Daily Commodity Report as on Tuesday, May 17, 2016
Date :
Tuesday, May 17, 2016
URL : www.achiieversequitiesltd.com
Page No -
1
Open
High
Low
Close
Precious Metals
Gold
Silver
30064
41260
30269
41495
Alum.
Copper
Lead
Nickel
Zinc
103.25
310.05
114.6
581.5
126.4
103.6
313.55
117.2
589.5
126.85
3120
140.7
3194
140.7
29912
40849
% Cng
OI
29977
40987
-0.19
0.03
7166
10327
103.5
311.65
116.8
584.8
126.4
0.53
0.58
1.61
0.67
-0.08
5078
28222
2270
21110
5002
3179
136.1
2.65
-3.75
21649
11323
Market Round up
Gold ended with small losses as the safe-haven metal's gains were limited by a firmer dollar.
Base Metal
102.55
309.15
113.35
577.8
125.15
Energy
Crude
Nat. Gas
3120
135.8
30064
30269
29912
29977
-0.19
Turmeric
Jeera
Dhaniya
831
8112
16750
7314
832
8150
16815
7430
808.9
8030
16365
7225
Nickel prices gained led by a recovery in crude prices and optimism over global growth prospects after company
earnings boosted stocks.
815.4
8086
16430
7278
-2.22
-0.42
-1.91
-1.13
1269
25940
18342
19400
1669
1670
1659
1662
0.79
13170
Mentha oil prices remained supported on the back of rising demand from consuming industries at the spot market.
Oil and Oilseeds & Others
Soyabean
Ref. Oil
CPO
RMSeed
Menthol
Cotton
4005
655.5
548
4393
869.9
17090
4037
655.85
549.2
4460
874
17280
3989
651.3
542.7
4393
864
17070
4015
653
546.6
4438
871.3
17240
0.70
-0.38
-0.13
0.29
0.61
0.94
99020
123930
3065
70670
2282
5156
Date :
67.02
75.97
96.44
61.60
67.08
75.97
96.44
61.68
66.86
75.70
95.95
61.42
Tuesday, May 17, 2016
Soyabean gained amid supply worries in domestic market after IMD reported that monsoon over Kerala is likely to
be delayed by six days.
Chana prices ended with gains on account of higher demand in the spot market.
Turmeric prices dropped on anticipation of good sowing in next season on forecast of good rains at the producing
belts.
Currency
USDINR
EURINR
GBPINR
JPYINR
Natural gas slumped by -3.75% after the latest weather model called for mild temperatures over the next two
weeks.
Ref soyoil prices ended with losses on oversupply woes following robust imports data.
Cereals
Wheat
Copper edged higher after an improvement in China's property sector offset several softer gauges of China's
economy that had rattled investors over the demand.
7166
Spices
Cardamom
Crude oil prices gains after Goldman Sachs said the market had ended almost two years of oversupply following
global oil disruptions and flipped to a deficit.
Zinc recovered from lows on short covering but the upside was capped as data from China's manufacturing sector
dampened hopes of stronger demand.
Pulses
Chana
Silver settled flat as weak economic data out of China released over the weekend added to concerns over the health
of the world’s second largest economy.
66.97
75.84
96.21
61.51
0.05 1275303
-0.22
58756
-0.32
35238
0.07
24007
Jeera prices ended with losses as jeera output in Gujarat during 2015-16 is projected to be higher.
URL : www.achiieversequitiesltd.com
Page No -
2
MCX Gold Jun 2016
TRADING IDEA
OPEN
30064
SUP-2
29696
Gold trading range for the day is 29696-30410.
HIGH
30269
SUP-1
29837
Gold ended with small losses as the safe-haven metal's gains were limited by a firmer
dollar.
LOW
29912
P.P.
30053
Gold gained around 20% this year after weak economic data in the United States and
elsewhere eased expectations of a near-term increase in U.S. interest rates.
CLOSE
29977
RES-1
30194
Still, stronger-than-expected U.S. economic data last week renewed expectations the
Federal Reserve will hike rates more than once this year, capping gains.
% CNG
-0.19
RES-2
30410
SELL GOLD JUNE @ 30150 SL 30350 TGT 29950-29800.MCX
Gold on MCX settled down -0.19% at 29977 turned slightly negative on Monday, reversing gains on pressure from strong crude futures and U.S. equity markets. Bullion prices were initially supported by lower stock markets
and soft Chinese data, which boosted interest in the metal as an alternative asset. Also downbeat manufacturing and soft producer prices in Japan lowered sentiments on an impending rebound in the global economy. Gold is
up 20 percent this year after weak economic data in the United States and elsewhere tempered expectations of a near-term increase in U.S. interest rates, which would lift the opportunity cost of holding non-yielding gold.
From the physical side Billionaire hedge-fund manager John Paulson retreated from gold for a second straight quarter, even as prices of the metal posted the biggest gain in three decades. At the end of the first quarter,
Paulson & Co., owned 4.8 million shares of SPDR Gold Shares, a government filing showed. Investors await Tuesday's release of the Consumer Price Index (CPI) for April for further indications on the timing of the Federal
Reserve's first interest rate hike in 2016. The Core CPI Index, which strips out volatile food and energy prices, is expected to tick up by 0.2%. Since raising interest rates for the first time in seven years in December, the Fed
has been hesitant to tighten its money policy cycle even further amid sluggish inflation. In the week ahead, market players will be turning their attention to Wednesday’s minutes of the Federal Reserve’s April 26-27 policy
meeting for fresh clues on the timing of the next U.S. rate hike. Technically market is getting support at 29837 and below same could see a test of 29696 level, And resistance is now likely to be seen at 30194, a move above
could see prices testing 30410.
MCX Silver Jul 2016
TRADING IDEA
OPEN
41260
SUP-2
40464
Silver trading range for the day is 40464-41756.
HIGH
41495
SUP-1
40725
Silver settled flat as weak economic data out of China released over the weekend added to
concerns over the health of the world’s second largest economy.
LOW
40849
P.P.
41110
Two Fed officials said the central bank should raise rates if data points to an improving
economy.
CLOSE
40987
RES-1
41371
Traders reassessed their expectations for the timing of the next U.S. rate hike following
the release of better than expected U.S. retail sales data.
% CNG
0.03
RES-2
41756
SELL SILVER JUL @ 41200 SL 41560 TGT 40900-40600.MCX
Silver on MCX settled up 0.03% at 40987 ticked up on Monday ahead of the release of key consumer price data in the U.S., as downbeat manufacturing and soft producer prices in Japan lowered sentiments on an impending
rebound in the global economy. Silver and other precious metals have benefited from mounting speculation that risks to global growth will restrain the Federal Reserve’s pace of interest-rate increases. Lower borrowing costs
are a boon to silver and gold because the metals don’t offer yields or dividends. Silver, which also has more industrial uses, gained an added boost from reports last month showing improvement in Chinese and U.S.
manufacturing. Meanwhile Hedge funds expanded their bullish bets on silver to an all-time high even as this year’s hottest metals rally began to fade. Also Money managers added to their net-long positions in silver for the
fourth time in five weeks, chasing the kind of returns that in the first three months of the year sent the precious metal to its biggest quarterly gain since 2012. Silver leapfrogged gold in mid-April as the best-performing
precious metal as data signaled a resilient U.S. expansion and a stabilizing Chinese economy. The commodity entered a bull market a few days later. Optimism on the outlook for industrial demand has since wavered, as
some factory gauges released this month fell short of expectations. Money managers increased their net-long holdings in silver by 7 percent to 71,656 U.S. futures and options contracts in the week ended May 10, according
to Commodity Futures Trading Commission data released three days later. Technically market is getting support at 40725 and below same could see a test of 40464 level, And resistance is now likely to be seen at 41371, a
move above could see prices testing 41756.
Date :
Tuesday, May 17, 2016
URL : www.achiieversequitiesltd.com
Page No -
3
MCX Crudeoil May 2016
TRADING IDEA
OPEN
3120
SUP-2
3090
Crudeoil trading range for the day is 3090-3238.
HIGH
3194
SUP-1
3134
Crude oil prices gains after Goldman Sachs said the market had ended almost two years of
oversupply following global oil disruptions and flipped to a deficit.
LOW
3120
P.P.
3164
In the United States, crude production has fallen to 8.8 million bpd, 8.4 percent below
2015 peaks as the sector suffers a wave of bankruptcies.
CLOSE
3179
RES-1
3208
In China, crude oil output fell in April by 5.6% on the year to 4.04 million bpd, or 16.59
million metric tons, the lowest level since February 2015.
% CNG
2.65
RES-2
3238
BUY CRUDE OIL MAY ABV 3210 SL 3170 TGT 3245-3280.MCX
Crudeoil on MCX settled up 2.65% at 3179 as output disruptions were expected to reduce a long-standing glut in the market, leading Wall Street higher. Prices hit a six-month high on Monday as output disruptions were
expected to cut into a long-standing glut in the market, while stocks rose sharply, boosted by basic materials and energy shares. Also the benchmark U.S. Treasury yield rose after matching a one-month low hit Friday and
the dollar ticked lower, caught between a weaker yen and a stronger euro. Meanwhile supply disruptions in Nigeria, Canada and Venezuela have most likely pushed oil production below consumption levels this month for the
first time in at least two years. That means the world has started eating into the huge stockpile of oil that has knocked as much as 70 percent off crude prices between 2014 and early 2016. Support also seen after the update
that Shale output is expected to fall by nearly 113,000 bpd to 4.85 million bpd, as the nearly two-year slump in prices continues to undermine profitability at drillers, according to the EIA's drilling productivity report. Also the
disruptions triggered a U-turn in the outlook for the oil market from Goldman Sachs. The U.S. bank, which had long warned of global storage hitting capacity and of another oil price crash to as low as $20, now sees U.S.
crude trading as high as $50 in the second half of 2016. Elsewhere, Goldman Sachs said in a note to investors that it sees a re-balance in energy markets in the second half of the year pushing prices to near $50 a barrel.
Technically market is getting support at 3134 and below same could see a test of 3090 level, And resistance is now likely to be seen at 3208, a move above could see prices testing 3238.
MCX Copper Jun 2016
TRADING IDEA
OPEN
310.1
SUP-2
307.1
Copper trading range for the day is 307.1-315.9.
HIGH
313.6
SUP-1
309.5
Copper edged higher after an improvement in China's property sector offset several softer
gauges of China's economy that had rattled investors over the demand.
LOW
309.2
P.P.
311.5
Industrial production rose at an annualized rate of 6.0% in April, below expectations for a
6.5% increase, the General Administration of Customs said.
CLOSE
311.7
RES-1
313.9
Hedge funds and money managers switched to a net short position in copper futures and
options in the week to May 10, U.S. CFTC data showed.
% CNG
0.58
RES-2
315.9
BUY COPPER JUN @ 312.50 SL 308 TGT 316.20-319.MCX
Copper on MCX settled up 0.58% at 311.65 gained on short covering settled in positive territory despite a batch of concerning Chinese data. Copper prices gained from 2-1/2 month lows, with gains led by a recovery in crude
prices and optimism over global growth prospects after company earnings boosted stocks. Three-month copper on the London Metal Exchange was trading at 4,668 a tonne after closing up half a percent in the previous
session. Prices are posting a tepid rebound from 2-1/2 month lows of $4,594 a tonne reached on May 13. Also supporting prices was a lower U.S. currency, however, was Chinese data showing that factory output grew at 6
percent on an annual basis in April, more slowly than expected, and fixed-asset investment growth eased to 10.5 percent year on year in the four months to the end of April. While now Investors await Tuesday's release of
the Consumer Price Index (CPI) for April for further indications on the timing of the Federal Reserve's first interest rate hike in 2016. The Core CPI Index, which strips out volatile food and energy prices, is expected to tick up
by 0.2%. Since raising interest rates for the first time in seven years in December, the Fed has been hesitant to tighten its money policy cycle even further amid sluggish inflation. Also Chilean copper miner Antofagasta Plc
has suffered a setback as it seeks environmental permit approval for new investment at its Los Pelambres mine in central Chile, but hopes to resolve the issue in coming days. Technically now Copper is getting support at
309.5 and below same could see a test of 307.1 level, And resistance is now likely to be seen at 313.9, a move above could see prices testing 315.9.
Date :
Tuesday, May 17, 2016
URL : www.achiieversequitiesltd.com
Page No -
4
MCX Zinc May 2016
TRADING IDEA
OPEN
126.4
SUP-2
124.4
Zinc trading range for the day is 124.4-127.8.
HIGH
126.9
SUP-1
125.4
Zinc recovered from lows on short covering but the upside was capped as data from
China's manufacturing sector dampened hopes of stronger demand.
LOW
125.2
P.P.
126.1
The soft data followed disappointing Chinese trade and inflation figures last week, adding
to doubts about whether the world's second-largest economy is stabilizing.
CLOSE
126.4
RES-1
127.1
Zinc daily stocks at Shanghai exchange came up by 247 tonnes.
% CNG
-0.08
RES-2
127.8
BUY ZINC MAY @ 125.50 SL 124 TGT 126.50-127.80.MCX
Zinc on MCX settled down -0.08% at 126.40 as sentiments can be dampen as data released over the weekend added to concerns over the health of the world’s second largest economy. Industrial production rose at an
annualized rate of 6.0% in April, below expectations for a 6.5% increase and slowing from a gain of 6.8% in the preceding month, the General Administration of Customs said on Saturday. Fixed asset investment, which
tracks construction activity, rose 10.5% last month, below forecasts for an increase of 10.9%. The soft data followed disappointing Chinese trade and inflation figures earlier in the week, adding to doubts about whether the
world's second-largest economy is stabilizing. The Core CPI Index, which strips out volatile food and energy prices, is expected to tick up by 0.2%. Since raising interest rates for the first time in seven years in December,
the Fed has been hesitant to tighten its money policy cycle even further amid sluggish inflation. Last week Zinc prices advanced, a day after industrial metals posted the biggest selloff in two months, as data showing firming
inflation eased demand concerns in China, the world’s biggest user. The Asian nation’s consumer-price index rose 2.3 percent in April for a third straight month, while producer prices fell less than market estimated,
government figures showed. Support also seen after the update that Structural deficits are returning, led by zinc, as “current reinvestment is insufficient to maintain current production levels over the medium term,” Glencore
Plc said in a presentation for a mining conference last week. Technically market is getting support at 125.4 and below same could see a test of 124.4 level, And resistance is now likely to be seen at 127.1, a move above
could see prices testing 127.8.
MCX Nickel May 2016
TRADING IDEA
OPEN
581.5
SUP-2
572.3
Nickel trading range for the day is 572.3-595.7.
HIGH
589.5
SUP-1
578.5
Nickel prices gained led by a recovery in crude prices and optimism over global growth
prospects after company earnings boosted stocks.
LOW
577.8
P.P.
584.0
Taking the shine off the market, however, was Chinese data showing that factory output
grew at 6 percent on an annual basis in April
CLOSE
584.8
RES-1
590.2
Nickel daily stocks at Shanghai exchange came up by 1529 tonnes.
% CNG
0.67
RES-2
595.7
BUY NICKEL MAY ABV 582 SL BELOW 568 TGT 592-608. MCX (BTST)
Nickel on MCX settled up 0.67% at 584.80 tracking firmness from LME Nickel which added 0.8 percent to settled at $8,720 while still upside is capped after the update from Russia's Norilsk Nickel which told that the nickel
market might remain weak throughout 2016 because many companies only started losing money from producing the metal late last. Also prices rebounded, bolstered by a softer US dollar and short-covering, but the upside
was capped as data from China's manufacturing sector dampened hopes of stronger demand growth in the top consumer. Sentiments can be dampen as data released over the weekend added to concerns over the health of
the world’s second largest economy. Industrial production rose at an annualized rate of 6.0% in April, below expectations for a 6.5% increase and slowing from a gain of 6.8% in the preceding month, the General
Administration of Customs said on Saturday. Fixed asset investment, which tracks construction activity, rose 10.5% last month, below forecasts for an increase of 10.9%. The soft data followed disappointing Chinese trade
and inflation figures earlier in the week, adding to doubts about whether the world's second-largest economy is stabilizing. While now Investors await Tuesday's release of the Consumer Price Index (CPI) for April for further
indications on the timing of the Federal Reserve's first interest rate hike in 2016. Market are predicting a mild increase of 0.3% in April CPI, in response to a 0.1% gain in March. Technically market is under short covering as
market has witnessed drop in open interest by -3.5% to settled at 21110 while prices up 3.9 rupee, now Nickel is getting support at 578.5 and below same could see a test of 572.3 level, And resistance is now likely to be
seen at 590.2, a move above could see prices testing 595.7.
Date :
Tuesday, May 17, 2016
URL : www.achiieversequitiesltd.com
Page No -
5
NCDEX Chana Jun 2016
TRADING IDEA
OPEN
5810
SUP-2
5770
Chana trading range for the day is 5770-5964.
HIGH
5906
SUP-1
5828
Chana prices ended with gains on account of higher demand in the spot market.
LOW
5809
P.P.
5867
Further, expectations of limited supplies due to lower output from the major producing
belts, added support to prices.
CLOSE
5886
RES-1
5925
According to government sources, Government agencies have procured around 62,000
tonnes of pulses which includes 11,754.06 tonnes of Chana
% CNG
1.62
RES-2
5964
BUY CHANA JUNE @ 5820 SL 5760 TGT 5880-5960.NCDEX
Chana on NCDEX settled up by 1.62% at 5886 on account of higher demand in the spot market. Further, expectations of limited supplies due to lower output from the major producing belts and expensive imports, added
support to chana prices’ uptrend. According to government sources, Government agencies have procured around 62,000 tonnes of pulses which includes 50,424.07 tons of Tur and Urad from Kharif Marketing Season 2015-16
and 11,754.06 tonnes of Chana and Masur from Rabi Marketing Season 2016-17. In addition to this imports have been contracted for about 13,500 tonnes of tur and 12,500 tonnes of urad. As per sources, for controlling the
rise in pulses price, there has been a strict vigilance by the government to prevent importers from misusing the facilities of custom bonded warehousing facility. According to Union Agriculture Ministry's third advanced
estimate for the FY 2015-16 issued on Monday production of pulses is estimated to be only 17.06 million tons which is lowest since 2009-10. Prior to this in the second advanced estimate, production of pulses were estimated
about 17.33 million tons in the year 2015-16 but in the current estimate production is reduced by 270,000 tons and in the year 2014-15 about 17.15 million tons of pulses were produced in the country. Maharashtra
government demanded the Centre to release 10,000 tons of tur dal immediately from the buffer stock to meet the requirement of pulses in the state. In Delhi spot market, chana gained by 112.15 rupee to end at 5928.4
rupee per 100 kgs.Technically now Chana is getting support at 5828 and below same could see a test of 5770 level, And resistance is now likely to be seen at 5925, a move above could see prices testing 5964.
NCDEX Turmeric Jun 2016
TRADING IDEA
OPEN
8112
SUP-2
7968
Turmeric trading range for the day is 7968-8208.
HIGH
8150
SUP-1
8026
Turmeric prices dropped on anticipation of good sowing in next season on forecast of good
rains at the producing belts.
LOW
8030
P.P.
8088
Turmeric arrivals in the main producing centres like Nizamabad, Erode, Duggirala have
been declining as farmers are holding the stocks.
CLOSE
8086
RES-1
8146
NCDEX accredited warehouses turmeric stocks gained by 80 tonnes to 4630 tonnes.
% CNG
-0.42
RES-2
8208
BUY TURMERIC JUNE ABV 8150 SL 8000 TGT 8300-8480.NCDEX
Turmeric on NCDEX settled down by -0.42% at 8086 on anticipation of good sowing in next season on forecast of good rains at the producing belts. Though, some losses were capped on rising demand from traders and
stockists at the spot market. Turmeric arrivals in the main producing centres like Nizamabad, Erode, Duggirala have been declining as farmers are holding the stocks hoping prices to rise in the coming months. Forecast of
normal and timely onset of monsoon may bring down prices of turmeric in the coming weeks it will boost the new crop prospects. Turmeric supplies may slow down, as farmers may not sell at lower prices. In the Delhi spot
market turmeric single polish gattha was traded at Rs 9,000-9,300 a quintal on lack of sufficient support from masala manufacturers. During the Apr-Dec 2015, India exported 68,500 ton turmeric as against 64,785 ton a
year ago because of increased demand from Gulf countries. No turmeric bags arrived for sale to the Regulated Market. For the first time during this season, no bag arrived to the Regulated Market Committee. But in other
centres the arrival was very poor. For the second day today, the arrival was very low at 1,300 bags. Only local varieties arrived for sale and local buyers procured fifty per cent of the stock. At the Erode Turmeric merchants
Association, the finger turmeric was sold at Rs. 8,269-9,089 a quintal; the root variety Rs. 8,166-8,569. In Nizamabad, a major spot market in AP, the price ended at 8712.5 rupees remains unchanged at0 rupees.Technically
now Turmeric is getting support at 8026 and below same could see a test of 7968 level, And resistance is now likely to be seen at 8146, a move above could see prices testing 8208.
Date :
Tuesday, May 17, 2016
URL : www.achiieversequitiesltd.com
Page No -
6
TRADING IDEA
MCX Menthaoil May 2016
OPEN
869.9
SUP-2
859.8
Menthaoil trading range for the day is 859.8-879.8.
HIGH
874.0
SUP-1
865.6
Mentha oil spot at Sambhal closed at 1004.40 per 1kg. Spot prices is up by Rs.5.20/-.
LOW
864.0
P.P.
869.8
Mentha oil prices remained supported on the back of rising demand from consuming
industries at the spot market.
CLOSE
871.3
RES-1
875.6
Further, tight stocks position following restricted arrivals from major producing belts of
Chandausi in Uttar Pradesh also added support.
% CNG
0.61
RES-2
879.8
BUY MENTHA OIL MAY @ 865 SL 855 TGT 875-888.MCX
Mentha oil on MCX settled up by 0.61% at 871.3 as prices remained supported on the back of rising demand from consuming industries at the spot market. Further, tight stocks position following restricted arrivals from
major producing belts of Chandausi in Uttar Pradesh also added support to mentha oil prices’ uptrend. While sentiments still remain weak which will cap the gain's as this season the farmers are seen getting more interested
in sowing mentha in the major growing area of Barabanki. Markets had remained weak for quite sometime from lack of demand amidst reports of higher sowing activities. The preliminary mandi source suggests that
production of menthol is likely to be around 34-35000 tonnes during 2016-17 as compared to 32000 tonnes in 2015-16. While some sources estimate that total area under Mentha planting has dropped by 25% to 1.70 lakh
ha this season resulting into a proportionate fall in Mentha oil production this year. However a pick up in sowing over last few weeks have ensured prices falling for the commodity, as low demand further pressurized market
sentiments. As per latest reports Mentha Oil export in 2014-15 has surpassed targeted 21000 tons by 23% at 25750 tons. At Rampur market, estimated market supply was at 7 Drums(1-drum=180kg), steady as against
previous day’s arrival. At Sambhal market sources reported arrivals at 60 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. Mentha oil spot at Sambhal closed at 1004.40 per 1kg. Spot prices is up
by Rs.5.20/-.Technically market is under short covering as market has witnessed drop in open interest by -2.14% to settled at 2282, now Menthaoil is getting support at 865.6 and below same could see a test of 859.8 level,
And resistance is now likely to be seen at 875.6, a move above could see prices testing 879.8.
DAILY MARKET LEVEL FOR METAL AND ENERGY
COMMODITIES
GOLD
SILVER
CRUDE
NAT.GAS
COPPER
ZINC
NICKEL
ALUMINUM
CLOSE
OI
TREND
29977
30551
30410
30194
30053
29837
29696
29480
7166
Positive
40987
42017
41756
41371
41110
40725
40464
40079
10327
Positive
3179
3282
3238
3208
3164
3134
3090
3060
21649
Positive
136.1
144.1
142.4
139.2
137.5
134.3
132.6
129.4
11323
Positive
311.65
318.3
315.9
313.9
311.5
309.5
307.1
305.1
28222
Positive
126.4
128.8
127.8
127.1
126.1
125.4
124.4
123.7
5002
Positive
584.8
601.9
595.7
590.2
584.0
578.5
572.3
566.8
21110
Positive
103.5
105.0
104.3
103.9
103.2
102.8
102.1
101.7
5078
Positive
116.8
122.2
119.7
118.3
115.8
114.4
111.9
110.5
2270
Positive
SPREAD
271
688
60.00
10.60
4.70
0.70
6.30
0.90
0.75
RESISTANCE
P. POINT
SUPPORT
Date :
Tuesday, May 17, 2016
URL : www.achiieversequitiesltd.com
LEAD
Page No -
7
NEWS YOU CAN USE
DAY
Gold demand in Asia was muted this week as physical buyers stayed off the market due to the
bullion's recent rally, with a key festival in India failing to lift demand in the world's second biggest
consumer. Gold has gained about 20 percent this year, touching a 15-month high earlier in May.
Though prices slipped from those highs this week, consumers shied away from making big purchases,
and premiums in key markets remained low. Indians bought a third less gold than last year during the
annual Hindu and Jain holy festival of Akshaya Tritiya this week, when it is considered auspicious to
buy gold. Demand in India was also hurt by droughts that have hit the earnings of millions of farmers.
Rural demand accounts for about two-thirds of India's total gold consumption. Dealers were offering
discounts of up to $15 an ounce to the global spot benchmark this week, up from a discount of up to
$12 in the previous week. India's gold demand in the first quarter slumped 39 percent from a year
ago due to a rally in gold prices, jewellers' strike and as consumers had delayed purchases hoping a
cut in India's 10 percent import duty on gold in the national budget, the World Gold Council said
earlier this week.
U.S. producer prices rose in April as energy prices increased, but a marginal gain in the cost of
services pointed to a moderate increase in inflation in the coming months. The Labor Department said
its producer price index climbed 0.2 percent last month after slipping 0.1 percent in March. In the 12
months through April, the PPI was unchanged after dipping 0.1 percent in March. Inflation continues
to be restrained by the lingering effects of the dollar's surge and oil price plunge. The greenback
gained 20 percent against the currencies of the United States' trading partners between June 2014
and December 2015. The dollar has this year dropped 2.5 percent on a trade-weighted basis and oil
has bounced off multi-year lows. Last month, energy prices increased 0.2 percent after increasing 1.8
percent in March. Wholesale food prices fell 0.3 percent following a 0.9 percent drop in March.
Wholesale chicken eggs tumbled 33.9 percent in April.
India’s refined oils imports surged alarmingly high during the first six months of the oil marketing
year – November to October – leaving the refining industry nervous. Comparatively, lower landed
cost of refined oils against that of the crude oils pushed up refined oil imports by 168 per cent to
13.23 lakh tonnes (lt) during November 2015 to April 2016 period as against 4.92 lt in the same
period previous year, data by Solvent Extractors’ Association of India (SEA) revealed. The overall
import of vegetable oils during the first six months of the current oil year 2015-16, increased by 17
per cent growth from 6,466,902 tonnes in the same period last year to 7,557,169 tonnes now. Higher
import of refined oils is hurting the domestic refining industry, which is facing severe crisis of under
utilisation of capacity and is on the verge of closure. As explained by SEA, currently, tax on export of
CPO from Indonesia/Malaysia is higher by 5 per cent in comparison to RBD. “This differential will keep
increasing with increase in prices of palm oil in the origin countries. Therefore, duty differential in
India has to be made variable to be in line with the differential duty prevailing in Malaysia/Indonesia
and justify to increase in duty difference between crude and refined vegetable oils from 7.5 per cent
to 15 per cent,” it said. According to the SEA, in the last three months, CIF Indian port prices of
edible oils moved upward.
Date :
Tuesday, May 17, 2016
Tue
ECONOMICAL DATA
TIME
ZONE
EXP
PREV
1:30pm
EUR
Italian Trade Balance
4.21B
3.86B
2:30pm
EUR
Trade Balance
23.1B
20.2B
3:30pm
EUR
German Buba Monthly Report
0
0
6:00pm
USD
Building Permits
1.13M
1.09M
6:00pm
USD
CPI m/m
0.004
0.001
6:00pm
USD
Core CPI m/m
0.002
0.001
6:00pm
USD
Housing Starts
1.12M
1.09M
6:45pm
USD
Capacity Utilization Rate
0.751
0.748
6:45pm
USD
Industrial Production m/m
0.003
-0.006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Import prices in the U.S. increased for the second straight month in April, according to a report
released by the Labor Department, although the pace of growth came in below economist estimates.
The Labor Department said import prices rose by 0.3 percent in April, matching the upwardly revised
increase in March. Economists had expected prices to climb by 0.6 percent. The continued increase in
import prices was primarily due to another jump in prices for fuel imports, which surged up by 3.3
percent in April after spiking by 7.6 percent in March. The increase in fuel prices was driven by a 4.1
percent advance in petroleum prices, which more than offset a 10.5 percent drop in natural gas
prices. Excluding fuel prices, import prices inched up by just 0.1 percent in April after edging down by
0.1 percent in each of the three previous months. The uptick in non-fuel import prices was the first
since July of 2014 and reflected higher prices for non-fuel industrial supplies and materials, foods,
feeds, and beverages, and automotive vehicles. The Labor Department also said export prices
advanced by 0.5 percent in April after coming in unchanged in the previous month. Export prices had
been expected to remain flat.
Monsoon rains are expected to arrive on southern Kerala coast by June 7, about a week later than
usual, the country's weather office said. The monsoon season delivers 70 percent of India's annual
rainfall, which is crucial for agriculture and economic growth that has been hampered by back-to-back
droughts. About half the country's farmland lacks irrigation, and farmers have blamed Prime Minister
Narendra Modi's government for a slow response after the droughts ravaged their crops in 2014 and
2015. Two-thirds of India's population depends on farming. The meteorological department expected
a "slight delay" in the arrival of the rains, it said in a statement. In April, it had forecast an above
average monsoon for the year.
URL : www.achiieversequitiesltd.com
Page No -
8
Date :
Tuesday, May 17, 2016
URL : www.achiieversequitiesltd.com
Page No -
9