Daily Commodity Roundup as on - report.systematixshares.comreport.systematixshares.com/Commodity/SYSTEMATIXDAILYCOMM… · Daily Commodity Roundup as on Monday, October 29, 2018 Date

Daily Commodity Roundup as on Monday, October 29, 2018

Date : Monday, October 29, 2018 URL : www.systematixshares.com Page No : 1

14.67CRUDE $

67.59

-0.01 -0.14 0.39

IN

TER

NA

TIO

NA

L M

AR

KET U

PD

ATE GOLD $

1233.40SILVER $

USDJPY111.889

-0.05 0.04 0.05EURUSD

1.1394GBPUSD

1.28347

LME

NICKEL

11850

0 -0.72 -0.25

LME

COPPER

6182 LME

ZINC

2635

$ INDEX96.44

-0.2 -0.05 -0.16

LME ALUMINIUM

2002 LME

LEAD

1996

DJIA24985

-1.01 -0.94 1.63SENSEX

33349NIFTY

10030


NIKKEI21165

0.19 1.86 -0.09USDINR

73.40 S&P

INDEX

2706

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MCX Gold Dec 2018

Gold prices rose as nervous investors retreated from stock markets and piled into the precious metal seen as a refuge from financial turmoil.

Gold on MCX settled up 0.24% at 31937 as nervous investors retreated

from stock markets and piled into the precious metal seen as a refuge

from financial turmoil. U.S. economic growth slowed in the third quarter,

but posted a better-than-expected reading that left the American

economy on track to post its best annual expansion in 13 years. In a

report, the Bureau of Economic Analysis said that GDP registered a

seasonally-adjusted annual rate of 3.5% growth in the three month

period from July to September, cooling from growth of 4.2%, which was

the strongest reading in four years. The reading beat consensus

expectations for an expansion of 3.3% and left the U.S. economy on track

to register 3% growth for the year as a whole, which would be the

strongest outcome since 2005. Investor flows into bullion, often

considered a safe haven and store of value during times of financial,

economic and geopolitical uncertainties, can be seen by the rise in

holdings of physically-backed exchange traded products. Gold demand in

India in the week was muted as a recent rally in domestic prices

prompted buyers to postpone purchases despite the approaching festival

and wedding season. Dealers in India were offering a discount of up to $7

an ounce over official domestic prices this week, unchanged from the last

week and the highest since mid-June. Holdings in the SPDR Gold Trust,

saw outflows of about 4.5 million ounces between late April and early

October. But now at 24.1 million ounces, holdings are at their highest

since the end of August. Technically now Gold is getting support at 31821

and below same could see a test of 31705 level, And resistance is now

likely to be seen at 32133, a move above could see prices testing 32329.

OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST

31964

SUPPORT 3

32445 32329 32133 31821 31705 31509

32213 31901 31937 0.24 12886

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2


Trading Ideas :Gold trading range for the day is 31705-32329.

The release of U.S. growth data, showed the economy slowed less than expected in the third quarter, had little lasting impact.

Gold demand in India in the week was muted as a recent rally in domestic prices prompted buyers to postpone purchases despite the approaching festival and wedding season.

Holdings in the SPDR Gold Trust, saw outflows of about 4.5 million ounces between late April and early October.

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MCX Silver Dec 2018

Silver prices gained as investors rushed to the safety of bullion as stock markets around the globe plunged.

Silver on MCX settled up 0.25% at 38712 as investors rushed to the

safety of bullion as stock markets around the globe plunged. Gains in

prices were helped by weakness on Wall Street and global equity

markets, which were in for their longest losing streak in five years. The

U.S. economy slowed less than expected in the third quarter as a tariff-

related drop in soybean exports was partially offset by the strongest

consumer spending in nearly four years, keeping it on track to hit the

Trump administration's 3 percent growth target this year. Gross domestic

product increased at a 3.5 percent annualized rate also supported by a

surge in inventory investment and solid government spending, the

Commerce Department said in its first estimate of third-quarter GDP

growth. While that was a slowdown from a 4.2 percent pace in the second

quarter, it still exceeded the economy's growth potential. U.S. consumer

price inflation was 2.3 percent in the year to September, according to the

Labor Department, and even “core” inflation, which strips out volatile food

and energy prices, is running at 2.2 percent for the year, above the

Federal Reserve’s target. Hedge funds and money managers trimmed

their net short position in silver contracts in the week to Oct. 23, the U.S.

Commodity Futures Trading Commission (CFTC) said. Speculators cut

their net short position in silver by 11,945 contracts to 21,209 contracts

to the smallest net short position in 10 weeks. Technically market is

under short covering as market has witnessed drop in open interest by -

7.47% to settled at 24979 while prices up 97 rupees, now Silver is

getting support at 38520 and below same could see a test of 38328 level,

And resistance is now likely to be seen at 38955, a move above could see

prices testing 39198.


38673 39006

39390 39198 38955 38520 38328 38085

38571 38712 0.25 24979

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3


Trading Ideas :Silver trading range for the day is 38328-39198.

Gains in prices were helped by weakness on Wall Street and global equity markets, which were in for their longest losing streak in five years.

The U.S. economy slowed less than expected in the third quarter offset by the strongest consumer spending in nearly four years.

Hedge funds and money managers trimmed their net short position in silver contracts in the week to Oct. 23, the U.S. CFTC said.

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MCX Crudeoil Nov 2018

Crude oil prices recovered from lows supported by expectations that sanctions on Iran would tighten global supplies, but prices posted a weekly drop.

Crude oil prices recovered from lows supported by expectations that

sanctions on Iran would tighten global supplies, but prices posted a

weekly drop as a slump in stock markets and concerns about trade wars

clouded the fuel demand outlook. Prices got some support when two

sources said on Friday Iraq will stop trucking crude oil from its northern

Kirkuk oil field to Iran in November to comply with U.S. sanctions.

Washington has said it wants to reduce Iranian oil sales to zero, although

this looks unlikely. Still, many buyers, including Iran's biggest customer,

China, appear to be falling in line, forcing Tehran to store unsold oil on

tankers. The recent market turmoil and forecasts for an increase in

supply have caused investors to pull back on bets on higher oil prices.

Hedge funds cut their bullish bets on U.S. crude to the most in more than

a year, according to U.S. Commodity Futures Trading Commission figures.

Saudi Arabia's OPEC governor said on Thursday oil markets could face

oversupply. "The market in the fourth quarter could be shifting towards

an oversupply situation as evidenced by rising inventories over the past

few weeks," Adeeb Al-Aama told. Saudi Energy Minister Khalid al-Falih

said there could be a need for intervention to reduce oil stockpiles. U.S.

crude production is soaring, boosted by technological advances. Output

this year is forecast to break the annual record in 1970. Technically

market is under short covering as market has witnessed drop in open

interest by -2.08% to settled at 8320 while prices up 4 rupees, now

Crudeoil is getting support at 4886 and below same could see a test of

4821 level, And resistance is now likely to be seen at 4998, a move

above could see prices testing 5045.


4902 4980

5110 5045 4998 4886 4821 4774

4868 4951 0.08 8320

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3


Trading Ideas :Crudeoil trading range for the day is 4821-5045.

Saudi Arabia's OPEC governor said the oil market could face oversupply in the fourth quarter.

U.S. crude oil stockpiles rose last week for the fifth consecutive week, while gasoline and distillate inventories fell, the Energy Information Administration said.

Saudi Arabia Energy Minister Khalid Al-Falih said there could be a need for intervention to reduce oil stockpiles after increases in recent months.

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MCX Copper Nov 2018

Copper prices dropped amid lingering fears about global trade and economic growth.

Copper on MCX settled down -0.69% at 444.7 amid lingering fears about

global trade and economic growth. The European Central Bank (ECB) kept

interest rates unchanged in their October policy meeting. The interest

rate on the main refinancing operation, the marginal lending facility, and

the deposit facility sit at zero, 0.25% and -0.40% respectively. The

expectation is that these rates will remain at their present levels at least

through the summer of 2019. Available LME inventories fell to their

lowest in nearly 13 years while cash copper traded at its highest premium

to the three-month future in nearly three years. Market open interest on

Shanghai copper fell to 495.476 lots, the lowest since Feb. 9, 2017, in a

sign that money is leaving the market. Miner and commodities trader

Glencore reported a 12 percent rise in copper production so far this year.

Other major miners reporting this month – BHP Billiton and Rio Tinto –

have signalled lower copper output. Copper stocks across Shanghai

bonded areas shrank by 1,200 mt from October 19 to 393,000 mt as of

Friday October 26, data showed. Limited overseas cargoes moved into

the bonded areas amid closed import arbitrage window, which has

remained closed for nearly a month. Separately, copper inventories

across LME warehouses in Asia stood below 20,000 mt, the lowest in

recent four-five years. Copper inventories in warehouses monitored by

the Shanghai Futures Exchange rose 5.8 percent from last Friday, the

exchange said. Technically market is under fresh selling as market has

witnessed gain in open interest by 6.65% to settled at 13415 while prices

down -3.1 rupees, now Copper is getting support at 441.7 and below

same could see a test of 438.7 level, And resistance is now likely to be

seen at 446.6, a move above could see prices testing 448.5.


445.50

SUPPORT 3

451.5 448.5 446.6 441.7 438.7 436.8

445.50 440.65 444.70 -0.69 13415


Trading Ideas :Copper trading range for the day is 438.7-448.5.

Available LME inventories fell to their lowest in nearly 13 years while cash copper traded at its highest premium to the three-month future in nearly three years.

Market open interest on Shanghai copper fell to 495.476 lots, the lowest since Feb. 9, 2017, in a sign that money is leaving the market.

Warehouse stock for Copper at LME was at 146350mt that is down by -3225mt.


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MCX Zinc Oct 2018

Zinc prices recovered tracking firmness in LME prices closed up by 0.60 percent as support seen after concerns over supply shortages.

Zinc on MCX settled up 0.3% at 198.45 as prices recovered tracking

firmness in LME prices closed up by 0.60 percent as support seen after

concerns over supply shortages. U.S. economic growth slowed in the third

quarter, but posted a better-than-expected reading that left the American

economy on track to post its best annual expansion in 13 years. In a

report, the Bureau of Economic Analysis said that GDP registered a

seasonally-adjusted annual rate of 3.5% growth in the three month

period from July to September, cooling from growth of 4.2%, which was

the strongest reading in four years. The global zinc market deficit

deepened to 76,200 tonnes in August from a revised deficit of 69,700

tonnes in July, data from the International Lead and Zinc Study Group

(ILZSG) showed. The July data was revised after it gave an initial

estimate for a deficit of 32,500 tonnes. In the first eight months of the

year the zinc market had a 292,000 tonne deficit, compared with a deficit

of 361,000 tonnes in the same period last year. The refined zinc market

looks super tight. London Metal Exchange zinc spreads are stressed, with

the cash-to-three-months premium hitting a one-year high of $63 per

tonne. LME stocks are low, at just 99,900 tonnes excluding metal

earmarked for physical load-out. ShFE stocks have rebuilt slightly since

the start of the month to 53,500 tonnes. But that's still well short of the

160,000 tonnes that were there as recently as April. Technically market is

under fresh buying as market has witnessed gain in open interest by

2.35% to settled at 4957, now Zinc is getting support at 196.3 and below

same could see a test of 194.1 level, And resistance is now likely to be

seen at 199.7, a move above could see prices testing 200.9.


196.8

SUPPORT 3

203.1 200.9 199.7 196.3 194.1 192.9

198.8 195.3 198.5 0.30 4957


Trading Ideas :Zinc trading range for the day is 194.1-200.9.

The global zinc market had a deficit of 292,000 tonnes in the first eight months of the year, the International Lead and Zinc Study Group (ILZSG) said.

London Metal Exchange zinc spreads are stressed, with the cash-to-three-months premium hitting a one-year high of $63 per tonne.

Warehouse stock for Zinc at LME was at 155225mt that is down by -2500mt.


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MCX Nickel Oct 2018

Nickel dropped as pressure after LME nickel fell more than 2 percent to its weakest since late December as a strong US dollar index and broadly risk-averse investors.

Nickel on MCX settled down -2.55% at 864.2 as pressure after LME nickel

fell more than 2 percent to its weakest since late December as a strong

US dollar index and broadly risk-averse investors. Pressure also seen

Shandong Xinhai, a large nickel pig iron (NPI) producer in east China

plans to commission new capacity at the end of this month, earlier than

the previously scheduled end of December. Nickel inventories in the

Shanghai bonded areas rebounded 1,000 mt, or 2.9% from last Friday to

stand at 35,000 mt as of October 26, data showed. With shipment

periods of about a month, forward cargoes for October started to grow

bonded area stocks on the week. Only a small amount of materials

moved from bonded areas to the domestic market, as the import

arbitrage window closed last week. Nickel ore inventories across all

Chinese ports grew 210,000 wmt from October 19 to 14.13 million wmt

as of Friday October 26, data showed. In metal content, stocks gained

2,000 mt for the same period and stood at 118,000 mt. Stocks across

seven major Chinese ports rose by 230,000 wmt to 10.07 million wmt.

The global nickel market deficit narrowed to 7,100 tonnes in August from

the previous month's revised deficit of 16,500 tonnes, the International

Nickel Study Group (INSG) said. During the first eight months of the year

the deficit widened to 102,600 tonnes from 60,800 tonnes in the same

period of 2017, the data showed. Technically market is under fresh selling

as market has witnessed gain in open interest by 3.41% to settled at

14912, now Nickel is getting support at 853.8 and below same could see

a test of 843.4 level, And resistance is now likely to be seen at 882.3, a

move above could see prices testing 900.4.


885

SUPPORT 3

910.8 900.4 882.3 853.8 843.4 825.3

890 861.5 864.2 -2.55 14912


Trading Ideas :Nickel trading range for the day is 843.4-900.4.

Nickel inventories in the Shanghai bonded areas rebounded 1,000 mt, or 2.9% from last Friday to stand at 35,000 mt as of October 26, data showed.

Stocks across all Chinese ports grew 210,000 wmt from Oct 19 to 14.13 million wmt as of Friday Oct 26.

Warehouse stock for Nickel at LME was at 219456mt that is down by -198mt.


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NCDEX Jeera Nov 2018

Jeera prices dropped on profit booking after prices seen supported amid concerns over production amid prevailing high temperature.

Jeera on NCDEX settled down -1.24% at 19570 on profit booking after

prices seen supported amid concerns over production amid prevailing

high temperature. According to the trade sources, lack of sufficient rains

in some jeera growing regions in Gujarat and Rajasthan, two top

producers, may impact the sowing that will begin by the end of the

month. However, those regions which have good irrigation facilities will

have good output. 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 rains in November, then

the sowing area could see an increase. The overseas demand for Indian

jeera is expected to increase as the supply from other origins like Turkey

and Syria are limited and of poor quality. Although Indian jeera is priced

higher in the global market, it is drawing more buyers because of superior

quality. According to the DGFT, Indian jeera exports from April to August

in 2018-19 is reported at 0.94 lakh MT which shows exports of jeera is

expected to be higher in 2018-19 than 2017-18. Indian jeera exports are

reported at 1.44 lakh MT in 2017-18 which is 31.8 per cent higher than

the 2016-17 exports of 1.09 lakh MT. As per the Ministry of Agriculture,

Cumin production in India for 2017-18 is estimated at 5 lakh tonnes as

against 4.95 lakh tonnes in 2016-17. Technically market is under long

liquidation as market has witnessed drop in open interest by -9.01% to

settled at 5664 while prices down -245 rupees, now Jeera is getting

support at 19400 and below same could see a test of 19230 level, And

resistance is now likely to be seen at 19770, a move above could see

prices testing 19970.


19800

SUPPORT 3

20140 19970 19770 19400 19230 19030

19800 19430 19570 -1.24 5664


Trading Ideas :Jeera trading range for the day is 6523-6523.

Cumin production in India is estimated at 5 lakh tonnes as against 4.95 lakh tonnes in 2016-17.

NCDEX accredited warehouses jeera stocks dropped by 96 tonnes to 2642 tonnes.

In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19838 rupee per 100 kg.


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NCDEX Turmeric Nov 2018

Turmeric prices ended with flat node after prices seen supported on strong demand in the physical market and subdued stock.

Turmeric on NCDEX settled up 0.09% at 6674 on strong demand in the

physical market and subdued stock. Demand for turmeric rises during

festivals as traders stock more produce during this period to meet the

demand. Turmeric exports surged by 52.66% to 12,044.52 tons in August

compared to 7,889.68 tons in the same period a year ago, according to

Ministry of Commerce data. Turmeric exports jumped by 9.7% to 56.483

tons during Apr-Aug compared to 51.447 tons in the corresponding period

last year. Meanwhile, turmeric arrivals in Sangli mandi were 1,500 bags

(60 Kg/bag) while the arrivals on October 19 were 2,000 bags. 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. Technically market is under fresh buying as market has

witnessed gain in open interest by 1.43% to settled at 12450 while prices

up 6 rupees, now Turmeric is getting support at 6637 and below same

could see a test of 6599 level, And resistance is now likely to be seen at

6705, a move above could see prices testing 6735.


6660

SUPPORT 3

6774 6736 6706 6638 6600 6570

6698 6630 6674 0.09 12450


Trading Ideas :Turmeric trading range for the day is 6600-6736.

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 338 tonnes to 3303 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 6959.3 Rupees gained 18 Rupees.


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MCX Menthaoil Nov 2018

Mentha oil dropped as spot markets are witnessing low demand amid adequate supply which weighed on prices.

Menthaoil on MCX settled down -0.2% at 1798.6 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 Mentha 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. technically market is under fresh

selling as market has witnessed gain in open interest by 1.05% to settled

at 1353 while prices down -3.6 rupees, now Menthaoil is getting support

at 1787.8 and below same could see a test of 1776.9 level, And

resistance is now likely to be seen at 1814.8, a move above could see

prices testing 1830.9.


1815.00

SUPPORT 3

1841.8 1830.9 1814.8 1787.8 1776.9 1760.8

1820.00 1793.00 1798.60 -0.20 1353


Trading Ideas :Menthaoil trading range for the day is 1776.9-1830.9.

Mentha oil spot at Sambhal closed at 1926.50 per 1kg. Spot prices was down by Rs.-2.80/-.

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.


TIME ZONE Forecast

CommodityLME STOCK Stock

COPPER -3225 146350

ALUMINIUM -350 1049175

NICKEL -198 219456

LEAD -600 111875

ZINC -2500 155225

3952 23140 19570 4714 6674 4196 567.2 3270

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

751.15CLOSE

P. POINT 3964 23170 19600 4730 6668 4200

3988 23240 19770 4765 6706 4226

RESISTANCE

4047 23400 20140 4851 6774 4282

570.1 3279 753

769

4023 23330 19970 4816 6736 4256 584.3 3343 764

589.9 3370

575.7 3306 758

4644 6600 4144 555.9 3215 742

3929 23080 19400 4679 6638 4170 561.5 3242

736

Cng in OI -6.04 -29.38 -9.01 1.99 1.43 -8.13 -40.77 -1.45 -3.26

SUPPORT

3870 22920 19030 4593 6570 4114 547.3 3178

747

3905 23010 19230

Long Liquidation

LME DAILY STOCK POSITION ECONOMICAL DATA

DATA Previous

6:00pm USD Core PCE Price Index m/m 0.001 0

TREND Long Liquidation Short Covering Long Liquidation Fresh Selling Fresh Buying Long Liquidation Long Liquidation Long Liquidation

6:00pm USD Personal Spending m/m 0.004 0.003

6:00pm USD Personal Income m/m 0.004 0.003

Tentative USD Loan Officer Survey 0 0

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


-3225

-350-198

-600

-2500

-3500

-3000

-2500

-2000

-1500

-1000

-500

0

COPPER ALUMINIUM NICKEL LEAD ZINC

LME STOCK

NEWS YOU CAN USE

Euro zone business growth slowed much faster than expected this month, dragged down by waning orders that put a big dent in confidence, adding to evidence the bloc’s

halcyon days are behind it for now, a survey showed. October’s disappointing survey is likely to concern policymakers at the European Central Bank, who are expected to

end their bond-buying programme in less than three months, despite a slew of political and trade concerns. The economic slowdown comes amid an escalating trade war

between the United States and China, a spiraling debt dispute in Italy, deadlocked Brexit negotiations and the prospect of steadily tightening financial conditions. ECB

policymakers have slowly trimmed asset purchases, hoping they have done enough to bolster growth and inflation and are expected to hold policy steady on Thursday -

despite evidence euro zone growth momentum peaked some time ago. IHS Markit said if the survey levels were maintained, they pointed to fourth quarter growth of 0.3

percent. That would be the slowest pace in 2 1/2 years and below the 0.4 percent predicted. Earlier figures from Germany, Europe’s biggest economy, showed private-

sector growth slowed to its weakest in more than three years as manufacturing and services both lost momentum.

Private sector output in Germany deteriorated in October, as business activity rose at the weakest pace in almost three-and-a-half years, according to survey data. The

closely-watched report underlined worries that the euro zone's largest economy may be losing steam heading into the fourth quarter, raising concerns about the potential

fallout from a global trade war. Market research group Markit said that its Flash German Composite Output Index, which measures the combined output of both the

manufacturing and service sectors fell to 52.7 this month, the lowest since May 2015, from 55.0 in September. Economists had forecast a reading of 54.8. The flash

manufacturing purchasing managers’ index slumped to 52.3, the lowest in 29 months, from a final reading of 53.7 in September. Analysts had expected the index to slip

to 53.5. The preliminary German services purchasing managers’ index declined to a five-month low of 53.6 this month, down from 55.9. That was below expectations for a

reading of 55.5. On the index, a reading above 50.0 indicates industry expansion, below indicates contraction. The slowdown in business activity growth was partly

attributable to a weaker trend in new orders, which displayed the smallest monthly rise since June 2015.

Cotton Corp of India, which had earlier announced launching procurement on Oct 1, is unlikely to start full operations till Diwali as prices in most markets have jumped

above the minimum support price, sources said. The Centre has fixed minimum support price for the medium-staple variety of cotton at 5,150 rupees per 100 kg, and

that for long staple at 5,450 rupees per 100 kg, both 1,130 rupees higher than last year. Arrivals of cotton across major spot markets in India were pegged at 68,500

bales of which 11,000 bales arrived in Haryana, 15,000 bales in Rajasthan and 7,000 bales in Punjab. Arrivals in Maharashtra and Telangana were pegged at 4,000 bales

and 5,000 bales, respectively. Rising opinions that output in 2018-19 (Oct-Sep) might be much lower than initial estimates of 35 mln bales, and the US Department of

Agriculture lowering its estimate for India's 2018-19 ending stock also augurs well for prices. Looking at prolonged dry spell in Aug-Sep in Gujarat, Maharashtra and parts

of Rajasthan, cotton production is likely to take a severe hit, but the situation will become clear only after November when arrivals peak. The Cotton Association of India

has pegged the country's production in 2018-19 at 34.8 mln bales, down nearly 5% from a year ago. The US agriculture department lowered its estimate for India's

ending stock of cotton for the current season to 8.98 mln bales) from 11.88 mln bales projected in September.



The information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is

made as to its accuracy completeness or correctness.

This document is for information purposes only. This report is based on information that we consider reliable, but we do not represent that it is accurate or complete, and one should exercise due caution while acting on it. Descriptions of any commodities mentioned herein are not

complete and this document is not, and should not be construed as an offer or solicitation of an offer to buy or sell any commodities/commodity derivatives. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.

All opinions, projections and estimates constitute the judgment of the author as on the date of the report and these, plus any other information contained in the report, are subject to change without notice. Prices and availability of financial instruments also are subject to change without

notice.

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or use would be contrary to law or regulation or what would subject to Systematix Commodities Services Private Limited (SCSPL) or its affiliates to any registration or licensing requirement within such jurisdiction. If this report is inadvertently send or has reached any individual in such

country, especially, USA, the same may be ignored and brought to the attention of the sender. Neither this document nor any copy of it may be taken or transmitted into the United State (to U.S.Persons), Canada, or Japan or distributed, directly or indirectly, in the United States or

Canada or distributed or redistributed in Japan or to any resident thereof. Any unauthorized use, duplication, redistribution or disclosure of this report including, but not limited to, redistribution by electronic mail, posting of the report on a website or page, and/or providing to a third party

a link, is prohibited by law and will result in prosecution. The information contained in the Report is intended solely for the recipient and may not be further distributed by the recipient to any third party.

SCSPL generally prohibits its analyst(s), persons reporting to analyst(s), and members of their households from maintaining a financial interest in the commodities or commodity derivatives that the analyst(s) cover. Our salespeople, traders, and other professionals or affiliates may

provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein. Our proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations

expressed herein. The views expressed in this research report reflect the personal views of the analyst(s) no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in

this report. The compensation of the analyst who prepared this document is determined exclusively by SCSPL however, compensation may relate to the revenues of the Systematix Group as a whole, of which investment banking, sales and trading are a part. Research analyst(s) and

sales persons of SCSPL may provide important inputs to its affiliated company(ies).

Foreign currency denominated commodities, wherever mentioned are subject to exchange rate fluctuations, which could have an adverse effect on their value or price, or the income derived from them. In addition, the values of which are influenced by foreign currencies effectively

assume currency risk.

SCSPL, its directors, analyst(s) or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on basis of this report including but not restricted to changes in the currency rates, reduction in

the income, etc.

SCSPL and its affiliates, officers, directors, and employees may: (a) from time to time, have long or short positions in, and buy or sell the commodities/commodities derivatives thereof, of company(ies) mentioned herein or (b) be engaged in any other transaction involving such

commodities/commodity derivatives and earn brokerage or other compensation (financial interest) or act as a market maker in the financial instruments discussed herein or have other potential material conflict of interest with respect to any recommendation and related information and

opinions. The views expressed are those of the analyst and the Company may or may not subscribe to the views expressed therein.

SCSPL, its affiliates and any third party involved in, or related to, computing or compiling the information hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of this information. Without

limiting any of the foregoing, in no event shall SCSPL, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind. The Company accepts no liability whatsoever for the actions of third parties. The

Report may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the Report refers to website material of the Company, the Company has not reviewed the linked site. Accessing such website or following such link through the report or the website of

the Company shall be at your own risk and the Company shall have no liability arising out of, or in connection with, any such referenced website

SCSPL shall not be liable for any delay or any other interruption which may occur in presenting the data due to any technical glitch to present the data. In no event shall the SCSPL be liable for any damages, including without limitation, direct or indirect, special, incidental, or

consequential damages, losses or expenses arising in connection with the data presented by SCSPL through this presentation.

Neither SCSPL, nor any of its other group companies or associates, shall be responsible for any decisions taken on the basis of this report. Investors are advised to consult their Investment and Tax consultants before taking any investment decisions based on this report.

Systematix Commodities Services Private Limited.:

Registered and Corporate address: The Capital, A-wing, No. 603 – 606, 6th Floor, Plot No. C-70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051

CIN - U01119MH1994PTC266348 | MCX SEBI Reg No.: INZ000043009 | NCDEX SEBI Reg No.: INZ000043009 Member Code: MCX: 29790 | NCDEX: 534

Documents

Daily Commodity Roundup as on - report.systematixshares.comreport.systematixshares.com/Commodity/SYSTEMATIXDAILYCOMM… · Daily Commodity Roundup as on Monday, October 29, 2018 Date