Daily Commodity Report as on Monday, July 03,...

Daily Commodity Report as on Monday, July 03, 2017

Date : Monday, July 03, 2017 URL : www.achiieversequitiesltd.com Page No - 1

Open High Low Close % Cng OI

Gold 28609 28609 28405 28439 -0.59 5891

Silver 38956 38979 38636 38783 -0.59 15717

Alum. 123.55 124 123.3 123.85 -0.08 1457

Copper 388.2 390.25 385.9 388.75 0.13 14812

Lead 148.6 150.2 147.85 148.1 -1.07 2319

Nickel 604 608 602.1 607 0.65 28605

Zinc 178.2 179.75 177.05 178.7 0.03 7869

Crude 2924 2972 2924 2968 1.71 18657

Nat. Gas 197.8 197.8 192.7 193.8 -2.52 4521

Cardamom 933 965 933 958.3 0.86 132

Turmeric 6408 6520 6382 6476 0.78 3635

Jeera 18960 19290 18950 19070 0.29 7176

Dhaniya 5205 5261 5130 5139 -2.15 23650

Wheat 1626 1627 1620 1624 -0.06 5940

Soyabean 2894 2945 2885 2925 1.32 51920

Ref. Oil 638.05 646.8 637.05 641.9 0.60 42570

CPO 480 483.8 478.6 480.2 -0.04 5434

RMSeed 3621 3668 3604 3651 1.28 32670

Menthol 895.9 901.7 890.1 891.3 -0.20 3156

Cotton 19900 20110 19900 20010 0.45 5947

USDINR 64.90 65.05 64.80 64.82 -0.05 957212

EURINR 74.33 74.39 73.98 74.01 0.00 85264

GBPINR 84.38 84.67 84.08 84.13 -0.03 47006

JPYINR 57.98 58.14 57.89 57.92 0.48 22065

1

Turmeric gained due to higher export demand and poor arrivals.Currency

Jeera prices ended with gains backed by rising demand at the spot market.


Natural gas dropped on profit booking after prices continued its gains amid bullish weather forecasts that should

provide a boost in demand for the fuel.

Ref soyoil dropped on ample supplies due to increase in cheap edible oil imports coupled with weak international

prices. Cereals

Mentha oil prices holding below 900 level remains weak as demand is weak ahead of GST as traders are avoiding

fresh buying from market.Oil and Oilseeds & Others

Soyabean prices gained on lower sowing along with reports of poor monsoon progress sparked supply shortage.

Energy Copper prices settled flat paring its gains pressured by a firmer dollar and a rise in inventories, offsetting better than

expected factory growth in China.

Zinc prices dropped on profit booking but still prices ended with gains on weekly basis as supplies were still

insufficient.

Nickel prices gained as support seen due to better than expected factory growth in top metals consumer China.Spices

Market Round upPrecious Metals

Gold eased as hints from leading central banks that the era of easy money may be coming to a close pushed bond

yields higher, hurting the prices.

Base Metal

Silver prices edged lower weighed by the upbeat U.S. economic growth data, although hawkish comments by several

central banks limited the greenback’s gains.

Crude oil gained as data showed the number of active U.S. drilling rigs declined for the first time since January.

Comments from ECB, BOE and BOC central banks indicated that quantitative easing

programmes put in place in the wake of the financial crisis may be being wound up.

Gold eased as hints from leading central banks that the era of easy money may be coming

to a close pushed bond yields higher, hurting the prices.


CLOSE 38783 RES-1 38962

% CNG -0.59 RES-2 39142

Silver on MCX settled down -0.59% at 38783 weighed by the upbeat U.S. economic growth data, although hawkish comments by several central banks limited the greenback’s gains. U.S. consumer spending rose modestly in

May and inflation cooled, pointing to a slow-but-steady economic expansion that could still lead the Federal Reserve to raise interest rates by the end of the year. Consumer spending, which accounts for more than two-thirds

of U.S. economic activity, rose 0.1 percent last month, the Commerce Department said. Consumer prices excluding food and energy rose 1.4 percent on a yearly basis, compared to a 1.5 percent gain in April. Official data

showed that U.S. gross domestic product rose 1.4% in the first quarter, revised up from the previous reading of a 1.2% expansion. The upbeat data added to expectations for additional U.S. rate hikes this year. The Federal

Reserve hiked interest rates earlier this month and left the door open for further increases later in the year, though a batch of mixed economic data recently has had investors wondering whether the Fed would be able to stay

on its planned tightening path. The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. However, the U.S. dollar’s gains were limited after European

Central Bank President Mario Draghi indicated that the bank could soon start to unwind its quantitative easing program. In addition, Bank of England Governor Mark Carney said Wednesday that some removal of monetary

stimulus is likely to become necessary as spare capacity in the economy erodes. Technically market is under fresh selling as market has witnessed gain in open interest by 50.99% to settled at 15717 while prices down -230

rupees, now Silver is getting support at 38619 and below same could see a test of 38456 level, And resistance is now likely to be seen at 38962, a move above could see prices testing 39142.

SELL SILVER SEP 2017 @ 38950 SL 39100 TGT 38720-38550.MCX

Official data showed that U.S. gross domestic product rose 1.4% in the first quarter,

revised up from the previous reading of a 1.2% expansion.

HIGH 38979 SUP-1 38619

LOW 38636 P.P. 38799

Gold on MCX settled down -0.59% at 28439 as hints from leading central banks that the era of easy money may be coming to a close pushed bond yields higher, hurting the prices. Comex prices have fallen nearly 2 percent so

far in June, and are down 0.4 percent on a quarterly basis. After a strong performance in the first quarter, they are still set to end the first half of the up 8 percent. Comments from the euro zone, British and Canadian central

banks indicated that quantitative easing programmes put in place in the wake of the financial crisis may be being wound up, leading to a gradual normalisation of interest rates. That comes in the wake of the Federal Reserve's

decision to hike U.S. interest rates at its June meeting, and its indication that it will press ahead with plans to shrink its $4.5 trillion in bond holdings. Gold premiums in India jumped to the highest level in 7-1/2 months as

consumers advanced purchases to avoid paying higher tax when a new nationwide sales tax takes effect from July 1. India, the world's second-biggest gold consumer, has said it will impose a 3 percent goods and services tax

(GST) on gold, up from 1.2 percent currently. Dealers were charging a premium of up to $10 an ounce this week over official domestic prices, the highest since mid-November. India's gold imports surged fourfold in May from

a year ago to 103 tonnes as jewellers increased purchases to replenish inventory and stock up ahead of the new sales tax, provisional data from GFMS showed. Technically market is under long liquidation as market has

witnessed drop in open interest by -1.9% to settled at 5891 while prices down -169 rupees, now Gold is getting support at 28359 and below same could see a test of 28280 level, And resistance is now likely to be seen at

28563, a move above could see prices testing 28688.

MCX Silver Sep 2017 TRADING IDEA

OPEN 38956 SUP-2 38456 Silver trading range for the day is 38456-39142.

U.S. consumer spending rose modestly in May and inflation cooled, pointing to a slow-but-

steady economic expansion.

Silver prices edged lower weighed by the upbeat U.S. economic growth data, although

hawkish comments by several central banks limited the greenback’s gains.

CLOSE 28439 RES-1 28563Gold premiums in India jumped to the highest level in 7-1/2 months as consumers

advanced purchases to avoid paying higher tax.

% CNG -0.59 RES-2 28688 SELL GOLD AUG 2017 @ 28550 SL 28650 TGT 28440-28380.MCX

HIGH 28609 SUP-1 28359

LOW 28405 P.P. 28484

MCX Gold Aug 2017 TRADING IDEA

OPEN 28609 SUP-2 28280 Gold trading range for the day is 28280-28688.

Copper prices settled flat paring most of its gains pressured by a firmer dollar and a rise in inventories, offsetting better than expected factory growth in top metals consumer China. China's factories grew at the quickest pace

in three months in June, buoyed by strong new orders in a sign of stabilising growth, though further slowdown in the world's second-biggest economy is inevitable as Beijing cracks down on debt risks. Copper stocks in LME

warehouses rose 6,400 tonnes to 249,700 tonnes, LME data showed, indicating that supplies were adequate. Copper production at Chile's Escondida copper mine, the world's largest, fell 63 percent in the first quarter of 2017

from a year earlier amid a prolonged strike, the mine said. TCs of spot imported copper concentrate were largely steady this past week. Quotes for spot TCs were $80-86 per tonne. Spot TCs appeared to have reached ceiling.

Quotes by some cargo holders fell below $85 per tonne. Some mining companies in Chile are considering restarting some copper mines projects which have been postponed due to low copper prices. However, they will do so

after political uncertainty disappears. Copper inventories in Shanghai bonded area fell by 2,000 tonnes in the week ending Jun. 30. The inventories were 545,000 tonnes this past week, down from 547,000 tonnes on a weekly

basis. Technically market is under fresh buying as market has witnessed gain in open interest by 44.8% to settled at 14812 while prices up 0.5 rupees, now Copper is getting support at 386.4 and below same could see a test

of 384 level, And resistance is now likely to be seen at 390.7, a move above could see prices testing 392.6.

BUY COPPER AUG 2017 @ 386.00 SL 383.50 TGT 389.50-392.50.MCX

China's factories grew at the quickest pace in three months in June, buoyed by strong new

orders in a sign of stabilising growth.

Copper production at Chile's Escondida copper mine, the world's largest, fell 63 percent in

the first quarter of 2017 from a year earlier amid a prolonged strike.

Copper prices settled flat paring its gains pressured by a firmer dollar and a rise in

inventories, offsetting better than expected factory growth in China.


CLOSE 388.8 RES-1 390.7

% CNG 0.13 RES-2 392.6

HIGH 390.3 SUP-1 386.4

LOW 385.9 P.P. 388.3

Crudeoil on MCX settled up 1.71% at 2968 as data showed the number of active U.S. drilling rigs declined for the first time since January suggesting that U.S. production could be tightening, easing oversupply jitters. Oilfield

services firm Barker Hughes reported its weekly U.S. rig count fell by 2 to a total of 756, ending a trend that has seen the number of U.S. rigs increase since for six-straight months. The weekly rig count is an important

barometer for the drilling industry and serves as a proxy for oil production and oil services demand. The surprise dip in the number of active U.S. drilling rigs comes amid a rebound oil prices, as investors seemed to take

advantage of the recent slump in oil prices into bear market territory. U.S. crude production fell for the first time this year in April, reining in exuberance over rapidly growing domestic output. April output fell slightly to 9.08

million barrels a day, and was 190,000 barrels lower than the Energy Information Administration’s preliminary weekly estimates. Some commentators remained adamant, however, that the recent bounce in oil prices would be

temporary, as OPEC and its allies’ continue to struggle to tackle the underlying problem of oversupply in the industry, which has pressured prices for nearly three years. In May, OPEC and non-OPEC members agreed to extend

production cuts for a period of nine months until March, but stuck to production cuts of 1.8 million bpd agreed in November last year. Technically market is under short covering as market has witnessed drop in open interest

by -6.93% to settled at 18657, now Crudeoil is getting support at 2938 and below same could see a test of 2907 level, And resistance is now likely to be seen at 2986, a move above could see prices testing 3003.

MCX Copper Aug 2017 TRADING IDEA

OPEN 388.2 SUP-2 384.0 Copper trading range for the day is 384-392.6.

CLOSE 2968 RES-1 2986U.S. crude production fell for the first time this year in April, reining in exuberance over

rapidly growing domestic output.

% CNG 1.71 RES-2 3003 BUY CRUDEOIL JUL 2017 @ 2940 SL 2900 TGT 2985-3020.MCX

Barker Hughes reported its weekly U.S. rig count fell by 2 to a total of 756, ending a trend

that has seen the number of U.S. rigs increase since for six-straight months.

HIGH 2972 SUP-1 2938

LOW 2924 P.P. 2955

Crude oil gained as data showed the number of active U.S. drilling rigs declined for the first

time since January.

MCX Crudeoil Jul 2017 TRADING IDEA

OPEN 2924 SUP-2 2907 Crudeoil trading range for the day is 2907-3003.

A strike at the SLN nickel plant in New Caledonia has begun to hit production as the

company is incurring monthly losses in excess of $US22 million.

Nickel prices gained as support seen due to better than expected factory growth in top

metals consumer China.

Spot zinc premiums in China’s major markets turned to discounts on June 29.

Zinc prices dropped on profit booking but still prices ended with gains on weekly basis as

supplies were still insufficient.

HIGH 608.0 SUP-1 603.4

LOW 602.1 P.P. 605.7

Zinc settled flat on profit booking but still prices ended with gains on weekly basis as supplies were still insufficient. China's factories grew at the quickest pace in three months in June, buoyed by strong new orders in a sign of

stabilising growth, though analysts expect a further slowdown in the world's second-biggest economy is inevitable as Beijing cracks down on debt risks. Public Procurement Service (PPS) announced bid solicitation again on its

website June 29 for 2,000 tonnes of zinc, which will end on June 4. Shipments are due on September 15, to Port of Busan. Zinc provided is required to be produced in the same country and registered on the LME. Japan’s

Ministry of Finance reported June 29 the country’s zinc exports increased 1.4% year-on-year to 6,232,401 kg in May. Total zinc exports by Japan declined 17.8% year-on-year to 30,980,045 kg in the first five months of this

year. Premiums shrank 30-120 yuan per tonne over July zinc on the SHFE in Shanghai. zinc traded 20 yuan per tonne below or 200 yuan per tonne above SHFE July zinc. Premiums in Guangdong shrank from 30-50 yuan per

tonne to discounts of 30-50 yuan per tonne. Combined zinc inventories in Shanghai, Tianjin and Guangdong increased 1,200 to 121,200 tonnes last week. Inventories in both Shanghai and Guangdong grew, while those in

Tianjin declined. The drop in inventories in Tianjin is due to fewer arriving shipments from Zijin Mining and dip-buyers. Technically market is under fresh buying as market has witnessed gain in open interest by 51.71% to

settled at 7869, now Zinc is getting support at 177.3 and below same could see a test of 175.8 level, And resistance is now likely to be seen at 180, a move above could see prices testing 181.2.

MCX Nickel Jul 2017 TRADING IDEA

OPEN 604.0

Nickel on MCX settled up 0.65% at 607 as support seen due to better than expected factory growth in top metals consumer China. China's factories grew at the quickest pace in three months in June, buoyed by strong new

orders in a sign of stabilising growth, though a further slowdown in the world's second-biggest economy is inevitable as Beijing cracks down on debt risks. A strike at the SLN nickel plant in New Caledonia has begun to hit

production as the company is incurring monthly losses in excess of $US22 million. The Philippine’s new environment secretary will oversee nickel ore producing regions in the southern Mindanao region and Palawan province

next month, news reported. China imported 263,851 tonnes of nickel ore from Indonesia in May, according to China Customs, the first appearance after Indonesia’s ore export ban in early 2014. Only two companies in

Indonesia have been permitted to export nickel ore by the government so far, namely Antam and Zhenshi Group’s Fajar. Based on export quotas of approximately 3.60 million wet tonnes of the two, its proportion in China’s

ore import volumes, averaging 30 million tonnes of laterite nickel ore annually. Second, it is still a buyer’s market in China’s nickel ore market, and meanwhile, offers of Indonesian ore are relatively higher, with no price

advantages. Philippine nickel ore will continue to dominate market supply in 2017, and the appearance of Indonesian ore will not change the supply pattern over the year. Technically market is under fresh buying as market

has witnessed gain in open interest by 48.66% to settled at 28605, now Nickel is getting support at 603.4 and below same could see a test of 599.8 level, And resistance is now likely to be seen at 609.3, a move above could

see prices testing 611.6.

BUY NICKEL JUL 2017 @ 602.00 SL 595.00 TGT 608.00-616.00.MCX

The Philippine’s new environment secretary will oversee nickel ore producing regions in the

southern Mindanao region and Palawan province next month.


CLOSE 607.0 RES-1 609.3

% CNG 0.65 RES-2 611.6

SUP-2 599.8 Nickel trading range for the day is 599.8-611.6.

CLOSE 178.7 RES-1 180.0Public Procurement Service (PPS) announced bid solicitation again on its website June 29

for 2,000 tonnes of zinc, which will end on June 4.

% CNG 0.03 RES-2 181.2 BUY ZINC JUL 2017 @ 177.00 SL 175.50 TGT 178.20-179.50.MCX

HIGH 179.8 SUP-1 177.3

LOW 177.1 P.P. 178.5

MCX Zinc Jul 2017 TRADING IDEA

OPEN 178.2 SUP-2 175.8 Zinc trading range for the day is 175.8-181.2.

Turmeric sowing may be lower this year in Tamil Nadu due to lack of rains in the main

producing areas.

Turmeric gained due to higher export demand and poor arrivals.

Prices also seen supported on restricted inflow due to end of season and depleted stocks

because of lower output.

Jeera prices ended with gains backed by rising demand at the spot market.

HIGH 6520 SUP-1 6400

LOW 6382 P.P. 6460

Jeera on NCDEX settled up 0.29% at 19070 backed by rising demand at the spot market. Further, restricted supplies in the domestic spot market and some export enquiries too fuelled the uptrend. Prices also seen supported

on restricted inflow due to end of season and depleted stocks because of lower output. Traders are expecting pickup in export demand in coming days due to lack of supplies from other producers-Turkey and Syria. Reports of

lower output of jeera during 2016-17 may also boost the prices. Output of jeera in Gujarat during 2016-17 is estimated lower at 212,000 tons due to fall in acreage, Gujarat Agriculture ministry data showed. At Jodhpur(Raj.)

market in Jodhpur, arrivals were reported at 300 quintals, lower by 50 quintals from previous trading day. At Rajkot market in Rajkot(Guj.), traders reported arrivals at 90 quintals, lower by 150 quintal as against previous

day. A recent assessment by the Federation of Indian Spices Stakeholders in Udaipur, Rajasthan, has forecast India’s cumin seed production at 5.83 million bags of 40 kg each (233,280 tonnes) this year against 4.20 million

bags of 40 kg each (168,320 tonnes) last year. The latest spell of rainfall last week is estimated to have spoiled 30 per cent of the standing crop. Technically market is under fresh buying as market has witnessed gain in open

interest by 20.63% to settled at 7176 while prices up 55 rupees, now Jeera is getting support at 18917 and below same could see a test of 18763 level, And resistance is now likely to be seen at 19257, a move above could see

prices testing 19443.

NCDEX Turmeric Aug 2017 TRADING IDEA

OPEN 6408 SUP-2 6322 Turmeric trading range for the day is 6322-6598.

CLOSE

Turmeric on NCDEX settled up 0.78% at 6476 due to higher export demand and poor arrivals. Anticipation of lower acreage during the current season also supported the price rise. Turmeric sowing may be lower this year in

Tamil Nadu due to lack of rains in the main producing areas. With the arrival of monsoon, farmers have started sowing in Andhra Pradesh, Telangana, Tamil Nadu, Odisha and Maharashtra. Sowing, however, in Tamil Nadu is

likely to be down due to lack of rains and lower realization. Erode and Salem are two major turmeric growing areas of Tamil Nadu. Erode and Salem are two major turmeric growing areas of Tamil Nadu. However, rainfall in

other producing centers is above normal and in some the areas farmers have started sowing operations. Sowing has also started in other district Cuddapah, which received 49% above normal rains till date. Overall sowing of

yellow spices is seen lower as farmers got lower realization last year. With estimated output of nearly 6.5 million bags (per bag of 70 kg) and with carry forward stock of 2.5 million bags total availability during 2016-17 was 9

million bags as against the estimated total demand of nearly 6 million bags. India exported 119,000 ton turmeric during 2016-17 up from 88,500 ton a year ago, Spices Board data showed. The price of the turmeric shows

increase trend for the fourth day on Thursday in all the markets at Erode., technically market is under fresh buying as market has witnessed gain in open interest by 12.19% to settled at 3635 while prices up 50 rupees, now

Turmeric is getting support at 6399 and below same could see a test of 6321 level, And resistance is now likely to be seen at 6537, a move above could see prices testing 6597.


CLOSE 6476 RES-1 6538

% CNG 0.78 RES-2 6598 BUY TURMERIC AUG 2017 @ 6400 SL 6280 TGT 6540-6650.NCDEX

NCDEX accredited warehouses turmeric stocks gained by 3079 tonnes to 9798 tonnes.

19070 RES-1 19260 NCDEX accredited warehouses jeera stocks gained by 135 tonnes to 1313 tonnes.

% CNG 0.29 RES-2 19445 BUY JEERA AUG 2017 @ 18950 SL 18800 TGT 19100-19350.NCDEX

HIGH 19290 SUP-1 18920

LOW 18950 P.P. 19105

NCDEX Jeera Aug 2017 TRADING IDEA

OPEN 18960 SUP-2 18765 Jeera trading range for the day is 18765-19445.

DAILY MARKET LEVEL FOR METAL AND ENERGY

Soyabean on NCDEX settled up 1.32% at 2925 on lower sowing along with reports of poor monsoon progress sparked supply shortage. The sowing operations for soyabean could be delayed as major producing states Madhya

Pradesh and Maharashtra might not receive adequate rain during this month, according to industry body. The Met department has predicted a normal monsoon in 2017, raising hopes of bumper production during 2017-18 crop

year (July—June). Arrivals across India dropped as farmers are busy with sowing after rain hit major growing areas. Arrivals are declining as yesterday's rainfall in major soybean growing areas kept farmers busy in plantation

of crops. All India soybean arrivals were stood at 100,000-155,000 bags (90 kilogram per bag) as compared to 160,000-175,000 bags. Total arrivals in Madhya Pradesh were at 35,000-40,000 bags. In Maharashtra arrivals

stood at 45,000-55,000 bags while in Rajasthan soybean arrivals were at 10,000-15,000 bags. On June 22 the state received 4.9 mm rainfall which is 3% below normal rainfall, data released by IMD showed. However, East

Madhya Pradesh, which accounts for 60% of total soybean sowing area in the state, reported 9.1mm rainfall which is 39% above normal rainfall. Abiove has once again raised Brazil’s 2016/17 soybean production projection to

113.2 million tonnes which is up from the previous forecast of 112.5 million tonnes. Brazil’s soybean exports projection for the year increased to 63 million tonnes from 61.7 million tonnes estimated earlier and the soybean

processing is forecast at 41 million tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 5.08% to settled at 51920, now Soyabean is getting support at 2892 and below same could

see a test of 2858 level, And resistance is now likely to be seen at 2952, a move above could see prices testing 2978.

SELL MENTHAOIL JUL 2017 @ 900.00 SL 908.00 TGT 894.00-885.00.MCX

As per sources, new crops are arriving in the physical market due to which supply is more

in the spot market.

Mentha oil prices holding below 900 level remains weak as demand is weak ahead of GST

as traders are avoiding fresh buying from market.

Mentha oil spot at Sambhal closed at 1002.70 per 1kg. Spot prices was down by Rs.-2.30/-

.

152.0

151.1

149.6

144.8

146.3

147.2

2319

148.7

0.7


Negative Negative

SPREAD 169 683 28.00 0.60 4.35 0.50 5.40

TREND Negative Negative Positive Negative Positive Positive Positive

0.45

599.8 123.0

28359 38619 2938 191.8 386.4

OI 5891 15717 18657 4521 14812 7869 28605 1457

174.6 597.5 122.7

177.3 603.4 123.4

175.8

P. POINT 28484 38799 2955 194.8 388.3

28155 38276 2890 186.7 382.1

SUPPORT 28280 38456 2907 189.7 384.0

390.7 180.0 609.3 124.1

178.5 605.7 123.7

RESISTANCE

28767 39305 3034 202.0 395.0 182.7 615.2 124.8

28688 39142 3003 199.9 392.6 181.2 611.6 124.4

28563 38962 2986 196.9

CLOSE 28439 38783 2968 193.8

LEAD

148.1

CLOSE 891.3 RES-1 898.7

% CNG -0.20 RES-2 906.0

388.75 178.7 607.0 123.85

COMMODITIES GOLD SILVER CRUDE NAT.GAS COPPER ZINC NICKEL ALUMINUM

HIGH 901.7 SUP-1 887.1

LOW 890.1 P.P. 894.4

MCX Menthaoil Jul 2017 TRADING IDEA

OPEN 895.9 SUP-2 882.8 Menthaoil trading range for the day is 882.8-906.

12:45pm EUR 55.6 55.4

1:15pm EUR 55.3 55.1

1:20pm EUR 55 55

1:25pm EUR 59.3 59.3

1:30pm EUR 57.3 57.3

1:30pm EUR 0.111 0.111

2:30pm EUR 0.093 0.093

7:15pm USD 52.1 52.1

7:30pm USD 55 54.9

7:30pm USD 0.003 -0.014

7:30pm USD 58.5 60.5

All Day USD 16.5M 16.7M

0 0 0 0

China's manufacturing sector expanded at the quickest pace in three months in June, buoyed by

strong production and new orders, reassuring news for authorities trying strike a balance between

deleveraging and keeping the economy on an even keel. The official manufacturing Purchasing

Managers' Index (PMI) was at 51.7 in June, the eleventh straight month of expansion, and up from

51.2 in May, a monthly survey by the National Bureau of Statistics showed. The survey supports broad

consensus that China's economy is stabilising at a moderate pace rather than slowing sharply,

suggesting that Beijing is on track to meet its annual growth target of 6.5 percent for this year -

encouraging news for President Xi Jinping ahead of a major leadership reshuffle in the autumn.

Production surged to 54.4, marking a strong one percentage point jump from May. New orders in the

month also rose to 53.1 from May's 52.3, with export orders surging by 1.3 percentage points to 52.0,

suggesting external demand picked up. Nonetheless, most China observers agree that the world's

second-biggest economy will continue to cool as authorities reduce high levels of debt across many of

the heavy industries, crack down on financial risks and tighten monetary conditions. Growth in the

services sector also accelerated to 54.9 in June, the highest since March, another official NBS survey

found. The manufacturing PMI showed that the impetus came mostly from larger firms, while small

and medium sized industries struggled, suggesting SMEs may be bearing the brunt of the

NEWS YOU CAN USE

Italian Manufacturing PMI

French Final Manufacturing PMI

German Final Manufacturing PMI

Final Manufacturing PMI

Italian Monthly Unemployment Rate

Unemployment Rate

DAY

8

Buying government bonds placed monetary policy dangerously close to fiscal policy, European Central

Bank policymaker Jens Weidmann said. Speaking at an event to mark the 60th anniversary of the

Bundesbank, which he heads, Weidmann said it was better to interpret the monetary policy mandate

closely and to have a clear separation between monetary and fiscal policy. "Otherwise, the

independence of the central bank might be questioned sooner or later," he said. The Bundesbank chief

is a well-known opponent of the ECB's government bond purchases. Weidmann also said that there

was a lack of willingness among euro area countries to relocate decision-making powers to the

European level, or even to consult the European community on different matters. "This is not only a

matter of dealing with the budgetary rules, but also of the new rules for the handling of banks -

especially in the countries that demand more mutual liability," he said.

The Reserve Bank of India's monetary policy committee wants more evidence that inflation has

sustainably fallen below its target before deciding whether to lower interest rates, minutes from its last

meeting showed. The RBI voted 5-1 to keep the repo rate at 6.25 percent earlier this month, but

issued a slightly less hawkish statement after consumer inflation eased to 2.99 percent in April, below

its 4 percent target. The vote marked the first non-unanimous decision in the five meetings since the

MPC was formed last September. However, the rest of the panel, including Governor Urjit Patel,

wanted more evidence that inflation would ease, while expressing concern that prices would accelerate

later this year. "There is also a need to be alert to elements that may have a significant influence on

the inflation outcome over the medium-term." The RBI's caution contrasts with the views of some

investors and government officials, who want monetary stimulus to boost an economy that grew a

slower-than-expected 6.1 percent in January-March. Such calls were given further impetus as data

after the RBI's June 6-7 meeting showed inflation easing further to 2.18 percent in May, the lowest in

at least five years.

South Africa will harvest 15.6 million tonnes of maize this season, the biggest crop on record but still

missing a consensus forecast, the government's Crop Estimates Committee (CEC) said. The crop

would beat the previous record set in 1981, although analysts and traders had forecast it to hit an

even higher 15.82 million tonnes. The harvest will comprise 9.466 million tonnes of white maize, the

regional staple used for human consumption, and 6.614 million tonnes of yellow, the bulk of which is

used in animal feed, the CEC's fifth production forecast of the season said. The 2017 harvest is

expected to be almost double the previous season, which was only 7.78 million tonnes following an El

Nino drought that impacted yields and pushed up food prices. Low maize prices helped to ease

inflation and food prices but have placed pressure on farmers' profits and stalled exports.

The Minister for Irrigation and Marketing T Harish Rao said that the State would have bumper harvest

of cotton during 2017-18. He had a review meeting with the owners of the ginning mills on the

prospects of the industry as well as the cotton crop. He said the cotton production was likely to go up

from 50 lakh bales to 70 lakh bales this year. He emphasised the need for raising awareness in the

peasant community on the problems related to cotton farming and precautions that need be taken in

advance. He wanted the departments concerned to organise awareness camps by involving the

agriculture extension officers in a big way reaching out to farmers in every village. The Minister also

stressed on the need for giving the status of industry and due encouragement to firms extracting oil

from cotton seed. He said bulk of the cotton seed from the State was being exported to Gujarat and

Haryana and this had to be stopped to promote industry in the State. The Marketing Minister also

appealed to the Centre to raise the incentives to cotton exporters from three to five per cent in the

State. He said the State would write to the centre in this regard very soon. He said the number of

export centres in the State should be increased from 84 to 150 and they should all be extended better

incentives.

Date : Monday, July 03, 2017 URL : www.achiieversequitiesltd.com Page No -

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