Daily Commodity Roundup as onreport.systematixshares.com/Commodity/SYSTEMATIX... · MCX Gold Oct...

Daily Commodity Roundup as on Tuesday, August 28, 2018

Date : Tuesday, August 28, 2018 URL : www.systematixshares.com Page No : 1

14.87CRUDE $

68.83

-0.16 0.17 0.16

IN

TER

NA

TIO

NA

L M

AR

KET U

PD

ATE GOLD $

1209.31SILVER $

USDJPY111.327

-0.05 -0.16 0.25EURUSD

1.1673GBPUSD

1.28725

LME

NICKEL

13360

0.02 0.59 -0.45

LME

COPPER

6070 LME

ZINC

2541

$ INDEX94.86

0.53 0.36 0.11

LME ALUMINIUM

2095 LME

LEAD

2086

DJIA25790

1.16 1.17 0.52SENSEX

38694NIFTY

11692


NIKKEI22889

0.3 0.62 0.39USDINR

70.15 S&P

INDEX

2875

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MCX Gold Oct 2018

Gold prices gained as a weaker U.S. dollar and trade tensions boosted the precious metal.

Gold on MCX settled up 0.33% at 30002 as a weaker U.S. dollar and

trade tensions boosted the precious metal. The dollar also eased on

comments from the Federal Reserve chairman in support of a gradual

approach to raising rates. Meanwhile, officials from China and the U.S.

are expected to meet later this month to resume trade negotiations, after

the last round of trade talks ended with little progress. The U.S. imposed

tariffs on $16 billion of Chinese goods on Aug. 24, with China issuing

reciprocal tariffs and threatening to file a complaint with the World Trade

Organization. Powell said during a speech at the Jackson Hole Symposium

in Wyoming last Friday that "further, gradual" rate hikes were likely in the

future, noting the economy is "strong" and able to withstand tighter

monetary policy. His comments came despite President Donald Trump’s

criticism of higher borrowing costs as he said recently that he is “not

thrilled” with the Fed’s decision to hike rates. China's net gold imports via

main conduit Hong Kong fell about 45 percent in July from the previous

month amid lacklustre demand, data showed. Imports via Hong Kong fell

to 44.802 tonnes in July from 80.867 tonnes in June, according to data

from the Hong Kong Census and Statistics Department. Total gold imports

via Hong Kong also plunged 45 percent to 48.635 tonnes in July from

88.608 tonnes in June. In June, China's net gold imports via Hong Kong

jumped 40.3 percent month-on-month to their highest since March 2017.

Technically now Gold is getting support at 29897 and below same could

see a test of 29791 level, And resistance is now likely to be seen at

30095, a move above could see prices testing 30187.

OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST

29910

SUPPORT 3

30293 30187 30095 29897 29791 29699

30081 29883 30002 0.33 8058

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2


Trading Ideas :Gold trading range for the day is 29791-30187.

Powell said during a speech at the Jackson Hole Symposium in Wyoming last Friday that "further, gradual" rate hikes were likely in the future.

His comments came despite President Donald Trump’s criticism of higher borrowing costs as he said recently that he is “not thrilled” with the Fed’s decision to hike rates.

Hedge funds and money managers increased their net short position in COMEX gold contracts to another record in the week to Aug. 21.

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MCX Silver Sep 2018

Silver gained boosted by short-covering and as comments from the head of Fed signalling a gradual approach to interest rate hikes weighed on dollar.

Silver settled up 0.39% at 37150 boosted by short-covering and as

comments from the head of Fed signalling a gradual approach to interest

rate hikes weighed on dollar. Fed chairman Jerome Powell’s remarks did

not change market expectations for further monetary tightening despite

opposition from President Donald Trump. But the market interpreted

Powell’s speech as dovish after he said a gradual approach to raising rates

remained appropriate to protect the U.S. economy, keep job growth

strong and inflation under control. The German second-quarter GDP came

in at 0.5%. It met market expectations and remained unchanged from

the previous quarter. On a year-over-year basis, the GDP rose 2.3%. The

US durable goods orders fell faster than expected by 1.7% in July as

volatile demand for commercial planes fell. Orders for non-defence capital

goods excluding aircraft, a closely watched proxy for business spending

plans, rose 1.4% last month. Business spending on equipment is being

supported by the Trump administration’s $1.5 trillion income tax cut

package, which came into effect in January. But there are worries that

trade tensions between the United States and its major trade partners,

including China, Canada, Mexico and the European Union, could offset the

fiscal stimulus." Hedge funds and money managers raised their net short

position in silver futures and options, U.S. CFTC data showed. Hedge

funds and money managers raised their net short position in silver by

5,186 contracts to 25,373 contracts, the largest since early April, CFTC

data showed. Technically market is under short covering as market has

witnessed drop in open interest by -7.9% to settled at 19190, now Silver

is getting support at 37007 and below same could see a test of 36865

level, And resistance is now likely to be seen at 37277, a move above

could see prices testing 37405.


37020 37263

37547 37405 37277 37007 36865 36737

36993 37150 0.39 19190

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3


Trading Ideas :Silver trading range for the day is 36865-37405.

Fed Chair Powell made the case that gradual rate hikes were the best way to protect U.S. economic recovery, keep job growth strong and inflation under control.

Prices has lost its appeal as a safe-haven asset recently as investors turned to dollar instead amid recent international trade disputes and the Turkish currency crisis.

The US durable goods orders fell faster than expected by 1.7% in July as volatile demand for commercial planes fell.

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MCX Crudeoil Sep 2018

Crude oil gains supported by a strengthening equities market and news that the United States and Mexico agreed to overhaul the NAFTA.

Crudeoil on MCX settled up 0.46% at 4826 supported by a strengthening

equities market and news that the United States and Mexico agreed to

overhaul the North American Free Trade Agreement (NAFTA). An OPEC

and non-OPEC monitoring committee found that oil producers

participating in a supply-reduction agreement cut output in July by 9

percent more than called for in their pact, sources said. The findings for

last month compare with a compliance level of 120 percent for June and

147 percent for May, meaning participants have been steadily increasing

production. The Organization of the Petroleum Exporting Countries and

other producers led by Russia pledged on June 22-23 to return to 100

percent compliance with agreed cuts of 1.8 million barrels per day, a pact

that began in January 2017. Producers had for months been cutting in

excess of the agreed amount, driven by output declines in places such as

Venezuela, Nigeria and Libya. U.S. energy companies cut nine oil drilling

rigs last week, taking the total to 860, the biggest reduction since May

2016, energy services firm Baker Hughes said. Members of an OPEC and

non-OPEC ministerial monitoring committee will hold a conference call

later on Monday to discuss progress on their production curbs agreement.

The Organization of the Petroleum Exporting Countries and other

producers led by Russia agreed in June to return to 100 percent

compliance with oil output cuts that began in January 2017. The

committee groups Saudi Arabia, Russia, the United Arab Emirates,

Kuwait, Algeria, Venezuela and Oman. Technically now Crudeoil is getting

support at 4802 and below same could see a test of 4779 level, And

resistance is now likely to be seen at 4843, a move above could see

prices testing 4861.


4818 4838

4884 4861 4843 4802 4779 4761

4797 4826 0.46 13160

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3


Trading Ideas :Crudeoil trading range for the day is 4779-4861.

Despite these worries, the crude market will likely draw support from U.S. sanctions against Iran, which from November will include oil exports.

U.S. energy companies cut nine oil drilling rigs last week, dropping to 860, the biggest reduction since May 2016, energy services firm Baker Hughes said.

OPEC-member Iran has exported around 2.5 million barrels per day of crude oil so far this year.

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MCX Copper Aug 2018

Copper gains as the dollar came under pressure after United States and Mexico reached a bilateral trade deal.

Copper on MCX settled up 0.54% at 418.50 gained on short covering as a

weaker US dollar and improved market sentiment are expected to

continue to buoy copper prices in the short run. While 422 will act as

strong resistance as the trade war between the United States and China

clouded the demand-outlook for industrial metals. A surging Chinese

yuan is likely to drive LME copper to outperform the contract yesterday.

Three-month copper on the London Metal Exchange had dropped 0.6

percent to $6,066.50 a tonne by 0330 GMT, while the most-traded copper

contract on the Shanghai Futures Exchange slid 0.4 percent to 48,540

yuan ($7,061.39) a tonne. The U.S. Commerce Department said on

Monday it had made a preliminary determination that imports of certain

steel wheels from China were subsidized at rates ranging from 58.75

percent to 172.51 percent, and it would impose duties on the product.

China’s investment growth, already at record lows, may weaken even

further in the future and authorities should step up fiscal and financial

measures to give it a boost, the state planner said on Monday. Meanwhile

Beijing is urging more infrastructure spending as the economy faces both

domestic and external risks, such as U.S. tariffs. But the benefits will take

time to kick in, with market expecting the economy to get worse before it

gets better. Now technically market is under short covering as market

has witnessed drop in open interest by -1.56% to settled at 24258 while

prices up 2.25 rupees, now Copper is getting support at 417.1 and below

same could see a test of 415.7 level, And resistance is now likely to be

seen at 420.3, a move above could see prices testing 422.1.


417.90

SUPPORT 3

423.5 422.1 420.3 417.1 415.7 413.9

420.75 417.50 418.50 0.54 24258


Trading Ideas :Copper trading range for the day is 415.7-422.1.

China's investment growth, already at record lows, may weaken even further in future and authorities should step up fiscal and financial measures to give it a boost.

Copper stocks across Shanghai bonded areas shrink 2,400 mt from a week ago to 477,900 mt as of now.

Warehouse stock for Copper at LME was at 267075mt that is up by 125mt.


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MCX Zinc Aug 2018

Zinc prices gained as inventories in China languish at their lowest in a decade.

Zinc on MCX settled up 0.14% at 178.20 gained on short covering but

lacked upward momentum with pressure from rising shorts. An inflow of

imported zinc and sluggish downstream consumption will further weigh on

prices. Yesterday support seen as Shanghai base metal prices rose, with

zinc climbing for a sixth day and hitting a two-week high as inventories in

China languish at their lowest in a decade. Zinc stocks in warehouses

monitored by the Shanghai Futures Exchange fell 11.8 percent last week

to 30,800 tonnes, their lowest since October 2007. Meanwhile, zinc

inventories in warehouses approved by the London Metal Exchange have

dropped for eight straight days. ShFE zinc has lost 15 percent year-to-

date, weighed down by concerns over global oversupply and fears the U.S-

China trade row will hurt demand for industrial metals. Last night the US

dollar slumped to the lowest in four weeks at 94.76 while the Mexican

peso climbed higher after the two countries reached a preliminary trade

deal that could replace the North American Free Trade Agreement

(NAFTA). Now Market participants should monitor developments such as

Germany’s actual monthly retail sales in July, US wholesale inventories in

July, and its Conference Board (CB) consumer confidence index for

August. Technically market is under short covering as market has

witnessed drop in open interest by -0.24% to settled at 5086 while prices

up 0.25 rupees, now Zinc is getting support at 177.1 and below same

could see a test of 176.1 level, And resistance is now likely to be seen at

178.9, a move above could see prices testing 179.7.


176.9

SUPPORT 3

180.7 179.7 178.9 177.1 176.1 175.3

178.7 176.9 178.2 0.14 5086


Trading Ideas :Zinc trading range for the day is 176.1-179.7.

Zinc stocks in warehouses monitored by the Shanghai Futures Exchange fell 11.8 percent last week to 30,800 tonnes, their lowest since October 2007.

Worries about a tight LME zinc market have receded as a large holding of 50 to 79 percent of stocks has been cut.

Warehouse stock for Zinc at LME was at 247400mt that is down by -1175mt.


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MCX Nickel Aug 2018

Nickel prices traded in range due to lack of direction as LME was closed but current low inventories likely to bolster prices.

Nickel on MCX settled down -0.16% at 932.20 tracking weakness from

ShFE Nickel prices which was the lone laggard, falling 0.9 percent to

108,760 yuan a tonne despite the dollar came under pressure after

United States and Mexico reached a bilateral trade deal. The dollar fell

sharply, helping gold prices to mount a further advance beyond the

psychologically important $1,200 level, as President Donald Trump

announced his administration had reached a bilateral deal with Mexico.

The U.S. dollar index, which measures the greenback against a trade-

weighted basket of six major currencies, fell by 0.46% to 94.64. Trump

suggested a United States-Mexico Trade Agreement replace the North

American Free Trade Agreement (NAFTA). But this still paves the way for

Canada to rejoin talks, bringing Trump a step closer to overhauling

NAFTA, reducing investor fears over a full-blown trade war. Last night the

US dollar slumped to the lowest in four weeks at 94.76 while the Mexican

peso climbed higher after the two countries reached a preliminary trade

deal that could replace the North American Free Trade Agreement

(NAFTA). Now Market participants should monitor developments such as

Germany’s actual monthly retail sales in July, US wholesale inventories in

July, and its Conference Board (CB) consumer confidence index for

August. Technically market is under fresh selling as market has witnessed

gain in open interest by 2.43% to settled at 7794 while prices down -1.5

rupees, now Nickel is getting support at 929 and below same could see a

test of 925.8 level, And resistance is now likely to be seen at 936.4, a

move above could see prices testing 940.6.


936

SUPPORT 3

943.8 940.6 936.4 929.0 925.8 921.6

937.4 930 932.2 -0.16 7794


Trading Ideas :Nickel trading range for the day is 925.8-940.6.

China is likely to produce 400,000 mt, in metal content, of high-grade nickel pig iron (NPI) within this year.

Domestic production of high-grade NPI picked up after nationwide environmental reviews from May to June.

Warehouse stock for Nickel at LME was at 242604mt that is down by -948mt.


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NCDEX Jeera Sep 2018

Jeera dropped on profit booking following reports of good rain fall in producing areas of Gujarat.

Jeera on NCDEX settled down -1.55% at 19330 tracking weakness in spot

demand and in the absence of export buying. There are reports of around

3 million bags jeera in Unjha markets. At present, India is the lone

supplier of jeera in the global market as output and stocks are lower in

Turkey and Syria. Jeera exports during this fiscal may touch 175,000 ton

level up from 143,670 ton jeera during 2017-18 on the back of week

Indian rupee which made Indian commodity cheaper in the global

markets. A trade body-The Federation of Indian Spices Stakeholders

(FISS) - projected India's 2017-18 jeera output at 6.92 million bags up

19% on year on the back of higher acreage and favourable weather. India

exported 143,670 ton jeera during 2017-18 up from 119,000 ton a year

ago due to increased demand from China and Bangladesh. At New Delhi

market , estimated market supply was at 8000 quintals, higher by 3000

quintals from previous trading day. At Merta City(Raj.) sources reported

arrivals at 800 quintals, higher by 300 quintals from previous trading day.

As per trade information, crop damaged reported in Syria and Turkey due

to heavy rainfall in June support Indian Jeera in International market.

Quality wise (due to heavy rainfall) and price wise Indian Jeera more

affordable than other producing country. Technically market is under long

liquidation as market has witnessed drop in open interest by -0.35% to

settled at 6822 while prices down -305 rupees, now Jeera is getting

support at 19008 and below same could see a test of 18687 level, And

resistance is now likely to be seen at 19708, a move above could see

prices testing 20087.


19290

SUPPORT 3

19980 19740 19360 18740 18500 18120

19500 18880 18975 -1.84 6477


Trading Ideas :Jeera trading range for the day is 6325-6325.

Jeera arrivals stood at 8,700 ton during July as against 3,800 ton a year ago in the same period.

NCDEX accredited warehouses jeera stocks gained by 33 tonnes to 2770 tonnes.

In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19620 rupee per 100 kg.


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NCDEX Turmeric Sep 2018

Turmeric dropped tracking weakness on reports of higher sowing.

Turmeric on NCDEX settled down by -1.46% at 6768 tracking weakness

on reports of higher sowing. However, downside seen limited amid

reports of some losses in Tamil Nadu due to adverse weather conditions.

Turmeric acreage improved in all the major producing states due to

favourable weather and higher prevailing prices. In Telangana, Turmeric

sowing reported 45,583 hectares as compared to 38,254 hectares in the

corresponding period last year. 83% sowing completed from season

normal. Till now, Nizamabad region reported 13,993 hectares compared

to last year 9,859 hectares and Warangal (rural) reported 4,453 hectares

compared to last year 3,825 hectares. 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 decreased at the markets in Erode due to the non-receipt

of fresh upcountry demand. Further, the second turmeric sale season will

start by September, so the farmers, expecting good price for their

produce, held back and brought only medium and poor quality turmeric.

In Nizamabad, a major spot market in AP, the price ended at 7030

Rupees dropped -25.95 Rupees.Technically market is under long

liquidation as market has witnessed drop in open interest by -11.6% to

settled at 12650, now Turmeric is getting support at 6678 and below

same could see a test of 6586 level, And resistance is now likely to be

seen at 6902, a move above could see prices testing 7034.


6862

SUPPORT 3

7126 7034 6902 6678 6586 6454

6942 6718 6768 -1.46 12650


Trading Ideas :Turmeric trading range for the day is 6586-7034.

However, downside seen limited amid reports of some losses in Tamil Nadu due to adverse weather conditions.

NCDEX accredited warehouses turmeric stocks gained by 30 tonnes to 4826 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 7030 Rupees dropped -25.95 Rupees.


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MCX Menthaoil Sep 2018

Mentha oil prices rallied due to bullish demand outlook from domestic market as well as exporters.

Mentha oil on MCX settled up by 2.47% at 1764.2 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 1999.20 per 1kg. Spot prices was up by

Rs.61.70/-.Technically market is under fresh buying as market has

witnessed gain in open interest by 25.47% to settled at 1606 while prices

up 42.5 rupees, now Menthaoil is getting support at 1746 and below

same could see a test of 1727.9 level, And resistance is now likely to be

seen at 1777.1, a move above could see prices testing 1790.1.


1759.90

SUPPORT 3

1808.2 1790.1 1777.1 1746.0 1727.9 1714.9

1772.00 1740.90 1764.20 2.47 1606


Trading Ideas :Menthaoil trading range for the day is 1727.9-1790.1.

Mentha oil spot at Sambhal closed at 1999.20 per 1kg. Spot prices was up by Rs.61.70/-.

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.


TIME ZONE Forecast

CommodityLME STOCK Stock

COPPER 125 267075

ALUMINIUM -4850 1095125

NICKEL -948 242604

LEAD 175 126725

ZINC -1175 247400

3982 23030 18975 4151 6768 4006 591.2 3184

DAILY MARKET TRADING LEVEL

COMMODITIESNCDEX CHANA Sep

2018

NCDEX Cotton Oct

2018

NCDEX Jeera Oct

2018

NCDEX Guarseed10

Oct 2018

NCDEX Turmeric

Sep 2018

NCDEX Rmseed Sep

2018MCX CPO Aug 2018

NCDEX Soyabean

Oct 2018

NCDEX

Ref.Soya oil

Sep 2018

729.65CLOSE

P. POINT 4026 23077 19120 4218 6810 4027

4097 23244 19360 4299 6902 4054

RESISTANCE

4284 23624 19980 4527 7126 4128

591.7 3208 729

742

4213 23457 19740 4446 7034 4101 597.1 3307 738

599.6 3344

594.2 3245 733

3990 6586 3953 586.3 3109 720

3910 22864 18740 4071 6678 3980 588.8 3146

715

Cng in OI -10.66 -2.34 -5.06 2.20 -11.60 -8.01 -9.49 7.24 -5.88

SUPPORT

3723 22484 18120 3843 6454 3906 583.4 3047

724

3839 22697 18500

Long Liquidation

LME DAILY STOCK POSITION ECONOMICAL DATA

DATA Previous

1:30pm EUR M3 Money Supply y/y 0.043 0.044

TREND Long Liquidation Long Liquidation Long Liquidation Fresh Selling Long Liquidation Long Liquidation Long Liquidation Fresh Selling

1:30pm EUR Private Loans y/y 0.03 0.029

6:00pm USD Goods Trade Balance -68.6B -67.9B

6:00pm USD Prelim Wholesale Inventories m/m 0.001 0.001

6:30pm USD S&P/CS Composite-20 HPI y/y 0.064 0.065

7:30pm USD CB Consumer Confidence 126.6 127.4

7:30pm USD Richmond Manufacturing Index 18 20

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0


125

-4850

-948

175

-1175

-6000

-5000

-4000

-3000

-2000

-1000

0

1000

COPPER ALUMINIUM NICKEL LEAD ZINC

LME STOCK

NEWS YOU CAN USE

The euro area private sector continued to expand in August, but the rate of expansion remaining one of the weakest seen over the past year-and-a-half and optimism

among companies fell to a 23-month low on rising political concerns and higher prices. The composite output index rose marginally to 54.4 in August from 54.3 in July,

flash data from IHS Markit showed Thursday. But, the score was slightly below the forecast of 54.5. August's small increase in the Eurozone PMI suggests that the

region's economy is continuing to perform well in third quarter, which will reassure the European Central Bank that it is right to be normalizing monetary policy very

gradually. Although growth rates in euro area improved slightly in manufacturing and services, both remained among the weakest seen for at least one-and-a-half years.

The services Purchasing Managers' Index came in at 54.4 in August, up from 54.2 a month ago and in line with expectations. Meanwhile, the manufacturing PMI fell

unexpectedly to a 21-month low of 54.6 from 55.1 in July. The reading was expected to rise slightly to 55.2.

China will keep hitting back at Washington as more U.S. trade tariffs are imposed, but its counter-strikes will remain as targeted as possible to avoid harming businesses

in China – whether Chinese or foreign, Finance Minister Liu Kun said. For now the impact of the China-U.S. "trade frictions" on the Chinese economy has been small, but

he is concerned about potential job losses and lost livelihoods, Liu, 61, told in an interview at the finance ministry, his first with the media since taking up the position in

March. He said that the Chinese government will increase its spending to support workers and the unemployed who are hurt by the trade conflict, and also predicted bond

issuance by local governments to support infrastructure investment this year will pickup and blow past 1 trillion yuan ($145.48 billion) by the end of the current quarter.

The trade conflict further escalated as the United States and China heaped more tariffs on each other's goods. Since early July, the world's two largest economies have

slapped each other with tariffs on a combined $100 billion of goods. "China doesn't wish to engage in a trade war, but we will resolutely respond to the unreasonable

measures taken by the United States," Liu said. "If the United States persists with these measures, we will correspondingly take action to protect our interests." So far,

China has either imposed or proposed tariffs on $110 billion of U.S. goods, representing most of its imports of American products. Crude oil and large aircraft are key U.S.

goods that are still not targeted for penalties.

Following the recent import duty hike, India has been able to bring down its vegetable oil imports by about 27 per cent in July against the same month last year. The

trade also attributed the fall in imports to other factors such as the depreciating rupee and the credit crunch scenario in the country. However, since May 2018, India’s

vegoil imports have declined steadily. Data compiled by the Solvent Extractors’ Association of India (SEA) put total vegetable oil imports at 11,19,538 tonnes for July as

compared to 15,24,724 tonnes reported in the same month last year. This is a 27 per cent dip — the sharpest decline in any month since November 2017. The data

revealed that vegoil imports in May declined by 7 per cent from the same month last year, while the decline was a steep 23 per cent in June 2018 vis-a-vis the same

month last year. According to the SEA, over the last year, prices of edible oils in the international market have gone down by about 14 per cent due to excess supplies in

the world market and reduced demand from India. Most vegoils witnessed decline in prices to the tune of about $100 per tonne. RBD Palmolein prices fell from $683 per

tonne CIF Indian port to $592. Crude Palm Oil prices too fell from $681 a tonne to $583.



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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

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