Commodities Weekly Tracker, 13th May 2013

7/30/2019 Commodities Weekly Tracker, 13th May 2013

1/19

Commodities & Currencies

Weekly Tracker


2/19

Commodities Weekly TrackerContents

Returns

Non Agri Commodities Currencies

Agri Commodities

Non-Agri Commodities

Gold

Silver

Copper Crude Oil

Currencies DX, Euro, INR

Agri Commodities

Chana

Black Pepper Turmeric

Jeera

Soybean

Refine Soy Oil & CPO

Sugar

Kapas

Monday | May 13, 2013


3/19

Commodities Weekly TrackerMonday | May 13, 2013

2.6

1.9

1.3

1.00.5

(0.8) (0.9)

(1.3)(1.5)

(1.0)

(0.5)

0.0

0.5

1.0

1.5

2.0

2.5

3.0Currencies Weekly Performance


4/19


1.91.4

0.4

(0.8) (1.0)(1.2)

(1.5)

(2.4)

(3.6)(4.0)

(3.0)

(2.0)

(1.0)

0.0

1.0

2.0

Non-Agri Commodities Weekly Performance


5/19

*Weekly Performance for June contract, CPO, Cotton & Mentha Oil May Contract



6/19


GoldWeekly Price Performance

Spot gold prices declined around 1.5 percent in the last week. The yellow metal

touched a weekly low of $1420.6/oz and closed at $1447.7/oz in last trading session

of the week. In the Indian markets, prices increased by 0.1 percent on account of depreciation in

the Indian Rupee and closed at Rs.26843/10 gms on Friday after touching a weekly

low of Rs. 27049/10 gms.

ETF Performance

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded

fund, declined by 1.3 percent to 1,051.65 tonnes as on 10th May 2013 from previous

level of 1,062.3 tonnes as on 3rd May 2013.

Factors that influenced downside in gold prices Rise in risk appetite in the global market sentiments which led to decline in safe haven

demand for the investors.

Additionally, SPDR gold trust holding continued to decline, which acted as a negative

factor. Apart from that decline in US initial jobless claims coupled with Strength in the

DX exerted downside pressure on the prices.

Outlook

In the coming week we expect gold prices to trade on the negative note as the rise in

stock markets may reduce the demand for safe haven. Further SPDR gold trustholding continued to decline which may add downside pressure. Additionally,

strength in DX coupled with expectation of euro zone economy to contract by 0.1

percent in first quarter of 2013 may act as a negative factor. Apart from that,

expectation of decline in inflation over the major global economy may keep prices

under pressure. Depreciation in the Indian Rupee may cushion sharp downside in the

prices on MCX.

Weekly Technical Levels

Spot Gold : Support 1,415/1,385 Resistance 1,470/1500. (CMP: $1431.50)

MCX Gold : Support 26380/25850 Resistance 27450/27950. (CMP: Rs 26782)

1,350

1,400

1,450

1,500

1,550

1,600

1,650

1,700

1,750

1,800

25,500

26,500

27,500

28,500

29,500

30,500

31,500

MCX and Comex Gold Price Performance

MCX-Near Month Gold Futures -Rs/10 gms Comex Gold Futures -$/oz

79.0

79.5

80.0

80.5

81.0

81.5

82.0

82.5

83.0

83.5

84.0

1,350

1,400

1,450

1,500

1,550

1,600

1,650

1,700

Spot Gold Vs US Dollar Index

Spot Gol d -$ /oz US Dol lar Inde x


7/19


SilverWeekly Price Performance

Spot silver fell by 1.0 percent in the last week. The white metal prices touched

a low of $23.15/oz in the last week and closed at $23.82/oz in last trade ofthe week.

On the domestic front, prices increased by 0.6 percent as a result of

depreciation in the Indian Rupee and closed at Rs.45062/kg on Friday after

touching a low of Rs.45628/kg in the last week.

ETF Performance

Holdings in the iShares Silver Trust, the world's largest silver-backed

exchange-traded fund, gained by 0.08 percent to 10,440.4 tonnes as on 10th

May 2013 from previous level of 10,431.39 tonnes as on 3rd May 2013.

Factors that influenced downside in silver prices

Fall in gold prices, strength in the DX along with mixed performance in the

base metals. Further, unfavorable economic data from Spain, Italy and France

added downside pressure on the prices.

However, upbeat global market sentiments along with favorable trade

balance data from china cushioned sharp downside in the prices.

Outlook In the coming week we expect spot silver prices to decline taking cues from

fall in spot gold prices coupled with downside in the base metal packs.Further, strength in DX along with expectation of euro zone economy to

contract by 0.1 percent in first quarter of 2013 may add downside pressure.

However, expectation of rise in ZEW economic sentiments from

Germany and favorable US consumer sentiments may cushion sharp fall in

the prices. Depreciation in the Indian Rupee may cushion sharp fall in the

prices on MCX.


Spot Silver: Support 22.90/22.30 Resistance 24.50/25.0. (CMP:$23.58)

MCX Silver: Support 43700/42300 Resistance 46500/47600. (CMP: Rs 44951)

22

24

26

28

30

32

42,000

44,000

46,000

48,000

50,000

52,000

54,000

56,000

58,000

60,000

MCX and Comex Silver Price Performance

MCX-N ear Month Si lver Futur es -Rs/ kg C omex Si lver Futur es -$ /oz

79.0

79.5

80.0

80.5

81.0

81.5

82.0

82.5

83.0

83.5

84.0

22.0

24.0

26.0

28.0

30.0

32.0

Spot Silver Vs US Dollar I ndex

Spot Silve r -$/oz US Dollar Inde x


8/19


CopperWeekly Price Performance

Copper prices increased by 1.4 percent in the previous week. The red metal touched a

weekly high of $7480/tonne and closed at $7391/tonne in the last trading session of

the week. On the domestic front, prices ended on positive note by 3.2 percent and closed at Rs.

408.05/kg on Friday after touching a high of Rs. 409/kg in the last week. Depreciation

in the Indian rupee supported prices to trade in green.

Copper Inventories

LME copper inventories declined around 0.7 percent in the last week and stood at

604,250 tonnes as on 10th May, 2013 as against 608,700 tonnes as on 3rd May, 2013.

Copper inventories in the warehouse monitored by the Shanghai fell by 8.8 percent

and stood at 195,043 tonnes for the week ending on 10th May, 2013.

Factors that influenced upside in the copper prices

Rise in risk appetite in the global market sentiments coupled with favorable trade

balance data from china. Further, strong economic data from Germany along with ECB

president Draghi comments that bank is ready to cut interest rates again if required

supported prices. Additionally, decline in LME and Shanghai copper inventories acted

as a positive factor for the prices.

Outlook

In the coming week we expect base metal price to trade on the negative note on the

back of strength in DX coupled with the expectation of euro zone economy to contractby 0.1 percent in the first quarter of 2013. Additionally, expectation of decline in US

housing starts and industrial production along with rise in US jobless claims may act as

a negative factor for the prices. However, optimistic global market sentiments,

favorable US Building permits data along with rise in US consumer sentiments and

German ZEW economic sentiments may cushion sharp decline in the prices.

Depreciation in the Indian Rupee may cushion sharp decline in the prices on MCX.


LME Copper: Support 7270/7090 Resistance 7485/7600. (CMP: $7405)

MCX Copper: Support 404/394 Resistance 416/422. (CMP: Rs 410)

365

375

385

395

405

415

425

435

445

455

6,800

7,000

7,200

7,400

7,600

7,800

8,000

8,200

8,400

LME and MCX Copper Price Performance

LME Copper Future ($/tonne) MCX Near Month Copper Contract (Rs/kg)

6,800

7,000

7,200

7,400

7,600

7,800

8,000

8,200

8,400

318,000

368,000

418,000

468,000

518,000

568,000

618,000

LME Copper v/s LME Inventory

Copper LME Inventory (tonnes) LME Copper Future ($/tonne)


9/19


Crude OilWeekly Price Performance On a weekly basis, Nymex crude oil prices increased around 0.4 percent.

On the domestic bourses, prices gained by 0.7 percent as a result of

depreciation in the Indian Rupee and closed at Rs.5,191/bbl on Friday aftertouching a high of Rs.5248/bbl in the last week.

US Energy Department Facts and Figures As per the US Energy Department (EIA) report, US crude oil inventories

increased less than expectations by 0.2 million barrels to 395.50 million barrelsfor the week ending on 3rd May 2013.

Gasoline stocks fell by 0.9 million barrels to 215.10 million barrels and whereasdistillate stockpiles rose by 1.8 million barrels to 117.60 million barrels for thelast week.

Factors that influenced upside in crude oil prices Less than expected rise in the US crude oil inventories.

Additionally, favorable economic data from the global economies led toexpectations of rise in demand for the fuel.

However, sharp upside in the prices was capped as a result of cut in the globaldemand for the crude oil by US Energy Department (EIA) coupled withexpectations of rise in production by the OPEC.

Further, strength in the DX also prevented upside in the oil prices.

Outlook For the coming week, we expect crude oil prices to trade lower on the back of

cut in the demand forecast for oil by EIA coupled with rise in the OPEC outputfor the month of April. Further, strength in the DX will also exert downsidepressure on the oil prices. However, sharp downside will be cushioned onaccount of expectations of favorable economic data from major globaleconomies along with upbeat global market sentiments.

Depreciation in the Indian Rupee will prevent fall in the prices on the MCX.

Weekly Technical Levels Nymex Crude Oil: Support: 95.0/94.0 Resistance 97.50/98.70. (CMP:$95.33)

MCX Crude Oil: Support: 5200/5130 Resistance 5340/5395. (CMP:Rs 5242)

86.0

88.0

90.0

92.0

94.0

96.0

98.0

4,700

4,800

4,900

5,000

5,100

5,200

5,300

5,400

Nymex and MCX Crude Oil Price Performance

M CX cru de o il (Rs/bb l) NYMEX Cr ud e Oi l ($ /b bl)

361.3

360.3

363.1369.1

371.7

372.2

376.4

377.53

381.4

384

382.7

385.9

388.6 388.9

387.6

388.6

395.3

395.5

360

365

370

375

380

385

390

395

400

Crude Oil Inventories (mn barrels)


10/19


DX/ INRWeekly Price Performance

US Dollar Index (DX) increased around 1.3 percent in the last week.

The Indian Rupee depreciated around 1.9 percent on weekly basis.

Factors that influenced upside movement in the DX

ECB President Mario Draghi statement that further rates cut are possible if situation

demands.

However, sharp upside in the currency was capped on account of favorable data from

the US. Further, rise in risk appetite in the global market sentiments also prevented

sharp upside in the DX.

Factors that influenced movement in the Rupee

Increase in dollar demand from oil and gold importers coupled with strength in the DX.

Additionally, unfavorable services PMI data from the country exerted downside

pressure on the currency.

However, sharp downside in the Indian Rupee was cushioned as a result of rise in

inflow of foreign funds. Further, upbeat global and domestic market sentiments along

with favorable industrial production data from the country prevented fall in the Rupee.

FII Inflows

For the month of May 2013, FII inflows totaled at Rs.7,524.70 crores ($1,392.26

million) as on 10th May 2013. Year to date basis, net capital inflows stood at

Rs.68,561.0 crores ($12,702.60 million) till 10th May 2013.

Outlook In the coming week, Indian Rupee is expected to depreciate as a result of dollar

demand from gold and oil importers. Additionally, strength in the DX will also add

downside pressure on the currency.

However, sharp downside in the currency will be cushioned on account of expectations

of favorable inflation data from the country.


USD/INR MCX May Support 54.45/53.85 Resistance 55.60/56.20. (CMP: 55.11)

US Dollar Index: Support 82.40/81.80 Resistance 83.70/84.30. (CMP: 83.22)

79.0

79.5

80.0

80.5

81.0

81.5

82.0

82.5

83.0

83.5

US Dollar Index

53.0

53.5

54.0

54.5

55.0

55.5

56.0

$/INR - Spot


11/19


EuroWeekly Price Performance

The Euro depreciated by 0.9 percent in the last week. The Euro touched a

weekly low of 1.2935 and closed at 1.2992 against dollar on Friday.

Factors that influenced downside movement in the Euro

Strength in dollar index.

Further, weak economic data from Spain, France and Italy added downside

pressure on the currency.

Additionally, European Central Bank (ECB) president Draghi said that bank is

ready to cut interest rates again if required kept euro under pressure.

Apart, from that ECB survey showed that Euro zone economy is expected to

contract this year by 0.4 percent which acted as a negative factor.

However, favorable economic data from Germany along with optimistic globalmarket sentiments cushioned sharp fall in the currency.

News

French Industrial Production declined by 0.9 percent in March as against a rise of

0.8 percent a month ago. German Factory Orders grew at slow pace of 2.2

percent in March with respect to rise of 2.3 percent a month earlier.

German Industrial Production increased by 1.2 percent in March from earlier

rise of 0.6 percent a month ago.

Outlook In the coming week we expect Euro currency to depreciate on the back of

strength in DX. Further, expectation of euro zone economy to contract by 0.1

percent may add downside pressure on the currency.

However, expectation of rise in industrial production data coupled with rise in

German ZEW economic sentiments may prevent sharp downside in the euro.


EURO/USD SPOT: Support 1.2870/1.2770 Resistance 1.3140/1.3300. (CMP:

1.2964)

1.275

1.285

1.295

1.305

1.315

1.325

1.335

1.345

1.355

1.365

Euro/$ - Spot

69.0

69.5

70.0

70.5

71.0

71.5

72.0

72.5

73.0

EURO/INR - Spot


12/19

Chana


Weekly Price Performance

Increasing arrivals in the domestic markets exerted downside pressure on the

chana prices for third consecutive week.

Chana spot as well as May futures settled 1.4% & 3.2% lower w-o-w.

Arrivals at peak in the key states

Chana arrivals which started off late this season in the major producing states,

MP and Rajasthan, are at its peak at present. This has dragged prices lower.

Chana output estimated at record high- Third Advance Estimates

According to the third advance estimates released last week, Chana output is

pegged marginally lower to 8.49 mn tn compared with its second advance

estimates of 8.57 million tonnes. Chana output is expected to breach its 2010-11

record of 8.2 mn tn in 2012-13.Seasonal pressure to keep prices under downside pressure

Chana prices tend to follow a seasonality pattern, wherein prices decline during

the harvesting period and bottom out when arrivals reach their peak in the

month of May. Thus, we expect the current downward trend to continue till the

month end.

World pulses market well-balanced

At the International Pulse Trade and Industries Confederation annual

convention, chick pea (desi), production is pegged up at 9.7 mt from 9.4 mt. in

2012-13 following a huge spurt in Pakistan crop.

Outlook

Downward trend in Chana is expected to continue on the back of increasing

arrivals. However, on the downside prices may not sustain below Rs 3200 per qtl

mark, the level being a Minimum Support price, below which farmers may not

sell their produce. Also stockiest demand may emerge at such low levels and

thus we may see a recovery in the Chana prices June onwards.

Weekly Strategy

Sell NCDEX CHANA June between 3430-3450, SL -3510, Target - 3340 / 3320.


13/19

Turmeric

Source: Agriwatch & Reuters

Commodities Weekly Tracker


Turmeric Futures remained in the negative territory for the fourth consecutive

week on account of huge carryover stocks. Quality of arrivals of the crop is also

weak. Lack of demand from the upcountry markets has also pressurised prices.

However, lower output expectations for 2012-13 crop on the back of poor

sowing also supported the prices in the spot. Sowing is reported to be 30-35%

lower compared to last year.

According to the weather department, rainfall in the key grown region (Southern

Peninsula) was 10% below normal. The spot as well as the futures settled 3.43%

and 9.26% lower w-o-w.

Weak exports data

Turmeric exports during Apr-Jan 2013 declined by 4% to 66,550 tn.(Source Factiva)

Lower acreage of Turmeric for the 2012-13 season

Production of turmeric may decline in 2012-2013 season due to weak monsoon as

well as lower turmeric prices. The area covered under Turmeric in A.P. as on 10th

October, 2012 has been reported at 0.58 lakh hectares. The area covered is lower

as compared to last year (0.81 lha), as well as normal as on date (0.67 lha).

Lower production in the 2012-2013 season

Turmeric production in 2012-13 is expected around 50% lower compared to last

year and is expected around 45-50 lakh bags. Production in 2011-12 is reported

at historical high of 90 lakh bags/ 10.62 lakh tns.

Outlook

Huge carry over stocks of the new crop may continue to exert downside pressure

on Turmeric prices. However, sharp downside may be cushioned as demand from

the stockiest as well as exporters may emerge at lower levels. Lower production

estimates may also support prices at lower levels.

Weekly Strategy Sell NCDEX Turmeric June between 6000-6050, SL -6480, Target - 5365 / 5275.


Source: Reuters & Angel Research.


14/19

Jeera

Source: Ministry of Agriculture, Gujarat.

Commodities Weekly Tracker


Jeera futures recovered from lower levels towards the end of the week on

account of short coverings. Value buying also emerged at lower levels due to

demand from stockists as well as exporters. The pace of arrivals of the fresh crop

have also declined from its peak. Prices had declined earlier due to higher output

estimates. Sowing in Gujarat was reported at 3.244 lk ha till Jan 2013. Last 3

years average sowing is 3.189 lk ha. Stocks are reported at around 5-6 lk bags.

The spot settled 0.22% higher while the June Futures settled 0.15% lower w-o-w.

Second consecutive year of higher output

Indias 2013 Jeera output is estimated at 40-45 lakh bags (of 55kgs each), higher

than 40 lakh bags in 2012. However, increase in the exports due to supply

concerns in the global markets offset the impact of higher supplies on the pricesand thus, medium term fundamentals remain supportive for the upside.

Global supply concerns boost Jeera exports

Jeera exports during Apr-Jan 2013 stood at 64,400 tn, higher by 86%. (Source Factiva)

Due to lower production in Syria and Turkey, coupled with the ongoing tensions

between them, exports are not taking place and have been diverted to India. They

have stopped shipments. Turkey may start offering its Jeera in the coming days.

International Scenario

According to reports, production in Syria is reported around 22,000 tonnes while

production in Turkey is reported between 5000-7000 tonnes, lower by 20% and

around 50% respectively, raising supply concerns in the international markets.

Indian Jeera in the international market is being offered at $2,425/tn (c&f).

Outlook

Jeera is expected to recover from lower levels on account of demand emerging at

lower levels. However, higher output estimates may cap sharp gains. Farmers

may be unwilling to sell their stocks and may hold back their stocks.

Weekly Levels Buy NCDEX Jeera June between 13100-13140, SL -12690, Target - 13740 / 13830.


Source: Reuters & Angel Research.


15/19

Soybean


Weekly price performance

NCDEX Soybean traded in a range bound manner with upward bias on account of

poor supplies in the domestic markets and weak meal export demand. May futures

settled 1.12% higher while June contract settled 1.12% lower w-o-w. CBOT Soybean gained 2.28% on account of tight supplies of the old US crop.

India's soy meal Exports Fall by 68 Percent during FY12-13 SEA

Indias soy meal exports for the month of April 2013 were 99.451 tonnes, lower by

68.31 percent from 313,832 tonnes a year ago.

Increase in the output in the 3rd Advance Estimates

As per the 3rd Advance Estimates released by the Ministry of Agriculture, soybean

output increased to 14.14 mn tn from 12.24 mn tn in the previous estimates.

Imposition of Special margin long on Soybean and Soy meal Special Margin (in Cash) of 10% on the Long side has been imposed in Soybean and

Soy meal May 2013, June 2013 & July 2013 contracts w.e.f April 30, 2013.

Record US soybean crops to end supply squeeze-USDA

USDA monthly report forecast ending stocks in 2013-14 to double to 265 mn bushels

against 125 mn bushels in 2012-13. Also 2013-14 US soybean production is

projected at 3.39 billion bushels.

A jump in Brazil exports

According to the Trade Ministry of Brazil, soybean exports shot up from 3.54 mntonnes in March to 7.15 mn tonnes in April 2013.

Outlook

Soybean prices may gain this week as poor supplies in the domestic and US markets

may support soybean prices. However, higher long side margin, normal monsoon

forecast, and weak soy meal exports from India may exert downside pressure at

higher levels.

Strategy

Buy NCDEX Soybean June between 3840-3860, SL -3740, Target - 4010 / 4030.


16/19

Refine Soy Oil and Crude Palm Oil


Weekly price performance

Edible oil complex gained last week taking cues from the palm oil futures on

the KLCE. Lower stocks and seasonally lower yield period supported an upsidein the prices. Palm Oil futures at KLCE and MCX gained 2.64% and 3.6% w-o-

w. NCDEX Soy oil settled marginally lower by 0.1% and CBOT soy oil settled

0.02% higher last week.

Global Scenario

Malaysian palm oil climbed to their highest in two weeks during the last week

as stocks eased below the key 2-mn tn mark in the world's No.2 producer, but

gains were capped by a fall in exports in the first ten days of May.

Stocks data from industry regulator the Malaysian Palm Oil Board showed

inventory levels at the end of April down 11.3 percent to 1.93 million tonnesagainst the previous month's 2.17 mn tn. But exports of palm oil products for

May 1-10 slid 16.7% to 380,047 tn.

Domestic Scenario

The Solvent Extractors' Association of India will release the data this week.

Imports by India, may probably decline in April, as reserves stayed near a

record and summer heat curbed consumption of fried foods. Imports of all

vegetable oils, including non-edible oils, fell 7.5 per cent to 896,714 tn in

March, pulled down by the drop in palm oil imports.

Stockpiles of edible oil at ports fell nearly nine percent during March to850,000 tn, the trade body said, off a record of 930,000 tn on March 1.

Stocks were still on the higher side despite the decline in monthly imports.

India's imports of palm oil could rise more than 17% in the year to October

2013 to stand at 9 mn tn, compared with 7.67 mn tn of palm oil in 2011/12 as

the edible oil is the cheapest available, despite an import duty.

Strategy

Buy NCDEX Ref Soya Oil June between 688-692, SL -674, Target - 713 / 716

Buy MCX CPO May between 466-470, SL -453, Target - 490 / 493


17/19

Sugar



After consolidating in a narrow range since past few weeks, Sugar prices

rebounded last week as sentiments turned optimistic after the governmentnotified the cabinet committee on economic affairs (CCEA) decision to remove

two key controls on sugar sector. Prices settled 4.4% higher w-o-w.

ICE sugar declined further by 1.5% last week on account of improvement in the

pace of cane crush in Brazil supported by favorable weather.

Govt notifies decision on partial sugar decontrol

The Government has cleared the partial decontrol of sugar on April 4, 2013,

however, notified the same after almost a month.

Revision in Minimum Initial Margin on Sugar futures

According to NCDEX circular, the Minimum Initial Margin has been revised to 5%

of the value of the contract or VaR based margin whichever is higher & will be

imposed on all contracts & yet to be launched contracts w.e.f May 13, 2013.

Sugar output likely to fall 3% this year

India is expected to have produced around 24.52 million tonnes (mt) of sugar

during the first six months of the 2012-13 sugar marketing season.

India sugar reserves at five-year high set to avert imports

Sugar inventories in India, are poised to surge by 37% to 9.2 million tonnes at the

start of October, a five-year high as exports halt because of slumping globalprices. Exports have plunged to about 35,000 tonnes since 1 October from 3.4

million tonnes in 2011-2012.

Outlook

Sugar prices are expected to gain on account of improvement in demand from the

bulk manufacturers. Sentiments are expected to remain positive as government

has notified cabinets decision to remove two key controls on sugar sector.

Strategy

Buy NCDEX SUGAR June between 3020-3040, SL -2940, Target - 3160 / 3180


18/19

Kapas/Cotton



domestic cotton prices remained depressed last week on account of supply pressure

caused due to offloading from the state reserves. MCX Cotton settled 0.7% lower

w-o-w.

ICE Cotton futures gained in the early part of week on account of U.S. plantings

delays which raised worry over upcoming supplies. However, prices declined after

the release of USDA report on Friday. W-o-w ICE Cotton settled 2.07% higher.

Govt Likely to Sell More Cotton this Month

Cotton Corporation & NAFED are expected to offload 8 lakh bales at lower prices.

After an unsuccessful bid to offload of 2.5 lakh bales of cotton in April, the

government has now decided to give it a fresh chance.

Cotton Advisory Board sees lower kharif sowing CAB in its latest meet has projected cotton crop at 34 mn bales for 2012-13 season

compared to the previous estimates of 33 mn bales. Mill consumption is expected to

go up from 22.3 million bales last year to 23.5 million bales.

Exports are estimated at 8.1 mn bales. While Import are estimated 2.5 mn bales.

Cotton stocks seen at record for third year in row- USDA

The USDA has forecast global cotton stockpiles will rise almost 10 percent or 8 mn

bales above the record 84.78 mn bales (1 bale= 480 pounds) in 2013/14.

However, picture outside China is quite bleak, the USDA forecasts ending stocks willdrop below the 10-year average.

Outlook

Offloading more stocks in the local markets from state reserves may exert pressure

on the domestic cotton prices. However, if international markets recover sharply,

then we may see prices taking a rebound from lower levels.

Strategy

Sell MCX Cotton May between 18300-18350, SL -18750, Target - 17700 / 17620.


19/19

Thank You!

Angel Commodities Broking Pvt. Ltd.

Registered Office: G-1, Ackruti Trade Centre, Rd. No. 7, MIDC, Andheri (E), Mumbai - 400 093. Tel: (022) 3083 7700Corporate Office: 6th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai - 400 093. Tel: (022) 2921 2000

MCX Member ID: 12685 / FMC Regn No: MCX / TCM / CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302

Disclaimer: The information and opinions contained in the document have been compiled from sources believed to be reliable. The company does not warrant its accuracy, completeness and correctness.

The document is not, and should not be construed as an offer to sell or solicitation to buy any commodities. This document may not be reproduced, distributed or published, in whole or in part, by any

recipient hereof for any purpose without prior permission from Angel Commodities Broking (P) Ltd. Your feedback is appreciated on [email protected]

mailto:[email protected]:[email protected]

Commodities Weekly Tracker, 13th May 2013

Documents

Transcript of Commodities Weekly Tracker, 13th May 2013