Achiievers Equities Daily Commodity Report

Daily Commodity Report as on Thursday, January 08, 2015

Date : Thursday, January 08, 2015 URL : www.achiieversequitiesltd.com Page No - 1

Open High Low Close % Cng OI

Gold 27348 27360 27120 27161 -0.85 6808Silver 37550 37930 37211 37762 -0.40 9872

Alum. 112.95 113.55 111.55 112.65 0.04 3154Copper 391.7 392.15 388.5 389.4 -0.57 15946Lead 117.1 117.6 115.55 116.45 -0.64 2658Nickel 972.7 986.7 965 983.7 1.40 5479Zinc 137.6 137.85 134.6 134.9 -1.86 3844

Crude 3053 3137 2986 3077 0.26 35157Nat. Gas 185.8 191.7 182.6 184 0.55 10059

Chana 27348 27360 27120 27161 -0.85 6808

Cardamom 1061 1079 1050 1072.7 1.06 1408Turmeric 9260 9450 9080 9154 -2.01 26765

Jeera 15380 15520 15155 15410 0.36 12051Dhaniya 8277 8418 8133 8315 0.60 7340

Wheat 1701 1707 1697 1703 -0.18 2780

Soyabean 3528 3535 3507 3528 0.46 80790Ref. Oil 651.4 660.7 648.35 659.75 1.53 73030CPO 466 469.7 462.7 468.7 1.06 3847RMSeed 3504 3553 3498 3548 1.23 35360Menthol 767.8 767.8 755 757 -0.76 9968Cotton 15700 15710 15600 15610 -0.45 5892

USDINR 63.81 63.85 63.45 63.48 -0.64 1286906EURINR 75.70 75.84 75.14 75.21 -1.15 46277GBPINR 96.58 96.71 95.98 96.05 -1.07 27314JPYINR 53.65 53.73 53.28 53.31 -0.71 15028

Market Round upPrecious Metals

Gold eased as the dollar gained and Fed's policy showed US central bank maintaining the status quo on interest rates.

Base MetalSilver prices dropped after data showed that U.S. non-farm private employment rose more-than-expected in December.

Crude oil prices gains following an unexpected drop in crude inventories and a positive economic outlook at the world's largest oil consumer.

Natural gas prices swung between gains and losses as inventor continued to assess the outlook for U.S. demand and supply levels.

Ref soyoil ended with gains tracking firmness in spot demand amid good exports of soymeal.Cereals

Mentha oil prices edged down driven by subdued demand in the spot market.Oil and Oilseeds & Others

Soyabean prices gained on higher demand from oil crusher after the government hiked import duty on edible and crude oil.

Energy Copper prices dropped hurt by worries over Chinese growth and as the possibility that Greece will quit the eurozone dents appetite for risk.

Zinc prices dropped after Inflation rate in the euro zone released overnight dropped to a negative territory for the first time since 2009.Pulses

Nickel prices rose as prices lifted on deficit concerns and views that the cost of nickel pig iron will lift. Spices

Chana prices ended with gains tracking firmness in spot demand amid lower sowing and supply concerns.

Turmeric prices dropped amidst sluggish demand in spot market, against adequate supplies from producing belts.Currency

Jeera prices rose because of concerns about lower production after farmers reduced the area under cultivation.


MCX Gold Feb 2015 TRADING IDEA

OPEN 27348 SUP-2 26974 Gold trading range for the day is 26974-27454.

HIGH 27360 SUP-1 27068 Gold eased as the dollar gained and Fed's policy showed US central bank maintaining the status quo on interest rates.

LOW 27120 P.P. 27214 Increasing speculation that Greece might exit the euro zone if a left-wing party wins the Jan. 25 elections could lift demand for gold.

Gold settled down -0.85% at 27161 eased, ending a three-day winning streak, as the dollar and equities strengthened and minutes from the Federal Reserve's policy meeting in December showed the U.S. central bankmaintaining the status quo on interest rates. The minutes were fairly scarce on new information, showcasing a nuanced debate on the language of the forward-guidance, various economic scenarios as well as some optimismabout the performance of the economy. "Most participants agreed that it would be useful to state that the [FOMC] Committee judges that it can be patient in beginning to normalize the stance of monetary policy," theminutes showed. Gold has benefited from years of increased central bank liquidity and a low rates environment, while higher U.S. rates would encourage investors to put money into riskier assets such as stocks and bonds.The metal was also undermined by the plunge in oil prices, which reduces gold's appeal as a hedge against oil-led inflation, and recovering stocks after data showing price deflation in the euro zone was seen as likely totrigger a bond-buying scheme by the ECB. Increasing speculation that Greece might exit the euro zone if a left-wing party that wants to cancel austerity measures wins the Jan. 25 elections could lift demand for gold byinvestors looking for protection while assets in the SPDR Gold Trust fell to 707.82 metric tons on Tuesday, after advancing for the first time in two weeks on Monday. The market will now await U.S. payrolls data on Friday forfresh clues on the timing of Fed rate rises. Technically market is getting support at 27068 and below same could see a test of 26974 level, And resistance is now likely to be seen at 27308, a move above could see pricestesting 27454.

MCX Silver Mar 2015 TRADING IDEA

OPEN 37550 SUP-2 36915 Silver trading range for the day is 36915-38353.

CLOSE 27161 RES-1 27308 SPDR gold trust holdings dropped by 2.99 tonnes i.e. -0.42% to 707.82 tonnes from 710.81 tonnes.

% CNG -0.85 RES-2 27454 SELL GOLD FEB @ 27300 SL 27450 TGT 27150-26950.MCX

HIGH 37930 SUP-1 37338 Silver prices dropped after data showed that U.S. non-farm private employment rose more-than-expected in December.

LOW 37211 P.P. 37634 Data showed the U.S. trade deficit fell to an 11-month low in November as declining crude oil prices curbed the import bill.

CLOSE 37762 RES-1 38057 The minutes contained few surprises, with policy makers pressing ahead with plans to begin raising rates this year after a debate on how to communicate their intentions.

% CNG -0.40 RES-2 38353 SELL SILVER MAR @ 38000 SL 38350 TGT 37600-37200.MCX

Silver settled down -0.4% at 37762 fell after the minutes from the latest Federal Reserve meeting in December suggested the Fed is on track to lift interest rates in 2015. Bullion took a breather on Wednesday after a three-day winning streak but held near its highest in three weeks as investors sought safety in the metal amid a tumble in global equities. Stock prices fell on global markets on Tuesday, stuck in a dismal start to 2015 on concernsover tumbling oil prices and Greece's possible exit from the euro zone. There is increasing speculation that Greece might exit the euro zone if a left-wing party that wants to cancel austerity measures and a part of the Greekdebt wins the Jan. 25 elections as widely expected. Other safe-haven assets such as the Japanese yen and government bonds also got a boost from the flight to safety. Softer-than-expected U.S. economic data on Tuesdayalso added to gold's appeal as an alternative investment. Growth in the U.S. services sector braked in December and new orders for manufactured goods fell for a fourth straight month in November. Bullion gains comedespite a stronger dollar, which typically hurts the metal as it makes bullion more expensive for holders of other currencies, and softer oil prices that reduce gold's appeal as a hedge against oil-led inflation. The dollar wastrading close to a nine-year peak against a basket of major currencies, while oil prices were stuck near five-and-a-half year lows. Investors will eye key economic data due from Europe and the United States later in the dayfor cues. Technically market is getting support at 37338 and below same could see a test of 36915 level, And resistance is now likely to be seen at 38057, a move above could see prices testing 38353.


MCX Crudeoil Jan 2015 TRADING IDEA

OPEN 3053 SUP-2 2916 Crudeoil trading range for the day is 2916-3218.

HIGH 3137 SUP-1 2997 Crude oil prices gains following an unexpected drop in crude inventories and a positive economic outlook at the world's largest oil consumer.

LOW 2986 P.P. 3067 The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories decreased by 3.1 million barrels.

Crudeoil settled up 0.26% at 3077 rebounded to end higher on Wednesday, after an official weekly oil report from the EIA showed oil stockpiles in the U.S. to have declined more than expected last week, even as gasolineinventories jumped much more than anticipated. Yesterday, a weekly report from the U.S. EIA showed U.S. crude oil inventories to have declined 3.1mbls in the week ended January 2, while market expected an increase of0.9mbls. The report showed U.S. crude oil inventories at 382.4mbls, end last week. Gasoline stocks jumped by 8.1mbls last week, Inventories of distillate, including heating fuel, increased 11.2mbls. While on Tuesday, areport from the American Petroleum Institute showed a surprise drop of 4mbls in U.S. crude-oil inventories for the week ended January 2. Some additional catalysts also supported oil, with some positive economic news fromthe U.S. Private sector employment in the U.S. increased more than expected in December, a report from payroll processor ADP showed Wednesday. A report from the Commerce Department showed U.S. trade deficit tohave narrowed more than expected in November, reflecting a notable decrease in the value of imports. Concerns that markets are unusually oversupplied has fueled the biggest drop in crude prices since the Great Recession.Technically market is under fresh buying as market has witnessed gain in open interest by 0.14% to settled at 35157 while prices up 8 rupee, now Crudeoil is getting support at 2997 and below same could see a test of 2916level, And resistance is now likely to be seen at 3148, a move above could see prices testing 3218.

MCX Copper Feb 2015 TRADING IDEA

OPEN 391.7 SUP-2 386.4 Copper trading range for the day is 386.4-393.6.

CLOSE 3077 RES-1 3148 The low prices are a result of high output clashing with sluggish demand, especially in Europe, which is still struggling with its debt crisis.

% CNG 0.26 RES-2 3218 BUY CRUDE OIL JAN @ 3050 SL 3000 TGT 3120-3170.MCX

HIGH 392.2 SUP-1 387.9 Copper prices dropped hurt by worries over Chinese growth and as the possibility that Greece will quit the eurozone dents appetite for risk.

LOW 388.5 P.P. 390.0 Worries about the possibility that Greece will quit the euro zone have also dented appetite for risk.

CLOSE 389.4 RES-1 391.5 Chile's copper export revenues totaled $38.7 billion in 2014, the central bank reported, 3.5 percent lower than in 2013.

% CNG -0.57 RES-2 393.6 SELL COPPER FEB BELOW 393 SL ABV 397.50 TGT 390.10-386.80-383.60. MCX (STBT)

Copper settled down -0.57% at 389.40 in the line of expectation held near the lowest level in more than four years on Wednesday, as a broadly stronger U.S. dollar and concerns that Greece might exit the euro zone hitsentiment. The US Federal Reserve hinted at little chance of an interest rate hike before April in its minutes of last month’s policy meeting. The FOMC indicated that the new guidance with reference to patience will proffermore latitude for its monetary policy. Many policymakers present at the meeting acknowledged that deteriorating economic conditions overseas may exert a drag on US economic growth. According to the minutes,policymakers believed that low inflation will not prevent the Fed from raising rates if only the US economy continues to improve. The tumble in crude oil and a stronger US dollar will keep inflation from rising temporarily.Meanwhile, the ADP jobs report, released on Wednesday, shows that the US economy added 241,000 jobs in December, higher than expectations and November’s figure. The euro zone’s initial CPI for December fell 0.2%YoY, lower than expectations and November’s reading. The single currency area’s unemployment remained unchanged at 11.5% in November. The technical deflation is highly likely to press the ECB to launch quantitativeeasing earlier than scheduled. The euro fell further against worries over Greece’s possible exit from the euro zone, as well as dispiriting economic indicators. Technically market is under long liquidation as market haswitnessed drop in open interest by -0.61% to settled at 15946 while prices down -2.25 rupee, now Copper is getting support at 387.9 and below same could see a test of 386.4 level, And resistance is now likely to be seen at391.5, a move above could see prices testing 393.6.


MCX Zinc Jan 2015 TRADING IDEA

OPEN 137.6 SUP-2 132.6 Zinc trading range for the day is 132.6-139.

HIGH 137.9 SUP-1 133.8 Zinc prices dropped after Inflation rate in the euro zone released overnight dropped to a negative territory for the first time since 2009.

LOW 134.6 P.P. 135.8 Glencore zinc operations sustains in the heavy rain also forecast for the possibility of thunderstorms in the region beginning.

Zinc settled down -1.86% at 134.90 after Inflation rate in the euro zone released overnight dropped to a negative territory for the first time since 2009, pushing the euro to fall to a nine-year low. ADP’s employment figuresfor the US in December recovered, driving up the US dollar index to breach 92, weighing down base metals prices. LME zinc prices opened at USD 2,175/mt, then slid to a weekly low of USD 2,129.75/mt, and closing at USD2,137/mt, down USD 37.75/mt or 1.74%. The US Federal Reserve hinted at little chance of an interest rate hike before April in its minutes of last month’s policy meeting. The Federal Open Market Committee indicated thatthe new guidance with reference to patience will proffer more latitude for its monetary policy. Many policymakers present at the meeting acknowledged that deteriorating economic conditions overseas may exert a drag on USeconomic growth. According to the minutes, policymakers believed that low inflation will not prevent the Fed from raising rates if only the US economy continues to improve. Meanwhile, the ADP jobs report, released onWednesday, shows that the US economy added 241,000 jobs in December, higher than expectations and November’s figure. Traders are eyeing on US nonfarm payrolls due for release on Friday are expected to be inspiring,which may push the US dollar index up further and in turn depress base metals prices on Thursday. Technically market is under long liquidation as market has witnessed drop in open interest by -5.99% to settled at 3844while prices down -2.55 rupee, now Zinc is getting support at 133.8 and below same could see a test of 132.6 level, And resistance is now likely to be seen at 137, a move above could see prices testing 139.

MCX Nickel Jan 2015 TRADING IDEA

OPEN 972.7 SUP-2 956.8 Nickel trading range for the day is 956.8-1000.2.

CLOSE 134.9 RES-1 137.0 ADP’s employment figures for the US in December recovered, driving up the US dollar index, weighing down base metals prices.

% CNG -1.86 RES-2 139.0 SELL ZINC JAN @ 136 SL 137.50 TGT 135.20-134.40-133.50.MCX

HIGH 986.7 SUP-1 970.3 Nickel prices rose as prices lifted on deficit concerns and views that the cost of nickel pig iron will lift.

LOW 965.0 P.P. 978.5 Euro zone inflation rate entered into a negative territory for the first time since 2009, and political turmoil in Greece escalated.

CLOSE 983.7 RES-1 992.0 The US Federal Reserve hinted at little chance of an interest rate hike before April in its minutes of last month’s policy meeting.

% CNG 1.40 RES-2 1000.2 BUY NICKEL JAN @ 975 SL 960 TGT 988-1000.MCX

Nickel settled up 1.4% at 983.70 as prices lifted on deficit concerns and views that the cost of nickel pig iron will lift. Euro zone inflation rate entered into a negative territory for the first time since 2009, and political turmoilin Greece escalated. The euro zone’s initial CPI for December fell 0.2% YoY, lower than expectations and November’s reading. The single currency area’s unemployment remained unchanged at 11.5% in November. Thetechnical deflation is highly likely to press the European Central Bank (ECB) to launch quantitative easing earlier than scheduled. The euro fell further against worries over Greece’s possible exit from the euro zone, as well asdispiriting economic indicators. The US dollar index, however, surged above 92 at one stage on Wednesday, a refreshed 9-year high, piling pressure on most base metals prices. The US Federal Reserve hinted at little chanceof an interest rate hike before April in its minutes of last month’s policy meeting. The Federal Open Market Committee indicated that the new guidance with reference to patience will proffer more latitude for its monetarypolicy. Many policymakers present at the meeting acknowledged that deteriorating economic conditions overseas may exert a drag on US economic growth. According to the minutes, policymakers believed that low inflationwill not prevent the Fed from raising rates if only the US economy continues to improve. The tumble in crude oil and a stronger US dollar will keep inflation from rising temporarily. Meanwhile, the ADP jobs report, releasedon Wednesday, shows that the US economy added 241,000 jobs in December, higher than expectations and November’s figure. Technically market is getting support at 970.3 and below same could see a test of 956.8 level,And resistance is now likely to be seen at 992, a move above could see prices testing 1000.2.


NCDEX Chana Feb 2015 TRADING IDEA

OPEN 3480 SUP-2 3441 Chana trading range for the day is 3441-3597.

HIGH 3549 SUP-1 3489 Chana prices ended with gains tracking firmness in spot demand amid lower sowing and supply concerns.

LOW 3471 P.P. 3519 India has extended duty-free imports of chickpea, or chana, till March-end, due to lower area under cultivation.

Chana settled up by 1.41% at 3536 tracking firmness in spot demand amid lower sowing and supply concerns. India, the world's biggest producer and importer of pulses, has extended duty-free imports of chickpea, orchana, till March-end, due to lower area under cultivation, a government notification said. In 2013-14, India produced record 9.9 million ton chana up from 8.8 million ton a year ago thanks to favourable 2013 monsoon. As aresult, prices remained depress almost the entire year, save for a period of last one month, when prices rose on apprehension that government may not extend the duty free import and fall in output. Government had fixedminimum support price (MSP) Rs 3,100 for the current marketing year and Rs 3,175 per quintal for the next year beginning Mar. Chana arrivals were steady at 30 trucks as compared to previous day. Domestic demand forchana is weak in local mandis as the quality available is of inferior variety. The chana 2014-15 planted area is down in major producing states Madhya Pradesh (-17%),Andhra Pradesh(-30%),Maharashtra (-25%), Karnataka(6%) and Uttar Pradesh (5%). Following table illustrates the chana 2014-15 sowing progress till Jan.2, 2015. According to Ministry of Agriculture, total rabi pulses acreage till Jan. 2, 2015 is down by 10% to 129.99 lakhhectare(Ha.) as compared with last year’s area coverage of 144.79 lakh hectare during the corresponding week. In Delhi spot market, chana gained by 1.65 rupee to end at 3481.05 rupee per 100 kgs.Technically market isunder fresh buying as market has witnessed gain in open interest by 14.33% to settled at 77370, now Chana is getting support at 3489 and below same could see a test of 3441 level, And resistance is now likely to be seenat 3567, a move above could see prices testing 3597.

NCDEX Turmeric Apr 2015 TRADING IDEA

OPEN 9260 SUP-2 8858 Turmeric trading range for the day is 8858-9598.

CLOSE 3536 RES-1 3567 NCDEX accredited warehouses chana stocks dropped by 2997 tonnes to 34424 tonnes.

% CNG 1.41 RES-2 3597 BUY CHANA FEB @ 3510 SL 3460 TGT 3550-3600.NCDEX

HIGH 9450 SUP-1 9006 Turmeric prices dropped amidst sluggish demand in spot market, against adequate supplies from producing belts.

LOW 9080 P.P. 9228 However downside seen limited on worries about lower production due to unfavourable weather.

CLOSE 9154 RES-1 9376 At Erode market total arrivals are at 7000 quintals, down by 1000 quintals as against previous day.

% CNG -2.01 RES-2 9598 BUY TURMERIC APR ABV 9200 SL 9050 TGT 9340-9480-9600.NCDEX

Turmeric settled down by -2.01% at 9154 amidst sluggish demand in spot market, against adequate supplies from producing belts. However downside seen limited on worries about lower production due to unfavourableweather. Reports of lower stocks, lower production and improved export and North India domestic demand in coming weeks are likely to support prices. At Erode market total arrivals are at 7000 quintals, down by 1000quintals as against previous day. At Nizamabad market arrivals were reported at 1000 quintals, steady as against previous day’s arrival. Spot turmeric prices, especially of the root variety, declined heavily in Erode marketsdue to arrivals of inferior quality. Arrivals decreased to 7,200 bags, but only 50 per cent was sold. The price of the root variety was down Rs. 600-700 a quintal, while the finger variety lost Rs. 200. The price of the hybridfinger turmeric decreased by Rs. 200. At the Erode Turmeric Merchants Association sales yard, the finger variety fetched Rs. 4,688-8,594 a quintal; the root variety Rs. 4,658-7,895. At the Regulated Market Committee, thefinger variety was sold at Rs. 6,029-8,611 and the root variety Rs. 5,959-7,595. Of the 1,366 bags that arrived, only 702 were sold. At the Erode Cooperative Marketing Society, the finger variety ruled at Rs. 6,811-8,489and the root variety Rs. 6,289-7,699. Of the 742 bags offered, 492 were traded. In Nizamabad, a major spot market in AP, the price ended at 7988.1 rupees dropped -10.65 rupees.Technically market is under fresh selling asmarket has witnessed gain in open interest by 2.08% to settled at 26765 while prices down -188 rupee, now Turmeric is getting support at 9006 and below same could see a test of 8858 level, And resistance is now likely tobe seen at 9376, a move above could see prices testing 9598.


MCX Menthaoil Jan 2015 TRADING IDEA

OPEN 767.8 SUP-2 747.1 Menthaoil trading range for the day is 747.1-772.7.

HIGH 767.8 SUP-1 752.0 Menthaoil spot is at 868/-. Spot market is down by Rs.10/-.

LOW 755.0 P.P. 759.9 Mentha oil prices edged down driven by subdued demand in the spot market.

CLOSE 757.0 RES-1 764.8 Adequate stocks position on increased supplies from Chandausi in Uttar Pradesh also put pressure on mentha oil.

% CNG -0.76 RES-2 772.7 SELL MENTHA OIL JAN @ 760 SL 768 TGT 754-746.MCX

389.4 134.9 983.7 112.65

Mentha oil settled down by -0.76% at 757 driven by subdued demand in the spot market. Besides, adequate stocks position on increased supplies from Chandausi in Uttar Pradesh also put pressure on mentha oil. As per theLatest reports from Spice Board indicate that for the period April/December last year, exports for Mint value-added products like Oil, Menthol and its crystals rose 94% in volumes at 17,850 tonnes and 39% in value at Rs2202 Cr w.r.t. same period the previous year. Prices had been in corrective mode since last 3years after Govt stated banning of Gutkha in some states which continues having negative impact on Mentha Oil demand. Asfarmers are not getting lucrative returns from the crop due to weakness in the prices and poor demand with High carry stock this year farmers can divert to some other cash crop that can support the prices in Q1Y15 as thatcan reduce the production from 60000 tonnes to ~45-50000 tonnes as compare to last year. At Rampur market total arrivals are at 4 Drums(1-drum=180kg), up by 2 Drums(1-drum=180kg) as compared to previous day. AtBarabanki market arrivals were reported at 110 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Bareilly market estimated market supply was at 2 Drums(1-drum-180kg), steady as againstprevious day’s arrival. At Sambhal market sources reported arrivals at 60 Drums(1-drum=180kg), lower by 20 Drums(1-drum=180kg) as against previous day. Technically market is under long liquidation as market haswitnessed drop in open interest by -0.2% to settled at 9968 while prices down -5.8 rupee, now Menthaoil is getting support at 752 and below same could see a test of 747.1 level, And resistance is now likely to be seen at764.8, a move above could see prices testing 772.7.

DAILY MARKET LEVEL FOR METAL AND ENERGY

COMMODITIES GOLD SILVER CRUDE NAT.GAS COPPER ZINC NICKEL ALUMINUM LEAD

116.5

27308 38057 3148 189.6

CLOSE 27161 37762 3077 184

391.5 137.0 992.0 113.7135.8 978.5 112.6

RESISTANCE27548 38776 3299 198.7 395.1 140.2 1013.7 115.727454 38353 3218 195.2 393.6 139.0 1000.2 114.6

P. POINT 27214 37634 3067 186.1 390.0

26828 36619 2846 171.4 384.3SUPPORT 26974 36915 2916 177.0 386.4 956.8 110.6

27068 37338 2997 180.5 387.9

OI 6808 9872 35157 10059 15946 3844 5479 3154130.6 948.6 109.7

133.8 970.3 111.7132.6


Positive Positive

SPREAD 227 621 57.00 0.90 4.35 0.95 6.60

TREND Positive Positive Positive Positive Positive Positive Positive

0.90

119.6118.6117.5

113.3114.4115.4

2658

116.5

1.15

12:30pm EUR -0.006 0.0253:30pm EUR 0.003 0.0043:30pm EUR -0.002 -0.004Tentative EUR 0 1.11|2.45:30pm GBP 0.005 0.0055:30pm GBP 375B 375BTentative GBP 0 06:00pm USD 0 -0.2077:00pm USD 291K 298K9:00pm USD -120B -26B

0 0 0 00 0 0 00 0 0 0

Challenger Job Cuts y/yUnemployment ClaimsNatural Gas Storage

000

PREV

With orders for durable and non-durable goods both falling, the Commerce Department released areport showing that new orders for U.S. manufactured goods fell by slightly more than expected inthe month of November. The report said factory orders fell by 0.7 percent in November, matching thedecrease seen in October. Economists had expected orders to drop by about 0.6 percent. The biggerthan expected decrease in factory orders was partly due to a pullback in durable goods orders, whichfell by 0.9 percent in November after rising by 0.3 percent in the previous month. The CommerceDepartment said orders for transportation equipment led the decrease, tumbling by 1.3 percent inNovember. The report also showed that non-durable goods orders fell by 0.5 percent in Novemberafter plunging by 1.6 percent in October. Shipments of manufactured goods also dropped by 0.6percent in November following a 0.9 percent decrease in the previous month. On the other hand,inventories of manufactured goods inched up by 0.1 percent in November, matching the uptick seenin October.

Thu

German Factory Orders m/mRetail Sales m/mPPI m/mFrench 10-y Bond AuctionOfficial Bank RateAsset Purchase FacilityMPC Rate Statement

NEWS YOU CAN USE DAY TIME ZONE ECONOMICAL DATA EXP

Activity in the U.S. service sector grew at a notably slower rate in the month of December, accordingto a report released by the Institute for Supply Management, with the index of activity in the sectorfalling by more than anticipated. The ISM said its non-manufacturing index fell to 56.2 in Decemberfrom 59.3 in November. While a reading above 50 indicates continued growth in the service sector,economists had expected the index to show a more modest drop to 58.0. With the bigger thanexpected decrease, the non-manufacturing index fell to its lowest level since hitting 56.0 last June.The pullback by the headline index came as the business activity index tumbled to 57.2 in Decemberfrom 64.4 in November. The new orders index also dipped to 58.9 in December from 61.4 inNovember, while the employment index edged down to 56.0 from 56.7. On the inflation front, theprices index dropped to 49.5 in December from 54.4 in the previous month, indicating the first dropin prices in 62 months.

China's annual economic growth likely slowed to 7.2 percent in the fourth quarter, the weakest sincethe depths of the global crisis, a poll showed, which would keep pressure on policymakers to head offa sharper slowdown this year. The expected slowdown in growth of the world's second-largesteconomy, from 7.3 percent in the June-September quarter, means full-year would undershoot thegovernment's 7.5 percent target and mark the weakest expansion in 24 years. Growth of 7.2 pct inOctober-December would be the weakest since Q1 2009, when the economy grew 6.6 percent as theworst of the global crisis passed. Banks may have extended nearly 853 billion yuan ($137.3 billion) innew loans in December, flat from November's level, which showed a 56 percent jump from theprevious month. The People's Bank of China (PBOC) unexpectedly cut interest rates in November forthe first time in more than two years to lower borrowing costs to support growth. Later, it loosenedloan restrictions to encourage banks to step up lending.

Cool weather and rainfall over the past few days has triggered hope for a higher yield of wheat thisyear. If the weather holds, the crops this year — being cultivated over an area of a size similar to lastyear — could surpass last year’s 95.9 million tonnes (mt). The rainfall has been helping naturalirrigation and the cool weather is ideal for higher tiller age — the number of branches on a wheatplant. Since the monsoon was below normal, moisture content in the soil is lower. Rain could helprecharge the moisture. “The total area under wheat cultivation was about 31 million hectares in 2013-14. It is likely to remain the same this year but conducive weather may help higher productivity,” saidIndu Sharma, project director, Directorate of Wheat Research, Karnal. The area sown till Decemberwas three per cent less during the corresponding period in 2013. “We had a crop size of 95.9 mt incrop year 2013-14 and can expect to have a higher produce if the cool temperature persists. AsPunjab and Haryana are irrigated states, there is no major variation in area under wheat and adecrease in area under wheat may come from Uttar Pradesh and Madhya Pradesh.” The weather inthe last week of March and the first week of April plays a crucial role for growth of wheat grain. Butthe rain and low temperature in January could help the plants have dense growth of branches andgive an enhanced yield.

A section of growers have urged the government to levy a 30 per cent Customs duty on pulses ascheaper imports are hindering them from getting remunerative prices for their produce. In a letter toPrime Minister Narendra Modi, the Karnataka Pradesh Red Gram Growers Association has asked for asustainable policy for pulses to protect farmers' interest while also being consumer friendly. BasavarajIngin, President of the Karnataka Pradesh Red Gram Growers Association, suggested that theGovernment impose a duty of 30 per cent in the forthcoming Budget to curb cheaper imports ofpulses. Imposing duty would also curb the foreign exchange outgo, he said. Currently, pulses acrosscategories are imported into the country at zero duty. Ingin said the price differential between thedomestic and imported pulses is about 30 per cent and the duty should be levied to such an extent.Further, Ingin said, the government should start supplying pulses through the public distributionsystem across the country, while exploring options to incentivise exports to maintain stability inprices. Karnataka accounts for about a fifth of the tur produced in the country. Recently, hundreds offarmers staged a protest in Gulbarga, the main tur producing region, demanding Rs. 6,000 a quintalto cover the rising production costs. Tur prices are currently hovering between Rs. 4,800 and Rs.5 400 a quintal in the region higher than the minimum support price of Rs 4 350 announced by the


Achiievers Equities Daily Commodity Report

Economy & Finance

Transcript of Achiievers Equities Daily Commodity Report