Daily Commodity Roundup as on - Systematix...
Transcript of Daily Commodity Roundup as on - Systematix...
Daily Commodity Roundup as on Wednesday, September 12, 2018
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 1
14.07CRUDE $
69.25
-0.35 -0.42 2.53
IN
TER
NA
TIO
NA
L M
AR
KET U
PD
ATE GOLD $
1194.17SILVER $
USDJPY111.488
-0.12 -0.09 -0.1EURUSD
1.1586GBPUSD
1.30053
LME
NICKEL
12165
-0.03 0.58 -0.41
LME
COPPER
5878 LME
ZINC
2335
$ INDEX95.19
0.15 0.66 0.08
LME ALUMINIUM
2053 LME
LEAD
1986
DJIA25857
-1.34 -1.32 -0.23SENSEX
37413NIFTY
11288
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 2
NIKKEI22561
0.37 0.19 -0.46USDINR
72.82 S&P
INDEX
2877
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MCX Gold Oct 2018
Gold prices held steady as investors remained on the sidelines amid expectations of a U.S. interest rate hike this month.
Gold prices held steady as investors remained on the sidelines amid
expectations of a U.S. interest rate hike this month. Since its April peak
gold has dropped more than 12 percent as a trade war between China
and the U.S. has driven investors to seek safety in the dollar rather than
in gold, a traditional safe haven. Bearish bets on Comex gold have risen
to record levels while investors have liquidated exchange-traded gold
fund holdings. The dollar was little changed versus a currency basket,
with the euro underpinned by easing concerns over Italian debt and the
British pound near five-week highs on hopes of a Brexit deal with the
European Union. Broadly underpinning the dollar were Friday’s comments
from U.S. President Donald Trump that he was ready to impose tariffs on
virtually all Chinese imports to the United States. Furthermore, U.S.
payrolls data last week cemented expectations that the Federal Reserve
will raise U.S. interest rates in September. The trade conflict has
prompted investors to buy the U.S. dollar in the belief that the United
States has less to lose from the dispute, making dollar-priced gold more
expensive for non-U.S. buyers. Traders were bracing for a potential
escalation in the Sino-U.S. row after President Donald Trump said last
week that he was ready to impose tariffs on virtually all Chinese imports
to the United States. China told the World Trade Organization on Tuesday
it wanted to impose $7 billion a year in sanctions on the United States in
retaliation for Washington’s non-compliance with a ruling in a dispute
over U.S. dumping duties. Technically now Gold is getting support at
30588 and below same could see a test of 30460 level, And resistance is
now likely to be seen at 30791, a move above could see prices testing
30866.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
30630
SUPPORT 3
30994 30866 30791 30588 30460 30385
30738 30535 30717 0.01 8981
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 3
Trading Ideas :Gold trading range for the day is 30460-30866.
Strong U.S. payrolls data cemented expectations that the U.S. Federal Reserve will raise interest rates in September, in what would be its third hike this year.
Traders were bracing for a potential escalation in the Sino-U.S. row after President Donald Trump raised the stakes by saying he was ready to impose tariffs.
Meanwhile, physical gold buying waned slightly in Asia this week as investors waited to see if prices would fall further.
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MCX Silver Dec 2018
Silver remained under pressure with investors reticent to bid up the metal in the face of looming U.S. interest rate increases and escalating Sino-U.S. trade tensions.
Silver remained under pressure with investors reticent to bid up the metal
in the face of looming U.S. interest rate increases and escalating Sino-
U.S. trade tensions. The euro underpinned by easing concerns over
Italian debt and the British pound near five-week highs on hopes of a
Brexit deal with the European Union. Meanwhile, China is planning to ask
the WTO for permission to impose sanctions on the U.S., according to a
WTO meeting agenda. Beijing will formally place the request next week,
as an apparent response to remarks from Trump. Broadly underpinning
the dollar were Friday’s comments from U.S. President Donald Trump that
he was ready to impose tariffs on virtually all Chinese imports to the
United States. Furthermore, U.S. payrolls data last week cemented
expectations that the Federal Reserve will raise U.S. interest rates in
September. That would be the third increase this year, with expectations
of another in December. The ZEW's measure of economic sentiment
climbed to -10.6 from -13.7 in August, the Mannheim-based think tank
said. The US sales at wholesale were unchanged in July after dipping
0.2% in June. At July's sales pace it would take wholesalers 1.26 months
to clear shelves, up from 1.25 in June. The wholesale inventories
increased 0.6% instead of gaining 0.7% as reported last month. Given
strong domestic demand, businesses are likely to boost stocks of goods,
which should underpin production at factories. Technically market is
under fresh selling as market has witnessed gain in open interest by
2.15% to settled at 26453 while prices down -93 rupees, now Silver is
getting support at 37100 and below same could see a test of 36800 level,
And resistance is now likely to be seen at 37605, a move above could see
prices testing 37810.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
37362 37510
38110 37810 37605 37100 36800 36595
37005 37401 -0.25 26453
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 4
Trading Ideas :Silver trading range for the day is 36800-37810.
Furthermore, U.S. payrolls data last week cemented expectations that the Federal Reserve will raise U.S. interest rates in September.
The wholesale inventories increased 0.6% instead of gaining 0.7% as reported last month. Stocks at wholesalers edged up 0.1% in June.
The trade conflict has prompted investors to buy the U.S. dollar in the belief that the United States has less to lose from the dispute.
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MCX Crudeoil Sep 2018
Crude oil rose after a report of falling crude inventories and the looming sanctions against Iran fueled expectations of a tightening market.
Crudeoil on MCX settled up 2.6% at 5044 after a report of falling crude
inventories and the looming sanctions against Iran fueled expectations of
a tightening market. Prices were also pushed up by Hurricane Florence,
which is expected to make landfall on the U.S. East Coast on Friday, and
which has caused fuel shortages following the evacuation of millions of
households and businesses. The global oil market has recovered from an
oversupply crisis thanks to a 2016 Vienna accord to curb output but
remains "fragile" due to geopolitics and production declines in some
nations, Russia's energy minister said. "Today, the situation is quite
fragile, of course, and it is related to the fact that not all the countries
have managed to restore their market and production," Russian Energy
Minister Alexander Novak said at an economic conference in the Russian
far eastern city of Vladivostok. "We observe such situation in Mexico,
where the decline more than halved from the forecasts on 2018. In
Venezuela production is falling quite strongly, by 50,000 barrels per day.
This means that the market is still not balanced in long-term
perspective." U.S. crude stocks fell by 8.6 million barrels in the week to
September 7 to 395.9 million barrels, the American Petroleum Institute
(API), a private industry group, said. Outside the United States, traders
have been focusing on the impact of looming U.S. sanctions against Iran,
which will target oil exports from November. Technically market is under
fresh buying as market has witnessed gain in open interest by 21.72% to
settled at 14247 while prices up 128 rupees, now Crudeoil is getting
support at 4938 and below same could see a test of 4833 level, And
resistance is now likely to be seen at 5101, a move above could see
prices testing 5159.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
4905 5054
5264 5159 5101 4938 4833 4775
4891 5044 2.60 14247
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 5
Trading Ideas :Crudeoil trading range for the day is 4833-5159.
The global oil market has recovered from an oversupply crisis thanks to a 2016 Vienna accord to curb output but remains "fragile" due to geopolitics.
Russian Energy Minister Alexander Novak said that the OPEC+ oil group may sign a new long-term cooperation deal at the beginning of December.
OPEC, Russia and other non-OPEC members agreed in June to return to 100 percent compliance with oil output cuts that began in January 2017.
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MCX Copper Nov 2018
Copper eases as Sino-U.S. trade war raises demand concerns
Copper on MCX settled down -0.29% at 425.55 while prices recovered
from the day's low as support seen from Rupee weakness and LME
Copper prices which edged higher as the euro gained versus the dollar
amid easing concerns about Italian debt, even as most investors
remained cautious about any further escalation in the U.S.-China trade
dispute. LME copper was up 0.7 percent at $5,951 a tonne, after falling to
as low as $5,879 earlier in the session. The most-traded copper contract
on the Shanghai Futures Exchange closed 0.5 percent higher at 47,910
yuan ($6,983) a tonne. China’s trade surplus with the United States
widened to a record in August even as its export growth slowed slightly,
an outcome that could push Trump to turn up the heat on Beijing. Last
night the US dollar fell against the Canadian dollar, which was buoyed by
a resumed North American Free Trade Agreement (NAFTA) trade
negotiations between the two counties Tuesday. Both Canada's Foreign
Minister and President Donald Trump said the talks were productive so
far. The US dollar inched down 0.08% to settle at 95.07. Base metals
dipped across the board as LME lead led the losses and closed 2.21%
lower. LME zinc slumped 1.78%, nickel lost 1.57%, aluminium fell 1.3%,
and SHFE nickel went down 1.27%, zinc declined 1.18%, and aluminium
slid 1.02%. Now Market participants should monitor data including the US
producer price index (PPI) for August, and its EIA weekly crude inventory
data. Technically market is under long liquidation as market has
witnessed drop in open interest by -27.67% to settled at 13667, now
Copper is getting support at 420.8 and below same could see a test of
415.9 level, And resistance is now likely to be seen at 430.8, a move
above could see prices testing 435.9.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
426.80
SUPPORT 3
440.8 435.9 430.8 420.8 415.9 410.8
431.05 421.00 425.55 -0.29 13667
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Copper trading range for the day is 415.9-435.9.
Trade dispute between the United States and China raised concerns over demand for industrial metals
China’s copper imports fell 6.7 percent from a month ago to 420,000 tonnes in August, data showed.
Warehouse stock for Copper at LME was at 234300mt that is down by -4450mt.
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 6
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MCX Zinc Sep 2018
Zinc dropped amid concern that an escalating trade war between the U.S. and China will erode demand.
Zinc on MCX settled down -2.14% at 169 tracking weakness from LME
zinc fell further after a rebound, due to limited upward momentum, and
settled the night 1.78% lower at $2,321/mt. Also sentiments remain
down as LME zinc inventories have climbed 74 percent since the
beginning of March to 229,675 tonnes. As risk aversion sentiment is
unlikely to ease in the short run, expectations of production resumption
after environmental curbs also weighed on the price. Despite growing
signs of physical tightness across the base metals complex, a negative
macroeconomic backdrop continues to trump fundamentals. The upside
momentum remains capped, with buyers reluctant to establish their
dominance due to the simmering trade tensions between the US and
China. Concerns over a fresh set of US tariffs targeting $200 billion worth
of Chinese goods, due to come into effect last week, and Chinese
authorities’ vows to retaliate against any further tariffs continue to
undermine market confidence. As such, global risk sentiment remains
clouded by fear and uncertainty. Meanwhile China will respond if the
United States takes any new steps on trade, the foreign ministry said on
Monday, after U.S. President Donald Trump warned he was ready to slap
tariffs on virtually all Chinese imports into the United States. Base metals
dipped across the board as LME lead led the losses and closed 2.21%
lower. LME zinc slumped 1.78%, nickel lost 1.57%, aluminium fell 1.3%,
and SHFE nickel went down 1.27%, zinc declined 1.18%, and aluminium
slid 1.02%. Now Market participants should monitor data including the US
producer price index (PPI) for August, and its EIA weekly crude inventory
data. Technically market is getting support at 167.1 and below same
could see a test of 165 level, And resistance is now likely to be seen at
172.6, a move above could see prices testing 176.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
173.9
SUPPORT 3
178.1 176.0 172.6 167.1 165.0 161.6
173.9 168.5 169.0 -2.14 7959
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Zinc trading range for the day is 165-176.
China's consumer price index (CPI), a main gauge of inflation, rose 2.3% year on year in August, compared with 2.1% for July.
Eurozone investor confidence deteriorated unexpectedly in September, survey data from think tank Sentix showed.
Warehouse stock for Zinc at LME was at 229675mt that is up by 125mt.
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 7
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MCX Nickel Sep 2018
Nickel dropped as an intensifying trade war between Washington and Beijing raised concerns over demand for industrial metals in top consumer China.
Nickel on MCX settled down -1.49% at 887.40 tracking benchmark nickel
on the London Metal Exchange closed down 1.5 percent at $12,230 a
tonne after hitting $12,165, its weakest since Dec. 29 last year as the US
dollar stayed at highs and trade war worries remained, LME nickel
declined to an eight-month low and the SHFE 1811 fell to the lowest in
five months overnight. Nickel hit an eight-month low and zinc slipped to
its lowest in three weeks on Tuesday as speculators added bearish
positions against the backdrop of persistent international trade concerns
and a slide in steel prices. Concerns still prevails in the market as US
President Donald Trump warned last week that he was ready to levy
additional tariffs on practically all Chinese imports, while China is
prepared to ask the World Trade Organization next week for permission to
impose sanctions on the United States. The U.S. dollar rebounded from
losses and was trading 0.1 percent firmer, making dollar-denominated
assets such as commodities more expensive for buyers using other
currencies. Last night the US dollar fell against the Canadian dollar, which
was buoyed by a resumed North American Free Trade Agreement
(NAFTA) trade negotiations between the two counties Tuesday. Now
Market participants should monitor data including the US PPI for August,
and its EIA weekly crude inventory data. Technically market is under
fresh selling as market has witnessed gain in open interest by 6.78% to
settled at 14102 while prices down -13.4 rupees, now Nickel is getting
support at 880.8 and below same could see a test of 874.2 level, And
resistance is now likely to be seen at 898.5, a move above could see
prices testing 909.6.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
901.3
SUPPORT 3
916.2 909.6 898.5 880.8 874.2 863.1
903 885.3 887.4 -1.49 14102
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Nickel trading range for the day is 874.2-909.6.
China will respond if the United States takes any new steps on trade, after U.S. President Donald Trump warned he was ready to slap tariffs.
China’s trade surplus with US widened to a record in August even as its export growth slowed slightly, an outcome that could push Trump to turn up the heat on Beijing.
Warehouse stock for Nickel at LME was at 236340mt that is down by -726mt.
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 8
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NCDEX Jeera Oct 2018
Jeera prices ended with gains amid pick-up in domestic as well as exports demand at the spot market.
Jeera on NCDEX settled up by 0.23% at 19465 amid pick-up in domestic
as well as exports demand at the spot market. Further, tight stocks
position on fall in arrivals from the growing regions also added supported
to jeera prices uptrend. However, upside seen limited due to improved
rains in the central Gujarat major Jeera producing area. 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. Lower Jeera supply reported in the spot market
during the period, as stockists were holding back their stocks on
expectations of higher prices in coming days. Jeera supply from last year
up by 100% due to increased production current year. Currently, all India
stocks reported around 25 – 27 lakh bags. According to export data
released by Commerce ministry, exports in June surged 55.7% on year
to21,404 tonnes. Moreover, country exports about 75,242 tonnes of Jeera
during Apr-Jun 2018. Jeera arrivals during July are pegged at 8,700
tonnes compared to 3,800 tonnes last year for same period. India is
expected to export a record 175,000 tn of jeera in 2018-19 (Apr-Mar),
primarily because supply from its competitors has taken a hit making it
the sole supplier of the largely sought after spice. In Unjha, a key spot
market in Gujarat, jeera edged up by 10 Rupees to end at 19450 Rupees
per 100 kg.Technically now Jeera is getting support at 19340 and below
same could see a test of 19210 level, And resistance is now likely to be
seen at 19590, a move above could see prices testing 19710.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
19525
SUPPORT 3
20190 19960 19820 19450 19220 19080
19730 19360 19680 1.10 7914
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Jeera trading range for the day is 6560-6560.
However, upside seen limited due to improved rains in the central Gujarat major Jeera producing area.
NCDEX accredited warehouses jeera stocks gained by 267 tonnes to 2933 tonnes.
In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19500 rupee per 100 kg.
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 9
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NCDEX Turmeric Oct 2018
Turmeric prices seen supported tracking firmness in spot demand on lower arrival.
Turmeric on NCDEX settled up by 0.27% at 6696 tracking firmness in
spot demand on lower arrival. Prices also seen supported on anticipation
of upcountry demand and on poor quality stocks. Despite last year's
lower output stocks of turmeric are stated to be comfortable and would be
more than sufficient to meet the demand in coming months. Moreover,
crop conditions are good in all the states along with increased acreage. In
Telangana, turmeric acreage rose to 47,790 hectare from 44,956 hectare
a year ago, state government data showed. In Andhra Pradesh farmers
planted turmeric over an area 17,000 hectares until September 6 up from
14,000 hectares a year ago. India exported 107,300 ton turmeric during
2017-18 as down from 116,500 ton a year ago. Besides, restricted
supplies from growing regions also added to the upside. However, upside
seen limited due to improved sowing and lower exports demand and
tracking higher acreage during current season at key turmeric growing
regions. The spot market is likely to get festive demand in coming weeks
which can prompt buying again in turmeric. In Telangana, Turmeric
acreage was reported at 47,114 hectares in the corresponding period last
year. Current sowing stands at 86 percent of normal for the season. In
Nizamabad, a major spot market in AP, the price ended at 6930.95
Rupees gained 21.55 Rupees.Technically market is under fresh buying as
market has witnessed gain in open interest by 1.42% to settled at 11775
while prices up 18 rupees, now Turmeric is getting support at 6650 and
below same could see a test of 6602 level, And resistance is now likely to
be seen at 6738, a move above could see prices testing 6778.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
6716
SUPPORT 3
6826 6778 6738 6650 6602 6562
6730 6642 6696 0.27 11775
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Turmeric trading range for the day is 6602-6778.
Prices also seen supported on anticipation of upcountry demand and on poor quality stocks.
NCDEX accredited warehouses turmeric stocks gained by 91 tonnes to 4459 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 6930.95 Rupees gained 21.55 Rupees.
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 10
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MCX Menthaoil Sep 2018
Mentha oil dropped on profit booking amid subdued demand at the spot market.
Mentha oil on MCX settled down by -1.36% at 1787.8 on profit booking
amid subdued demand at the spot market. Further, ample stock positions
on higher supplies from the major producing belts of Chandausi in Uttar
Pradesh too weighed on mentha oil prices. Anticipation of bumper crop
harvest and nearing of harvesting season adding negativity to the
market. As per preliminary estimates, acreage under mentha crop will
rise this year as the farmers are encouraged by higher price in recent
past. As per trade sources, all the major markets are likely to witness
higher inflow of the produce. 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. As per the
data, the global demand of essential oil will increase in the coming years.
Mentha oil spot at Sambhal closed at 1916.80 per 1kg. Spot prices was
down by Rs.-53.60/-.Technically market is under long liquidation as
market has witnessed drop in open interest by -3.77% to settled at 1353
while prices down -24.7 rupees, now Menthaoil is getting support at
1775.6 and below same could see a test of 1763.4 level, And resistance is
now likely to be seen at 1800.5, a move above could see prices testing
1813.2.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
1795.00
SUPPORT 3
1825.4 1813.2 1800.5 1775.6 1763.4 1750.7
1801.00 1776.10 1787.80 -1.36 1353
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Menthaoil trading range for the day is 1763.4-1813.2.
Mentha oil spot at Sambhal closed at 1916.80 per 1kg. Spot prices was down by Rs.-53.60/-.
Further, ample stock positions on higher supplies from the major producing belts of Chandausi in Uttar Pradesh too weighed on mentha oil prices.
Anticipation of bumper crop harvest and nearing of harvesting season adding negativity to the market.
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 11
TIME ZONE Forecast
CommodityLME STOCK Stock
COPPER -4450 234300
ALUMINIUM -5300 1054525
NICKEL -726 236340
LEAD -200 120300
ZINC 125 229675
4003 23030 19680 4279 6696 4214 605.9 3262
DAILY MARKET TRADING LEVEL
COMMODITIESNCDEX CHANA Oct
2018
NCDEX Cotton Oct
2018
NCDEX Jeera Oct
2018
NCDEX Guarseed10
Oct 2018
NCDEX Turmeric
Oct 2018
NCDEX Rmseed Oct
2018MCX CPO Sep 2018
NCDEX Soyabean
Oct 2018
NCDEX
Ref.Soya oil
Oct 2018
746.05CLOSE
P. POINT 3980 23080 19590 4294 6690 4208
4030 23190 19820 4323 6738 4235
RESISTANCE
4108 23460 20190 4395 6826 4284
607.1 3249 747
752
4058 23350 19960 4366 6778 4257 611.4 3303 750
613.0 3337
608.7 3283 749
4222 6602 4159 602.8 3195 744
3952 22920 19450 4251 6650 4186 604.4 3229
743
Cng in OI 6.77 -1.28 5.27 -5.05 1.42 18.52 0.09 0.47 5.95
SUPPORT
3874 22650 19080 4179 6562 4137 600.1 3175
746
3902 22810 19220
Fresh Selling
LME DAILY STOCK POSITION ECONOMICAL DATA
DATA Previous
1:30pm EUR Italian Industrial Production m/m -0.004 0.005
TREND Fresh Buying Long Liquidation Fresh Buying Long Liquidation Fresh Buying Fresh Selling Fresh Selling Fresh Buying
2:30pm EUR Industrial Production m/m -0.005 -0.007
2:30pm EUR Italian Quarterly Unemployment Rate 0.108 0.111
Tentative EUR German 30-y Bond Auction 0 0.94|1.6
6:00pm USD PPI m/m 0.002 0
6:00pm USD Core PPI m/m 0.002 0.001
8:00pm USD Crude Oil Inventories -1.3M -4.3M
10:15pm USD FOMC Member Brainard Speaks 0 0
10:31pm USD 10-y Bond Auction 0 2.96|2.5
11:30pm USD Beige Book 0 0
Date : Wednesday, September 12, 2018 URL : www.systematixshares.com Page No : 12
-4450
-5300
-726
-200
125
-6000
-5000
-4000
-3000
-2000
-1000
0
1000
COPPER ALUMINIUM NICKEL LEAD ZINC
LME STOCK
NEWS YOU CAN USE
U.S. job growth likely accelerated in August, with the unemployment rate expected to have fallen back to an 18-year low of 3.8 percent, which would bolster views that
the economy was so far weathering the Trump administration’s escalating trade war with China. The administration’s $1.5 trillion tax cut package and increased
government spending were shielding the economy from the trade tensions, which have also seen Washington engaged in tit-for-tat tariffs with other trade partners,
including the European Union, Canada and Mexico. The import duties implemented so far have affected only a small portion of the American economy, but warned this
could change if President Donald Trump pressed ahead with additional tariffs on Chinese imports. The United States and China have slapped retaliatory tariffs on a
combined $100 billion of products since early July. Americans had until Thursday to comment on a list of $200 billion worth of Chinese goods widely expected to be hit
with tariffs soon. The government imposed import duties on goods including steel, aluminum, washing machines, lumber and solar panels early this year to protect
American industries from what Trump says is unfair foreign competition. August job growth could, however, fall short of expectations because of a seasonal quirk. Over
the past several years, the initial August job count has tended to exhibit a weak bias, with revisions subsequently showing strength.
An OPEC and non-OPEC technical committee will next week discuss proposals for sharing out an oil-output increase, sources familiar with the matter said, a tense topic for
the producer group after it decided in June to ease supply curbs. A panel called the Joint Technical Committee will on Tuesday consider proposals on distributing the
agreed output increase of 1 million barrels per day, the sources said. "The talks will look at various mechanisms" to reach the required production level, a source said. If
resolved, the talks could lead to an easing of tensions within the Organization of the Petroleum Exporting Countries. Iran had been against the June decision, which came
amid pressure from U.S. President Donald Trump to reduce oil prices. There are four proposals on how to distribute the increase, presented by Iran, Algeria, Russia and
Venezuela, one of the sources said, suggesting agreement will not be straightforward. One idea, to share it pro-rata among participating countries, is unlikely to be
approved by Russia and Saudi Arabia since it would give them less than the supply boosts of 300,000 and 400,000 bpd that they respectively want, the source said.
OPEC, Russia and other non-members agreed in June to return to 100 percent compliance with oil output cuts that began in January 2017. Months of underproduction in
Venezuela and elsewhere had pushed adherence above 160 percent. The June meeting concluded with a deep disagreement between Saudi Arabia and Iran, longtime
rivals in OPEC. Saudi Arabia said the decision implied a reallocation of extra production from countries unable to produce more to those, such as Riyadh, that can. Iran,
facing a forced cut in its oil exports because of U.S. sanctions, disagreed.
India’s prospects for oilmeal exports to China have brightened after the latest measures taken by the two countries to end a six-year-old ban imposed by China in 2012.
Late last month, the Union Ministry of Commerce and Indian Embassy in Beijing decided to cover all 12 pests under the phyto-sanitary certificate to enable China’s
General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) to clear Indian consignments of oilmeals. However, even as the Indian government
takes proactive measures, a formal reconfirmation on the same is awaited from China, which is in need of alternative sources of oilmeal to feed its animals. In a
statement, the Solvent Extractors’ Association of India (SEA) said: “The ongoing trade dispute between the US and China has created a lot of uncertainty, forcing China to
look out to other origins for their requirements of soyabean and oilmeals. This has compelled China to re-look its ban imposed for importing of oilmeals from India since
2012.” Prior to the ban, China imported nearly half a million tonnes of oilmeals from India, mainly rapeseed meal of 350,000-400,000 tonnes and 100,000 tonnes of
soyameal. In its monthly statement on export of oilmeals, the SEA stated that overall oilmeal exports from April to August 2018 were reported at 1,192,095 tonnes as
compared to 986,606 tonnes during the same period last year, indicating a rise of 21 per cent. According to the SEA, export of rapeseed meal sharply increased to nearly
490,232 tonnes during the period, a rise of nearly 107 per cent against the same period last year. The surge has been driven by exports to South Korea, Vietnam and
Thailand.
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