdings fell 0.15
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
percent to 787.53 tonnes on Tuesday from 788.71 tonnes on Monday.
Technically now Gold is getting support at 29544 and below same could 29668 29734 29585 29597 -0.11 7860
see a test of 29490 level, And resistance is now likely to be seen at
29693, a move above could see prices testing 29788. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
29842 29788 29693 29544 29490 29395
Trading Ideas :
# Gold trading range for the day is 29490-29788.
# Expectations for increased Chinese stimulus helped take the edge off wider concerns about the worsening Sino-U.S. trade dispute.
# Gold prices have declined nearly 12 percent since mid-April, pressured by a stronger U.S. dollar from an ongoing U.S.-China trade dispute.
# The U.S. Federal Reserve is widely expected to raise benchmark lending rates, for the third time this year, at its next policy meet in September.
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 3MCX Silver Sep 2018
Silver prices settled flat as a weaker dollar boosted demand for the precious metal.
Silver settled flat as a weaker dollar boosted demand for the precious
metal. Expectations that the Federal Reserve will push forward with rate
hikes, with markets pricing in moves in both September and December,
have supported the dollar. The US imposed new sanctions on Iran
targeting its access to dollars, precious metals, and gold, with President
Donald Trump describing them as “the most biting ever imposed”. US job
openings held near record highs in June amid a modest decline in hiring,
pointing to further tightening labour market conditions, which economists
hope will soon spur faster wage growth. Last Friday saw the release of the
US payrolls report, which showed the unemployment rate fell to 3.9% as
expected from 4.0% in June, while average hourly earnings rose 0.3% as
expected, up from 0.1% in June. The economy added 157 thousand jobs
last month, down from 248 thousand in June, and missing estimates of
191K. Data from Germany's Ministry for Economic Affairs and Energy
showed the country’s industrial output dropped 0.9% month on month in
June, missing a forecast for a fall of 0.5%. China's foreign exchange
reserves rose $5.8 billion, or 0.19%, from a month earlier to $3.118
trillion at the end of July, the central bank said. The increase followed a
month-on-month rise of about $1.5 billion in June, according to the
People's Bank of China (PBOC). Technically market is under fresh selling
as market has witnessed gain in open interest by 0.17% to settled at
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
26732 while prices down -13 rupees, now Silver is getting support at
37765 and below same could see a test of 37648 level, And resistance is 37967 38179 37855 37883 -0.03 26732
now likely to be seen at 38089, a move above could see prices testing
38296. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
38413 38296 38089 37765 37648 37441
Trading Ideas :
# Silver trading range for the day is 37648-38296.
# Expectations that the Federal Reserve will push forward with rate hikes, with markets pricing in moves in both September and December, have supported the dollar.
# U.S. job openings held near record highs in June amid a modest decline in hiring, pointing to a further tightening of labour market conditions.
# Holdings at ishares silver trust dropped by 0.57% i.e. 58.50 tonnes to 10215.81 tonnes from 10274.31 tonnes.
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 4MCX Crudeoil Aug 2018
Crude oil settled flat after prices seen supported amid reports that the U.S. restored sanctions against Iran, the world’s fifth-largest oil producer.
Crude oil settled flat after prices seen supported amid reports that the
U.S. restored sanctions against Iran, the world’s fifth-largest oil producer.
Oil prices were also boosted by a report from the Energy Information
Administration (EIA), estimating domestic oil production will grow at a
slower rate than previously forecast. The EIA cut its 2018 U.S. crude
output estimate to 10.68 million bpd from 10.79 million bpd and its 2019
output estimate to 11.7 million bpd from 11.8 million bpd, citing lower
crude prices are expected to curb U.S. shale oil output. The U.S.
government introduced a raft a new sanctions against Iran on Tuesday,
targeting Iran's purchases of U.S. dollars - in which oil is traded - metals
trading, coal, industrial software and its auto sector. From November,
Washington will also target Iran's petroleum sector. Iran is a major
exporter of crude oil, shipping out almost 3 million barrels per day (bpd)
of crude in September, equivalent to around 3 percent of global demand.
Beyond the sanctions, the oil market was focusing on the U.S. market,
where the American Petroleum Institute said on Tuesday that crude
inventories fell by 6 million barrels in the week to Aug. 3 to 407.2 million.
Official U.S. fuel storage data is due to be released later on Wednesday
by the Energy Information Administration (EIA). Technically market is
under long liquidation as market has witnessed drop in open interest by -
6.06% to settled at 9579 while prices down -5 rupees, now Crudeoil is OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
getting support at 4734 and below same could see a test of 4705 level, 4758 4798 4737 4762 -0.10 9579
And resistance is now likely to be seen at 4795, a move above could see
prices testing 4827.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
4856 4827 4795 4734 4705 4673
Trading Ideas :
# Crudeoil trading range for the day is 4705-4827.
# Oil prices were also boosted by a report from EIA, estimating domestic oil production will grow at a slower rate than previously forecast.
# The EIA cut its 2018 U.S. crude output estimate to 10.68 mbpd from 10.79 million bpd and its 2019 output estimate to 11.7 mbpd from 11.8 mbpd.
# The U.S. has restored sanctions against Iran as President Donald Trump reaffirmed plans to impose more penalties on the country’s oil sales in November.
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 5MCX Copper Aug 2018
Copper prices seen support on fears a wage dispute at the world’s largest copper mine could result in a strike if an agreement isn’t reached.
Copper on MCX settled up 0.63% at 418.10 gained after the dollar
weakened against a basket of major currencies as its recent rally fuelled
by U.S.-China trade tensions appeared to fizzle. The dollar inched down
versus a basket of currencies , making dollar-denominated assets like
copper cheaper for holders of other currencies, even after the U.S. Trade
Representative's office said the U.S. would begin collecting 25 percent
tariffs on another $16 billion in Chinese goods later this month. Despite
the threats of labour strikes at big copper mines including Escondida in
Chile, copper prices have fallen nearly 15 percent this year. The union at
Chile's Escondida copper mine, the world's largest, said that BHP must
alter its negotiating strategy and improve its contract offer during the
final phase of talks if it hoped to avoid a strike. LME copper gained 0.7
percent to finish at $6,175 a tonne, with gains tempered after BHP
formally requested government mediation at its Escondida copper mine in
Chile, the world’s largest, prompting the union to postpone the start of a
planned strike. Elsewhere, copper bucked the general show of strength
from the SHFE base metals complex to dip 70 yuan per tonne so far. The
weakness comes despite ongoing labor unrest in South America, including
a strike at the world’s largest copper mine by production, Escondida.
Ongoing concerns about the impact of the trade conflict between US and
China continues to weigh on sentiment. Technically market is under short
covering as market has witnessed drop in open interest by -7.41% to OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
settled at 28028 while prices up 2.6 rupees, now Copper is getting 417.00 420.70 416.50 418.10 0.63 28028
support at 416.1 and below same could see a test of 414.2 level, And
resistance is now likely to be seen at 420.3, a move above could see
prices testing 422.6. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
424.5 422.6 420.3 416.1 414.2 411.9
Trading Ideas :
# Copper trading range for the day is 414.2-422.6.
# China's $60 billion tariffs on US goods see little impact on copper
# Miner BHP said requested government mediation with union at its Escondida copper mine, prompting union to postpone the start of a strike.
# Warehouse stock for Copper at LME was at 248050mt that is down by -1850mt.
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 6MCX Zinc Aug 2018
Zinc gained as a rising yuan kept the dollar on the back foot and easing U.S.-China trade war concerns supported sentiment.
Zinc on MCX settled up 1.09% at 180.55 gained on short covering amid
optimism top consumer China will prop up its economy with stimulus
measures and that the country’s currency is stabilising. Support also seen
after the update that maintenance lowered output of refined zinc across
Chinese smelters to 408,400 mt in July, down 21,700 mt or 5.1% from
June. This is down 10.2% from July 2017. Total output in the first seven
months of the year stood at 3.1 million mt, up 1.7% on the year. High
temperatures, the low season and losses drove some smelters to
undertake maintenance in July, when SHFE zinc prices dipped to 20,000
yuan/mt. Support also seen after Chinese infrastructure firms received a
boost from expectations of increased spending on public works projects.
China Railway was reported in domestic media as saying China would
boost its fixed asset investment in railways to $117 billion in 2018, an
increase of 9.3 percent over its original plan. Last week, when the
Chinese government tried to stop the yuan depreciating, was the trigger
which supported the bottoming of the metals. Three-month zinc on the
London Metal Exchange closed 1.3 percent higher in final open outcry
trading at $2,600 a tonne after falling 2.4 percent on Monday. Now trader
will eye on key things to watch today include China’s trade balance in
July, US weekly crude oil inventory data from the EIA and Richmond Fed
President Thomas Barkin’s speech. Technically market is under short
covering as market has witnessed drop in open interest by -3.06% to OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
settled at 4463 while prices up 1.95 rupees, now Zinc is getting support 178.7 181.2 178.7 180.6 1.09 4463
at 179.2 and below same could see a test of 177.7 level, And resistance
is now likely to be seen at 181.7, a move above could see prices testing
182.7. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
184.2 182.7 181.7 179.2 177.7 176.7
Trading Ideas :
# Zinc trading range for the day is 177.7-182.7.
# China’s social inventory of zinc across Shanghai, Tianjin and Guangdong edged down as limited import arrivals failed to drive up overall stocks.
# pot zinc trades in the Shanghai market slowed from last Friday as buyers hesitated and sellers hardly lowered offers.
# Warehouse stock for Zinc at LME was at 232625mt that is down by -900mt.
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 7MCX Nickel Aug 2018
Nickel gained as dollar softened and as Chinese yuan showed more stability after the country’s central bank raised the cost of shorting the currency.
Nickel on MCX settled up 1.02% at 950.90 tracking firmness from LME
nickel prices which climbed 1.2 percent to finish at $13,850 per tonne,
supported by a rally in Chinese steel prices to their strongest since April
2012 amid production curbs. While overall sentiments still remain weak
as pressure will be seen after the news that Nickel production rose 4.7%
on the month and stood at 12,400 mt in July. This is down 9.7% year on
year. More working days and better profitability at smelters in south
China accounted for the month-on-month growth. Output during January-
July fell 8.3% from the same period last year, and came in at 83,700 mt.
Domestic nickel production is likely to stand at 12,500 mt in August as
operating rates are likely to remain largely flat on a monthly basis.
Producers resumed production after the first round of environmental
reviews, but limited capacity release and extended checks in Jiangsu
limited output growth in July. Production dipped 3.5% from a year ago. In
July, high-grade NPI output gained 5.1% month on month to 29,700 mt
in nickel content and low-grade NPI output grew 0.6% on the month to
4,300 mt in nickel content. Overall NPI production during January-July
stood at 253,900 mt in nickel content, up 13.4% year on year. Output in
August is expected to expand 8.9% on the month to 37,000 mt, as
output resumption continues. Now trader will eye on key things to watch
today include China’s trade balance in July, US weekly crude oil inventory
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
data from the EIA and Richmond Fed President Thomas Barkin’s speech.
Technically now Nickel is getting support at 940.2 and below same could 940 954.4 936.6 950.9 1.02 7710
see a test of 929.5 level, And resistance is now likely to be seen at 958, a
move above could see prices testing 965.1. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
975.8 965.1 958.0 940.2 929.5 922.4
Trading Ideas :
# Nickel trading range for the day is 929.5-965.1.
# China unveiled tariffs on 5,207 items imported from US, with the extra levies ranging from 5 percent to 25 percent, say could eventually undermine growth.
# The price spread between Jinchuan and Norilsk nickel remained wide in the Shanghai spot market due to tight supply of Jinchuan materials.
# Warehouse stock for Nickel at LME was at 251466mt that is down by -372mt.
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 8NCDEX Jeera Sep 2018
Jeera dropped on profit booking after prices gained tracking good physical and exports demands from China and Bangladesh.
Jeera on NCDEX settled down by -2.33% at 20145 on profit booking after
prices gained supported by improved physical and export demand. Prices
in recent period remained positive supported by hopes of strong export
demand despite good arrivals and production during this season. 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. 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. 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. In Unjha, a
key spot market in Gujarat, jeera edged down by -158 Rupees to end at
19734.6 Rupees per 100 kg.Technically market is under fresh selling as
market has witnessed gain in open interest by 7.39% to settled at 6102
while prices down -480 rupees, now Jeera is getting support at 19900 and OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
below same could see a test of 19650 level, And resistance is now likely 20060 20350 19910 20000 -0.72 6651
to be seen at 20540, a move above could see prices testing 20930.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
20700 20525 20260 19820 19645 19380
Trading Ideas :
# Jeera trading range for the day is 6667-6667.
# India's cumin output fell to 489,000 ton from 503,000 ton a year ago and as a result stocks with traders and farmers are stated to lower.
# NCDEX accredited warehouses jeera stocks gained by 668 tonnes to 3081 tonnes.
# In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19726 rupee per 100 kg.
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 9NCDEX Turmeric Sep 2018
Turmeric prices settled flat as sowing is expected to be higher this year and stocks are comfortable.
Turmeric settled flat as sowing is expected to be higher this year and
stocks are comfortable. Turmeric area is seen up this year due to
attractive prevailing prices. In Telangana, turmeric acreage grew to
46,692 hectare until August 1 from 41,715 hectare a year ago, state
government data showed. In Andhra Pradesh, Turmeric sowing reported
12,320 hectares as compared to 7,998 hectares in the corresponding
period last year, 68% sowing completed from season normal. In
Telangana, Turmeric sowing as on 01 August 2018 reported 46,692
hectares as compared to 41,715 hectares in the corresponding period last
year. 85% sowing completed from season normal. As per estimates, in
normal monsoon condition Turmeric all India area may go up by 12 - 14%
as compared to last year due to higher prices. Spot turmeric prices
increased at the markets in Erode as the farmers brought in quality
produce. Arrivals too were up at 3,600 bags and 70 per cent of them
were traded. Regarding the price, finger variety was up Rs. 100 a quintal
and root variety gained Rs. 120. At the Erode Turmeric Merchants
Association, the finger turmeric went for Rs. 5,889-8,699 a quintal and
the root variety for Rs. 5,600-7,509. Of the 2,573 bags on offer, 987
were sold. In Nizamabad, a major spot market in AP, the price ended at
7329.75 Rupees dropped -90.25 Rupees.Technically market is under
fresh buying as market has witnessed gain in open interest by 14.81% to OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
settled at 15625, now Turmeric is getting support at 7220 and below 7270 7340 7216 7282 0.05 15625
same could see a test of 7156 level, And resistance is now likely to be
seen at 7344, a move above could see prices testing 7404.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
7468 7404 7344 7220 7156 7096
Trading Ideas :
# Turmeric trading range for the day is 7156-7404.
# In Telangana, turmeric acreage grew to 46,692 hectare until August 1 from 41,715 hectare a year ago, state government data showed.
# NCDEX accredited warehouses turmeric stocks dropped by 79 tonnes to 5156 tonnes.
# In Nizamabad, a major spot market in AP, the price ended at 7329.75 Rupees dropped -90.25 Rupees.
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 10MCX Menthaoil Aug 2018
Mentha oil prices rallied due to bullish demand outlook from domestic market as well as exporters.
Mentha oil on MCX settled up by 1.4% at 1551.8 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 1813.10 per 1kg. Spot prices was up by
Rs.18.50/-.Technically market is under short covering as market has
witnessed remain unchanged in open interest by 0% to settled at 1432
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
while prices up 21.4 rupees, now Menthaoil is getting support at 1533.2
and below same could see a test of 1514.6 level, And resistance is now 1538.40 1562.00 1529.00 1551.80 1.40 1432
likely to be seen at 1566.2, a move above could see prices testing
1580.6. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
1599.2 1580.6 1566.2 1533.2 1514.6 1500.2
Trading Ideas :
# Menthaoil trading range for the day is 1514.6-1580.6.
# Mentha oil spot at Sambhal closed at 1813.10 per 1kg. Spot prices was up by Rs.18.50/-.
# 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 : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 11DAILY MARKET TRADING LEVEL
NCDEX
NCDEX CHANA Sep NCDEX Cotton Oct NCDEX Jeera Oct NCDEX Guarseed10 NCDEX Turmeric NCDEX Rmseed Sep NCDEX Soyabean
COMMODITIES MCX CPO Aug 2018 Ref.Soya oil
2018 2018 2018 Oct 2018 Sep 2018 2018 Oct 2018
Sep 2018
CLOSE 4193 23990 20000 4364 7282 4146 593.6 3393 735.85
4286 24350 20700 4555 7468 4195 598.9 3431 747
RESISTANCE 4242 24250 20525 4467 7404 4175 597.1 3420 742
4217 24120 20260 4416 7344 4161 595.3 3406 738
P. POINT 4173 24020 20085 4328 7280 4141 593.5 3395 733
4148 23890 19820 4277 7220 4127 591.7 3381 729
SUPPORT 4104 23790 19645 4189 7156 4107 589.9 3370 724
4079 23660 19380 4138 7096 4093 588.1 3356 720
Cng in OI 4.43 1.36 9.00 -5.31 14.81 9.27 -2.55 1.29 3.39
TREND Fresh Buying Fresh Buying Fresh Selling Short Covering Fresh Buying Fresh Buying Short Covering Fresh Buying Fresh Buying
LME DAILY STOCK POSITION ECONOMICAL DATA
0 0 TIME ZONE DATA Forecast Previous
COPPER ALUMINIUM NICKEL LEAD ZINC 12:30am USD Consumer Credit m/m 16.2B 24.6B
-372
-1000
-900 8:00pm USD Crude Oil Inventories -2.8M 3.8M
Commodity
LME STOCK Stock
-2000 COPPER -1850 248050
-1850 10:31pm USD 10-y Bond Auction 0 2.86|2.6
ALUMINIUM -7250 1170300
-3000 NICKEL -372 251466
0 0 0 0 0
LEAD 125775
ZINC -900 232625
-4000 0:00 0 0 0 0
-5000 0 0 0 0 0
-6000 0 0 0 0 0
0 0 0 0 0
-7000
-7250 0 0 0 0 0
-8000
0 0 0 0 0
LME STOCK
Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 12NEWS YOU CAN USE After a weak start to the year, the euro area economy grew at the slowest pace in two years in the second quarter, while inflation exceeded the central bank's target again in July, official data showed. According to a preliminary flash estimate from Eurostat, gross domestic product grew 0.3 percent from the first quarter, when the economy expanded 0.4 percent. A similar slower growth was last seen in the second quarter of 2016. On a yearly basis, GDP growth eased to 2.1 percent from 2.5 percent in the previous quarter. Among major economies, France expanded only 0.2 percent due to weak household consumption. Elsewhere, Spain logged its weakest growth in four years in the second quarter, with GDP rising 0.6 percent. At 0.2 percent, Italy's GDP growth was the weakest in two years in the second quarter. Separately, flash data from Eurostat showed that inflation accelerated for a third straight month in July to its highest level since late 2012. Largely driven by energy prices, harmonized inflation in the currency bloc rose to 2.1 percent in July from 2 percent in June. The annual rate was expected to remain at 2 percent. Indian gold demand is set to improve in the second half of 2018, after falling 6 percent in the first half, as government steps to boost farmers' incomes are expected to lift rural buying power, the World Gold Council (WGC) said. Higher demand from the world's second-biggest gold consumer could support global prices that are trading near their lowest in a year, although a rise in imports of the precious metal would widen India's trade deficit. A hike in crop prices and farm loan waivers would improve rural demand in the second half of the year, Somasundaram PR, managing director of WGC's Indian operations, told. Two-thirds of India's gold demand comes from rural areas, where jewellery is a traditional store of wealth. India last month raised the government-mandated price for summer-sown crops such as rice and cotton by the most since Prime Minister Narendra Modi came to power in 2014, a move that analysts said was aimed at wooing millions of poor farmers ahead of a general election next year.In the April-June quarter, Indian gold demand fell 8 percent from a year ago to 187.2 tonnes, hit by a rally in local prices due to a depreciating rupee , the WGC said in a report. Despite the fall, the WGC maintained a 2018 demand estimate of between 700 and 800 tonnes versus 763.4 tonnes last year. India is likely to receive below-normal monsoon rains in 2018, a private weather forecaster said, raising concerns over farm output and economic growth in Asia's third- biggest economy, where half the farmland lacks irrigation. The monsoon delivers about 70 percent of India's annual rainfall, critical for the farm sector that accounts for about 14 percent of India's $2 trillion economy and employs more than half of the country's 1.3 billion people. Lower rainfall could raise the price of food, which is weighted at nearly half of the consumer inflation index, and could add to pressure on central bank to raise interest rates. India's June-September monsoon season is likely to see only 92 percent of the long-period average (LPA) rainfall, down from earlier forecast of 100 percent, weather agency Skymet said in a statement. India's weather office defines average, or normal, rainfall as between 96 percent and 104 percent of a 50-year average of 89 cm for the entire four-month season. In the first half of monsoon season India received 6 percent less rainfall than normal, according to the official state-run India Meteorological Department (IMD), which has forecast 97 percent rainfall during the season. Date : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 13
The information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is
made as to its accuracy completeness or correctness.
This document is for information purposes only. This report is based on information that we consider reliable, but we do not represent that it is accurate or complete, and one should exercise due caution while acting on it. Descriptions of any commodities mentioned herein are not
complete and this document is not, and should not be construed as an offer or solicitation of an offer to buy or sell any commodities/commodity derivatives. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.
All opinions, projections and estimates constitute the judgment of the author as on the date of the report and these, plus any other information contained in the report, are subject to change without notice. Prices and availability of financial instruments also are subject to change without
notice.
This report is not directed to or intended for display, downloading, printing, reproducing or for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, reproduction, availability
or use would be contrary to law or regulation or what would subject to Systematix Commodities Services Private Limited (SCSPL) or its affiliates to any registration or licensing requirement within such jurisdiction. If this report is inadvertently send or has reached any individual in such
country, especially, USA, the same may be ignored and brought to the attention of the sender. Neither this document nor any copy of it may be taken or transmitted into the United State (to U.S.Persons), Canada, or Japan or distributed, directly or indirectly, in the United States or
Canada or distributed or redistributed in Japan or to any resident thereof. Any unauthorized use, duplication, redistribution or disclosure of this report including, but not limited to, redistribution by electronic mail, posting of the report on a website or page, and/or providing to a third party
a link, is prohibited by law and will result in prosecution. The information contained in the Report is intended solely for the recipient and may not be further distributed by the recipient to any third party.
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 : Wednesday, August 08, 2018 URL : www.systematixshares.com Page No : 14You can also read
