Post on 27-Jun-2020
Daily Commodity Roundup as on Tuesday, November 27, 2018
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 1
14.23CRUDE $
51.63
-0.05 0.2 2.40
IN
TER
NA
TIO
NA
L M
AR
KET U
PD
ATE GOLD $
1221.40SILVER $
USDJPY113.523
0.03 -0.01 -0.04EURUSD
1.1334GBPUSD
1.28111
LME
NICKEL
10840
-0.11 -1.85 -0.37
LME
COPPER
6166 LME
ZINC
2439
$ INDEX97.04
-0.36 -0.80 -0.02
LME ALUMINIUM
1942 LME
LEAD
1933
DJIA24286
1.07 0.97 -0.73SENSEX
35354NIFTY
10629
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 2
NIKKEI21912
0.02 -0.66 0.46USDINR
70.82 S&P
INDEX
2633
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MCX Gold Dec 2018
Gold steadied with investors looking to a G20 meeting for signs of a thaw in the Sino-U.S. trade conflict.
Gold firmed supported by uncertainty over the future pace of U.S. interest
rate hikes and the outcome of the G20 summit later this week when
global leaders will focus on trade tensions. Trump said he expected to
move ahead with raising tariffs on $200 billion in Chinese imports to 25
percent from the current 10 percent and repeated his threat to slap tariffs
on all remaining imports from China. Prime Minister Theresa May warned
that Britain would be thrust into the unknown if parliament rejects the
Brexit deal she has negotiated with the European Union, as lawmakers
from all sides lined up to criticise the agreement. U.S. President Donald
Trump and his Chinese counterpart Xi Jinping are expected to discuss
their trade dispute at the G20 summit in Argentina, which begins on
Friday. Uncertainties related to Brexit and Italy are also helping build a
base for gold, which was helped by a slight retreat in the dollar earlier in
the session. The euro gained on signs Italy may cut its budget deficit
target to satisfy the European Union, while the sterling rose after the EU
and Britain sealed a Brexit deal. Gold’s direction in the near term would
be determined by moves in the greenback, which could be pressured if
the Fed takes a more cautious approach to future policy tightening amid
concern of an economic slowdown next year. Speculators increased their
net short positions in Comex gold and silver contracts in the week to Nov.
13. SPDR Gold Trust, the world’s largest gold-backed exchange-traded
fund, said its holdings fell 0.15 percent to 761.74 tonnes on Monday.
Technically now Gold is getting support at 30441 and below same could
see a test of 30335 level, And resistance is now likely to be seen at
30657, a move above could see prices testing 30767.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
30471
SUPPORT 3
30873 30767 30657 30441 30335 30225
30661 30445 30547 0.17 6490
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 3
Trading Ideas :Gold trading range for the day is 30335-30767.
Although a stronger dollar amid fears of a slowdown in global growth weighed on bullion.
Physical gold demand in India was robust as consumers stepped up purchases during the traditional wedding season after domestic rates slipped to a near six-week trough.
Hedge funds and money managers increased their net short positions in Comex gold contracts in the week to Nov. 13.
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MCX Silver Dec 2018
Silver prices steadied as market watchers are keeping an eye on the Fed’s policy outlook ahead of high-level U.S.-China trade talks on Friday.
Silver prices steadied as market watchers are keeping an eye on the
Fed’s policy outlook ahead of high-level U.S.-China trade talks on Friday.
European Union leaders finally sealed a Brexit deal, saying the package
agreed with PM May was the best Britain will get in a warning to the
British parliament not to reject it. China urged the WTO to close loopholes
and correct practices by some member states that damage global trade,
warning of a “profound crisis” facing the institution’s existence. The
Italian government said it was sticking to its main 2019 budget goals for
now, as it awaits a cost analysis of its main spending measures, but left
open the possibility of eventually cutting its deficit target. The euro zone
has lost some growth momentum but this was mostly normal and not
enough to derail plans by the European Central Bank to dial back stimulus
further, ECB President Mario Draghi and two of his top lieutenants said.
Hedge funds and money managers cut their net short positions in Comex
gold and silver contracts in the week to Nov. 20, the U.S. Commodity
Futures Trading Commission (CFTC) said. Speculators increased their net
short position in silver by 18,512 lots to 38,846 lots, CFTC said, to the
highest net short position in five weeks. Fed Chairman Jerome Powell is
due to speak on Wednesday on "The Federal Reserve's Framework for
Monitoring Financial Stability" at the New York Economic Club. The central
bank will be issuing minutes of its Nov. 7-8 meeting the following day.
Technically now Silver is getting support at 35868 and below same could
see a test of 35712 level, And resistance is now likely to be seen at
36312, a move above could see prices testing 36600.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
36263 36444
36756 36600 36312 35868 35712 35424
36000 36024 -0.10 19209
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 4
Trading Ideas :Silver trading range for the day is 35712-36600.
European Union leaders finally sealed a Brexit deal, saying the package agreed with PM May was the best Britain will get in a warning to the British parliament not to reject it.
China urged the WTO to close loopholes and correct practices by some member states that damage global trade, warning of a “profound crisis” facing the institution’s existence.
Speculators increased their net short position in silver by 18,512 lots to 38,846 lots, CFTC said, to the highest net short position in five weeks.
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MCX Crudeoil Dec 2018
Crude oil gained buoyed by growing expectations that major oil producers will agree to cut output at a meeting early next month.
Crude oil gained buoyed by growing expectations that major oil producers
will agree to cut output at a meeting early next month. Saudi Arabia
raised oil production to an all-time high in November, an industry source
said, as U.S. President Donald Trump piled pressure on the kingdom to
refrain from production cuts at an OPEC meeting next week. The industry
source, who is familiar with the matter, said Saudi crude oil production hit
11.1-11.3 million barrels per day (bpd) in November, although it will not
be clear what the exact average November output is until the month is
over. Those levels are up around 0.5 million bpd - equal to 0.5 percent of
global demand - from October and more than 1 million bpd higher than in
early 2018, when Riyadh was curtailing production together with other
OPEC members. Saudi Arabia agreed to raise supply steeply in June, in
response to calls from consumers, including the United States and India,
to help cool oil prices and address a supply shortage after Washington
imposed sanctions on Iran. Looking ahead, Allardyce said “a lot depends”
on the outcome of the Group of 20 (G20) meeting in Buenos Aires where
the United States and China are expected to address their trade disputes,
and on a meeting of the Organization of the Petroleum Exporting
Countries (OPEC). OPEC will gather for its annual meeting at its
headquarters in Vienna on Dec. 6, and the group will discuss its output
policy together with some non-OPEC producers, including Russia.
Technically now Crudeoil is getting support at 3612 and below same could
see a test of 3545 level, And resistance is now likely to be seen at 3729,
a move above could see prices testing 3779.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
3595 3712
3846 3779 3729 3612 3545 3495
3595 3678 1.52 17165
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 5
Trading Ideas :Crudeoil trading range for the day is 3545-3779.
Global supply, led by the United States, growing more quickly than demand; crude prices on track for biggest 1-month decline since late 2014.
International Energy Agency (IEA) expects non-OPEC output to rise by 2.3 mln bpd this year, up from earlier forecast of 1.8 mln bpd
In US, fuel oil inventories climbed 2 percent to a two-week high of 28.478 million barrels in the week to Nov. 16, the latest data from the EIA showed.
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MCX Copper Nov 2018
Copper traded in range amid caution ahead of trade talks between United States President Donald Trump and Chinese President Xi Jinping later this week.
Copper on MCX settled up 0.14% at 430.45 recovered from the day's low
as rupee weakness supported the prices while LME Copper prices
extended losses following a report that U.S. President Donald Trump
expects to move ahead with raising tariffs on $200 billion of Chinese
imports. In an interview with the Wall Street Journal, Trump said it was
"highly unlikely" he would accept China's request to hold off on a planned
increase in the tariffs from 10 percent to 25 percent due to take effect on
Jan. 1. Copper is down around 15 percent in London so far in 2018 on
concerns the U.S.-China trade spat will hurt demand for industrial metals.
Investors are focused this week on a speech on Wednesday by Federal
Reserve Chairman Jerome Powell and minutes from the Feds Nov. 7-8
meeting to be released on Thursday, for further indications of how many
more times the U.S. central bank is likely to hike interest rates. Slowing
global growth has raised expectations the Fed may halt its tightening
cycle sooner than previously expected. It seems like there are tentative
signs from the Fed that they see caution on the rise, so if the Fed
minutes and Mr Powell both play up an increase in caution, I think that
would tend to suggest the Fed may opt for a slower pace of rate hikes
going forward. Trade tensions between the United States and China are
also at the forefront with U.S. President Donald Trump and Chinese
President Xi Jinping due to meet at a G20 meeting in Buenos Aires on
Nov. 30 to discuss contentious trade matters. Technically market is
getting support at 427.8 and below same could see a test of 425.1 level,
And resistance is now likely to be seen at 433.5, a move above could see
prices testing 436.5.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
429.75
SUPPORT 3
439.2 436.5 433.5 427.8 425.1 422.1
433.80 428.15 430.45 0.14 12760
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Copper trading range for the day is 425.1-436.5.
China's economic growth is expected to hit 6.6 percent this year and slow to 6.3 percent in 2019 as the country struggles with challenges relating to trade reform.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 1.2 percent from last Friday.
Warehouse stock for Copper at LME was at 137100mt that is down by -2450mt.
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 6
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MCX Zinc Nov 2018
Zinc prices fell as expectations of weaker demand from Chinese steel mills overpowered signs that the market is short of metal.
Zinc on MCX settled down -1.15% at 179.85 settled below 180 level mark
on expectations of weaker demand from Chinese steel mills overpowered
signs that the market is short of metal. Most other industrial metals also
fell on caution over the outcome of trade talks between U. President
Donald Trump and Chinese President Xi Jinping later this week that could
influence demand for commodities. LME Zinc fell 2.5 per cent on the
Shanghai Futures Exchange, its biggest one-day drop since August. The
premium of cash zinc to the three-month contract fell to $US63 from last
week's two-decade high of $US97 but remains unusually high, suggesting
a shortage of nearby supply. While stocks of zinc in LME-registered
warehouses have halved to 121,550 tonnes since August, a 10-year low,
while inventories in ShFE warehouses at around 35,000 tonnes are down
from almost 160,000 tonnes in March. Investors are focused this week on
a speech on Wednesday by Federal Reserve Chairman Jerome Powell and
minutes from the Feds Nov. 7-8 meeting to be released on Thursday, for
further indications of how many more times the U.S. central bank is likely
to hike interest rates. Slowing global growth has raised expectations the
Fed may halt its tightening cycle sooner than previously expected. Now a
day ahead economic data slated for release today include October’s
annualised profits of China’s industrial enterprises above a designated
size, the US FHFA house price index for September, and its conference
board consumer confidence index for November. Technically market is
getting support at 177.1 and below same could see a test of 174.4 level,
And resistance is now likely to be seen at 182.6, a move above could see
prices testing 185.4.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
182.3
SUPPORT 3
188.1 185.4 182.6 177.1 174.4 171.6
182.7 177.3 179.9 -1.15 3031
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Zinc trading range for the day is 174.4-185.4.
An expected surge in refined zinc output after a clutch of new mine openings has been derailed by bottlenecks at smelters across Asia.
China's forced environmental cutbacks on zinc slag, and falling refined prices in the second quarter, prompted many smelters to cut production.
Warehouse stock for Zinc at LME was at 121600mt that is up by 50mt.
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 7
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MCX Nickel Nov 2018
Nickel recovered on short covering after prices dropped as expectations of weaker demand from Chinese mills dented prices.
Nickel on MCX settled up 0.18% at 765.80 on rupee weakness which
London Nickel which traded 0.6 percent weaker but Shanghai nickel
bucked the trend among base metals to settle up 0.2 percent. Nickel
stockpile in LME warehouses is around a five-year low, at 214,188
tonnes. Uncertainty prevails in the market as Chinese iron ore futures
tumbled and steel prices dropped as worries over weaker steel demand
sustained a sell-off, with raw materials coking coal and coal also down
sharply. Steel-linked metals nickel and zinc fell on Monday on
expectations of weaker demand from Chinese steel mills. Investors are
focused this week on a speech on Wednesday by Federal Reserve
Chairman Jerome Powell and minutes from the Feds Nov. 7-8 meeting to
be released on Thursday, for further indications of how many more times
the U.S. central bank is likely to hike interest rates. Slowing global
growth has raised expectations the Fed may halt its tightening cycle
sooner than previously expected. It seems like there are tentative signs
from the Fed that they see caution on the rise, so if the Fed minutes and
Mr Powell both play up an increase in caution, I think that would tend to
suggest the Fed may opt for a slower pace of rate hikes going forward.
Trade tensions between the United States and China are also at the
forefront with U.S. President Donald Trump and Chinese President Xi
Jinping due to meet at a G20 meeting in Buenos Aires on Nov. 30 to
discuss contentious trade matters. Technically market is getting support
at 756.1 and below same could see a test of 746.3 level, And resistance
is now likely to be seen at 771.5, a move above could see prices testing
777.1.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
751.9
SUPPORT 3
786.9 777.1 771.5 756.1 746.3 740.7
767.3 751.9 765.8 0.18 14013
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Nickel trading range for the day is 746.3-777.1.
In recent session, adding to the bearish mood for nickel was news that German chemicals giant BASF plans to use less of the metal in its electric car batteries.
Expectations of a supply avalanche hitting the nickel market next year due to new capacity in Indonesia have sent prices down more than 15 percent since September.
Warehouse stock for Nickel at LME was at 213984mt that is down by -204mt.
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 8
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NCDEX Jeera Dec 2018
Jeera dropped on expectation of improving acreage on reports of assured irrigation by govt of Gujarat.
Jeera on NCDEX settled down -0.28% at 19405 on expectation of
improving acreage on reports of assured irrigation by govt of Gujarat.
Jeera sowing in Gujarat fell to 44,200 hectares from 130,100 hectares a
year ago due to lack of water, state government data showed. Sowing is
likely to pickup in the coming weeks. However, there are doubts of any
increase in acreage due to dry weather. Moreover, concern that standing
cumin crops might get affected amid scanty rainfalls also supported
upward trend in prices. Deficient rainfall in key producing region of
Gujarat like Saurashtra and Kutch may lower the acreage. According to
the initial trade estimate, there may not be any increase in the sowing
area of jeera because of dry weather. However, if the producing states
receive good irrigation facilities through dams then the sowing area could
see an increase. According to the market estimates, India has already
exported around 1.25 lakh tonnes of jeera so far this year and there is a
possibility of it touching a record 1.75 lakh tonnes by the end of this fiscal
year. As per Gujarat state govt. data, Jeera progressive area of Rabi 2018-
19, 18,400 hectares as compared to previous Rabi season 59,400
hectares, 6% completed from normal area 318,900 hectares. Current
year sowing reported slow due to lower rainfall. As per current situation,
farmers are likely to prefer Jeera over Coriander due to higher prices.
Technically market is under fresh selling as market has witnessed gain in
open interest by % to settled at while prices down -55 rupees, now Jeera
is getting support at 19247 and below same could see a test of 19088
level, And resistance is now likely to be seen at 19577, a move above
could see prices testing 19748.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
19470
SUPPORT 3
19730 19605 19490 19250 19125 19010
19480 19240 19380 -0.13 4206
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Jeera trading range for the day is 6460-6460.
Jeera sowing in Gujarat fell to 44,200 hectares from 130,100 hectares a year ago due to lack of water, state government data showed.
NCDEX accredited warehouses jeera stocks dropped by 48 tonnes to 2218 tonnes.
In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19800 rupee per 100 kg.
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 9
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NCDEX Turmeric Dec 2018
Turmeric prices dropped amid reports of higher sowing in turmeric areas of Tamilnadu, Karnataka and Maharashtra.
Turmeric on NCDEX settled down by -1.17% at 6406 amid reports of
higher sowing in turmeric areas of Tamilnadu, Karnataka and
Maharashtra. 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 hectares 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 hectares 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. Turmeric exports in 2018-19 (Apr-Sep) is up by 10.6% at
65,547 ton compared to 59,285-ton last year for the same time. As per
reports, standing crop likely to damage around 10 - 20% currently, if
higher temperature will continue next 15 - 20 day’s damage percentage
may go up to 30-40%. Moreover, turmeric sowing in all major producing
states is higher than last year as weather remained favourable. During
the October, arrivals of turmeric have been higher at 12,478 t (Vs 10,978
t) compared last year, as per data. As per data released by Commerce
Ministry, turmeric exports during the month of Sep 2018, up 16.5% on
year to 9,064 tonnes (Vs 7,783 tonnes). In Nizamabad, a major spot
market in AP, the price ended at 7151.15 Rupees dropped -70
Rupees.Technically market is under long liquidation as market has
witnessed drop in open interest by -7.1% to settled at 10595 while prices
down -76 rupees, now Turmeric is getting support at 6272 and below
same could see a test of 6136 level, And resistance is now likely to be
seen at 6522, a move above could see prices testing 6636.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
6500
SUPPORT 3
6772 6636 6522 6272 6136 6022
6500 6250 6406 -1.17 10595
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Turmeric trading range for the day is 6136-6636.
In Telangana, turmeric acreage rose to 47,790 hectare compared to 44,956 hectares a year ago, state government data showed.
NCDEX accredited warehouses turmeric stocks gained by 289 tonnes to 3424 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 7151.15 Rupees dropped -70 Rupees.
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 10
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MCX Menthaoil Dec 2018
Menthaoil settled up due to bullish demand outlook from domestic market as well as exporters.
Mentha oil on MCX settled up by 0.25% at 1689.1 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 1839.20 per 1kg. Spot prices was down by Rs.-
2.20/-.Technically market is under fresh buying as market has witnessed
gain in open interest by 32.95% to settled at 928 while prices up 4.2
rupees, now Menthaoil is getting support at 1668.4 and below same could
see a test of 1647.6 level, And resistance is now likely to be seen at
1706.7, a move above could see prices testing 1724.2.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
1693.30
SUPPORT 3
1745.0 1724.2 1706.7 1668.4 1647.6 1630.1
1703.40 1665.10 1689.10 0.25 928
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Menthaoil trading range for the day is 1647.6-1724.2.
Mentha oil spot at Sambhal closed at 1839.20 per 1kg. Spot prices was down by Rs.-2.20/-.
Spot markets are also witnessing strong consumption demand amid restricted supplies.
Arrivals of mentha oil in Sambhal market doubled to 100 drums (1 drum = 180 kg).
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 11
TIME ZONE Forecast
CommodityLME STOCK Stock
COPPER -2450 137100
ALUMINIUM -2025 1064975
NICKEL -204 213984
LEAD -500 107675
ZINC 50 121600
4659 21560 19380 4283 6406 4048 495.2 3363
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
716.2CLOSE
P. POINT 4691 21540 19365 4342 6386 4068
4749 21670 19490 4401 6522 4095
RESISTANCE
4896 21920 19730 4579 6772 4169
500.3 3374 720
740
4838 21790 19605 4520 6636 4142 519.8 3475 735
527.0 3520
507.5 3419 725
4164 6136 3994 480.8 3273 705
4602 21420 19250 4223 6272 4021 488.0 3318
695
Cng in OI -7.55 -44.63 -7.09 -5.87 -7.10 -6.19 -31.15 -4.62 -1.50
SUPPORT
4455 21170 19010 4045 6022 3947 468.5 3217
710
4544 21290 19125
Long Liquidation
LME DAILY STOCK POSITION ECONOMICAL DATA
DATA Previous
Tentative All OPEC-JMMC Meetings 0 0
TREND Short Covering Long Liquidation Long Liquidation Long Liquidation Long Liquidation Long Liquidation Long Liquidation Long Liquidation
7:30pm USD HPI m/m 0.004 0.003
7:30pm USD S&P/CS Composite-20 HPI y/y 0.053 0.055
8:30pm USD CB Consumer Confidence 136.2 137.9
0:00 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 12
-2450
-2025
-204
-500
50
-3000
-2500
-2000
-1500
-1000
-500
0
500
COPPER ALUMINIUM NICKEL LEAD ZINC
LME STOCK
NEWS YOU CAN USE
Japan’s exports rebounded in the year to October, reversing from the prior month’s surprise drop as U.S.-bound shipments grew, although slowing global demand and the
intensifying U.S.-China trade war could cloud the outlook for export-reliant Japan. Ministry of Finance (MOF) data out on Monday showed exports rose 8.2 percent in
October from a year before, versus a 9.0 percent annual increase expected. The export growth followed a revised 1.3 percent year-on-year drop in September, was
caused by natural disasters that crimped factory output and distribution of goods. The data followed gross domestic product data issued last week that showed Japan’s
economy, the world’s third largest, shrank more than expected in the third quarter, hit by the natural disasters and export slump. While the economy is expected to
return to growth this quarter as temporary effects from natural disasters fade, Japanese policymakers remain wary about the overall economic impact of international
trade friction. Japan’s exports to the United States grew 11.6 percent in the year to October, led by shipments of cars. U.S.-bound auto exports stood at 154,085 cars, up
3.0 percent year-on-year, rising for the first time in five months. Imports from the United States rose 34.3 percent in October, led by feed corn, liquefied petroleum gas
and crude oil, helping reduce Japan’s trade surplus with the United States by 11.0 percent versus the same month last year to 573.4 billion yen ($5.09 billion).
China's steel output hit record levels in October, rising for a third straight month as mills rushed to boost output ahead of winter production cuts. The world's top steel
producer churned out 82.55 million tonnes of crude steel last month, up from 80.85 million tonnes in September and from 72.36 million tonnes in October last year, data
from the National Bureau of Statistics (NBS) showed. That marked the highest monthly volume in records dating back to 2010. However, average daily output dipped 1.2
percent from September to 2.67 million tonnes, according to Reuters calculations based on the NBS data. October has one more day than September. The weekly
utilisation rate at blast furnaces in steel mills across the country climbed as high as 68.65 percent in mid-October, a level last seen on July 20. The record production
came even after the major steel producing province of Hebei in northern China last month issued two second-level pollution alerts, ordering steel mills to halve production
during emergency periods.But steel mills are expected to slow their operations as production restrictions in heavy industry kick in from mid-November, part of Beijing's
effort to fight toxic emissions over winter.
The Cotton Advisory Board may estimate production of the commodity in India in 2018-19 (Oct-Sep) at around 36 mln bales, 2-3% lower than its estimate for output in
2017-18, trade sources said. The board will release its first estimate for output in 2018-19 after holding discussions with stakeholders. For the year ended September, it
had estimated production in India at 37 mln bales. “Production in Gujarat and Maharashtra will definitely be lower due to scanty rains though acreage was almost the
same on year,” officials of Cotton Corp of India’s respective state units said. The two states are India’s top cotton producers, accounting for 55% of the country’s total
output. A prominent cotton exporter, who will attend Cotton Advisory Board’s meeting, said the board may be conservative in its forecast, as this is its first estimate. The
farm ministry, in its first advance estimate on Sep 26, had cut the country’s cotton crop forecast to 32.4 mln bales, down 7% from the previous year. Sources in the state-
owned Cotton Corp of India said production in Gujarat may be lower by 1.0 mln bales this year and that in Maharashtra may see a decline of 500,000 bales. Recently,
Cotton Association of India had scaled down its production estimate for 2018-19 to 34.3 mln bales from 34.8 mln bales projected in October.
Date : Tuesday, November 27, 2018 URL : www.systematixshares.com Page No : 13
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