Daily Commodity Roundup as on - Systematix...

Daily Commodity Roundup as on Friday, November 16, 2018

Date : Friday, November 16, 2018 URL : www.systematixshares.com Page No : 1

14.30CRUDE $

56.46

0.10 0.13 0.37

IN

TER

NA

TIO

NA

L M

AR

KET U

PD

ATE GOLD $

1214.47SILVER $

USDJPY113.403

0.06 0.11 -0.12EURUSD

1.1334GBPUSD

1.27883

LME

NICKEL

11300

-0.12 0.19 -0.22

LME

COPPER

6195 LME

ZINC

2573

$ INDEX97.00

0.15 -0.13 -0.11

LME ALUMINIUM

1941 LME

LEAD

1943

DJIA25081

0.34 0.38 -0.81SENSEX

35261NIFTY

10617


NIKKEI21691

-0.5 -0.76 -0.52USDINR

72.05 S&P

INDEX

2702

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MCX Gold Dec 2018

Gold prices inched up as the dollar slipped following reports that China delivered a written response to U.S. trade demand.

Gold prices inched up as the dollar slipped following reports that China

delivered a written response to U.S. trade demand, and that the two

nations resumed talks earlier in the week to diffuse their trade disputes.

Federal Reserve chairman Jerome Powell said in Dallas that the U.S.

economy is “in such a good place right now” and that markets should be

prepared that the central bank could raise rates at any time starting in

2019. Powell reiterated the central bank is independent and would

continue to do what is best for the U.S. economy. His comments came

after Trump accused the Fed of raising rates too fast during his

administration. U.S. retail sales rebounded sharply in October as

purchases of motor vehicles and building materials surged, likely driven

by recovery efforts in areas devastated by Hurricane Florence. The report

from the Commerce Department also showed broad gains in sales ahead

of the holiday shopping season, which bodes well for consumer spending

and the overall economy as the fourth quarter gets under way. Retail

sales increased 0.8 percent last month after a downwardly revised 0.1

percent dip in September. The lowest unemployment rate in nearly 49

years is boosting wages, with annual wage growth recording its biggest

increase in 9-1/2 years in October. Jobs market strength was

underscored by a separate report from the Labor Department on

Thursday showing a marginal increase in the number of Americans filing

for unemployment benefits last week. Technically market is under fresh

selling as market has witnessed gain in open interest by 0.25% to settled

at 8817, now Gold is getting support at 30715 and below same could see

a test of 30609 level, And resistance is now likely to be seen at 30932, a

move above could see prices testing 31043.

OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST

30924

SUPPORT 3

31149 31043 30932 30715 30609 30498

30937 30720 30821 0.00 8817

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2


Trading Ideas :Gold trading range for the day is 30609-31043.

Federal Reserve chairman Jerome Powell said in Dallas that the U.S. economy is “in such a good place right now”.

Powell reiterated the central bank is independent and would continue to do what is best for the U.S. economy.

India's Oct Gold Imports Down 42.9 Percent Y/y To $1.68 Billion - Trade Ministry

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MCX Silver Dec 2018

Silver gained as investors sought cover from market turmoil after Britain’s long-awaited draft agreement to leave the European Union was thrown into chaos

Silver on MCX settled up 0.54% at 36691 as investors sought cover from

market turmoil after Britain’s long-awaited draft agreement to leave the

European Union was thrown into chaos. British Prime Minister Theresa

May battled to save a draft divorce deal with the EU after her Brexit

secretary and other ministers quit in protest and eurosceptic lawmakers

stepped up efforts to topple her. U.S. consumer prices increased by the

most in nine months in October amid gains in the cost of gasoline and

rents, pointing to steadily rising inflation that will likely keep the Federal

Reserve on track to raise rates again next month. 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. Technically

now Silver is getting support at 36474 and below same could see a test of

36257 level, And resistance is now likely to be seen at 36854, a move

above could see prices testing 37017.


36569 36800

37234 37017 36854 36474 36257 36094

36420 36691 0.54 27234

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


Trading Ideas :Silver trading range for the day is 36257-37017.

U.S. consumer prices increased by the most in nine months in October amid gains in the cost of gasoline and rents, pointing to steadily rising inflation.

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.

The trade war shows signs of possibly easing, with U.S. President Trump expected to meet Chinese President Xi Jinping at a G20 summit in Argentina this month.

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MCX Crudeoil Nov 2018

Crude oil dropped as concern over the prospect of an oversupplied market next year continued to weigh on prices.

Crudeoil on MCX settled down -0.46% at 4070 as concern over the

prospect of an oversupplied market next year continued to weigh on

prices despite OPEC's message that it may cut crude output. The

Organization of the Petroleum Exporting Countries (OPEC), led by Saudi

Arabia, is considering a cut of up to 1.4 million barrels per day (bpd) next

year to avoid the kind of build in global inventories that prompted the oil

price to crash between 2014 and 2016. The International Energy Agency

(IEA) and OPEC warned of a sizeable surplus at least in the first half of

2019, and possibly beyond, given the pace of growth in non-OPEC

production and slower demand in heavy consumers such as China and

India. The oil price has lost about a quarter of its value in only six weeks,

pressured by a slowing global economy and soaring crude output led by

the United States. The American Petroleum Institute said that crude

inventories rose by 8.8 million barrels in the week to Nov. 9 to 440.7

million, compared with expectations for an increase of 3.2 million barrels.

Meanwhile, the Washington-based Energy Information Administration

(EIA) said nearly 38 million barrels had been added to crude inventories

in the U.S. in the past seven weeks. Total U.S. crude production,

meanwhile, stands at a record 11.6 million bpd, making the country the

world’s biggest oil producer ahead of Russia and Saudi Arabia. Technically

market is under long liquidation as market has witnessed drop in open

interest by -12.74% to settled at 9278 while prices down -19 rupees, now

Crudeoil is getting support at 4015 and below same could see a test of

3959 level, And resistance is now likely to be seen at 4123, a move

above could see prices testing 4175.


4054 4119

4231 4175 4123 4015 3959 3907

4011 4070 -0.46 9278

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


Trading Ideas :Crudeoil trading range for the day is 3959-4175.

OPEC led by Saudi Arabia, is considering a cut of up to 1.4 mbpd next year to avoid the kind of build in global inventories that prompted the oil price to crash.

The EIA data showed that crude oil inventories increased by 10.27 million barrels in the week to November 9.

The American Petroleum Institute said that crude inventories rose by 8.8 million barrels in the week to Nov. 9 to 440.7 million.

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MCX Copper Nov 2018

Copper gained boosted by news that China’s top trade negotiator was preparing to visit the United States ahead of a meeting between the two countries’ leaders.

Copper on MCX settled up 0.96% at 436.65 boosted by news that China’s

top trade negotiator was preparing to visit the United States ahead of a

meeting between the two countries’ leaders. A tight copper market may

be set to get a lot tighter, if a report this week from the world’s biggest

miner of the metal is any indication. The International Copper Study

Group forecasts a production deficit of 90,000 metric tons this year, more

than double the shortfall forecast in April. Lower grades were partly offset

by a 2 percent increase in metal recovery, but output for the first nine

months of the year was still 41,000 tons lower than in 2017. China's

industrial output and investment growth beat forecasts, suggesting a

flurry of support measures may be starting to take hold, but other

indicators pointed to continued pressure on the economy. Retail sales

slowed more than expected, while growth in October real estate

investment eased to a 10-month low and home sales fell again as

developers held back expansion plans in the face of softening demand.

Loan growth in top copper consumer China slowed sharply in October,

despite pressure by regulators on banks to help keep cash-starved

companies afloat, pointing to further weakening in the economy in

coming months. The outlook for copper demand in the mid to long term

remains healthy despite current trade friction between China and the

United States as a renewable energy revolution will require vast amounts

of the metal. Technically market is under short covering as market has

witnessed drop in open interest by -8.4% to settled at 12286, now

Copper is getting support at 433 and below same could see a test of

429.2 level, And resistance is now likely to be seen at 440.3, a move

above could see prices testing 443.8.


433.50

SUPPORT 3

447.6 443.8 440.3 433.0 429.2 425.7

440.00 432.70 436.65 0.96 12286


Trading Ideas :Copper trading range for the day is 429.2-443.8.

China Oct refined copper output +3.8 pct y/y at 736,000 tonnes - stats bureau

The International Copper Study Group forecasts a production deficit of 90,000 metric tons this year, more than double the shortfall forecast in April.

Warehouse stock for Copper at LME was at 166450mt that is down by -625mt.


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MCX Zinc Nov 2018

Zinc gained supported by expectations of potential stimulus measures in China to boost the economy after recent data pointed to cooling growth.

Zinc on MCX settled up 2.03% at 188.3, supported by expectations of

potential stimulus measures in China to boost the economy after recent

data pointed to cooling growth. The global zinc market deficit narrowed to

54,700 tonnes in September from a revised deficit of 81,800 tonnes in

August, data from the International Lead and Zinc Study Group (ILZSG)

showed. The August data was revised after it gave an initial estimate for

a deficit of 76,200 tonnes. In the first eight months of the year the zinc

market had a 305,000 tonne deficit, compared with a deficit of 398,000

tonnes in the same period last year. On top of slow credit growth, China's

retail sales last month also posted their smallest increase since May,

pointing to a consumption slowdown even as industrial output and

investment picked up, government data showed. China has delivered a

written response to U.S. demands for wide-ranging trade reforms, three

U.S. government sources said, a move that could trigger negotiations to

bring an end to a withering trade war between the world's top economies.

China's new home prices accelerated in October, led by gains in smaller

cities, suggesting a key driver of the country's economic growth remained

intact despite slower investment and increasing economic headwinds. The

US consumer prices increased by the most in nine months in October

amid gains in the cost of gasoline and rents, pointing to steadily rising

inflation that likely will keep the Federal Reserve on track to raise interest

rates again next month. Technically now Zinc is getting support at 185.1

and below same could see a test of 181.9 level, And resistance is now

likely to be seen at 191.4, a move above could see prices testing 194.5.


185.1

SUPPORT 3

197.7 194.5 191.4 185.1 181.9 178.8

191.3 185.1 188.3 2.03 3002


Trading Ideas :Zinc trading range for the day is 181.9-194.5.

China Oct zinc output -7.6 pct y/y at 501,000 tonnes - stats bureau

The global zinc market deficit narrowed to 54,700 tonnes in September from a revised deficit of 81,800 tonnes in August, data from the ILZSG showed.

Warehouse stock for Zinc at LME was at 125400mt that is down by -5500mt.


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MCX Nickel Nov 2018

Nickel dropped on late profit booking after prices seen supported with investors looking to potential stimulus spending in China.

Nickel on MCX settled down -0.53% at 810.9 on late profit booking after

prices seen supported with investors looking to potential stimulus

spending in China after weak retail and credit growth data in October.

Some 600 mt in metal content of high-grade nickel pig iron (NPI) output

will be affected in November as the second round of national

environmental review spread to Shandong province on China’s eastern

coast. Affected production accounts for some 1.7% of domestic high-

grade NPI output in October. As of November 15, one local NPI plant has

been required to shut down two out of its three submerged-arc furnaces

of 25000KVA. The mill produces around 900 mt in metal content of high-

grade NPI upon regular operation, taking up 2.5% of China’s monthly

output. From late October, five inspection teams from the central

government started to settle in Shanxi, Liaoning, Jilin, Anhui, Shandong,

Hubei, Hunan, Sichuan, Guizhou and Shaanxi provinces to supervise local

environmental conditions and review the implementation of rectification

plans that were made during previous environmental checks. In October,

China’s value adds by industrial enterprises above a designated size

gained 5.9% year on year, compared to September’s gain of 5.8%,

showed data by the National Bureau of Statistics (NBS). Retail sales of

consumer goods grew 8.6% year on year in October, slower from the

9.2% growth in September. Investment in fixed assets in urban areas

rose 5.7% year on year during January-October, but the growth ratio fell

0.3 percentage point compared to a year ago. Technically now Nickel is

getting support at 803.2 and below same could see a test of 795.4 level,

And resistance is now likely to be seen at 823.4, a move above could see

prices testing 835.8.


815.9

SUPPORT 3

843.6 835.8 823.4 803.2 795.4 783.0

828 807.8 810.9 -0.53 16096


Trading Ideas :Nickel trading range for the day is 795.4-835.8.

In October, China’s value adds by industrial enterprises above a designated size gained 5.9% year on year, compared to September’s gain of 5.8%.

Some 600 mt in metal content of high-grade NPI output will be affected in November as the second round of national environmental review.

Warehouse stock for Nickel at LME was at 216174mt that is down by -132mt.


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NCDEX Jeera Dec 2018

Jeera dropped on profit booking after prices gained amid reports of lower sowing so far.

Jeera on NCDEX settled down by -2.77% at 20020 as demand in the spot

market is sluggish as traders don't want to buy produce at higher prices.

Further, farmers are selling old stock in the market as sowing for new

season is going to start soon. Jeera exports dropped by 20.8% to 10,769

tons in August compared to 13,597 tons in the same period a year ago,

according to Ministry of Commerce data. However, Jeera arrivals in Unjha

mandi, Gujarat, were 6,410 bags compared to 11,870 bags on the

previous day. Jeera sowing has commenced in Gujarat and has been

planted on 36,600 hectares, showed Gujarat state agriculture data.

However, as per reports the carry over stock of cumin was lowered to

200,000 - 300,000 bags from expected stock of 500,000 bags this

season. Traders are expecting higher sowing this year because of

prevailing high prices but lack of rains may impact yield. Moreover,

participants are expecting lower jeera sowing this year as moisture in the

soil is not sufficient to grow the produce because of deficient rainfall in

major producing regions. Meanwhile, carryover stock of jeera was lowered

to 200,000-300,000 bags from expected stock of 500,000 bags this

season. Sowing was expected to be higher due to prevailing high prices

but lower rains in producing areas of both the states may impact the yield

and overall output. Gujarat and Rajasthan are facing water shortage due

to erratic monsoon rains. In Unjha, a key spot market in Gujarat, jeera

edged up by 11.9 Rupees to end at 20483.35 Rupees per 100

kg.Technically now Jeera is getting support at 19740 and below same

could see a test of 19455 level, And resistance is now likely to be seen at

20430, a move above could see prices testing 20835.


19950

SUPPORT 3

20745 20460 20215 19685 19400 19155

20175 19645 19970 -0.25 5364


Trading Ideas :Jeera trading range for the day is 6657-6657.

Jeera sowing has started in Gujarat on a poor note and farmers sown the spice on 1,500 hectares only.

NCDEX accredited warehouses jeera stocks gained by 221 tonnes to 3346 tonnes.

In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 20044 rupee per 100 kg.


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NCDEX Turmeric Dec 2018

Turmeric prices dropped on profit booking after prices gained amid concerns that drought condition in Maharashtra and Karnataka will affect standing crop.

Turmeric on NCDEX settled down by -0.3% at 6604 on profit booking

after prices gained amid concerns that drought condition in Maharashtra

and Karnataka will affect standing crop. 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. 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 Andhra Pradesh, farmers planted turmeric over area 18,000 hectares,

up from 14,000 hectares a year ago. However, there are drought

condition in Maharashtra and Karnataka affect Turmeric standing crop.

Deficit rainfall reported in Maharashtra Marathwada turmeric growing

regions like Hingoli, Sangli, Nanded, Basmat etc. affecting turmeric

standing crop. As per local trade information, 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%. In

Nizamabad, a major spot market in AP, the price ended at 7235 Rupees

dropped -6.65 Rupees.Technically market is under fresh selling as market

has witnessed gain in open interest by 1.17% to settled at 13005 while

prices down -20 rupees, now Turmeric is getting support at 6578 and

below same could see a test of 6554 level, And resistance is now likely to

be seen at 6638, a move above could see prices testing 6674.


6622

SUPPORT 3

6698 6674 6638 6578 6554 6518

6650 6590 6604 -0.30 13005


Trading Ideas :Turmeric trading range for the day is 6554-6674.

As per reports, standing crop likely to damage around 10 - 20% currently, if higher temperature will continue next 15 - 20 days.

NCDEX accredited warehouses turmeric stocks dropped by 2961 tonnes to 3472 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 7235 Rupees dropped -6.65 Rupees.


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MCX Menthaoil Nov 2018

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

Mentha oil on MCX settled up by 0.4% at 1804.7 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 1950.90 per 1kg. Spot prices was up by

Rs.14.10/-.Technically market is under short covering as market has

witnessed drop in open interest by -2.31% to settled at 1186 while prices

up 7.2 rupees, now Menthaoil is getting support at 1794.9 and below

same could see a test of 1785 level, And resistance is now likely to be

seen at 1817.8, a move above could see prices testing 1830.8.


1806.00

SUPPORT 3

1840.7 1830.8 1817.8 1794.9 1785.0 1772.0

1820.90 1798.00 1804.70 0.40 1186


Trading Ideas :Menthaoil trading range for the day is 1785-1830.8.

Mentha oil spot at Sambhal closed at 1950.90 per 1kg. Spot prices was up by Rs.14.10/-.

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 -625 166450

ALUMINIUM 675 1058125

NICKEL -132 216174

LEAD -75 110900

ZINC -5500 125400

4552 22420 19970 4729 6604 4177 524.2 3427

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

739.1CLOSE

P. POINT 4558 22420 19930 4723 6614 4171

4601 22460 20215 4769 6638 4201

RESISTANCE

4694 22540 20745 4854 6698 4254

524.5 3431 737

748

4651 22500 20460 4808 6674 4224 535.2 3464 744

540.4 3479

529.7 3446 741

4638 6554 4118 513.8 3398 730

4508 22380 19685 4684 6578 4148 519.0 3413

727

Cng in OI -3.13 0.37 -3.56 -2.79 1.17 -5.19 -9.08 -0.50 -6.26

SUPPORT

4415 22300 19155 4599 6518 4095 508.3 3380

734

4465 22340 19400

Short Covering

LME DAILY STOCK POSITION ECONOMICAL DATA

DATA Previous

12:30pm EUR German WPI m/m 0.002 0.004

TREND Long Liquidation Fresh Buying Long Liquidation Short Covering Fresh Selling Short Covering Long Liquidation Short Covering

2:00pm EUR ECB President Draghi Speaks 0 0

3:30pm EUR Final CPI y/y 0.022 0.021

3:30pm EUR Final Core CPI y/y 0.011 0.011

Tentative EUR Italian Trade Balance 2.87B 2.56B

6:30pm EUR German Buba President Weidmann Speaks 0 0

7:45pm USD Capacity Utilization Rate 0.783 0.781

7:45pm USD Industrial Production m/m 0.002 0.003

0 0 0 0 0

0 0 0 0 0


-625

675

-132 -75

-5500-6000

-5000

-4000

-3000

-2000

-1000

0

1000

COPPER ALUMINIUM NICKEL LEAD ZINC

LME STOCK

NEWS YOU CAN USE

China’s factory-gate inflation slowed for the fourth month in October amid cooling domestic demand for raw materials and ebbing manufacturing activity, underscoring

rising economic pressure in the face of simmering trade frictions with the United States. The consumer price index (CPI), meanwhile, remained steady in October from the

previous month with food prices stable, official data from National Bureau of Statistics (NBS) showed. The producer price index (PPI), a measure of the prices businesses

receive for their goods and services, rose 3.3 percent in October from a year earlier, easing from 3.6 percent in September, the statistics bureau said. Underlying factory-

gate inflation in recent months has been crimped by easing consumption, with China’s fixed-asset investment growth hovering around record lows and industrial firms’

profits falling since May. Beijing’s clamp-down on financial risks had also slowed credit demand somewhat, while some mid-sized companies have struggled to pass on

higher prices to consumers. Private and official factory surveys have shown worrying months-long downturn on export orders, suggesting Beijing’s intensifying trade

dispute with the United States is starting to put a strain on businesses. Government data on exports, however, has shown remarkable strength, likely due to shippers

rushing to beat higher U.S. tariffs on Chinese goods due to come into effect at the start of next year.

British finance minister Philip Hammond raised the prospect of looser budget policy after Brexit and said faster growth was the best way to cut Britain's debt burden, but

insisted he was still committed to ultimately running a budget surplus. Hammond's annual budget last week reinforced some analysts' doubts about his commitment to a

budget surplus, after he used a tax windfall to fund public spending commitments rather than to make faster progress at reducing public debt. Prime Minister Theresa May

said last month that austerity was ending after a series of cuts to public services and welfare benefits since 2010, and had previously announced a big rise in public

healthcare spending. The non-partisan Institute for Fiscal Studies said Hammond's actions suggested that the idea he really intended to eliminate the budget deficit by

the mid-2020s was "surely for the birds".Asked by a parliamentary committee if the Treasury had given up on the prospect of running a budget surplus in the next

decade, Hammond said: "No, it hasn't been abandoned." However, he declined to say when he expected a surplus. Budget forecasts last week showed government

borrowing as a share of national income on track to fall to 0.8 percent in 2023/24 from a lower-than-expected 1.2 percent -- or 25.5 billion pounds ($33.3 billion) -- this

financial year.

China is likely to open its doors to soyabean from India after allowing the import of non-basmati rice and raw sugar to address the worsening trade imbalance between

the two countries, according to senior government officials. “With China no longer willing to purchase soyabean from the US due to the on-going trade discord between

the two, there is a big opportunity for Indian soyabean in the Chinese market. Senior trade officials from both countries discussed the steps to start imports from India

during a recent meeting in Shanghai,” an official told. Soyabean is one of the items on which China imposed retaliatory duties of 25 per cent against the US in response to

similar levies imposed by the Trump administration on Chinese products. “China, which buys more than half of the world’s soyabean produce, is importing huge quantities

from Brazil to replace what it sourced from the US. Once it gives clearance to Indian exporters, it can start buying from India too,” the official said. China had already cut

import tariffs on soyabean and soyabean meals from Bangladesh, India, Laos, South Korea and Sri Lanka in July to prepare for more imports from these countries

following its reduced purchases from the US. “Earlier, Beijing had quality issues with Indian soyabean but several steps have been taken in India to ensure compliance

with globally accepted norms. Hopefully, quality won’t be an issue now,” the official said.



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.

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or use would be contrary to law or regulation or what would subject to Systematix Commodities Services Private Limited (SCSPL) or its affiliates to any registration or licensing requirement within such jurisdiction. If this report is inadvertently send or has reached any individual in such

country, especially, USA, the same may be ignored and brought to the attention of the sender. Neither this document nor any copy of it may be taken or transmitted into the United State (to U.S.Persons), Canada, or Japan or distributed, directly or indirectly, in the United States or

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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