Daily Commodity Roundup as onreport.systematixshares.com/Commodity/SYSTEMATIXDAILYCOMM… · Date :...

Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 1

Daily Commodity Roundup as on Tuesday, December 04, 2018


NIKKEI22327

1.11 0.82 -1.1USDINR

70.63 S&P

INDEX

2760

DJIA25538

0.13 0.06 0.79SENSEX

36241NIFTY

10884

$ INDEX96.78

-0.05 0.38 -0.19

LME ALUMINIUM

1973 LME

LEAD

1969

11225

0.13 -0.19 0.27

LME

COPPER

6258 LME

ZINC

2571

IN

TER

NA

TIO

NA

L M

AR

KET U

PD

ATE GOLD $

1235.75SILVER $

USDJPY113.271

0.18 0.14 -0.3EURUSD

1.1375GBPUSD

1.27419

LME

NICKEL

14.44CRUDE $

52.95

0.45 0.62 3.97

#

#

#

#

RESIST 1 SUPPORT 1 SUPPORT 2


Trading Ideas :Gold trading range for the day is 30114-31294.

U.S. and Chinese leaders brokered a truce in their trade conflict, a relief for the global economic outlook and a tonic for emerging markets.

Speculators increased their net short position in gold by 8,464 contracts to 51,828 contracts, according to U.S. CFTC data.

Physical gold demand in the world’s second biggest bullion consumer India got a fillip this week from a slide in local rates due to gains in the rupee.

Gold prices gained as the dollar weakened on U.S.-China trade truce that revived investor demand for riskier assets.

Gold on MCX settled up 2.13% at 30889 as the dollar weakened on U.S.-

China trade truce that revived investor demand for riskier assets. Top

U.S. Federal Reserve officials say a strong economy will likely keep their

rate increase plans intact, but a key signal began to waver that may

intensify debate about whether conditions are as solid as they seem.

Traders will be monitoring trade developments after the U.S. and China

agreed to a ceasefire in their trade war, while awaiting fresh indications

on the direction of U.S. monetary and an update on the health of the U.S.

labor market. The U.S. agreed not to increase the 10% tariffs on $200

billion worth of Chinese imports on Jan. 1 following talks between U.S.

President Donald Trump and his Chinese counterpart Xi Jinping over the

weekend. The two sides will engage in new trade negotiations with the

goal of reaching an agreement within 90 days. If no new agreement is

reached in this time the 10% tariffs will be raised to 25%. The trade spat

between the world’s two largest economies has unnerved global financial

markets and acted as a drag on global growth. The U.S. non-farm

payrolls report for November, scheduled to be published on Friday, is

expected to show that jobs growth slowed while wage growth picked up

slightly. An uptick in wage growth would help underline expectations for a

December rate hike. Technically market is under fresh buying as market

has witnessed gain in open interest by 8.98% to settled at 12762 while

prices up 645 rupees, now Gold is getting support at 30502 and below

same could see a test of 30114 level, And resistance is now likely to be

seen at 31092, a move above could see prices testing 31294.

OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST

30316

SUPPORT 3

31682 31294 31092 30502 30114 29912

30906 30316 30889 2.13 12762

RESIST 3 RESIST 2

MCX Gold Feb 2019

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SUPPORT 2 SUPPORT 3


Trading Ideas :Silver trading range for the day is 36150-37870.

U.S. President Donald Trump and his Chinese counterpart Xi Jinping agreed to not introduce any new tariffs for 90 days.

China and the United States agreed to halt additional tariffs in a deal that keeps their trade war from escalating as the two sides try again to bridge their differences.

Investors will also be turning their attention to U.S. monetary policy, ahead of an expected rate hike by the Federal Reserve at its upcoming meeting later this month

Silver prices rose the dollar dropped after news that the U.S. and China agreed to put any new tariffs on hold for 90 days.

Silver on MCX settled up 3.01% at 37108 as a drop in the dollar lent

support to the precious metal following news that the U.S. and China

agreed to put any new tariffs on hold for 90 days. At a meeting during the

G20 summit in Argentina over the weekend, U.S. President Donald Trump

and his Chinese counterpart Xi Jinping agreed to not introduce any new

tariffs for 90 days. During that time, the two countries will work to

resolve wider structural problems in the trade relationship. As part of the

agreement, the U.S. will not increase the existing 10% tariffs on $200

billion worth of Chinese goods to 25% and the two countries will step up

trade talks for 90 days. After the time, if no deal is reached, the tariffs

will go up. Economic pressure stalled November growth in China's vast

manufacturing sector, the first time in over two years. Eurostat, the

European Union's statistics office, said on that November consumer prices

across the eurozone rose 2% as expected, down from 2.2% the previous

month. The Chicago PMI, rose to an 11-month high of 66.4 in November,

from October's 58.4, boosted by new orders which stood at a 54-month

high, according to a statement released Friday by the Institute for Supply

Management Chicago. The U.S. non-farm payrolls report for November,

scheduled to be published on Friday, is expected to show that jobs growth

slowed while wage growth picked up slightly. Technically market is under

short covering as market has witnessed drop in open interest by -14.81%

to settled at 23069 while prices up 1083 rupees, now Silver is getting

support at 36629 and below same could see a test of 36150 level, And

resistance is now likely to be seen at 37489, a move above could see

prices testing 37870.


36605 37391

38349 37870 37489 36629 36150 35769

36531 37108 3.01 23069

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1

MCX Silver Mar 2019

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SUPPORT 2 SUPPORT 3


Trading Ideas :Crudeoil trading range for the day is 3524-3892.

U.S. crude oil production has hit a record of more than 11.5 million barrels per day, resulting in swelling storage levels.

OPEC's biggest problem is surging production in the United States, where output has grown by around 2 million bpd in a year to more than 11.5 million bpd .

The Middle East dominated OPEC will on Dec. 6 meet at its headquarters in Vienna, Austria, to agree a joint output policy.

Crude oil gained after US and China agreed to a 90-day truce in their trade war, and ahead of a meeting by OPEC that is expected to result in a supply cut.

Crudeoil on MCX settled up 4.22% at 3727 after the United States and

China agreed to a 90-day truce in their trade war, and ahead of a meeting

by producer club OPEC that is expected to result in a supply cut. U.S.

crude prices were further pushed up by an announcement from Canada

that Alberta province will force producers to cut output by 8.7 percent, or

325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has

led to crude building up in storage. Most of Alberta's oil is exported to the

United States. China and the United States agreed during a weekend

meeting in Argentina of the Group of 20 (G20) leading economies not to

impose additional trade tariffs for at least 90 days while the pair hold

talks to resolve existing disputes. Crude oil has not been included in the

list of hundreds of products each side has slapped with import tariffs, but

traders said the positive sentiment of the truce was also driving crude

markets. Looking ahead, oil traders will eye a meeting by the

Organization of the Petroleum Exporting Countries (OPEC) on Dec. 6. At

the meeting, the producer group, along with non-OPEC member Russia, is

expected to announce cuts aimed at reining in a production overhang that

has pulled down crude prices by around a third since October. No official

announcements regarding supply cuts have yet been made, but most

analysts expect a reduction of 1 million-1.4 million bpd versus October

levels, which were the highest by OPEC as a group since December 2016.

Technically now Crudeoil is getting support at 3626 and below same could

see a test of 3524 level, And resistance is now likely to be seen at 3810,

a move above could see prices testing 3892.


3606 3790

3994 3892 3810 3626 3524 3442

3606 3727 4.22 15549

RESIST 3 RESIST 2 RESIST 1 SUPPORT 1

MCX Crudeoil Dec 2018

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Trading Ideas :Copper trading range for the day is 428.2-454.2.

China’s copper downstream industries contracted slower compared to a month earlier in November as production and new orders weakened at a slower pace.

Chile’s state copper miner Codelco, said it had reached agreement on a new collective labour contract with the union of workers at its Ministro Hales mine in northern Chile.

Warehouse stock for Copper at LME was at 134200mt that is down by -1975mt.


Copper gained after U.S. and Chinese leaders agreed to a ceasefire in a trade dispute that has shaken global markets.

Copper on MCX settled up 1.96% at 441.60 were mostly higher with

broadly positive market sentiment emerging from the weekend’s summit

in Argentina of the leaders of the G20 group of nations, while the United

States and China agreed to limit further use of trade tariffs. Copper prices

are expected to stay at highs as a ceasefire in the US-China trade war,

the Fed’s dovish tone and expected oil supply cuts prompt investors to

shun safe-haven US currency and to turn to riskier assets. LME copper’s

three-month price has remained in positive territory for much of the

November-December trading period, staying above $6,200 per tonne and

rising by 1.5% on Monday, while volumes topped the complex with

23,759 lots changing hands by the close. This week metals traders will be

monitoring trade developments after the U.S. and China agreed to a

ceasefire in their trade war, while awaiting fresh indications on the

direction of U.S. monetary and an update on the health of the U.S. labor

market. The US agreed not to increase the 10% tariffs on $200 billion

worth of Chinese imports on Jan. 1 following talks between U.S. President

Donald Trump and his Chinese counterpart Xi Jinping over the weekend.

If no new agreement is reached in this time the 10% tariffs will be raised

to 25%. The trade spat between the world’s two largest economies has

unnerved global financial markets and acted as a drag on global growth.

Federal Reserve Chairman Jerome Powell is due to testify about the

economic outlook to Congress on Wednesday. Now technically market is

getting support at 434.9 and below same could see a test of 428.2 level,

And resistance is now likely to be seen at 447.9, a move above could see

prices testing 454.2.


434.50

SUPPORT 3

460.9 454.2 447.9 434.9 428.2 421.9

447.50 434.50 441.60 1.96 9255

RESIST 3 RESIST 2

MCX Copper Feb 2019

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Trading Ideas :Zinc trading range for the day is 180.3-188.9.

A total of 79 Chinese cities have triggered air pollution alerts as severe winter smog covers wide swaths of the country.

US President Trump told Chinese President Jinping that he would not boost tariffs on $200 billion of Chinese goods to 25 percent on Jan. 1 as previously announced.

Warehouse stock for Zinc at LME was at 112575mt that is down by -4975mt.


MCX Zinc Dec 2018

Zinc prices recovered on short covering after prices pounded by expectations of weak demand from top consumer China.

Zinc on MCX settled up 2.86% at 185.35 gained on fresh buying tracking

LME zinc prices which rose to close at $2,575.5/mt overnight, exceeding

all moving averages. As support seen after falling LME inventories

widened the LME zinc's cash/three-month spread to a record high. LME

zinc to continue its strong performance today with a trading range of

$2,550-2,600/mt. Despite low inventories, the earlier losses in SHFE zinc

reflected limited upward momentum in prices, due to weakening

consumption as the year draws to a close. This week metals traders will

be monitoring trade developments after the U.S. and China agreed to a






The two sides will engage in new trade negotiations with the goal of

reaching an agreement within 90 days. If no new agreement is reached in

this time the 10% tariffs will be raised to 25%. The U.S. non-farm

payrolls report for November, scheduled to be published on Friday, is

expected to show that jobs growth slowed while wage growth picked up

slightly. An uptick in wage growth would help underline expectations for a

December rate hike. Now technically market is under fresh buying as

market has witnessed gain in open interest by 17% to settled at 2539

while prices up 5.15 rupees, now Zinc is getting support at 182.9 and

below same could see a test of 180.3 level, And resistance is now likely to

be seen at 187.2, a move above could see prices testing 188.9.


182.0

SUPPORT 3

191.5 188.9 187.2 182.9 180.3 178.6

186.4 182.0 185.4 2.86 2539

RESIST 3 RESIST 2

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Trading Ideas :Nickel trading range for the day is 777.3-805.3.

China and the United States agreed to halt additional tariffs in a deal that keeps their trade war from escalating.

Nickel ore output in the Philippines, fell 1 percent in the first nine months of 2018 from a year earlier to 22.2 million dry metric tonnes.

Warehouse stock for Nickel at LME was at 212844mt that is down by -726mt.


MCX Nickel Dec 2018

Nickel rallied after the United States and China agreed to a ceasefire in a trade dispute that has shaken markets and weighed on metals prices.

Nickel on MCX settled up 1.94% at 789.80 on fresh buying as Trade war

relief for metals seen but bull-bear battle rages still on. The Chinese

version of this weekend’s meeting, however, was curiously silent on the

90-day hiatus. Other than noting that “the two sides decided to avoid

escalation of trade restrictive measures”, official Chinese news agency

Xinhua did not go into many details at all. This narrative gap leaves

markets both uncertain about whether the truce can hold and beholden to

news flow from the planned U.S.-China consultations. Discretionary

money is unlikely to recommit to industrial metals on the long side until

the smoke signals become clearer. This week metals traders will be

monitoring trade developments after the U.S. and China agreed to a






The U.S. non-farm payrolls report for November, scheduled to be

published on Friday, is expected to show that jobs growth slowed while

wage growth picked up slightly. An uptick in wage growth would help

underline expectations for a December rate hike. Now technically market

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

5.79% to settled at 14188 while prices up 15 rupees, now Nickel is

getting support at 783.6 and below same could see a test of 777.3 level,

And resistance is now likely to be seen at 797.6, a move above could see

prices testing 805.3.


785

SUPPORT 3

811.6 805.3 797.6 783.6 777.3 769.6

799 785 789.8 1.94 14188

RESIST 3 RESIST 2

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Trading Ideas :Jeera trading range for the day is 6330-6330.

According to the initial trade estimate, there may not be any increase in the sowing area of jeera because of dry weather.

NCDEX accredited warehouses jeera stocks dropped by 36 tonnes to 2122 tonnes.

In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19324 rupee per 100 kg.


NCDEX Jeera Jan 2019

Jeera gained tracking firmness in spot demand amid deficient rainfall in key producing region of Gujarat like Saurashtra and Kutch may lower the acreage.

Jeera on NCDEX settled down -0.92% at 18870 due to higher supply in

the spot market while the export demand is lower. However, improved

cultivation on assurance of irrigation in Gujarat capped the upside

momentum. Meanwhile, jeera arrivals in Unjha mandi, Gujarat were

4,061 bags (20 Kg/bag), compared to 3,102 bags. Jeera sowing in

Gujarat fell to 44,200 hectares from 130,100 hectares a year ago due to

lack of water, state government data showed. Sowing is likely to pickup

in the coming weeks. However, there are doubts of any increase in

acreage due to dry weather. Moreover, concern that standing cumin crops

might get affected amid scanty rainfalls also supported upward trend in

prices. Deficient rainfall in key producing region of Gujarat like Saurashtra

and Kutch may lower the acreage. According to the initial trade estimate,

there may not be any increase in the sowing area of jeera because of dry

weather. According to the market estimates, India has already exported

around 1.25 lakh tonnes of jeera so far this year and there is a possibility

of it touching a record 1.75 lakh tonnes by the end of this fiscal year. As

per Gujarat state govt. data, Jeera progressive area of Rabi 2018-19,

18,400 hectares as compared to previous Rabi season 59,400 hectares,

6% completed from normal area 318,900 hectares. Current year sowing

reported slow due to lower rainfall. Technically market is under fresh

selling as market has witnessed gain in open interest by 1.71% to settled

at 1782 while prices down -175 rupees, now Jeera is getting support at

18710 and below same could see a test of 18550 level, And resistance is

now likely to be seen at 19090, a move above could see prices testing

19310.


19030

SUPPORT 3

19170 19115 19050 18930 18875 18810

19060 18940 18990 0.64 1920

RESIST 3 RESIST 2

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Trading Ideas :Turmeric trading range for the day is 6594-6810.

According to farmers and traders this year production in Maharashtra can be less than last year.

NCDEX accredited warehouses turmeric stocks gained by 99 tonnes to 3289 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 7060.4 Rupees gained 21.75 Rupees.


NCDEX Turmeric Apr 2019

Turmeric gained on expectation of improving upcountry demand in coming weeks.

Turmeric on NCDEX settled up by 0.87% at 6700 on expectation of

improving upcountry demand in coming weeks. However, upside seen

limited amid increased acreage of turmeric in Tamilnadu, Karnataka and

Maharashtra and slip in exports. According to farmers and traders this

year production in Maharashtra can be less than last year. Deficit rainfall

in Maharashtra and Karnataka affected Turmeric standing crop. Lower

rainfall reported in Maharashtra Marathwada turmeric growing regions like

Hingoli, Sangli, Nanded, Basmath affect Turmeric standing crop. Turmeric

output this year is expected to be higher in the states of Tamilnadu,

Karnataka and Maharashtra. According to the Department of Horticulture

and Plantation Crops of Tamil Nadu, acreage of turmeric in Erode may

jump nearly 80% on year to 5,300 hectare in 2018-19 (Jul-Jun) because

of very good rainfall and availability of other water sources. In

Telangana, turmeric acreage rose to 47,790 hectare compared to 44,956

hectare a year ago, state government data showed. In Andhra Pradesh

farmers planted turmeric over an area 18,000 hectares up from 14,000

hectares a year ago. Turmeric exports during the month of September

were up 16.5% to 9,064 tons compared to 7,783 tons in the

corresponding period a year ago, according to Ministry of Commerce data.

Turmeric exports during Apr-Sep jumped 10.6% to 65,547 tons compared

to 59,285 in the same period a year ago. favourable. In Nizamabad, a

major spot market in AP, the price ended at 7060.4 Rupees gained 21.75

Rupees.Technically market is under fresh buying as market has witnessed

gain in open interest by 1.39% to settled at 12800 while prices up 58

rupees, now Turmeric is getting support at 6646 and below same could

see a test of 6594 level, And resistance is now likely to be seen at 6754,

a move above could see prices testing 6810.


6758

SUPPORT 3

6862 6810 6754 6646 6594 6538

6758 6650 6700 0.87 12800

RESIST 3 RESIST 2

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Trading Ideas :Menthaoil trading range for the day is 1572.5-1605.9.

Mentha oil spot at Sambhal closed at 1759.40 per 1kg. Spot prices was down by Rs.-72.10/-.

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.

However, in recent years, the growth in production and consumption of synthetic mentha has influenced the demand for natural mentha.


MCX Menthaoil Dec 2018

Menthaoil settled down as spot markets are witnessing low demand amid adequate supply which weighed on prices.

Mentha oil on MCX settled down by -4% at 1583.6 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. Mentha oil spot at Sambhal closed

at 1759.40 per 1kg. Spot prices was down by Rs.-72.10/-.Technically

market is under fresh selling as market has witnessed gain in open

interest by 3.36% to settled at 1170 while prices down -65.9 rupees, now

Menthaoil is getting support at 1578.1 and below same could see a test of

1572.5 level, And resistance is now likely to be seen at 1594.8, a move

above could see prices testing 1605.9.


1600.30

SUPPORT 3

1611.5 1605.9 1594.8 1578.1 1572.5 1561.4

1600.30 1583.60 1583.60 -4.00 1170

RESIST 3 RESIST 2

TIME ZONE Forecast

CommodityLME STOCK Stock

COPPER -1975 134200

ALUMINIUM -4425 1048025

NICKEL -726 212844

LEAD -75 105125

ZINC -4975 112575

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

All Day EUR ECOFIN Meetings 0 0

8:30pm USD FOMC Member Williams Speaks 0 0

1:30pm EUR Spanish Unemployment Change 34.2K 52.2K

3:30pm EUR PPI m/m 0.005 0.005

Fresh Buying

LME DAILY STOCK POSITION ECONOMICAL DATA

DATA Previous

1:15pm EUR French Gov Budget Balance 0 -87.1B

TREND Fresh Selling Short Covering Fresh Buying Fresh Buying Fresh Buying Fresh Selling Fresh Buying Fresh Selling

712

Cng in OI 5.69 -9.77 7.74 15.06 1.39 22.60 3.89 10.17 3.04

SUPPORT

4499 21200 18810 4320 6538 3925 475.6 3279

720

4567 21380 18875 4348 6594 3953 479.5 3320 715

4613 21720 18930 4384 6646 3980 484.0 3348

487.9 3389 723

736

4795 22420 19115 4476 6810 4063 496.3 3458 731

500.8 3486

492.4 3417 728

P. POINT 4681 21900 18995 4412 6702 4008

4727 22240 19050 4448 6754 4035

RESISTANCE

4841 22760 19170 4512 6862 4090

4660 22050 18990 4421 6700 4007 488.4 3377

DAILY MARKET TRADING LEVEL

COMMODITIESNCDEX Chana Jan

2019

NCDEX Cotton Dec

2018

NCDEX Jeera Jan

2019

NCDEX Guarseed10

Jan 2019

NCDEX Turmeric

Apr 2019

NCDEX Rmseed Jan

2019MCX CPO Dec 2018

NCDEX Soyabean

Jan 2019

NCDEX

Ref.Soya oil

Jan 2019

725.65CLOSE

-1975

-4425

-726

-75

-4975

-6000

-5000

-4000

-3000

-2000

-1000

0

COPPER ALUMINIUM NICKEL LEAD ZINC

LME STOCK

NEWS YOU CAN USE

China will step up policy support for provinces facing sharp economic slowdowns and will take steps to ward off regional financial risks, the Xinhua news agency quoted

the cabinet as saying. China is facing its weakest economic growth since the global financial crisis and policymakers are fast-tracking road and rail projects, pushing banks

to increase lending, and cutting taxes to ease strains on businesses. Targeted policy steps will be taken to help “regions where economic growth slows down due to

objective reasons” to ensure their economic operation is within a reasonable range, Xinhua cited the cabinet as saying. “We should strengthen monitoring and early

warning in areas with high leverage ratios, strengthen cooperation in local financial supervision and risk prevention, and more effectively prevent and resolve systemic

regional financial risks,” it said. The cabinet called for increased coordination between fiscal, monetary and investment polices to support inter-regional projects in

transport, water conservancy and environment projection. China faces problems of big regional economic disparities, disordered and imbalanced regional development

and vicious competition among regions, the cabinet said. Authorities aim to establish a new mechanism for coordinated regional development that is compatible with

building a well-off society by 2020 and a new regional development mechanism that is compatible with its basic modernization by 2035, it said.

Corporate lending growth slowed in the euro zone last month, European Central Bank data showed, in what could be an early sign that a worsening economic outlook is

starting to take its toll on credit. Loans to companies increased by 3.9 percent year-on-year in October, the slowest pace since May, after hitting a post-crisis high of 4.3

percent in September. One weak reading was unlikely to derail the ECB’s plans to stop its 2.6 trillion euro (2.30 trillion pounds) bond-buying program at the end of

December and raise interest rates for the first time since 2011 sometime after next summer. But it added to a constellation of indicators showing that the euro zone

economy is slowing, which has already prompted investors to push back expectations for an ECB rate hike to 2020. ECB President Mario Draghi said a “gradual slowdown

is normal” and some of it may even be temporary, indicating the central bank was sticking to its plan. On a comforting note, growth in credit to households came in at 3.2

percent, stable from September’s revised reading, Wednesday data showed. And growth in money circulating in the euro zone unexpectedly picked up even as the ECB

reduced its bond purchases.

Cotton procurement in Telangana, which started last week, has gathered pace as prices in some places have eased to touch the minimum support price, a senior official

with Cotton Corp of India said. The state-owned agency has so far procured nearly 10,000 bales (1 bale = 170 kg) of raw cotton at Khammam, Warangal and

Mahbubnagar centres in Telangana, compared with 4,000 bales a week ago. The agency has also procured around 300 bales in Khargone district, marking its first

procurement in Madhya Pradesh in the current season, he 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. “Procurement, however, is still slow as prices in some big centres in

Telangana are above the support level,” the official said adding that prices will decline only if the supply pressure increases from south and central zones. Even in the

peak arrivals season, cotton prices remained elevated due to delay in new crop by almost a month and concerns over the size of the crop due to drought in top two states

Maharashtra and Karnataka. Weak rains and high temperatures in Gujarat are likely to severely hit cotton yields. The Cotton Association of India recently scaled down its

production estimate for 2018-19 (Oct-Sep) to 34.3 mln bales from 34.8 mln bales projected in October.



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

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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

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