Daily Commodity Roundup as on Wednesday, October 17, 2018
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 1
14.62CRUDE $
71.92
-0.22 -0.07 0.20
IN
TER
NA
TIO
NA
L M
AR
KET U
PD
ATE GOLD $
1221.93SILVER $
USDJPY112.35
-0.1 -0.04 0.06EURUSD
1.1561GBPUSD
1.31746
LME
NICKEL
12510
-0.39 0.25 -0.2
LME
COPPER
6209 LME
ZINC
2606
$ INDEX95.19
-0.29 -0.53 0.09
LME ALUMINIUM
2032 LME
LEAD
2055
DJIA25251
0.85 0.69 -0.35SENSEX
35162NIFTY
10585
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 2
NIKKEI22872
-0.41 -0.59 1.43USDINR
73.62 S&P
INDEX
2751
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MCX Gold Dec 2018
Gold dropped as firmness in Rupee weighed despite price seen supported as risk-averse investors sought refuge amid rising political tensions and economic uncertainty.
Gold on MCX settled down -0.62% at 31868 as pressure seen after Indian
Rupee climbed 35 paise to end at nearly two-week high of 73.48 per
dollar amid softening crude oil prices and easing concerns over the trade
deficit. While Comex Gold prices settled slightly higher ended with gains
of $0.70 to settled at $1,231.00 an ounce as the dollar stayed sluggish
against some major currencies, ahead of the release of the minutes of the
FOMC's September meeting. It appears uncertainty about near term
global economic growth and geopolitical worries prompted traders to pick
up the yellow metal. Despite rising geopolitical worries after the
disappearance of Saudi Arabian journalist Jamal Khashoggi and the
subsequent spat between the U.S. and Saudi Arabia, stock markets are
moving higher, due largely to some better than expected earnings. Gold
is still down about 9% from its April peak, as the dollar had benefited
from early signs of the Fed’s preference for a higher-for-longer interest
rate plan. US President Donald Trump’s renewed attacks on the Fed’s
policy tightening have also highlighted the political pressure on the U.S.
central bank. Former Fed Chief Janet Yellen reportedly warned Monday
that the president’s remarks were “essentially damaging to the Fed and
to financial stability,” adding that she did not believe that it was “a
desirable thing for a president to comment so explicitly on Fed policy”.
From physical side in India demand is very low this year as the higher
prices are trimming the amount of gold being bought. Technically market
is getting support at 31760 and below same could see a test of 31651
level, And resistance is now likely to be seen at 32069, a move above
could see prices testing 32269.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
32072
SUPPORT 3
32378 32269 32069 31760 31651 31451
32160 31851 31868 -0.62 13370
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 3
Trading Ideas :Gold trading range for the day is 31651-32269.
Prices recently seen supported amid rising tensions between Western powers and Saudi Arabia and concerns over the pace of global economic growth.
U.S. retail sales barely rose in September as a rebound in motor vehicle purchases was offset by the biggest drop in spending at restaurants and bars in nearly two years.
Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.55 percent to 748.76 tonnes.
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MCX Silver Dec 2018
Silver prices dropped on profit booking amid firmness in Rupee after prices seen supported as a sea of global troubles kept safe-haven demand churning.
Silver prices dropped on profit booking amid firmness in Rupee after
prices seen supported as a sea of global troubles kept safe-haven demand
churning. The U.S. dollar index dropped to more than two-week lows on
Tuesday while emerging market currencies outperformed, and rising
stock markets reflected improving risk appetite. The consumer price
index (CPI) rose 2.5% from a year earlier, the largest annual growth in
seven months, according to data from the National Bureau of Statistics.
US industrial production increased for a fourth straight month in
September, boosted by gains in manufacturing and mining output, but
momentum slowed sharply in the third quarter. Past U.S. presidents have
been reticent to criticize the central bank because its independence is
seen as important for economic stability. But Trump in the past week has
called the Fed “crazy,” “loco,” “ridiculous,” and “too cute”. The U.S. Trade
Representative’s office told Congress it intends to open trade talks with
the European Union, the United Kingdom and Japan. U.S. industrial
production increased for a fourth straight month in September, boosted
by gains in manufacturing and mining output, but momentum slowed
sharply in the third quarter. Chinese exporters are mostly confident they
can weather a trade war with the United States, but worry about
collateral damage it might cause throughout the global economy.
Technically market is under fresh selling as market has witnessed gain in
open interest by 5.11% to settled at 23428 while prices down -289
rupees, now Silver is getting support at 38692 and below same could see
a test of 38520 level, And resistance is now likely to be seen at 39174, a
move above could see prices testing 39484.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
39150 39312
39656 39484 39174 38692 38520 38210
38830 38864 -0.74 23428
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 4
Trading Ideas :Silver trading range for the day is 38520-39484.
The consumer price index (CPI) rose 2.5% from a year earlier, the largest annual growth in seven months, according to data.
US industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output.
Chinese consumer inflation in September accelerated for a fourth month, with food prices gaining the most since February.
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MCX Crudeoil Oct 2018
Crude oil gains on evidence of falling Iranian exports, but gains were limited by fears of another outsize U.S. crude build in weekly storage data.
Crude oil gains on evidence of falling Iranian exports, but gains were
limited by fears of another outsize U.S. crude build in weekly storage
data. U.S. crude inventories fell by 2.1 million barrels last week,
compared with expectations for a build of 2.2 million barrels, American
Petroleum Institute data showed. Gasoline stocks dropped by 3.4 million
barrels, compared with for a 1.1 million-barrel decline. Distillate fuel
stockpiles, which include diesel and heating oil, declined by 246,000
barrels, compared with expectations for a 1.3 million-barrel drop, the API
data showed. U.S. President Donald Trump has urged the Organization of
the Petroleum Exporting Countries to raise output to help cover a shortfall
due to new U.S. sanctions on Iran. The market has been supported by
reports that Iranian crude exports may be falling faster than expected
ahead of Nov. 4, the date sanctions on the commodity are due to start.
Meanwhile, OPEC Secretary-General Mohammad Barkindo urged oil
producing companies to increase capacities and invest more to meet
future demand as spare oil capacity shrinks worldwide. OPEC and its allies
including Russia agreed to reduce output by 1.8 million barrels per day
(bpd) from the start of 2017 with Moscow pledging to cut some 300,000
bpd. As oil prices hit $80 per barrel in recent months and with global oil
inventories shrinking fast, Saudi Arabia and Russia agreed to ease
restrictions although they never said the exact levels they would target.
Technically market is under fresh buying as market has witnessed gain in
open interest by 5.71% to settled at 7901 while prices up 9 rupees, now
Crudeoil is getting support at 5224 and below same could see a test of
5167 level, And resistance is now likely to be seen at 5328, a move
above could see prices testing 5375.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
5310 5318
5432 5375 5328 5224 5167 5120
5214 5282 0.17 7901
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 5
Trading Ideas :Crudeoil trading range for the day is 5167-5375.
OPEC Secretary-General Mohammad Barkindo said global spare oil capacity was shrinking, adding that producers and companies should increase their production capacities.
U.S. crude stockpiles were forecast to have risen last week for the fourth straight week, by about 1.1 million barrels
In the first two week of October, Iran exported 1.33 million barrels per day (bpd) of crude to countries including India, China and Turkey.
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MCX Copper Nov 2018
Copper prices fell as a trade war between the United States and the world's top industrial metals consumer China weighed on the market.
Copper on MCX settled down -0.98% at 452.55 as a trade war between
the United States and the world's top industrial metals consumer China
weighed on the market. Pressure seen as China's factory-gate inflation
cooled for a third straight month in September amid ebbing domestic
demand, pointing to more pressure on the world's second-biggest
economy as it remains locked in an intensifying trade war with the United
States. Growth in China's factory sector in September stalled after 15
months of expansion, with export orders falling the most in more than
two years, a private business survey showed. Last night the US dollar
index dropped to more than two-week lows on Tuesday while emerging
market currencies outperformed, as rising stock markets reflected
improving risk appetite. Both LME and SHFE base metals ended in mixed
performance overnight. SHFE nickel and lead sank close to 0.8%, copper
and zinc dropped some 0.4% while aluminium rose some 0.7%. From
data point from US side data showed US industrial production increased
for a fourth straight month in September, boosted by gains in
manufacturing and mining output, but momentum slowed sharply in the
third quarter. Now day ahead some data to monitor today include total
social financing (TSF) and broad M2 money supply in September for
China, consumer inflation in September across the eurozone. Now
technically market is under long liquidation as market has witnessed drop
in open interest by -0.58% to settled at 11970 while prices down -4.5
rupees, now Copper is getting support at 450.5 and below same could see
a test of 448.3 level, And resistance is now likely to be seen at 455.6, a
move above could see prices testing 458.5.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
455.90
SUPPORT 3
460.7 458.5 455.6 450.5 448.3 445.4
456.30 451.25 452.55 -0.98 11970
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Copper trading range for the day is 448.3-458.5.
China's unwrought copper imports surged to their highest in 2-1/2 years in September, while copper concentrate imports climbed to an all-time high.
Yangshan copper import premiums have been near $120 since late September, levels last seen in 2015 and indicating strong demand.
Warehouse stock for Copper at LME was at 164175mt that is up by 2475mt.
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 6
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MCX Zinc Oct 2018
Zinc dropped amid lean factory-gate inflation data in China and nagging concerns about global growth.
Zinc on MCX settled down -0.21% at 193.80 as pressure seen on the
report that accumulated inventories and negative macroeconomic
sentiment weighed. While concerns are there as CHINA debt Off-balance-
sheet borrowings by Chinese local governments could be as high as 40
trillion yuan ($5.78 trillion) and amount to “a debt iceberg with titanic
credit risks”, S&P Global Ratings said in a report on Tuesday. Last night
the US dollar index dropped to more than two-week lows on Tuesday
while emerging market currencies outperformed, as rising stock markets
reflected improving risk appetite. Both LME and SHFE base metals ended
in mixed performance overnight. LME aluminium, zinc gained close to
0.2% while copper dipped 0.1%, nickel slid 0.4% and lead lost 0.67%.
SHFE nickel and lead sank close to 0.8%, copper and zinc dropped some
0.4% while aluminium rose some 0.7%. From data point Chinese
consumer inflation accelerated for a fourth month in September, with
food prices jumping by the most since February, while the rise in
households’ non-food costs slowed. The CPI rose 2.5% from a year
earlier, marking the largest annual growth in seven months, according to
data from the NBS. The PPI climbed 3.6% from a year ago, compared
with a 4.1% gain the previous month. From US side data showed US
industrial production increased for a fourth straight month in September,
boosted by gains in manufacturing and mining output, but momentum
slowed sharply in the third quarter. Now technically market is under long
liquidation as market has witnessed drop in open interest by -1.48% to
settled at 4528 while prices down -0.4 rupees, now Zinc is getting
support at 192.1 and below same could see a test of 190.3 level, And
resistance is now likely to be seen at 195.4, a move above could see
prices testing 196.9.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
193.8
SUPPORT 3
198.7 196.9 195.4 192.1 190.3 188.8
195.2 191.8 193.8 -0.21 4528
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Zinc trading range for the day is 190.3-196.9.
Production cutbacks at China's zinc smelters in response to tighter environmental checks and weaker profits have tightened supply.
Demand for refined zinc will exceed supply by 322,000 tonnes this year and 72,000 tonnes in 2019, the ILZSG said.
Warehouse stock for Zinc at LME was at 184625mt that is down by -4225mt.
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 7
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MCX Nickel Oct 2018
Nickel dropped as pressure seen amid trade tensions and rising U.S. interest rates.
Nickel on MCX settled down -1.02% at 916.40 settled down as rising
supplies, weaker demand from downstream auto and stainless steel
sectors accounted for the decline. Yesterday the US dollar index dropped
to more than two-week lows on Tuesday while emerging market
currencies outperformed, as rising stock markets reflected improving risk
appetite. Both LME and SHFE base metals ended in mixed performance
overnight. LME aluminium, zinc gained close to 0.2% while copper dipped
0.1%, nickel slid 0.4% and lead lost 0.67%. SHFE nickel and lead sank
close to 0.8%, copper and zinc dropped some 0.4% while aluminium rose
some 0.7%. From data point Chinese consumer inflation accelerated for a
fourth month in September, with food prices jumping by the most since
February, while the rise in households’ non-food costs slowed. The CPI
rose 2.5% from a year earlier, marking the largest annual growth in
seven months, according to data from the NBS. That came in line with
expectations and was faster than the 2.3% report in August. The PPI
climbed 3.6% from a year ago, compared with a 4.1% gain the previous
month. From US side data showed US industrial production increased for
a fourth straight month in September, boosted by gains in manufacturing
and mining output, but momentum slowed sharply in the third quarter.
Now day ahead some data to monitor today include total social financing
(TSF) and broad M2 money supply in September for China, consumer
inflation in September across the eurozone. Now technically market is
under fresh selling as market has witnessed gain in open interest by
28.4% to settled at 9593 while prices down -9.4 rupees, now Nickel is
getting support at 911.1 and below same could see a test of 905.9 level,
And resistance is now likely to be seen at 922.1, a move above could see
prices testing 927.9.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
921.2
SUPPORT 3
933.1 927.9 922.1 911.1 905.9 900.1
922.7 911.7 916.4 -1.02 9593
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Nickel trading range for the day is 905.9-927.9.
Growth in China's factory sector in September stalled after 15 months of expansion, with export orders falling the most in more than two years.
US retail sales data for September missed expectations and as benchmark US Treasury yields consolidated after they climbed to their highest level in seven years
Warehouse stock for Nickel at LME was at 221898mt that is down by -204mt.
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 8
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NCDEX Jeera Nov 2018
Jeera prices dropped on profit booking after prices gained due to firm physical domestic and exports demands from China and Bangladesh.
Jeera on NCDEX settled up by 0.88% at 20130 amid improved physical
domestic and exports demands from China and Bangladesh. However,
good stocks and higher prices in the domestic market may dent export
prospects. Jeera producing districts of Gujarat received scanty rains,
which will affect its production in next season. The prevailing water crisis
may curtail jeera sowing by about 25% from last year’s 7.80 lakh ha.
According to Commerce ministry data, exports in July surged 70.3% on
year to 13,039 tonnes while for Apr-Jul period, exports were high by 76%
at 88,885 tonnes compared to last year export volume. As per trade
information, crop damaged reported in Syria and Turkey due to heavy
rainfall in 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 May surged 96% on year to 27,790
tonnes. In Unjha, a key spot market in Gujarat, jeera edged up by 128.55
Rupees to end at 19850 Rupees per 100 kg.Technically market is under
short covering as market has witnessed drop in open interest by -1.25%
to settled at 5907 while prices up 175 rupees, now Jeera is getting
support at 19870 and below same could see a test of 19615 level, And
resistance is now likely to be seen at 20340, a move above could see
prices testing 20555.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
20055
SUPPORT 3
20460 20290 20160 19860 19690 19560
20120 19820 20035 -0.47 5991
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Jeera trading range for the day is 6678-6678.
Jeera producing districts of Gujarat received scanty rains, which will affect its production in next season.
NCDEX accredited warehouses jeera stocks gained by 96 tonnes to 2433 tonnes.
In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19835 rupee per 100 kg.
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 9
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NCDEX Turmeric Nov 2018
Turmeric dropped on profit booking after prices gained as there are expectation of improving demand coupled with diminishing arrivals.
Turmeric on NCDEX settled down by -1.99% at 6508 on profit booking
after prices gained as there are expectation of improving demand coupled
with diminishing arrivals as the season is ending. Turmeric output in
Erode, which had slumped last year on the back of two consecutive
droughts, is set to witness a rebound, if planting area is any indication.
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 ha in 2018-19 (Jul-Jun) because of very good rainfall this year and
availability of other water sources. In 2017-18, area under the spice in
Erode, India's third largest producing region, was 2,956 ha, the
horticulture department official said. Acreage of the spice had risen from
around 5,000 ha in 2014-15 to 6,293 ha and a record high of 8,988 ha in
the two subsequent years, mainly due to a rise in processing units in the
vicinity. During the September, arrivals of turmeric have been higher at
12,478 t (Vs 10,978 t) compared last year, as per data. The July export
of turmeric was higher on year by 29% at 10,570 tonnes and exports
were also higher by 2% on year to 44,438 tonnes for Apr-Jul period.
However, imports too jumped by 136% to 15,731 tonnes in Apr-Jul period
which is pressurizing the prices in physical market. In Nizamabad, a
major spot market in AP, the price ended at 6872.5 Rupees dropped -120
Rupees.Technically market is under fresh selling as market has witnessed
gain in open interest by 4.19% to settled at 12300, now Turmeric is
getting support at 6456 and below same could see a test of 6406 level,
And resistance is now likely to be seen at 6608, a move above could see
prices testing 6710.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
6660
SUPPORT 3
6760 6710 6608 6456 6406 6304
6660 6508 6508 -1.99 12300
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Turmeric trading range for the day is 6406-6710.
Acreage of turmeric in Erode may jump nearly 80% on year to 5,300 ha in 2018-19 (Jul-Jun) because of very good rainfall this year.
NCDEX accredited warehouses turmeric stocks gained by 21 tonnes to 3389 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 6872.5 Rupees dropped -120 Rupees.
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 10
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MCX Menthaoil Oct 2018
Mentha oil dropped as spot markets are witnessing low demand amid adequate supply which weighed on prices.
Mentha oil on MCX settled down by -0.44% at 1708.4 as spot markets are
witnessing low demand amid adequate supply which weighed on prices.
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 Mantha 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 1870.30 per 1kg. Spot prices was up by Rs.1.50/-.Technically market
is under fresh selling as market has witnessed gain in open interest by
2.36% to settled at 956 while prices down -7.5 rupees, now Menthaoil is
getting support at 1696.6 and below same could see a test of 1684.9
level, And resistance is now likely to be seen at 1723.4, a move above
could see prices testing 1738.5.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
1721.00
SUPPORT 3
1750.2 1738.5 1723.4 1696.6 1684.9 1669.8
1726.80 1700.00 1708.40 -0.44 956
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Menthaoil trading range for the day is 1684.9-1738.5.
Mentha oil spot at Sambhal closed at 1870.30 per 1kg. Spot prices was up by Rs.1.50/-.
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.
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 11
TIME ZONE Forecast
CommodityLME STOCK Stock
COPPER 2475 164175
ALUMINIUM 70775 996875
NICKEL -204 221898
LEAD -525 115775
ZINC -4225 184625
4098 22840 20035 4402 6508 4159 590.4 3274
DAILY MARKET TRADING LEVEL
COMMODITIESNCDEX CHANA Nov
2018
NCDEX Cotton Oct
2018
NCDEX Jeera Nov
2018
NCDEX Guarseed10
Nov 2018
NCDEX Turmeric
Nov 2018
NCDEX Rmseed Nov
2018MCX CPO Oct 2018
NCDEX Soyabean
Nov 2018
NCDEX
Ref.Soya oil
Nov 2018
763.75CLOSE
P. POINT 4111 22870 19990 4411 6558 4168
4133 22940 20160 4438 6608 4181
RESISTANCE
4190 23120 20460 4502 6760 4215
591.5 3289 765
773
4168 23050 20290 4475 6710 4202 597.4 3346 771
599.8 3367
593.9 3310 767
4347 6406 4134 585.6 3232 759
4076 22760 19860 4374 6456 4147 588.0 3253
755
Cng in OI -7.40 -3.05 1.42 -1.42 4.19 -2.31 -3.88 3.66 9.60
SUPPORT
4019 22580 19560 4310 6304 4113 582.1 3196
761
4054 22690 19690
Fresh Selling
LME DAILY STOCK POSITION ECONOMICAL DATA
DATA Previous
2:30pm EUR Final CPI y/y 0.021 0.021
TREND Long Liquidation Long Liquidation Fresh Selling Long Liquidation Fresh Selling Long Liquidation Short Covering Fresh Selling
2:30pm EUR Final Core CPI y/y 0.009 0.009
Tentative EUR German 30-y Bond Auction 0 1.10|2.0
6:00pm USD Building Permits 1.28M 1.25M
6:00pm USD Housing Starts 1.21M 1.28M
8:00pm USD Crude Oil Inventories 1.6M 6.0M
11:30pm USD FOMC Meeting Minutes 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 12
2475
70775
-204 -525-4225-10000
0
10000
20000
30000
40000
50000
60000
70000
80000
COPPER ALUMINIUM NICKEL LEAD ZINC
LME STOCK
NEWS YOU CAN USE
U.S. Treasury Secretary Steven Mnuchin said Chinese officials told him that a further depreciation of China’s yuan currency was not in the country’s interest. Mnuchin also
told a news conference he was “not losing any sleep” over the prospect that China could sell U.S. Treasury debt amid rising trade tension between the world’s two largest
economies. “We had productive conversations, and they emphasized to me that it is not in their interest to see the RMB to continue to depreciate,” Mnuchin said at the
International Monetary Fund and World Bank annual meetings in Bali. “And as I’ve said, the currency issue is an important issue for us in trade and will be part of our
trade discussions. We want to make sure that depreciation is not being used for competitive purposes in trade.” The comments come after Mnuchin expressed concern
about a weakening of the yuan against the dollar to near levels not seen in a decade, as the Treasury prepares to release a much-anticipated report next week on
currency manipulation. Mnuchin said no decision had been made whether U.S. President Donald Trump would meet Chinese President Xi Jinping at the G20 leaders
summit in Argentina at the end of November. No formal talks to try to resolve the U.S.-China trade dispute have taken place since Aug. 23. “To the extent that we can
make progress towards a meeting, I would encourage that, and that’s something that we’re having discussions about. For the moment, there’s no preconditions, the
president will decide on that.”
Sustained trade tensions could slash Asia’s economic growth by up to 0.9 percentage point in coming years, the International Monetary Fund said, urging policymakers in
the region to liberalise markets to offset the fall in export sales. The IMF also warned in its twice-yearly report on the Asia Pacific region that the market rout seen in
emerging economies could worsen if the U.S. Federal Reserve and other major central banks tightened monetary policy more quickly than expected. “Turmoil already
seen in some emerging market economies could worsen, with negative spillovers to Asia through reduced capital flows and higher funding costs,” it said. Changyong
Rhee, director of the IMF’s Asia and Pacific Department, said there would be no winners in Asia from the global trade frictions, as other countries won’t be able to
compensate fully for supply chain disruptions in China and the United States - the world’s top two economies. The IMF maintained its forecast that Asia’s economy will
expand by 5.6 percent this year but cut its projection for next year to 5.4 percent, down by 0.2 point from April. The downgrade was due to the impact of financial market
stress and monetary tightening in some economies, as well as the damage from the tit-for-tat tariff actions between the United States and China, the IMF said. Existing,
proposed and new retaliatory tariffs could cause maximum gross domestic product (GDP) losses of 1.6 percent in China and close to 1 percent in the United States, it
said.
India’s oilmeal exports for the month of September 2018 reported a decline of about 73 per cent, the provisional data released by the Solvent Extractors’ Association of
India (SEA) showed. The export of oilmeals in September 2018, provisionally reported at 81,511 tonnes as compared to 298,182 tonnes in September 2017, is down by
73 per cent. The overall export between April to September 2018 was reported at 1,403,382 tonnes compared to 1,284,788 tonnes during the same period last year,
rising 9 per cent, an SEA statement said. However, provisional data revealed a decline in exports to major destinations such as South Korea, which imported 10,037
tonnes of oilmeal in September 2018, nearly 89 per cent less as against 89,856 tonnes in September 2017. Oilmeal exports to Bangladesh (down 92 per cent ) and
Vietnam (down 79 per cent ) too reported a significant decline. The data further showed that exports to South East Asia and other countries fell by 73 per cent from
232,379 tonnes in September 2017 to 63,101 tonnes this year. Also, exports to European and other Western nations fell to 13,002 tonnes as against 61,091 tonnes in
September 2017, plummeting 79 per cent. However, the SEA maintained that the numbers were for September month and the same cannot be considered final.
Meanwhile, for the April-September 2018 period, while other oilmeals saw marginal growth or a decline in exports, that of rapeseed meal doubled to 601,105 tonnes from
April-September 2018, from 300,627 tonnes in the same period last year.
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 13
Date : Wednesday, October 17, 2018 URL : www.systematixshares.com Page No : 14
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