Achiievers Equities Daily Commodity Report

Daily Commodity Report as on Friday, October 10, 2014

Date : Friday, October 10, 2014 URL : www.achiieversequitiesltd.com Page No - 1

Open High Low Close % Cng OI

Gold 26845 27048 26845 26958 0.83 7455Silver 38350 39099 38350 38615 1.04 16640

Alum. 118.35 118.85 117.45 117.7 -0.55 5054Copper 412.5 415.5 411.5 412.95 0.24 11860Lead 128 128.4 126.8 127 -0.63 2463Nickel 1013 1027.9 1012.2 1015.1 0.22 5772Zinc 142.5 143.2 141.85 142.35 -0.32 7215

Crude 5370 5375 5241 5264 -2.19 19249Nat. Gas 237 241.4 233.7 235.6 -0.88 6492

Chana 26845 27048 26845 26958 0.83 7455

Cardamom 838 848.9 830.1 839.7 0.19 1373Turmeric 6064 6176 6064 6112 1.39 10135

Jeera 10755 10830 10740 10790 0.09 3684

Wheat 1596 1596 1576 1591 0.00 4900

Soyabean 2976 2995 2966 2982 -0.07 119520Ref. Oil 591 594.75 588.5 589.5 -0.58 105100CPO 455.5 457.5 452.5 455.4 -0.26 3011RMSeed 3652 3667 3647 3657 -0.03 38320Menthol 691.9 697.4 682.2 687 -0.51 8826Cotton 16600 16880 16560 16600 -0.48 1312

USDINR 61.35 61.38 61.11 61.23 -0.72 1162129EURINR 78.17 78.22 77.94 78.18 0.16 40212GBPINR 99.26 99.35 98.84 99.29 0.19 40037JPYINR 56.86 56.97 56.65 56.92 -0.02 7031

Chana prices ended with gains as some short covering and improved festive season demand at lower levels supported the trend.

Turmeric prices ended with gains amid rising demand in the spot market. Currency

Jeera prices ended with small gains due to some improvement in overseas enquiries and demand from spot buyers.


Natural gas edged lower after weather-forecasting models called for seasonably mild temperatures to hold across much of the U.S.

Ref soyoil prices ended with losses tracking weakness in spot demand on rising expectations of a huge US harvest. Cereals

Mentha oil prices dropped due to ample stocks in the physical market. Oil and Oilseeds & Others

Soyabean dropped on higher supplies of the crop in local market amid subdued export demand for Indian meal in the domestic and overseas market.

Energy Copper gained after minutes of Fed meeting doused fears of any early move to raise interest rates

Zinc prices drifted lower pressure seen after major economic indicators from Germany and France were sluggish.Pulses

Nickel seen supported after U.S. central bank authorities signalled they would not rush to boost interest rates.Spices

Market Round upPrecious Metals

Gold retained gains headed for its best week in nearly four months as growing worries over the global economy.

Base MetalSilver prices shrugged off solid U.S. weekly jobless claims numbers and rose in wake of dovish Federal Reserve policy meeting minutes

Crudeoil dropped as investors continued to worry over demand growth prospects and a supply glut.

Silver settled up 1.04% at 38615 and was headed for its best week in nearly four months as a slump in equities and growing worries over the global economy attracted safe-haven bids for the metal. Silver has rallied fromthis year’s low of 37,200 on Oct. 6 as haven demand increased. The International Monetary Fund this week cut its outlook for global growth in 2015. ECB President Mario Draghi pledged yesterday to expand stimulusmeasures if needed, while Governor Haruhiko Kuroda said the Bank of Japan has many options for additional easing. US Federal Reserve's minutes from its September monetary policy meeting eased fears about a rate hikeanytime soon. The uptick comes even as the dollar trended higher against a basket of major currencies. The Fed minutes showed members expressing reservations over the strength of the dollar and concerns over theprevailing global economic weakness, while lowering the nation's growth outlook. On the economic front, in another upbeat sign for the job market, a Labor Department report on Thursday showed an unexpected drop in first-time claims for U.S. unemployment benefits in the week ended October 4. Meanwhile, a Commerce Department report showed a bigger than expected increase in wholesale inventories in the U.S. in August, with a matchingdecrease in wholesale sales. Technically market is under short covering as market has witnessed drop in open interest by -6.78% to settled at 16640 while prices up 398 rupee, now Silver is getting support at 38277 andbelow same could see a test of 37939 level, And resistance is now likely to be seen at 39026, a move above could see prices testing 39437.


CLOSE 38615 RES-1 39026 Holdings at ishares silver trust dropped by 0.41% i.e. 44.73 tonnes to 10812.62 tonnes from 10857.35 tonnes.

% CNG 1.04 RES-2 39437 BUY SILVER DEC @ 38450 SL 38200 TGT 38740-39080.MCX

HIGH 39099 SUP-1 38277 Silver prices shrugged off solid U.S. weekly jobless claims numbers and rose in wake of dovish Federal Reserve policy meeting minutes

LOW 38350 P.P. 38688 The minutes showed that the U.S. central bank cut its growth outlook due to a stronger dollar and concerns over global weakness.

Gold settled up 0.83% at 26958 after the US Fed's minutes from its September monetary policy meeting eased fears about a rate hike anytime soon. Pressure seen on the prices as Indian rupee posted its biggest single-daygain in nearly two months on Thursday, after hitting the highest level in more than two weeks after the U.S. Federal Reserve's September policy meeting minutes suggested it was in no hurry to raise interest rates. The Fedminutes showed members expressing reservations over the strength of the dollar and concerns over the prevailing global economic weakness, while lowering the nation's growth outlook. On the economic front, in anotherupbeat sign for the job market, a Labor Department report on Thursday showed an unexpected drop in first-time claims for U.S. unemployment benefits in the week ended October 4. Meanwhile, a Commerce Departmentreport showed a bigger than expected increase in wholesale inventories in the U.S. in August, with a matching decrease in wholesale sales. On Wednesday, gold ended lower ahead of the minutes of the US Fed's Septembermonetary policy meeting, with the dollar trending higher. Earlier this week, the IMF cut its global economic growth forecasts for the third time this year, warning of weaker growth in core euro zone countries, Japan and bigemerging markets like Brazil. Recent data from the US has pointed towards a strengthening economy, but disappointing data from Germany has investors worried about recession in the euro zone. Holdings of SPDR GoldTrust, edged down to 762.08 tons on Thursday, from its previous close of 767.47 tons. Technically market is getting support at 26852 and below same could see a test of 26747 level, And resistance is now likely to be seenat 27055, a move above could see prices testing 27153.

MCX Silver Dec 2014 TRADING IDEA

OPEN 38350 SUP-2 37939 Silver trading range for the day is 37939-39437.

CLOSE 26958 RES-1 27055 CME Group lowered COMEX 100 Gold Futures initial margins for speculators by 13 percent to $4,400 per contract

% CNG 0.83 RES-2 27153 BUY GOLD DEC @ 26750 SL 26600 TGT 26880-26980.MCX

HIGH 27048 SUP-1 26852 Gold retained gains headed for its best week in nearly four months as growing worries over the global economy.

LOW 26845 P.P. 26950 Earlier this week, IMF cut its global economic growth forecasts warning of weaker growth supported bullion.

MCX Gold Dec 2014 TRADING IDEA

OPEN 26845 SUP-2 26747 Gold trading range for the day is 26747-27153.

Copper settled up 0.24% at 412.95 but surrendered all it's earlier gain's after worsening economic indicators from Germany rekindled global growth concerns that have cast a pall on the outlook for metals. Germany’s exportsshrank 5.8% in August, a bigger fall than the estimated 4% contraction and the largest monthly decline since January 2009. The country’s industrial output released earlier posted the sharpest drop in five years. Tradesurplus in the largest economy in the euro zone totaled EUR 14.1 billion in August, missing the forecast EUR 17.7 billion, stoking worries over its economic outlook. Meanwhile, ECB President pledged to unveil more stimulusmeasures to boost inflation if need be. While US initial jobless claims for the week ending October 4 unexpectedly fell, with the average claims in September setting a new 8-year low, indicating sustained recovery in the USlabor market. The nation’s wholesale inventories increased 0.7% MoM in August, beating the expected 0.3% rise. On the other hand, Goldman Sachs was bearish on US companies’ earnings in Q3, citing that low oil priceswould eat into profits at crude oil companies and that slow recovery in Europe’s major economies would reduce profits at non-crude oil companies. In response, US stocks fell precipitously on Thursday. Also the US Fed’sminutes from its September meeting is relatively dovish, while markets are expecting China to continue easing restrictions on home loans, both helping support base metals. Nevertheless, some experts estimated China’s Q3GDP growth at 7.2-7.3%, far below the government’s annual target of 7.5%, which raised concerns over China’s economic outlook. Technically market is getting support at 411.1 and below same could see a test of 409.3level, And resistance is now likely to be seen at 415.1, a move above could see prices testing 417.3.


CLOSE 413.0 RES-1 415.1 US Fed's minutes from its September meeting is relatively dovish, while markets are expecting China to continue easing restrictions on home loans

% CNG 0.24 RES-2 417.3 SELL COPPER NOV @ 415 SL 418.50 TGT 412.50-409.50.MCX

HIGH 415.5 SUP-1 411.1 Copper gained after minutes of Fed meeting doused fears of any early move to raise interest rates

LOW 411.5 P.P. 413.3 Growth in China's services sector weakened slightly in September as new business cooled,a private survey showed.

Crudeoil settled down -2.19% at 5264 as investors continued to worry over demand growth prospects and a supply glut, even as the U.S. Federal Reserve cut its growth outlook for the economy. On Wednesday, an officialweekly oil report from the U.S. EIA showed crude stockpiles in the U.S. to have climbed more than expected last week. The IMF's downward revision to its outlook for the global economy and a reduction in oil prices by SaudiArabia's Aramco also contributed to oil's decline. On the economic front, in another upbeat sign for the job market, a Labor Department report on Thursday showed an unexpected drop in first-time claims for U.S.unemployment benefits in the week ended October 4. On Wednesday, crude oil plunged on demand growth concerns after an official weekly oil report from the EIA showed crude stockpiles in the U.S. to have climbed morethan expected last week. US crude inventories also soared far more than expected last week on higher imports and as refineries cut output. Apart from Europe, No. 2 oil consumer China is also seeing signs of a slowdown.Data due next week is forecast to show that softer domestic demand probably slowed growth in China's imports, investment and retail sales to multi-month or multi-year lows in September. Calls for members of the OPEC tocurb output have been mounting since oil prices fell below OPEC's preferred level of $100 a barrel although some members have shrugged off the decline. Technically market is getting support at 5211 and below same couldsee a test of 5159 level, And resistance is now likely to be seen at 5345, a move above could see prices testing 5427.

MCX Copper Nov 2014 TRADING IDEA

OPEN 412.5 SUP-2 409.3 Copper trading range for the day is 409.3-417.3.

CLOSE 5264 RES-1 5345 IMF's downward revision to its outlook for the global economy and a reduction in oil prices by Saudi Arabia's Aramco also contributed to oil's decline.

% CNG -2.19 RES-2 5427 SELL CRUDE OIL OCT @ 5270 SL 5320 TGT 5235-5190.MCX

HIGH 5375 SUP-1 5211 Crudeoil dropped as investors continued to worry over demand growth prospects and a supply glut.

LOW 5241 P.P. 5293 Prices fallen as geopolitical risks from the Middle East to Ukraine failed to disrupt oil supplies.

MCX Crudeoil Oct 2014 TRADING IDEA

OPEN 5370 SUP-2 5159 Crudeoil trading range for the day is 5159-5427.

Nickel settled up 0.22% at 1015.10 after the Fed’s meeting minutes released yesterday hinted an earlier interest rate hike, the US dollar index fell below 85 at one point, boosting base metals prices. But as the outlook in theeuro zone is not promising, the US dollar index hovered around 85. The number of US initial jobless claims last week decreased 1,000 to 287,000, close to the lowest during 2007-2009, and the weekly average over the pastmonth was down 7,250 to 287,750, a record low over the past eight years. This allowed the US dollar index to jump to 85.6 again, weighing down base metals. LME nickel prices touched as high as USD 16,843/mt, but lostsome gains and closed up 1.05% at USD 16,600/mt. Meanwhile last month, during the slowdown in the Chinese economy, nickel was forced to enter a bear market. As China is the biggest consumer of nickel, the stockpilesraised to a record. On October 7th, the International Monetary Fund, had to cut off their forecast, as the decline in demand is expected to grow further. After being inspired by Russia's role in the war of Ukraine, Norilskencouraged the sell-off in the Russian equities, which is promoting 46 percent, which is almost near to a three year high after months of shortage in the nickel supply. Technically market is under short covering as market haswitnessed drop in open interest by -14.46% to settled at 5772 while prices up 2.2 rupee, now Nickel is getting support at 1008.9 and below same could see a test of 1002.7 level, And resistance is now likely to be seen at1024.6, a move above could see prices testing 1034.1.


CLOSE 1015.1 RES-1 1024.6 Germany’s exports shrank 5.8% in August, a bigger fall than the estimated 4% contraction and the largest monthly decline since January 2009.

% CNG 0.22 RES-2 1034.1 SELL NICKEL OCT @ 1025 SL 1036 TGT 1015-1004.MCX

HIGH 1027.9 SUP-1 1008.9 Nickel seen supported after U.S. central bank authorities signalled they would not rush to boost interest rates.

LOW 1012.2 P.P. 1018.4 Some estimated China’s Q3 GDP growth at 7.2-7.3%, far below the government’s annual target of 7.5%, which raised concerns over China’s economic outlook.

Zinc settled down -0.32% at 142.35 as pressure seen as Rupee posted its biggest single-day gain in nearly two months on Thursday, after hitting the highest level in more than two weeks after the U.S. Federal Reserve'sSeptember policy meeting minutes suggested it was in no hurry to raise interest rates. While falling US dollar index, combined with rising A-shares and stimuli for the property market, pushing up LME zinc prices to touchUSD 2,354/mt. But major economic indicators from Germany and France were sluggish. The number of US initial jobless claims last week unexpectedly fell, with the weekly average over the past month hitting an eight-yearlow. This fueled market anticipation of an earlier interest rate hike by the Fed, and drove up the US dollar index. LME zinc prices rolled back some gains and closed at USD 2,333.75/mt, up USD 11.5/mt or 0.5%. AlsoGermany’s exports shrank 5.8% in August, a bigger fall than the estimated 4% contraction and the largest monthly decline since January 2009. The country’s industrial output released earlier posted the sharpest drop in fiveyears. Trade surplus in the largest economy in the euro zone totaled EUR 14.1 billion in August, missing the forecast EUR 17.7 billion, stoking worries over its economic outlook. Meanwhile, European Central Bank PresidentMario Draghi pledged to unveil more stimulus measures to boost inflation if need be. Technically market is under long liquidation as market has witnessed drop in open interest by -2.59% to settled at 7215 while prices down -0.45 rupee, now Zinc is getting support at 141.8 and below same could see a test of 141.1 level, And resistance is now likely to be seen at 143.2, a move above could see prices testing 143.9.

MCX Nickel Oct 2014 TRADING IDEA

OPEN 1013.0 SUP-2 1002.7 Nickel trading range for the day is 1002.7-1034.1.

CLOSE 142.4 RES-1 143.2 Zinc daily stocks at Shanghai exchange came up by 2172 tonnes.

% CNG -0.32 RES-2 143.9 SELL ZINC @ 143.50 SL 144.50 TGT 142.60-141.50.MCX

HIGH 143.2 SUP-1 141.8 Zinc prices drifted lower pressure seen after major economic indicators from Germany and France were sluggish.

LOW 141.9 P.P. 142.5 The number of US initial jobless claims last week unexpectedly fell, with the weekly average over the past month hitting an eight-year low.

MCX Zinc Oct 2014 TRADING IDEA

OPEN 142.5 SUP-2 141.1 Zinc trading range for the day is 141.1-143.9.

Turmeric settled up by 1.39% at 6112 amid rising demand in the spot market. Further, restricted supplies from producing region as well as limited stocks position in the physical market also influenced prices. As per themarket sources, the total production of turmeric in the current year is expected to be around 35-37 lakh bags against 52 lakh bags of the last year. Sources mentioned that weak rainfall so far in the major growing regions ofturmeric in the state such as Nizamabad and Warangal will reduce the crop to 17-18 lakh bags from 22 lakh bags projected in the last year. While the total crop size of turmeric in Karnataka is estimated lower at 5 lakh bagsfrom 7 lakhs bags in 2013-14 due to weak rainfall so far in the current year and poor price realization from turmeric crop. Prices of hybrid finger turmeric increased in Erode markets following the arrival of quality produce.Suddenly super fine hybrid finger turmeric and fine variety hybrid root arrived for sale. Some traders have received fresh upcountry orders for hybrid and also other varieties, so after verifying the samples, they quotedhigher price and purchased a good number of bags. Some traders have received local demand from grinding units, so local traders procured some bags. Of the total arrival of 2,000 bags that arrived, 70 per cent was sold. InNizamabad, a major spot market in AP, the price ended at 5968.05 rupees remains unchanged at0 rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 5.68% to settled at 10135while prices up 84 rupee, now Turmeric is getting support at 6060 and below same could see a test of 6006 level, And resistance is now likely to be seen at 6172, a move above could see prices testing 6230.


CLOSE 6112 RES-1 6172 The total crop size of turmeric in Karnataka is estimated lower at 5 lakh bags from 7 lakhs bags in 2013-14.

% CNG 1.39 RES-2 6230 BUY TURMERIC NOV @ 6060 SL 5940 TGT 6160-6220.NCDEX

HIGH 6176 SUP-1 6060 Turmeric prices ended with gains amid rising demand in the spot market.

LOW 6064 P.P. 6118 The total production of turmeric in the current year is expected to be around 35-37 lakh bags against 52 lakh bags of the last year.

Chana settled up by 2.35% at 2922 as some short covering and improved festive season demand at lower levels supported the trend. However, ample supplies form the major producing belts against sluggish demand in thespot market, capped some gains. The 4th government advance estimates pegged total pulses output for 2013-14 at 19.27 million ton, up from 18.34 million ton earlier. Agriculture ministry has estimated chana recordoutput at 9.88 million ton up from 8.83 million ton a year ago. Chana arrivals rose by 10 trucks to 30 trucks as compared to previous day. According to the fourth advanced estimates released by the Ministry of Agriculture,chana output in 2013-14 is estimated at 9.88 million tonnes, up 11.9 per cent compared with 8.83 million tonnes the previous year. The Government had initially set a target of 8.66 million tonnes. Increased acreage andfavourable climatic conditions in the major producing States such as Madhya Pradesh, Maharashtra, Rajasthan and Karnataka also helped to push up the yield. Being a rabi crop, sowing of chana takes place after theharvesting of kharif crops between October and December, while harvesting takes place from January through May. Lower prices on the back of record output and comfortable supplies may force farmers to switch over toother remunerative crops such as mustard and coriander which could yield better returns. In Delhi spot market, chana gained by 25.8 rupee to end at 2894.45 rupee per 100 kgs.Technically market is under fresh buying asmarket has witnessed gain in open interest by 0.75% to settled at 114150 while prices up 67 rupee, now Chana is getting support at 2875 and below same could see a test of 2828 level, And resistance is now likely to beseen at 2951, a move above could see prices testing 2980.

NCDEX Turmeric Nov 2014 TRADING IDEA

OPEN 6064 SUP-2 6006 Turmeric trading range for the day is 6006-6230.

CLOSE 2922 RES-1 2951 NCDEX accredited warehouses chana stocks dropped by -191 tonnes to 59527 tonnes.

% CNG 2.35 RES-2 2980 BUY CHANA NOV @ 2900 SL 2860 TGT 2935-2960.NCDEX

HIGH 2933 SUP-1 2875 Chana prices ended with gains as some short covering and improved festive season demand at lower levels supported the trend.

LOW 2857 P.P. 2904 However, ample supplies form the major producing belts against sluggish demand in the spot market, capped some gains.

NCDEX Chana Nov 2014 TRADING IDEA

OPEN 2857 SUP-2 2828 Chana trading range for the day is 2828-2980.

129.6129.0128.0

124.8125.8126.4

2463

127.4

1.05


Positive Positive

SPREAD 127 677 -9.00 7.50 7.00 0.75 7.40

TREND Positive Positive Positive Positive Positive Positive Positive

1.25

1002.7 116.626852 38277 5211 232.4 411.1

OI 7455 16640 19249 6492 11860 7215 5772 5054140.4 993.2 115.8

141.8 1008.9 117.2141.1

P. POINT 26950 38688 5293 236.9 413.3

26649 37528 5077 224.7 407.1SUPPORT 26747 37939 5159 229.2 409.3

415.1 143.2 1024.6 118.6142.5 1018.4 118.0

RESISTANCE27258 39775 5479 247.8 419.1 144.6 1040.3 120.027153 39437 5427 244.6 417.3 143.9 1034.1 119.427055 39026 5345 240.1

CLOSE 26958 38615 5264 235.6 412.95 142.35 1015.1 117.7

Mentha oil settled down by -0.51% at 687 dropped due to ample stocks in the physical market. But, increased exports as well as industrial demand, capped some losses in mentha oil prices to some extent. Higher stocksprevented any strong upsurge in prices however. But with Exports expected to pick up in coming months, the downtrend seems limited for the time. At Sambhal market estimated market supply was at 50 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. At Barabanki market sources reported arrivals at 225 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Rampur market estimatedmarket supply was at 10 Drums(1-drum=180kg), up by 2 Drums(1-drum=180kg) as against previous day. At Bareilly market total arrivals are at 6 Drums(1-drum-180kg), up by 2 Drums(1-drum-180kg) from previous day’sarrivals. Sources point to some more pick up in demand in coming days - that could support the prices to some extent. Trade sources estimate the area under mentha planting at 17,500 hectares this season, 20 per centdown, resulting in a proportionate fall in mentha oil production this year. Sources estimate oil production at 55,000 tonnes in 2013-14, of which 40 per cent was unsold and carried over for 2014-15. Technically market isunder long liquidation as market has witnessed drop in open interest by -2.53% to settled at 8826 while prices down -3.5 rupee, now Menthaoil is getting support at 680.4 and below same could see a test of 673.7 level, Andresistance is now likely to be seen at 695.6, a move above could see prices testing 704.1.

DAILY MARKET LEVEL FOR METAL AND ENERGY

COMMODITIES GOLD SILVER CRUDE NAT.GAS COPPER ZINC NICKEL ALUMINUM LEAD

127.0

CLOSE 687.0 RES-1 695.6 But, increased exports as well as industrial demand, capped some losses in mentha oil prices to some extent.

% CNG -0.51 RES-2 704.1 SELL MENTHA OIL OCT @ 693 SL 700 TGT 684-678.MCX

HIGH 697.4 SUP-1 680.4 Menthaoil spot is at 750/-. Spot market remains unchanged.

LOW 682.2 P.P. 688.9 Mentha oil prices dropped due to ample stocks in the physical market.

MCX Menthaoil Oct 2014 TRADING IDEA

OPEN 691.9 SUP-2 673.7 Menthaoil trading range for the day is 673.7-704.1.

12:15pm EUR -0.002 0.0021:30pm EUR 0.006 -0.016:00pm USD -0.005 -0.0096:30pm USD 0 0Day 1 ALL 0 0

11:30pm USD 0 -128.7B0 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 0

8

Members of the Federal Reserve are worried about global economic weakness and the impact of astronger U.S. dollar, according to the minutes of the September 16-17 meeting released. At thatmeeting, the Fed said end it will end its bond-buying program after October and discussed plans forhow to eventually raise interest rates. There was disagreement over the Fed's promise to keepinterest rates at zero for a "considerable time," with several voting members expressing concerns thatthe phrase will give markets an inaccurate outlook for when the central bank will tighten. "Theconcern was raised that the reference to 'considerable time' in the current forward guidance could bemisunderstood as a commitment rather than as data dependent," the minutes said. "It wasemphasized that the current forward guidance for the federal funds rate was data dependent and didnot indicate that the first increase in the target range for the federal funds rate would occurmechanically after some fixed calendar interval following the completion of the current asset purchaseprogram," the statement added. However, others were reluctant to change the "considerable time"phrase for fear that markets would read a change in guidance as a hawkish shift in policy.

Japan's leading gauge of capital spending rose for a third straight month in August, in a tentative signfirms are investing their profits in plants and equipment that could bolster growth in the world's third-largest economy. But analysts say the 4.7 percent gain in core machinery orders is not enough todispel concerns the economy is losing traction even as the Bank of Japan keeps ultra-loose monetarypolicy and the government stands ready to deploy fresh stimulus. A sales tax hike that went intoeffect in April triggered the deepest economic slump in the April-June quarter since the 2008-09global financial crisis. The data followed a shocking slump in August factory output and other softindicators including exports and household spending, complicating the government's decision by theyear-end on whether to proceed with a second sales tax hike next year. Prime Minister Shinzo Abe isdue to make a decision on the sales tax increase in December, looking at economic indicators in July-September for clues on whether the economy is strong enough to withstand the impact from thehigher levy. The government plans to increase the sales tax rate to 10 percent in October 2015, afterhaving raised it to 8 percent from 5 percent in April. The rise followed monthly gains of 3.5 percent inJuly and 8.8 percent in June, after a record 19.5 percent drop in May.

India's oilmeal exports slumped by 73% to 82,749 tonnes in September this year on significantdecline in shipments of soyameal due to lower domestic crop, according to industry body SEA. Exportof oilmeal, used as animal feed, stood at 3,01,717 tonnes in the same month last year. "Soybeanmeal exports greatly reduced in last six months due to lower-than-expected crop, resulting into highcost of soybean in local market. "This lead to total disparity for soybean meal in internationalmarket," Mumbai-based Solvent Extractors' Association (SEA) said in a statement. For the first time in last six months, oilmeal exports fell below 1,00,000 tonnes mark. However, brighter side was that theshare of rapeseed meal increased in the last six months, it added. Of total oilmeal exports inSeptember, soyabean meal comprised of 868 tonnes, rapeseed meal (58,567 tonnes), ricebranextraction (1,500 tonnes) and castorseed meal was 21,814 tonnes. According to SEA's latest data,oilmeal exports have been declining since May but the maximum month-on-month fall was witnessedduring the last month. In the first six months of this fiscal, overall oilmeal exports remained down by43% at 9,50,599 tonnes as compared to 16,57,697 tonnes in the same period. Export to South Koreafell by 10.35% to 4,64,555 tonnes in April-September of this fiscal and shipments to Iran dropped by75% to 1,42,357 tonnes in the same period.

The total sugarcane acreage on the basis of the September 2014 satellite images has been estimatedat 52.94 lakh hectares, 1 per cent lower than last year, according to the Indian Sugar Mills’Association (ISMA). Advance estimates by ISMA have placed the total cane acreage in Maharashtra at10.41 lakh hectares, about 11 per cent higher than last year. Adsali and pre-seasonal cane varietiesare reported in a larger area compared with last year, and since this gives better yields and recoverycompared with the 12-month crop, it is expected that cane yields and sugar recovery in Maharashtrawill be better than last year, the sugar producers’ body said in a release. It is on this basis that ISMAhas estimated sugar production from Maharashtra at around 93 lakh tonnes in the 2014-15 sugarseason, about 20 per cent higher than last year’s 77.11 lakh tonnes. Cane acreage reported fromUttar Pradesh is around 23.07 lakh hectares, about 8 per cent less than last year, it said. Overall,cane acreage is likely to be better in UP, whereas sugar recovery may be the same as last yearbecause of the balance brought about by less rainfall in Western UP and good monsoon showers inCentral and Eastern regions. Accordingly, ISMA has estimated that about 60 lakh tonnes of sugar willbe produced by the UP mills, down 8 per cent on last year’s 65 lakh tonnes. Incidentally, UP mills stillhave to clear arrears due to cane growers Karnataka is estimated to have about 4 9 lakh hectares of

Date : Friday, October 10, 2014 URL : www.achiieversequitiesltd.com Page No -

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Most major world economies are continuing to show stable growth momentum, but within the eurozone Germany and Italy are losing steam, the OECD said. The figures from the Paris-basedOrganisation for Economic Cooperation and Development added to a range of recent surveys whichpointed to weakness in the euro area and came a day after the International Monetary Fund cut itsglobal growth forecasts. The OECD said its leading indicator covering 33 member countries was stablein August from the prior month at 100.4, above its long-term average of 100. The indicator, which isdesigned to flag turning points in the economic cycle, suggested that the OECD area as a whole, aswell as Canada and the United States individually, was experiencing "stable growth momentum." Thatstability was also anticipated for Brazil, Russia and China. The indicator has been close to or at 100.50since November 2013. In the euro zone, however, signs point to weakening growth, with the indicatorfor Germany, Europe's biggest economy, falling to 99.7 from 100.1 in July. Official data released onTuesday showed German industrial output plunged in August at its steepest rate since the height ofthe financial crisis. The OECD said that one-off factors might explain a fall in the indicator for Japan to99.6 from 99.8. It said India was the only major economy whose indicator pointed to a rise in growthmomentum, its indicator improving to 99.0 from 98.8.

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