Daily Commodity Roundup as on - Systematix...
Transcript of Daily Commodity Roundup as on - Systematix...
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 1
Daily Commodity Roundup as on Monday, August 27, 2018
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 2
NIKKEI22760
-0.28 -0.17 0.7USDINR
69.94 S&P
INDEX
2857
DJIA25657
-0.22 -0.22 -0.30SENSEX
38252NIFTY
11557
$ INDEX95.07
0.68 0.90 -0.57
LME ALUMINIUM
2084 LME
LEAD
2079
13420
1.74 2.47 1.36
LME
COPPER
6069 LME
ZINC
2526
IN
TER
NA
TIO
NA
L M
AR
KET U
PD
ATE GOLD $
1207.21SILVER $
USDJPY111.075
0.1 0.16 -0.13EURUSD
1.1632GBPUSD
1.28598
LME
NICKEL
14.85CRUDE $
68.60
0.11 0.44 1.14
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RESIST 1 SUPPORT 1 SUPPORT 2
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 3
Trading Ideas :Gold trading range for the day is 29416-30210.
Prices remained supported as dollar slipped amid U.S.-China trade talks and as U.S. President Trump criticized the U.S. Fed’s plan to raise interest rates.
Demand for physical gold was modest in India while interest for the metal remained lacklustre elsewhere in Asia as buyers awaited a dip in prices.
A rise in activity in gold options amid geopolitical tensions and a record-long bull market for U.S. equities suggests that investors are betting gold prices have found a floor.
Gold prices rose as the dollar came under pressure from clues about the direction of U.S. monetary policy from Federal Reserve Chairman Jerome Powell.
Gold on MCX settled up 1% at 29903 as the dollar came under pressure
from clues about the direction of U.S. monetary policy from Federal
Reserve Chairman Jerome Powell, which market watchers interpreted as
dovish. Prices also remained supported as the U.S. dollar slipped amid
U.S.-China trade talks and as U.S. President Donald Trump criticized the
U.S. Federal Reserve’s plan to raise interest rates. Trump’s criticism of
the Fed’s intention to raise rates weakened the U.S. currency. Demand
for physical gold was modest in India in the week as the top bullion
consuming state of Kerala coped with floods, while interest for the metal
remained lacklustre elsewhere in Asia as buyers awaited a dip in prices.
Dealers in India were charging a premium of up to $1.25 an ounce over
official domestic prices this week, compared to a premium of $1 the last
week. In top consumer China, premiums rose to $6-$8 an ounce in the
week from last week’s $3 to $5, while premiums in Hong Kong were little
changed at 90 cents-$1.40 versus 90 cents to $1.50 previously. A rise in
activity in gold options amid geopolitical tensions and a record-long bull
market for U.S. equities suggests that investors are betting gold prices
have found a floor. Open interest in Comex gold call options giving the
holder a right to buy the metal at $1,200 per ounce in December 2018,
surged in the week to a record 1,136 contracts, from 79 contracts on July
31, the largest in at least two years. Technically now Gold is getting
support at 29659 and below same could see a test of 29416 level, And
resistance is now likely to be seen at 30056, a move above could see
prices testing 30210.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
29600
SUPPORT 3
30453 30210 30056 29659 29416 29262
29967 29570 29903 1.00 7984
RESIST 3 RESIST 2
MCX Gold Oct 2018
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SUPPORT 2 SUPPORT 3
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 4
Trading Ideas :Silver trading range for the day is 36293-37485.
The dollar was also knocked by ongoing political uncertainty in Washington as traders assess the impact of President Donald Trump's growing legal concerns.
The plunging dollar helped to overshadow concerns over the U.S.-China trade war after talks in the week led to little progress, though this outcome was widely expected.
Hedge funds and money managers raised their net short position in silver futures and options, U.S. CFTC data showed.
Silver prices gained after a plunge in the dollar supported a broad-based rally in metals following a dovish speech from Fed Chairman Jerome Powell.
Silver on MCX settled up 1.08% at 37004 after a plunge in the dollar
supported a broad-based rally in metals following a dovish speech from
Fed Chairman Jerome Powell. Federal Reserve Chairman Jerome Powell all
but dismissed any notion that the Federal Reserve would step up the pace
of rate hikes, insisting that the current pace of gradual rate hikes were
appropriate as there were no "clear signs" of an elevated risk of the
economy overheating. That prompted a sharp retreat in the dollar as
investors reined in some of their bullish bets on continued upside in the
greenback, sending prices soaring. The Federal Reserve should stop
raising interest rates now because the economy is showing no signs of
inflation surging and is expected to slow next year after the effects of
fiscal stimulus wear off, St. Louis Fed President James Bullard said. The
dollar was also knocked by ongoing political uncertainty in Washington as
traders assess the impact of President Donald Trump's growing legal
concerns after his former lawyer Michael Cohen implicated him in crimes.
The plunging dollar helped to overshadow concerns over the U.S.-China
trade war after talks in the week led to little progress, though this
outcome was widely expected. Hedge funds and money managers raised
their net short position in silver futures and options, U.S. Commodity
Futures Trading Commission (CFTC) data showed. Hedge funds and
money managers raised their net short position in silver by 5,186
contracts to 25,373 contracts, the largest since early April, CFTC data
showed. Technically now Silver is getting support at 36648 and below
same could see a test of 36293 level, And resistance is now likely to be
seen at 37244, a move above could see prices testing 37485.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
36598 37130
37840 37485 37244 36648 36293 36052
36534 37004 1.08 20836
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1
MCX Silver Sep 2018
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SUPPORT 2 SUPPORT 3
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 5
Trading Ideas :Crudeoil trading range for the day is 4735-4891.
The supply versus demand outlook for oil markets was relatively tight because of the looming U.S. sanctions against Iran, which will target oil exports from November.
OPEC and other oil exporting producers are expected to agree on a mechanism to monitor their crude production before the end of the year, Kuwaiti Oil Minister Bakhit al-Rashidi said.
OPEC has started to boost supplies following a deal with Russia and other allies in June, although producers have been cautious so far.
Crude oil prices gained on signs that Iran sanctions may limit global supply and that a trade war may not curb China’s appetite for U.S. crude.
Crudeoil on MCX settled up 0.63% at 4804 on signs that Iran sanctions
may limit global supply and that a trade war may not curb China’s
appetite for U.S. crude. Oil prices also drew support from the prospect of
a drop in crude exports from Iran in response to new U.S. sanctions on
the No. 3 producer in the Organization of the Petroleum Exporting
Countries. The supply versus demand outlook for oil markets was
relatively tight because of the looming U.S. sanctions against Iran, which
will target oil exports from November. Iran is the third-biggest producer
within the Organization of the Petroleum Exporting Countries (OPEC),
exporting on average around 2.5 million barrels per day (bpd) of crude
and condensate this year, equivalent to around 2.5 percent of global
consumption. OPEC and other oil exporting producers are expected to
agree on a mechanism to monitor their crude production before the end
of the year, Kuwaiti Oil Minister Bakhit al-Rashidi said. A committee set
up by the Organization of the Petroleum Exporting Countries and allied
non-OPEC exporters would review their crude output at a meeting in
Algeria next month, he told reporters while touring an electricity station.
OPEC has started to boost supplies following a deal with Russia and other
allies in June, although producers have been cautious so far. Saudi Arabia
told OPEC it cut supply in July, rather than increasing output as expected.
Signs of tighter supply countered concern about slowing oil demand
stemming partly from the trade dispute between the United States and
China, the world's two largest economies. Technically now Crudeoil is
getting support at 4769 and below same could see a test of 4735 level,
And resistance is now likely to be seen at 4847, a move above could see
prices testing 4891.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
4790 4857
4925 4891 4847 4769 4735 4691
4779 4804 0.63 11730
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1
MCX Crudeoil Sep 2018
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RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Copper trading range for the day is 408.9-422.5.
The global world refined copper market showed a 31,000-tonne deficit in May, compared with a 105,000-tonne deficit in April, ICSG said.
China's copper producers and traders are riding an unexpected surge of business that has pushed physical prices to their highest in nearly two years.
Warehouse stock for Copper at LME was at 267075mt that is up by 125mt.
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 6
Copper gained on a softer dollar, though worries about Chinese demand capped gains as the country’s trade dispute with the United States drags on.
Copper on MCX settled up 1.34% at 416.25 on a softer dollar, though
worries about Chinese demand capped gains as the country’s trade
dispute with the United States drags on. Prices remained under pressure
this month on concerns the U.S.-China trade row will hurt demand for
industrial metals and is heading for its worst month since August 2016.
Federal Reserve officials discussed raising interest rates soon to counter
excessive economic strength but also examined how global trade disputes
could batter businesses and households, minutes of the U.S. central
bank's last policy meeting showed. The global world refined copper
market showed a 31,000-tonne deficit in May, compared with a 105,000-
tonne deficit in April, the International Copper Study Group (ICSG) said in
its latest monthly bulletin. China's copper producers and traders are
riding an unexpected surge of business that has pushed physical prices to
their highest in nearly two years as fabricators rush to buy refined metal
to avoid import tariffs on scrap that kick in. Cancelled warrants – material
earmarked for delivery – for copper in LME-approved warehouses have
risen above 84,000 tonnes, from around 25,000 tonnes last week. The
latest number is about 31 percent of LME copper stocks. Supplies
continued to grow as more imported copper arrived, and this weighed on
spot premiums. Transactions cooled from August 23 as traders demanded
lower offers and as downstream consumers did not hurry to restock.
Technically market is under short covering as market has witnessed drop
in open interest by -7.47% to settled at 24642 while prices up 5.5
rupees, now Copper is getting support at 412.6 and below same could see
a test of 408.9 level, And resistance is now likely to be seen at 419.4, a
move above could see prices testing 422.5.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
412.50
SUPPORT 3
426.2 422.5 419.4 412.6 408.9 405.8
418.85 412.05 416.25 1.34 24642
RESIST 3 RESIST 2
MCX Copper Aug 2018
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RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Zinc trading range for the day is 172.5-181.7.
The global zinc market saw a surplus of 3,000 tonnes in June from a deficit of 26,000 tonnes in May, data from ILZSG showed.
Deliverable zinc inventories in warehouses monitored by the Shanghai Futures Exchange (ShFE) fell 29.1 percent from the previous week, according to exchange data.
Warehouse stock for Zinc at LME was at 247400mt that is down by -1175mt.
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 7
MCX Zinc Aug 2018
Zinc prices gained supported by given current 10-year lows of warehouse warrants at SHFE warehouses.
Zinc on MCX settled up 2.12% at 177.95 supported by given current 10-
year lows of warehouse warrants at SHFE warehouses. Deliverable zinc
inventories in warehouses monitored by the Shanghai Futures Exchange
(ShFE) fell 29.1 percent from the previous week, according to exchange
data. Decline was the sharpest on record since April 2007. Shanghai zinc
stocks at 34,930 tonnes, the lowest since November 2007, having fallen
by 14,313 tonnes from the previous week. The greenback received a
boost from political uncertainty, a new round of trade tariffs and the
Federal Reserve's latest policy meeting minutes that left little doubt that
the US central bank will further raise interest rates. The signs of strength
in the US labour market have been a key reason behind the Federal
Reserve's ongoing campaign to raise interest rates. Housing market data
has weakened in recent months, with home resales declining in July for a
fourth straight month. The sector has been plagued by rising costs of
building material and shortages of land and labour, which have squeezed
the supply of houses available for sale and kept house prices high. A
significant increase of inventories in east China bolstered social
inventories of zinc across Shanghai, Tianjin and Guangdong last week.
There was a variety of imported resources in the market in the week as
the import arbitrage window has been open for two consecutive weeks.
The global zinc market saw a surplus of 3,000 tonnes in June from a
deficit of 26,000 tonnes in May, data from the International Lead and Zinc
Study Group (ILZSG) showed. Technically now Zinc is getting support at
175.3 and below same could see a test of 172.5 level, And resistance is
now likely to be seen at 179.9, a move above could see prices testing
181.7.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
176.0
SUPPORT 3
184.5 181.7 179.9 175.3 172.5 170.7
178.9 174.3 178.0 2.12 5098
RESIST 3 RESIST 2
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RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Nickel trading range for the day is 920.7-944.5.
U.S. and Chinese officials ended talks with no major breakthrough as their trade war escalated with activation of another round of duelling tariffs on $16 billion.
Nickel stocks in Shanghai bonded warehouses dipped 14% from a week ago to 51,300 mt.
Warehouse stock for Nickel at LME was at 242604mt that is down by -948mt.
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 8
MCX Nickel Aug 2018
Nickel prices gained tracking LME prices gained 1.1 percent to $13,415 after a plunge in the dollar supported.
Nickel on MCX settled up 0.88% at 933.7 tracking LME prices gained 1.1
percent to $13,415 after a plunge in the dollar supported. U.S. and
Chinese officials ended two days of talks with no major breakthrough as
their trade war escalated with activation of another round of duelling
tariffs on $16 billion of each country’s goods. China will keep retaliating
as more U.S. trade tariffs are imposed, but its counter-strikes will remain
as targeted as possible to avoid harming businesses in China, both
Chinese or foreign, Finance Minister Liu Kun told. The plunging dollar
helped to overshadow concerns over the U.S.-China trade war after talks
in the week led to little progress, though this outcome was widely
expected. The dollar was also knocked by ongoing political uncertainty in
Washington as traders assess the impact of President Donald Trump's
growing legal concerns after his former lawyer Michael Cohen implicated
him in crimes. World Bureau of Metal Statistics announced that the Nickel
market was in deficit during January to June 2018 with apparent demand
exceeding production by 22 kt. In the whole of 2017 the calculated deficit
was 76.0 kt. Reported stocks held in the LME at the end of June 2018
were 95 kt lower than at the end of the previous year. Refined production
in January to June 2018 totalled 934.3 kt and demand was 956.1 kt. Mine
production during January to June was 1026.6 kt, 120 kt above the
comparable 2017 total. Technically market is under short covering as
market has witnessed drop in open interest by -8.27% to settled at 7609,
now Nickel is getting support at 927.2 and below same could see a test of
920.7 level, And resistance is now likely to be seen at 939.1, a move
above could see prices testing 944.5.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
932.9
SUPPORT 3
951.0 944.5 939.1 927.2 920.7 915.3
938 926.1 933.7 0.88 7609
RESIST 3 RESIST 2
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RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Jeera trading range for the day is 18687-20087.
India's cumin output fell to 489,000 ton from 503,000 ton a year ago and as a result stocks with traders and farmers are stated to lower.
NCDEX accredited warehouses jeera stocks dropped by 278 tonnes to 2737 tonnes.
In Unjha, a key spot market in Gujrat, jeera edged down by -191.65 rupees to end at 19696 rupee per 100 kg.
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 9
NCDEX Jeera Sep 2018
Jeera settled down tracking weakness in spot demand after prices gained in recent sessions on lower rains in northern Gujarat.
Jeera on NCDEX settled down by -3.61% at 19635 tracking weakness in
spot demand after prices gained in recent sessions on lower rains in
northern Gujarat, good exports demands from China and Bangladesh.
India's cumin output fell to 489,000 ton from 503,000 ton a year ago and
as a result stocks with traders and farmers are stated to lower. 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 May surged
96% on year to 27,790 tonnes. Moreover, country exports about 87,115
tonnes of Jeera during Mar-May 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, trade
officials said. In Unjha, a key spot market in Gujarat, jeera remains
unchanged at0 Rupees to end at 19887.5 Rupees per 100 kg.Technically
now Jeera is getting support at 19340 and below same could see a test of
19045 level, And resistance is now likely to be seen at 20190, a move
above could see prices testing 20745.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
19730
SUPPORT 3
20405 20085 19705 19005 18685 18305
19765 19065 19330 -1.55 6822
RESIST 3 RESIST 2
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RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Turmeric trading range for the day is 6788-6960.
Turmeric prices were lower on reports of improved sowing from major growing areas of Tamilnadu, Karnataka and Maharashtra.
NCDEX accredited warehouses turmeric stocks dropped by 49 tonnes to 4875 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 7055.95 Rupees dropped -1.55 Rupees.
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 10
NCDEX Turmeric Sep 2018
Turmeric prices ended with losses on optimistic outlook on supplies following improved sowing in key growing areas.
Turmeric on NCDEX settled down -0.15% at 6868 on optimistic outlook
on supplies following improved sowing in key growing areas. Turmeric
prices were lower on reports of improved sowing from major growing
areas of Tamilnadu, Karnataka and Maharashtra. In Telangana, turmeric
acreage rose to 46,692 hectare from 41,715 hectare a year ago, State
Government data showed. Overall area under turmeric may increase by
10-15% yearly mainly due to rise in acreage in Telangana, a top grower
of turmeric. In Andhra Pradesh, Turmeric sowing reported 12,320
hectares as compared to 7,998 hectares in the corresponding period last
year, 68% sowing completed from season normal. Spot turmeric prices
decreased at the markets in Erode due to the non-receipt of fresh
upcountry demand. Further, the second turmeric sale season will start by
September, so the farmers, expecting good price for their produce, held
back and brought only medium and poor quality turmeric. Around 2,600
bags arrived for sale and 60 per cent were sold. At the Erode Turmeric
Merchants Association, finger turmeric went for Rs. 5,798-8,222 a
quintal; root variety for Rs. 5,488-7,333. Of the 2,461 bags on sale, 908
were traded. Farmers and stockists were holding back their old stocks on
expectation of higher prices in coming days as current year production is
likely to decline due to lower acreage by 40-45% in Tamil Nadu.
Technically market is under long liquidation as market has witnessed drop
in open interest by -1.21% to settled at 14310 while prices down -10
rupees, now Turmeric is getting support at 6828 and below same could
see a test of 6788 level, And resistance is now likely to be seen at 6914,
a move above could see prices testing 6960.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
6906
SUPPORT 3
7000 6960 6914 6828 6788 6742
6920 6834 6868 -0.15 14310
RESIST 3 RESIST 2
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RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Menthaoil trading range for the day is 1703.9-1733.9.
Mentha oil spot at Sambhal closed at 1937.50 per 1kg. Spot prices was up by Rs.8.30/-.
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.
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 11
MCX Menthaoil Sep 2018
Mentha oil prices rallied due to bullish demand outlook from domestic market as well as exporters.
Menthaoil on MCX settled up 0.74% at 1721.7 due to bullish demand
outlook from domestic market as well as exporters. Spot markets are also
witnessing strong consumption demand amid restricted supplies. Bumper
crop harvest has been discounted in the market and market is moving
upwards on rising demand from end users. Arrivals in Sambhal stood at
400 drums compared to 350 drum a day ago while in Barabanki supplies
rose to 500 drums from 450 drums a day earlier. According to preliminary
estimates, mentha oil production in 2018-19 would be 40,000-45,000 ton
against last year's production of 35,000 tons. There could be chances of
crop damage to certain extend due to unfavourable weather condition.
Besides, farmers are likely to hold back the stocks as the present prices
are not remunerative for them. However, in recent years, the growth in
production and consumption of synthetic mentha has influenced the
demand for natural mentha. As per sources, India contributes around
80% to the total global mentha oil production. Total global production
stood at around 48,000 tonnes, out of which India produces between
30,000-40,000 tonnes. According to estimates, mentha oil production in
India for crop year 2016-17 will be around 38,000 tonnes. Technically
market is under fresh buying as market has witnessed gain in open
interest by 22.02% to settled at 1280 while prices up 12.6 rupees, now
Menthaoil is getting support at 1712.8 and below same could see a test of
1703.9 level, And resistance is now likely to be seen at 1727.8, a move
above could see prices testing 1733.9.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
1710.60
SUPPORT 3
1742.8 1733.9 1727.8 1712.8 1703.9 1697.8
1725.00 1710.00 1721.70 0.74 1280
RESIST 3 RESIST 2
TIME ZONE Forecast
CommodityLME STOCK Stock
COPPER 125 267075
ALUMINIUM -4850 1095125
NICKEL -948 242604
LEAD 175 126725
ZINC -1175 247400
0 0 0 0 0
Date : Monday, August 27, 2018 URL : www.systematixshares.com Page No : 12
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
0:00 0 0 0 0
0:00 0 0 0 0
0:00 0 0 0 0
Long Liquidation
LME DAILY STOCK POSITION ECONOMICAL DATA
DATA Previous
1:30pm EUR German Ifo Business Climate 101.9 101.7
TREND Long Liquidation Fresh Buying Long Liquidation Long Liquidation Long Liquidation Fresh Selling Short Covering Fresh Selling
727
Cng in OI -4.90 4.21 -0.35 -2.57 -1.21 0.73 -6.12 1.10 -3.17
SUPPORT
3930 23030 18305 4183 6742 4009 591.0 3176
731
4007 23110 18685 4234 6788 4041 592.4 3206 729
4054 23190 19005 4272 6828 4060 593.9 3227
595.3 3257 733
739
4255 23430 20085 4412 6960 4143 598.2 3308 737
599.7 3329
596.8 3278 735
P. POINT 4131 23270 19385 4323 6874 4092
4178 23350 19705 4361 6914 4111
RESISTANCE
4302 23510 20405 4450 7000 4162
4101 23270 19330 4310 6868 4078 595.5 3249
DAILY MARKET TRADING LEVEL
COMMODITIESNCDEX CHANA Sep
2018
NCDEX Cotton Oct
2018
NCDEX Jeera Oct
2018
NCDEX Guarseed10
Oct 2018
NCDEX Turmeric
Sep 2018
NCDEX Rmseed Sep
2018MCX CPO Aug 2018
NCDEX Soyabean
Oct 2018
NCDEX
Ref.Soya oil
Sep 2018
733.6CLOSE
125
-4850
-948
175
-1175
-6000
-5000
-4000
-3000
-2000
-1000
0
1000
COPPER ALUMINIUM NICKEL LEAD ZINC
LME STOCK
NEWS YOU CAN USE
Germany’s Jens Weidmann is seeing his prospects of becoming European Central Bank president fade, amid signs that trade issues handled in Brussels are eclipsing
Berlin’s concerns about securing its man to steer monetary policy. German business daily Handelsblatt reported on Wednesday that Chancellor Angela Merkel is focusing
on winning the European Commission presidency for a German rather than backing Bundesbank chief Weidmann to succeed Mario Draghi. Asked by Reuters about the
report, Merkel told journalists on Thursday she had taken no decision yet on who she wanted to be the next ECB president. “Discussions about the personal decisions to
be made in conjunction with elections to the European Parliament are now slowly starting to take place,” she told a news conference during a visit to Georgia. “That
means no decisions at all have been taken and the post of European Central Bank chief is to be filled much later, so I can’t confirm any wishes I have. Rather, we will wait
for the developments and then see how the German positions develop.” She might have her work cut out to secure either the ECB or the Commission job for a German
candidate. Both jobs come up next year. Weidmann has a strong central banking profile but has antagonised much of southern Europe. Securing the Commission post
would also not be easy, with many EU states wary of a German taking charge in Brussels. The Bundesbank and a German government spokesman declined to comment on
the Handelsblatt report, and sources close to Merkel have told Reuters it was too soon to determine Germany’s priorities for the European posts.
Japanese manufacturing activity grew at a slightly faster pace in August as domestic demand jumped, a preliminary survey showed, but export orders contracted, adding
to worries about rising trade protectionism. The flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) rose to 52.5 in August on a seasonally adjusted
basis from a final 52.3 in July. The index remained above the 50 threshold that separates expansion from contraction for the 24th consecutive month. However, the flash
index for new export orders fell to 49.3 from a final 50.0 in July to show the first contraction in two months. Japan's economy grew more than expected in the second
quarter, helped by strong household and business spending in a sign that domestic demand is gathering strength. Real wages rose in June at the fastest pace in more
than 21 years, which has also added to hopes that consumer spending will continue to rise.
India's palm oil imports are likely to fall 15 percent in 2017/18 from the year before to their lowest in six years, hit by a hike in import taxes, a weaker rupee and tighter
credit for would-be buyers, a senior industry official told. India in March raised its import tax on refined palm oil to 54 percent to support local farmers. That made palm
cargoes less appealing than shipments of alternative edible oils such as soyoil, sunflower oil and canola oil – at least until import duties on those commodities were raised
to 45 percent in June. In the first nine months of the 2017/18 marketing year that started on Nov. 1, India's palm oil imports fell 9.5 percent to 6.1 million tonnes,
according to data compiled by SEA. In the last three months of the year, imports could be around 1.8 million tonnes, with an average of 600,000 tonnes per month. Last
year, India imported 2.55 million tonnes in the August to October period. That would bring total 2017/18 palm imports to 7.9 million tonnes, down 15 percent on the year.
India now typically relies on imports for around 70 percent of its edible oil consumption, up from 44 percent in 2001/02. Palm oil accounted for as much as 86 percent of
India's total edible oil imports a decade ago, but its share last year dropped to 62 percent and could fall to a record-low of 56 percent this year, according to SEA data.
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