Daily Commodity Roundup as on - Systematix...

Daily Commodity Roundup as on Thursday, November 22, 2018

Date : Thursday, November 22, 2018 URL : www.systematixshares.com Page No : 1

14.49CRUDE $

54.63

0.12 -0.02 -4.49

IN

TER

NA

TIO

NA

L M

AR

KET U

PD

ATE GOLD $

1227.24SILVER $

USDJPY112.997

0.13 0.08 -0.08EURUSD

1.1397GBPUSD

1.2778

LME

NICKEL

11005

-0.08 -0.6 -0.23

LME

COPPER

6228 LME

ZINC

2559

$ INDEX96.64

0 -0.55 -0.10

LME ALUMINIUM

1955 LME

LEAD

1996

DJIA24466

-0.77 -0.53 -2.21SENSEX

35200NIFTY

10600


NIKKEI21504

-0.21 -1.82 -0.02USDINR

71.48 S&P

INDEX

2642

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MCX Gold Dec 2018

Gold prices inched up in subdued trade ahead of a U.S. holiday amid weakness in dollar and equities, as concerns about global economic growth gripped financial markets.

Gold prices inched up in subdued trade ahead of a U.S. holiday amid

weakness in dollar and equities, as concerns about global economic

growth gripped financial markets. Investors are now keeping a close eye

on the G20 leaders' summit later this month in Argentina where U.S.

President Donald Trump is expected to meet with Chinese President Xi

Jinping to discuss the bilateral trade dispute. The Trump administration

on Tuesday said that China has failed to alter its "unfair" practices at the

heart of the U.S.-China trade conflict. Fed chair Jerome Powell warned

last week of slowing demand abroad, fading fiscal stimulus at home and

the lagged economic impact of the Fed’s past rate increases, suggesting

that a pause in tightening may well come in 2019. Adding to that

interpretation, Fed vice chairman Richard Clarida told CNBC last Friday

that the rates were currently near neutral levels, while Dallas Fed

president Robert Kaplan also said that he expected a growth slowdown in

Europe and China. Russia produced 157.19 tonnes of gold in the first

seven months of 2018, exactly the same amount as in the same period

last year, the finance ministry said. Production for the period included

129.34 tonnes of mined gold compared with 126.39 tonnes a year ago,

the ministry said. Switzerland exported less gold in October than in any

month since August last year, as shipments to India fell to the lowest in

at least five years, Swiss customs data showed. Russia's gold reserves

stood at 66.4 million troy ounces as of the start of November, the central

bank said. Technically now Gold is getting support at 30735 and below

same could see a test of 30645 level, And resistance is now likely to be

seen at 30905, a move above could see prices testing 30985.

OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST

30775

SUPPORT 3

31075 30985 30905 30735 30645 30565

30895 30725 30825 0.04 7872

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2


Trading Ideas :Gold trading range for the day is 30645-30985.

Data showed the number of Americans filing applications for unemployment benefits rose to more than a four-month high last week.

Russia's gold reserves stood at 66.4 million troy ounces as of the start of November, the central bank said.

Switzerland exported less gold in October than in any month since August last year, as shipments to India fell to the lowest in at least five years.

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MCX Silver Dec 2018

Silver prices rose on the back of further speculation that the Federal Reserve may take a less aggressive stance on policy tightening.

Silver prices rose on the back of further speculation that the Federal

Reserve may take a less aggressive stance on policy tightening, while

tension over trade issues between the U.S. and China continued to

provide support for the precious metal. Fed chair Jerome Powell warned

last week of slowing demand abroad, fading fiscal stimulus at home and

the lagged economic impact of the Fed’s past rate increases, suggesting

that a pause in tightening may well come in 2019. New orders for key

U.S.-made capital goods were unexpectedly unchanged in October and

shipments rebounded modestly, which could temper expectations of an

acceleration in business spending on equipment early in the fourth

quarter. Sluggish business spending on equipment together with a

lackluster housing market could fan concerns about the durability of the

economic expansion that is now in its ninth year and the second longest

on record. Other data showed the number of Americans filing applications

for unemployment benefits rose to more than a four-month high last

week. While that will probably not change the view that the labor market

is tightening, it suggests some slowing in the pace of job growth. Federal

Reserve has noted the slowdown in business spending, saying in its policy

statement earlier this month that “business fixed investment has

moderated from its rapid pace earlier in the year.” Adding to that

interpretation, Fed vice chairman Richard Clarida told CNBC last Friday

that the rates were currently near neutral levels, while Dallas Fed

president Robert Kaplan also said that he expected a growth slowdown in

Europe and China. Technically now Silver is getting support at 36611 and

below same could see a test of 36314 level, And resistance is now likely

to be seen at 37110, a move above could see prices testing 37312.


36533 37015

37609 37312 37110 36611 36314 36112

36516 36909 0.87 22232

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


Trading Ideas :Silver trading range for the day is 36314-37312.

New orders for key U.S.-made capital goods were unexpectedly unchanged in October and shipments rebounded modestly.

The Trump administration said that China has failed to alter its “unfair” practices at the heart of the U.S.-China trade conflict.

Investors will likely switch focus to the G20 leaders' summit later this month in Argentina where U.S. President is expected to meet with his Chinese counterpart Xi Jinping.

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MCX Crudeoil Dec 2018

Crude oil prices gained buoyed by expectations that major oil producers will agree to cut output at a meeting early next month.

Crudeoil on MCX settled up 2.46% at 3949 buoyed by expectations that

major oil producers will agree to cut output at a meeting early next

month. U.S. commercial crude oil inventories rose by 4.9 million barrels

to 446.91 million barrels last week, the Energy Information

Administration (EIA) said. Investors remained on edge, with the IEA

warning of unprecedented uncertainty in oil markets due to a difficult

economic environment and political risk. The American Petroleum

Institute that U.S. commercial crude inventories last week fell

unexpectedly by 1.5 million barrels, to 439.2 million, in the week to Nov.

16. However, Innes said that once U.S. pipeline bottlenecks were

alleviated, which he said he expected in 2019, "the entire notion of a tight

global spare capacity argument goes down the well".Fearing a glut, the

Middle East-dominated producer cartel of the Organization of the

Petroleum Exporting Countries (OPEC) is considering supply cuts when it

next meets on Dec. 6, although some members, like Iran, are expected

to resist any voluntary reductions. OPEC members are set to meet on

Dec. 6 in Vienna, with a production cut expected to be agreed with non-

OPEC members led by Russia in order to prop up the recent sharp selloff.

Recent reports suggested that the cartel had moved from considering a

reduction of 1 million barrels per day to 1.4 million. Technically market is

under short covering as market has witnessed drop in open interest by -

21.84% to settled at 14638 while prices up 95 rupees, now Crudeoil is

getting support at 3867 and below same could see a test of 3785 level,

And resistance is now likely to be seen at 4009, a move above could see

prices testing 4069.


3872 3987

4151 4069 4009 3867 3785 3725

3845 3949 2.46 14638

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


Trading Ideas :Crudeoil trading range for the day is 3785-4069.

U.S. commercial crude oil inventories rose by 4.9 million barrels to 446.91 million barrels last week, the Energy Information Administration (EIA) said.

Investors remained on edge, with the IEA warning of unprecedented uncertainty in oil markets due to a difficult economic environment and political risk.

The American Petroleum Institute that U.S. commercial crude inventories last week fell unexpectedly by 1.5 million barrels, to 439.2 million, in the week to Nov. 16.

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MCX Copper Nov 2018

Copper prices rose as a lower dollar and higher equities triggered fund buying but gains were capped as trade tensions between US and China escalated.

Copper on MCX settled up 0.68% at 438.55 while prices are trading in the

range as market sentiment improved as the equity selloff eased while

development of China-US trade conflict will remain in focus in the near

run. Prices shedding some of previous session's gains on worries over

slowing global economic growth amid an escalating trade war between

Washington and Beijing. Trade tensions and higher interest rates are

slowing the global economy, though for now there are no signs of a sharp

downturn, the OECD said, lowering outlook for next year to 3.5 percent

from a previously projected 3.7 percent. The United States and China

clashed on Wednesday at a WTO meeting with a U.S. envoy accusing

Beijing of using the WTO to pursue "non-market" policies and a Chinese

official saying it was Washington that was flouting the rulebook. Base

metals increased for the most part with LME lead leading the gains and

closing 2.45% higher. LME zinc jumped 1.04%, copper rose 0.97%,

aluminium grew 0.64%, while nickel fell 0.5%. The number of Americans

filing applications for jobless benefits rose to more than a four-month

high last week, but the underlying trend remained consistent with a

tightening labour market. Initial claims for state unemployment benefits

increased 3,000 to a seasonally adjusted 224,000 for the week ended

November 17, the highest level since the end of June, the Labor

Department said on Wednesday. Now a day ahead Trading volume is

likely to remain thin in view of US Thanksgiving holiday while the

eurozone will release initial reading of its consumer confidence index for

November. Technically market is getting support at 435.5 and below

same could see a test of 432.4 level, And resistance is now likely to be

seen at 441.3, a move above could see prices testing 444.


435.90

SUPPORT 3

447.1 444.0 441.3 435.5 432.4 429.7

440.95 435.10 438.55 0.68 12296


Trading Ideas :Copper trading range for the day is 432.4-444.

The United States administration said China has failed to alter its "unfair" practices, adding to tensions ahead of the meeting next week between U.S. and Chinese President.

Traders are keeping a close eye on positions holding large amounts of LME copper warrants and cash contracts, which is fuelling nervousness about nearby availability.

Warehouse stock for Copper at LME was at 143275mt that is down by -1975mt.


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MCX Zinc Nov 2018

Zinc gained on short covering after prices dropped after turbulent trade with U.S. stocks and global oil market tumbling amid concerns over global economic growth.

Zinc on MCX settled down -2.18% at 185.90 slipped on unnerved by a

sell-off on share markets and sapped by uncertainty before a meeting of

US and Chinese leaders. Also weighing on base metals was risk-off

sentiment as world stock markets fell in a tech-led sell-off, while the

dollar index rallied from a two-week low, making commodities priced in

the greenback more expensive for buyers using other currencies.

Meanwhile the premium of LME cash zinc over the three-month contract

soared to $US97 a tonne by Monday's close, the highest since at least

June 2009, the earliest date for which data is available. It was quoted at

$US85 on Tuesday. This is due to shortages of metal for immediate

delivery as investors with short positions seek to close out or roll over

their contracts ahead of the November expiry on Wednesday. LME three-

month zinc fell 1.9 per cent to end at $US2,551 a tonne. A slide in zinc

inventories on the London Metal Exchange to their lowest in more than a

decade has wrong-footed bearish investors who are scrambling to cover

or roll over futures positions before the November contract expiry. Last

night the US dollar rallied from a two-week low and settled at 96.79 as a

sell-off in global stock markets spurred safe-haven bids and investors

grew concerned about slowing global growth. Global stock markets were

selling off on Tuesday as the tech slump that gripped US equities on

Monday spread around the world. At the US open, all three major indexes

dropped sharply, with the Nasdaq dipping another 2%. Technically market

is getting support at 183.6 and below same could see a test of 181.2

level, And resistance is now likely to be seen at 189.6, a move above

could see prices testing 193.2.


185.9

SUPPORT 3

191.5 189.7 188.5 185.5 183.7 182.5

187.9 184.9 187.3 0.75 2584


Trading Ideas :Zinc trading range for the day is 183.7-189.7.

Pressure also seen on weaker Chinese automobile usage in October and a faster-than-expected rise in mined zinc supply.

The premium of LME cash zinc over the three-month contract soared to $US97 a tonne, the highest since at least June 2009.

Warehouse stock for Zinc at LME was at 123275mt that is up by 650mt.


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MCX Nickel Nov 2018

Nickel prices dropped on worries over slowing global economic growth amid an escalating trade war between Washington and Beijing.

Nickel on MCX settled down -1.05% at 787.90 dropped on long liquidation

tracking weakness from LME Nickel prices which fell 0.8 per cent to end

at $US11,095 a tonne, the lowest since December 14 last year as

tensions between the United States and China escalated ahead of a major

meeting between the two presidents next week. The United States

administration on Tuesday said China has failed to alter its "unfair"

practices, adding to tensions ahead of a high-stakes meeting later this

month between U.S. President Donald Trump and Chinese President Xi

Jinping. Sentiments turned bearish after the news that Norilsk Nickel

plans to expand nickel production to meet growing EV demand. Russian

copper and nickel producer Norilsk Nickel unveiled plans to expand its

nickel and copper production by 15% over seven years in a presentation

to investors in London on Monday November 19. The expansion program,

with a base investment of $6.5-7.5 billion, is expected to be approved in

early 2019. Norilsk Nickel forecasts its production of class-1 battery-grade

nickel grow by 50% by 2025. The Russian producer forecasts growth in

nickel and copper production of up to 15% after 2025 and up to 25% for

platinum and palladium. Primary nickel supply will come mainly from two

mines in the Norilsk region, Talnakh and South Cluster, that are yet to be

fully developed. Now a day ahead the US will release its weekly jobless

claims, durable goods orders and existing home sales for October,

University of Michigan consumer sentiment index for November, as well

as weekly oil inventory data from the EIA today. Technically market is

getting support at 780.6 and below same could see a test of 773.2 level,

And resistance is now likely to be seen at 801.2, a move above could see

prices testing 814.4.


787.9

SUPPORT 3

802.6 797.4 788.9 775.2 770.0 761.5

792.2 778.5 780.5 -0.94 17273


Trading Ideas :Nickel trading range for the day is 770-797.4.

Russia's Norilsk Nickel sees 2019 nickel market deficit at 60 T.

Increasing nickel pig iron production and rising Shanghai nickel inventory kept prices under pressure in recent time.

Warehouse stock for Nickel at LME was at 215322mt that is down by -240mt.


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NCDEX Jeera Dec 2018

Jeera dropped on profit booking seen after news that Gujarat government is providing water in canal for rabi crops amid scanty rains.

Jeera on NCDEX settled up by 2.17% at 19760 due to firm physical

domestic and exports demands from China and Bangladesh. As per

reports, jeera exports in 2018/19 (Apr-Aug) has crossed 1 lakh tonnes,

up 54.8% compared to exports last year for same period. Moreover,

concern that standing cumin crops might get affected amid scanty

rainfalls also supported upward trend in prices. Deficient rainfall in key

producing region of Gujarat like Saurashtra and Kutch may lower the

acreage. According to the initial trade estimate, there may not be any

increase in the sowing area of jeera because of dry weather. However, if

the producing states receive good irrigation facilities through dams then

the sowing area could see an increase. According to the market

estimates, India has already exported around 1.25 lakh tonnes of jeera so

far this year and there is a possibility of it touching a record 1.75 lakh

tonnes by the end of this fiscal year. As per Gujarat state govt. data,

Jeera progressive area of Rabi 2018-19, 18,400 hectares as compared to

previous Rabi season 59,400 hectares, 6% completed from normal area

318,900 hectares. Current year sowing reported slow due to lower

rainfall. As per current situation, farmers are likely to prefer Jeera over

Coriander due to higher prices. But, lower rainfall may impact yield and in

some areas of Saurashtra and Kutch regions area may come down 10-

15% due to severe drought condition. In Unjha, a key spot market in

Gujarat, jeera edged down by -11.65 Rupees to end at 19880 Rupees per

100 kg.Technically now Jeera is getting support at 19430 and below same

could see a test of 19095 level, And resistance is now likely to be seen at

20000, a move above could see prices testing 20235.


19890

SUPPORT 3

20640 20365 19915 19190 18915 18465

20090 19365 19460 -1.52 4797


Trading Ideas :Jeera trading range for the day is 6487-6487.

As per reports, jeera exports in 2018/19 (Apr-Aug) has crossed 1 lakh tonnes, up 54.8% compared to exports last year for same period.

NCDEX accredited warehouses jeera stocks dropped by 236 tonnes to 2401 tonnes.

In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19955 rupee per 100 kg.


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NCDEX Turmeric Dec 2018

Turmeric traded in range amid lower than expected exports and domestic demand.

Turmeric on NCDEX settled down by -0.37% at 6454 amid lower than

expected exports and domestic demand. Besides, higher arrivals from

growing regions and reports on higher acreage also weighed on the

prices. As per reports, in October, arrivals of turmeric have been higher at

12,478 tonne compared to 10,978 tonne, last year. As per reports,

standing crop likely to damage around 10 - 20% currently, if higher

temperature will continue next 15 - 20 days damage percentage may go

up to 30-40%. Moreover, turmeric sowing in all major producing states is

higher than last year as weather remained favourable. During the

October, arrivals of turmeric have been higher at 12,478 t (Vs 10,978 t)

compared last year, as per data. As per data released by Commerce

Ministry, turmeric exports during the month of Sep 2018, up 16.5% on

year to 9,064 tonnes (Vs 7,783 tonnes). Turmeric exports in 2018/19

(Apr-Sep) is up 10.6% at 65,547 tonnes compared to 59,285 last year for

the same time. According to the Department of Horticulture and

Plantation Crops of Tamil Nadu, acreage of turmeric in Erode may jump

nearly 80% on year to 5,300 hectare in 2018-19 (Jul-Jun) because of

very good rainfall this year and availability of other water sources. In

Telangana, turmeric acreage rose to 47,790 hectare compared to 44,956

hectare a year ago, state government data showed. In Nizamabad, a

major spot market in AP, the price ended at 7178.95 Rupees dropped -

16.5 Rupees.Technically now Turmeric is getting support at 6410 and

below same could see a test of 6366 level, And resistance is now likely to

be seen at 6518, a move above could see prices testing 6582.


6470

SUPPORT 3

6626 6582 6518 6410 6366 6302

6538 6430 6454 -0.37 12255


Trading Ideas :Turmeric trading range for the day is 6366-6582.

Besides, higher arrivals from growing regions and reports on higher acreage also weighed on the prices.

NCDEX accredited warehouses turmeric stocks dropped by 24 tonnes to 3434 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 7178.95 Rupees dropped -16.5 Rupees.


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MCX Menthaoil Nov 2018

Mentha oil prices ended with losses due to surge in arrivals and tepid demand from domestic market weighed on prices.

Mentha oil on MCX settled down by -0.83% at 1641.9 due to surge in

arrivals and tepid demand from domestic market weighed on prices.

Arrivals of mentha oil in Sambhal market doubled to 100 drums (1 drum

= 180 kg). The supply of mentha oil in Chandausi, Uttar Pradesh's major

producing area of mentha oil, has increased. Low demand outlook in

mentha oil in domestic as well as global market due to expectation of

recovery in Indian Rupee against the U.S dollar. 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. Mandi

Department, which assumes Mentha as an agricultural product and

receives the mandatory duty of one and a half percent, the GST of the

same commerce tax department, Mentha crop, is not considered as

agricultural product and 15 percent GST is charged. Due to this double

tax, the price of mentha product increases, whereas synthetic mentha is

much cheaper, so many companies making mentha products have started

using synthetic mentha. Mentha oil spot at Sambhal closed at 1819.90

per 1kg. Spot prices was up by Rs.0.50/-.Technically market is under long

liquidation as market has witnessed drop in open interest by -16.42% to

settled at 906 while prices down -13.8 rupees, now Menthaoil is getting

support at 1603.9 and below same could see a test of 1566 level, And

resistance is now likely to be seen at 1665.3, a move above could see

prices testing 1688.8.


1620.00

SUPPORT 3

1726.7 1688.8 1665.3 1603.9 1566.0 1542.5

1650.90 1589.50 1641.90 -0.83 906


Trading Ideas :Menthaoil trading range for the day is 1566-1688.8.

Mentha oil spot at Sambhal closed at 1819.90 per 1kg. Spot prices was up by Rs.0.50/-.

Arrivals of mentha oil in Sambhal market doubled to 100 drums (1 drum = 180 kg).

The supply of mentha oil in Chandausi, Uttar Pradesh's major producing area of mentha oil, has increased.


TIME ZONE Forecast

CommodityLME STOCK Stock

COPPER -1975 143275

ALUMINIUM -525 1072525

NICKEL -240 215322

LEAD -525 109425

ZINC 650 123275

4725 22000 19460 4427 6454 4081 507.7 3419

DAILY MARKET TRADING LEVEL

COMMODITIESNCDEX CHANA Dec

2018

NCDEX Cotton Nov

2018

NCDEX Jeera Dec

2018

NCDEX Guarseed10

Dec 2018

NCDEX Turmeric

Dec 2018

NCDEX Rmseed Dec

2018MCX CPO Nov 2018

NCDEX Soyabean

Dec 2018

NCDEX

Ref.Soya oil

Dec 2018

728.9CLOSE

P. POINT 4729 21930 19640 4450 6474 4077

4788 22130 19915 4510 6518 4101

RESISTANCE

4909 22470 20640 4652 6626 4146

504.5 3420 726

741

4850 22270 20365 4592 6582 4122 516.2 3458 735

523.7 3476

512.0 3438 732

4308 6366 4032 492.8 3382 717

4667 21790 19190 4368 6410 4056 500.3 3400

714

Cng in OI -10.31 -4.82 -5.55 -1.44 -3.54 -7.05 -17.46 -0.90 -1.46

SUPPORT

4546 21450 18465 4226 6302 4011 488.6 3362

723

4608 21590 18915

Short Covering

LME DAILY STOCK POSITION ECONOMICAL DATA

DATA Previous

6:00pm EUR ECB Monetary Policy Meeting Accounts 0 0

TREND Short Covering Short Covering Long Liquidation Long Liquidation Long Liquidation Short Covering Short Covering Short Covering

All Day USD Bank Holiday 0 0

8:30pm EUR Consumer Confidence -3 -3

0 0 0 0 0

0:00 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0


-1975

-525

-240

-525

650

-2500

-2000

-1500

-1000

-500

0

500

1000

COPPER ALUMINIUM NICKEL LEAD ZINC

LME STOCK

NEWS YOU CAN USE

A “really strong” U.S. economy is likely to continue growing, but softness in housing and high levels of corporate debt have caught the Federal Reserve’s eye, Chairman

Jerome Powell said. Powell, quizzed by Dallas Federal Reserve President Robert Kaplan in an hour-long conversation, was not asked directly about possible further rate

increases, but said nothing to counter the expectation that the Fed will raise rates again when it meets in December. However he did enumerate a set of concerns that

have begun to arise among Fed officials as they debate how much further and how fast to raise their short-term policy rate, a benchmark for other borrowing costs in the

economy. “Slowing growth abroad. The tax cuts and spending increases that were enacted are providing some real boost right now, but that impetus is going to wear off

over time,” Powell said when asked to list the “headwinds” the economy may face in coming months. Earlier in the session he pointed to recent weakness in housing as a

concern. And while he said he regarded financial risks overall as “pretty moderate,” with neither banks nor households heavily leveraged, he said corporate borrowing had

caught the Fed’s attention. “There are a lot of factors weighing on home building right now. Material costs, labor scarcity ... It is rates as well,” with the costs of home

mortgages rising, Powell said.

The weakness in euro zone economic growth is not significant enough for the European Central Bank to alter its policy path, even if the outlook remains uncertain, Dutch

policymaker Klaas Knot said. Growth slowed to a quarterly 0.2 percent in the third quarter as the German economy contracted, raising fears that the currency bloc’s five-

year expansion may be coming to an end just as the ECB plans to dial back stimulus. “At this point in time, the impact is not such that it would take us to fundamentally

change our outlook,” Knot, a hawk on the ECB’s Governing Council, told. He pointed to high capacity utilization, a tight labor market and years of growth in excess of

potential as signs that the bloc is now more resilient than earlier. Knot declined to say when the ECB would raise interest rates from record lows. Keeping them steady

until next summer was the bank’s expectation, not a commitment, he said, and the actual outcome could be on “either side” of this expectation. “The market is

acknowledging that the interest rate has become our instrument of marginal policy adjustment,” Knot said. “So it’s unsurprising that economic news about the euro

area... gets reflected in expectations of our first rate hike.” He also dismissed the suggestion that the ECB would change policy to help Italy, which is facing rising

borrowing costs as it is locked into a budget dispute with the European Commission.

Tepid progress in the planting of pulses and coarse cereals has pulled down total rabi sown area by 20 per cent till the weekend compared to the corresponding week in

the 2017-18 season, according to data released by the Agriculture Ministry. However, the planting of wheat has begun on a strong note with acreage registering a 20 per

cent increase. The total rabi acreage so far stands at 110.71 lakh hectares (lha) against 138 lha at the same time last year. The most affected is the cultivation of pulses,

particularly gram or chana. The acreage under chana is down in both the major growing States of Madhya Pradesh and Karnataka, which is reeling a drought. The total

pulses acreage stood at 39 lha compared to 54.34 lha in the corresponding period last season. The sowing of lentil, too, was poor compared last year with the area

covered was at only 3.11 lha, 41 per cent lower than that in corresponding period last year. Similarly, poor sowing of jowar in Maharashtra — another State hit by drought

— and Karnataka has affected acreage under coarse cereals. Against 22.65 lha planted same week last year, the area covered this year is 14.14 lha, or down about 38

per cent. Oilseeds coverage, too, is down 9 per cent over last year on account of a drop in mustard/rapeseed cultivation. Oilseeds farmers have sown 37.09 lha compared

to 40.86 lha last year.



The information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is

made as to its accuracy completeness or correctness.

This document is for information purposes only. This report is based on information that we consider reliable, but we do not represent that it is accurate or complete, and one should exercise due caution while acting on it. Descriptions of any commodities mentioned herein are not

complete and this document is not, and should not be construed as an offer or solicitation of an offer to buy or sell any commodities/commodity derivatives. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.

All opinions, projections and estimates constitute the judgment of the author as on the date of the report and these, plus any other information contained in the report, are subject to change without notice. Prices and availability of financial instruments also are subject to change without

notice.

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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

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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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