Daily Commodity Report as on Thursday, May 19, 2016
Date :
Thursday, May 19, 2016
URL : www.achiieversequitiesltd.com
Page No -
1
Open
High
Low
Close
Precious Metals
Gold
Silver
30041
41081
30083
41100
Alum.
Copper
Lead
Nickel
Zinc
102.9
310
114.95
582.5
125.75
104.4
311.55
115.25
585
126.5
3215
137.4
3277
137.9
29911
40576
% Cng
OI
30055
41048
0.02
-0.32
7031
10102
104.3
311.1
114.4
581
126.4
1.11
-0.06
-0.48
-1.09
-0.12
3890
29128
3593
19679
5008
3268
134.5
1.87
-2.11
18572
10926
Market Round up
Gold remained under pressure after strong U.S. economic data and comments from Fed officials bolstered
expectations that Fed could soon hike interest rates.
Base Metal
102.6
306.05
113.8
576.2
124.9
Energy
Crude
Nat. Gas
3215
134.2
30041
30083
29911
30055
0.02
Turmeric
Jeera
Dhaniya
815
8160
16420
7300
839.8
8200
16685
7300
812
8130
16320
7131
Nickel prices dropped as a strong U.S. dollar abated investor appetite for the industrial metal.
838.2
8170
16620
7166
2.80
0.27
1.59
-1.82
1314
25530
17550
17080
1665
1666
1655
1656
-0.48
14660
Mentha oil prices gained tracking rising demand from consuming industries at the spot market.
Oil and Oilseeds & Others
Soyabean
Ref. Oil
CPO
RMSeed
Menthol
Cotton
3998
650.2
544.8
4417
870
17450
4009
650.6
544.8
4427
895.6
17450
3925
642.2
533.1
4385
870
17300
3939
643.8
534.5
4422
892.6
17340
-1.23
-1.39
-2.45
0.07
2.63
-0.23
97770
123360
2341
71150
2134
4488
Date :
67.10
75.72
96.81
61.28
67.12
75.78
97.55
61.51
66.99
75.50
96.62
61.20
Thursday, May 19, 2016
Soyabean prices dropped on weak demand for soymeal and on supply hope following easing worries about delay
monsoon rains in domestic.
Chana prices gained on account of strong buying from millers and stockists.
Turmeric prices ended with gains backed by pick up in the demand at the spot market.
Currency
USDINR
EURINR
GBPINR
JPYINR
Natural gas prices fell to a three-week low down by -2.11% as mild temperatures in the next two weeks are
expected to limit demand.
Ref soyoil prices ended with losses on oversupply woes following robust imports data.
Cereals
Wheat
Copper prices recovered to settle flat after prices dropped pressured by the dollar which rose on renewed
expectations of further U.S. interest rate hikes.
7031
Spices
Cardamom
Crude oil prices gained nearly 2% as bigger-than-expected weekly declines in U.S. gasoline and distillate supplies
offset pressure from a surprise rise in crude stockpiles.
Zinc prices recovered from lows to settled flat after pressure seen earlier pushed down by a stronger dollar.
Pulses
Chana
Silver dropped as market players looked ahead to minutes of Fed’s April policy meeting, which many feared could be
more hawkish than the statement.
67.10
75.75
97.40
61.38
0.16 1215842
-0.16
62032
0.43
34664
0.30
25599
Jeera prices gained on account of increasing demand from stockists and traders at the spot market.
URL : www.achiieversequitiesltd.com
Page No -
2
MCX Gold Jun 2016
TRADING IDEA
OPEN
30041
SUP-2
29844
Gold trading range for the day is 29844-30188.
HIGH
30083
SUP-1
29949
Gold remained under pressure after strong U.S. economic data and comments from Fed
officials bolstered expectations that Fed could soon hike interest rates.
LOW
29911
P.P.
30016
A Fed policymaker said, he will push for an interest rate hike in June or July, and two
others predict upto three rate increases this year.
CLOSE
30055
RES-1
30121
U.S. data showed that consumer prices recorded their biggest increase in more than three
years in April.
% CNG
0.02
RES-2
30188
SELL GOLD JUNE BELOW 29980 SL 30150 TGT 29820-29650.MCX
Gold on MCX settled flat at 30055 traded in the range while Comex Gold settled lower Wednesday fell 1.7 percent hitting a three-week low of $1,254.65 after minutes from the U.S. Federal Reserve’s April meeting showed
that officials from the central bank were ready to raise interest rates in June if economic data warrant. Gold came under pressure after Fed officials felt the U.S. economy could be ready for another interest rate increase in
June, according to the minutes from the central bank's April policy meeting released on Wednesday. The suggestion that a rate increase in June is firmly on the table suggests the Fed is closer to tightening monetary policy
again than Wall Street had expected. The Fed lifted rates in December for the first time in nearly a decade. Gold traders also digested hawkish comments from a pair of non-voting FOMC members regarding the potential for
multiple rate hikes by the Fed before the end of 2016. At a joint appearance in Washington, both Atlanta Fed president Dennis Lockhart and San Francisco Fed president John Williams suggested that "two to three rate hikes,"
this year seems possible, while Lockhart noted that a rate hike will still remain on the table at the FOMC's next meeting on June 14-15. Till now bullion has rallied 20 percent this year on speculation that the Fed has slowed
its expected pace of rate increases on concerns about global economic growth and the volatility of stock markets. Also Holdings in SPDR Gold Trust, rose 0.56 percent to 855.89 tonnes on Tuesday, the highest since
November 2013. Technically market is getting support at 29949 and below same could see a test of 29844 level, And resistance is now likely to be seen at 30121, a move above could see prices testing 30188.
MCX Silver Jul 2016
TRADING IDEA
OPEN
41081
SUP-2
40384
Silver trading range for the day is 40384-41432.
HIGH
41100
SUP-1
40716
Silver dropped as market players looked ahead to minutes of Fed’s April policy meeting,
which many feared could be more hawkish than the statement.
LOW
40576
P.P.
40908
The Fed will likely raise interest rates next month if economic data points to stronger
second-quarter growth as well as firming inflation and employment
CLOSE
41048
RES-1
41240
Housing starts and industrial production rebounded strongly last month, suggesting the
economy was regaining steam early in the second quarter.
% CNG
-0.32
RES-2
41432
SELL SILVER JUL BELOW 40900 SL 41200 TGT 40680-40450.MCX
Silver on MCX settled down -0.32% at 41048 ahead of Fed minutes while Comex Silver slipped 1.52 percent to settled down by $16.96 per ounce as minutes from the Fed suggest a near-term rate hike is possible. Yesterday
night minutes released by the Fed from its April policy meeting suggested an interest-rate increase in June was possible if incoming data showed an improving economy. As well, an assessment of risks posed by global
economic and financial conditions was downplayed, and the minutes pointed to additional strengthening of the U.S. labor market despite an apparent slowdown in economic activity. Investors traded cautiously in morning
session, eyeing for minutes for last month, where the FOMC voted 9-1 to leave the target range of its benchmark Federal Funds Rate unchanged between 0.25 and 0.50%. At the time, the FOMC said it will assess economic
conditions, measures of labor market conditions, indications of inflationary pressures and expectations, as well as readings on financial and international developments in determining the scope of future adjustments to the
Fed Funds Rate. Silver prices have been very bullish in 2016. At its meeting, the FOMC indicated there would be no change in interest rates near term, but did indicate that a hike might happen later in 2016. In late April,
commercial short positions for silver reached the highest level year to date, at 148,000. The robust short positions mean that traders are betting there will be pullbacks in silver prices over the next month or so. In April, the
Silver Institute issued its 2015 supply and demand report. It showed a yearly record for silver demand, up 3.4% to 36,407 tonnes. Technically market is getting support at 40716 and below same could see a test of 40384
level, And resistance is now likely to be seen at 41240, a move above could see prices testing 41432.
Date :
Thursday, May 19, 2016
URL : www.achiieversequitiesltd.com
Page No -
3
MCX Crudeoil May 2016
TRADING IDEA
OPEN
3215
SUP-2
3191
Crudeoil trading range for the day is 3191-3315.
HIGH
3277
SUP-1
3229
Crude oil prices gained nearly 2% as bigger-than-expected weekly declines in U.S.
gasoline and distillate supplies offset pressure from a surprise rise in crude stockpiles.
LOW
3215
P.P.
3253
Loss can be seen in today's session as dollar gained after minutes from the Fed’s latest
meeting suggested the central bank might still raise interest rates in June.
CLOSE
3268
RES-1
3291
Iran's oil exports are set to jump in May, particularly to Asia and Europe, to be up nearly
60 percent from a year ago to 2.1 million bpd.
% CNG
1.87
RES-2
3315
BUY CRUDE OIL MAY @ 3190 SL 3145 TGT 3238-3280.MCX
Crudeoil on MCX settled up 1.87% at 3268 spent much of the session trading higher as bigger-than-expected weekly declines in U.S. gasoline and distillate supplies offset pressure from a surprise rise in crude stockpiles,
prices had climbed to highs near $49. While overnight Nymex Crude oil prices dropped from the high of $49 as the dollar gained after minutes from the Fed’s latest meeting suggested the central bank might still raise interest
rates in June. Prices may open with some weakness in today's session after the Fed sent strong indications in its April minutes that it could raise interest rates next month, triggering a rapid increase in the slumping dollar.
Yesterday the US EIA said U.S. commercial crude oil inventories increased by 1.3mbls for the week ending on May 13 from the previous week. At 541.3mbls, U.S. crude oil inventories are at historically high levels for this
time of year. Crude oil has surged more than 80% from a 12-year low earlier this year on signs the global glut will ease as U.S. output declines. The market has moved into a production deficit earlier than expected following
supply disruptions in Nigeria and an increase in demand, according to Goldman Sachs Group Inc. Sentiments may dropped as surging oil exports from Iran after international sanctions against it were lifted in January also
weighed on markets. Also Iran's oil exports are set to jump in May, particularly to Asia and Europe, to be up nearly 60 percent from a year ago to 2.1mbpd. Technically market is under short covering and getting support at
3229 and below same could see a test of 3191 level, And resistance is now likely to be seen at 3291, a move above could see prices testing 3315.
MCX Copper Jun 2016
TRADING IDEA
OPEN
310.0
SUP-2
304.1
Copper trading range for the day is 304.1-315.1.
HIGH
311.6
SUP-1
307.7
Copper prices recovered to settle flat after prices dropped pressured by the dollar which
rose on renewed expectations of further U.S. interest rate hikes.
LOW
306.1
P.P.
309.6
Fed officials felt the U.S. economy could be ready for another interest rate increase in
June, according to minutes from the central bank's April policy meeting.
CLOSE
311.1
RES-1
313.2
China’s refined copper production grew 9 percent in the first quarter from a year ago,
National Bureau of Statistics data show
% CNG
-0.06
RES-2
315.1
SELL COPPER JUN BELOW 310 SL 313.80 TGT 307.80-305.50.MCX
Copper on MCX settled down -0.06% at 311.1 as prices recovered to settle flat after prices dropped pressured by the dollar which rose on renewed expectations of further U.S. interest rate hikes. Fed officials felt the U.S.
economy could be ready for another interest rate increase in June, according to minutes from the central bank's April policy meeting. New-home construction rose in April, keeping U.S. housing on a stable path as the world’s
biggest economy tries to move past disappointing first-quarter growth. Building wiring and plumbing have been the top two U.S. copper markets in recent years in new homes, according to Copper Development Association.
While taking the shine off the market, 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. Also pressure seen the total net long position of funds trading copper on the London Metal Exchange fell to 30,023 lots on May 13 from 35,792 lots the previous
Friday, the LME's COTR showed on Tuesday. Funds overall were long 130,515 lots and short 100,492. Sentiments is expected to improve after the update that Chile, the world’s biggest copper producer, expects prices to
increase by about a third over the long term because of rising demand from China, the top consumer. Copper may average $6,330 a metric ton after 2018, said Sergio Hernandez, executive vice president of the Chilean
Copper Commission. Technically now Copper is getting support at 307.7 and below same could see a test of 304.1 level, And resistance is now likely to be seen at 313.2, a move above could see prices testing 315.1.
Date :
Thursday, May 19, 2016
URL : www.achiieversequitiesltd.com
Page No -
4
MCX Zinc May 2016
TRADING IDEA
OPEN
125.8
SUP-2
124.3
Zinc trading range for the day is 124.3-127.5.
HIGH
126.5
SUP-1
125.3
Zinc prices recovered from lows to settled flat after pressure seen earlier pushed down by
a stronger dollar.
LOW
124.9
P.P.
125.9
Japan's core machinery orders rose 5.5 percent in March, but companies forecast a decline
in investment in April-June.
CLOSE
126.4
RES-1
126.9
Zinc daily stocks at Shanghai exchange came down by 746 tonnes.
% CNG
-0.12
RES-2
127.5
SELL ZINC MAY BELOW 126 SL 127.20 TGT 124.80-123.80.MCX
Zinc on MCX settled down -0.12% at 126.4 as prices recovered from lows to settled flat after pressure seen earlier pushed down by a stronger dollar. Zinc prices rallied in last 1month period with support from a weaker dollar
earlier in the year offset by concerns over China's economic health. Also supporting prices was a lower U.S. currency, which makes dollar-denominated commodities cheaper for non-U.S. buyers -- a relationship used by
funds that trade using buy or sell signals from numerical models. Taking the shine off the market, 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. Support can be seen after the update that China will push forward supply-side reform and increase the
number of middle-income earners, state television quoted President Xi Jinping as saying on Monday. "Evidence suggests that while the economy slowed in April, China´s government will continue to stabilise growth by
boosting investment demand in infrastructure and real estate in Q2," Standard Chartered said in a note. "Both infrastructure and property investment continue to grow strongly, with no indication of a loss of momentum in
these two key channels of metals demand. Technically market is under long liquidation as market has witnessed drop in open interest by -6.46% to settled at 5008 while prices down -0.15 rupee, now Zinc is getting support
at 125.3 and below same could see a test of 124.3 level, And resistance is now likely to be seen at 126.9, a move above could see prices testing 127.5.
MCX Nickel May 2016
TRADING IDEA
OPEN
582.5
SUP-2
571.9
Nickel trading range for the day is 571.9-589.5.
HIGH
585.0
SUP-1
576.4
Nickel prices dropped as a strong U.S. dollar abated investor appetite for the industrial
metal.
LOW
576.2
P.P.
580.7
Metals are paring gains made as concerns linger that a weak economy in China will keep
supplies ample.
CLOSE
581.0
RES-1
585.2
China officials said last week that it would hold back on strong stimulation of the economy,
as a recovery in its ailing property sector takes root.
% CNG
-1.09
RES-2
589.5
BUY NICKEL MAY ABV 582 SL BELOW 568 TGT 592-608. MCX (BTST)
Nickel on MCX settled down -1.09% at 581 as a strong U.S. dollar abated investor appetite for the industrial metal. Metals are paring gains made as concerns linger that a weak economy in China will keep supplies ample.
China officials said last week that it would hold back on strong stimulation of the economy, as a recovery in its ailing property sector takes root. Sentiment that had been damaged after Chinese data for April fuelled doubts
about the economy´s health. While yesterday things cool down after China stated that they will push forward supply-side reform and increase the number of middle-income earners, state television quoted President Xi Jinping
as saying on Monday. "Evidence suggests that while the economy slowed in April, China´s government will continue to stabilise growth by boosting investment demand in infrastructure and real estate in Q2," Standard
Chartered said in a note. "Both infrastructure and property investment continue to grow strongly, with no indication of a loss of momentum in these two key channels of metals demand. Xi called for “unswerving efforts” to
advance supply-side reforms at a meeting of a senior policy-making committee, according to state-owned news agency Xinhua. The reforms seek to cut capacity and shut unprofitable plants in industries such as steel. Data
on Tuesday showed U.S. consumer prices recorded their biggest increase in more than three years in April as gasoline and rents rose, pointing to a steady inflation build-up that could give the Fed ammunition to raise interest
rates later this year. Technically now Nickel is getting support at 576.4 and below same could see a test of 571.9 level, And resistance is now likely to be seen at 585.2, a move above could see prices testing 589.5.
Date :
Thursday, May 19, 2016
URL : www.achiieversequitiesltd.com
Page No -
5
NCDEX Chana Jun 2016
TRADING IDEA
OPEN
5995
SUP-2
5902
Chana trading range for the day is 5902-6072.
HIGH
6035
SUP-1
5939
Chana prices gained on account of strong buying from millers and stockists.
LOW
5950
P.P.
5987
Further, lower arrivals due to lower output from the major producing belts and expensive
imports, too added support.
CLOSE
5977
RES-1
6024
NCDEX accredited warehouses chana stocks dropped by 160 tonnes to 3339 tonnes.
% CNG
0.23
RES-2
6072
BUY CHANA JUNE @ 5920 SL 5870 TGT 5980-6050.NCDEX
Chana on NCDEX settled up by 0.23% at 5977 on account of strong buying from millers and stockists. Further, lower arrivals due to lower output from the major producing belts and expensive imports, too added support to
chana prices’ uptrend. Moreover, expensive imports mostly from Australia too keeping prices high. In the third advance estimates (May 2016), chana production is revised downwards to 7.5 mt from 8 mt forecasted in 2nd
estimate (Feb 2016). Country imported over 79,000 lt of chana in Feb 2016 higher than 38,000 tones imports last year in Feb. India has imported 9.93 lt of Chana until February in the current financial year (Apr 2015-Feb
2016). To control the prices, centre has asked states to impose stock holding limits for traders on all varieties of pulses in order to curb hoarding. The Maharashtra government demanded the Centre to release 10,000 tonnes
of tur dal immediately from the buffer stock to meet the requirement of pulses in the state. Keeping in view the state's monthly tur demand of 7,000 tonnes, the state government had sought for 28,000 tonnes of the dal
from the buffer stock created by the Centre, but it has been offered only 7,000 tonnes. The Centre has procured about 62,178 tonnes of pulses to create buffer stock in order to intervene in the market in case of price rise. In
Delhi spot market, chana remains unchanged at by 0 rupee to end at 6200 rupee per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 2.97% to settled at 17320, now Chana
is getting support at 5939 and below same could see a test of 5902 level, And resistance is now likely to be seen at 6024, a move above could see prices testing 6072.
NCDEX Turmeric Jun 2016
TRADING IDEA
OPEN
8160
SUP-2
8096
Turmeric trading range for the day is 8096-8236.
HIGH
8200
SUP-1
8132
Turmeric prices ended with gains backed by pick up in the demand at the spot market.
LOW
8130
P.P.
8166
Turmeric arrivals have been higher compared to last year but the arrivals have slowed in
April as per data.
CLOSE
8170
RES-1
8202
NCDEX accredited warehouses turmeric stocks gained by 228 tonnes to 4838 tonnes.
% CNG
0.27
RES-2
8236
BUY TURMERIC JUNE ABV 8220 SL 8020 TGT 8380-8560.NCDEX
Turmeric on NCDEX settled up by 0.27% at 8170 backed by pick up in the demand at the spot market. The price trend is looking mostly sideways as market participants anticipating good sowing in next season on forecast of
good rains. Turmeric arrivals have been higher compared to last year but the arrivals have slowed in April as per data. New season crop has hit the markets and continue to peak in current month but majority of arrivals are
of medium quality. As per dept of commerce data, turmeric exports for the period April 2015- Feb 2016 is pegged at 77,081 tonnes while the export for the 2014-15 was 83,713 tonnes for the same period. For the second
day, 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. The price of the finger turmeric was up Rs. 50 a quintal and the root variety Rs. 200. 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. Of the arrival of 346 bags, 149 were sold. However, the total production in the coming year
is expected to be around 68 lakh bags, up 20 lakh bags from the last year. In Nizamabad, a major spot market in AP, the price ended at 8712.5 rupees remains unchanged at0 rupees.Technically market is under fresh buying
as market has witnessed gain in open interest by 0.69% to settled at 25530 while prices up 22 rupee, now Turmeric is getting support at 8132 and below same could see a test of 8096 level, And resistance is now likely to be
seen at 8202, a move above could see prices testing 8236.
Date :
Thursday, May 19, 2016
URL : www.achiieversequitiesltd.com
Page No -
6
TRADING IDEA
MCX Menthaoil May 2016
OPEN
870.0
SUP-2
860.5
Menthaoil trading range for the day is 860.5-911.7.
HIGH
895.6
SUP-1
876.6
Mentha oil spot at Sambhal closed at 1015.50 per 1kg. Spot prices is up by Rs.11.00/-.
LOW
870.0
P.P.
886.1
Mentha oil prices gained tracking rising demand from consuming industries at the spot
market.
CLOSE
892.6
RES-1
902.2
Besides, tight stocks position following restricted arrivals from major producing belts of
Chandausi in Uttar Pradesh also supported.
% CNG
2.63
RES-2
911.7
BUY MENTHA OIL MAY @ 885 SL 870 TGT 898-910.MCX
Mentha oil on MCX settled up by 2.63% at 892.6 tracking rising demand from consuming industries at the spot market. Besides, tight stocks position following restricted arrivals from major producing belts of Chandausi in
Uttar Pradesh also fuelled the uptrend. While support seen after the unscheduled rains showers in growing areas in UP would adversely affect harvesting process and that factor remains important as of now. 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. As per latest reports Mentha Oil export in 2014-15 has surpassed targeted 21000 tons by 23% at 25750 tons. Export in 2013-14 was 24500 tons. Higher carryover stocks and lack
of strong demand have prevented strong upside movement till now. Mentha oil spot at Sambhal closed at 1015.50 per 1kg. Spot prices is up by Rs.11.00/-.Technically market is under short covering as market has witnessed
drop in open interest by -4.05% to settled at 2134 while prices up 22.9 rupee, now Menthaoil is getting support at 876.6 and below same could see a test of 860.5 level, And resistance is now likely to be seen at 902.2, a
move above could see prices testing 911.7.
DAILY MARKET LEVEL FOR METAL AND ENERGY
COMMODITIES
GOLD
SILVER
CRUDE
NAT.GAS
COPPER
ZINC
NICKEL
ALUMINUM
CLOSE
OI
TREND
30055
30293
30188
30121
30016
29949
29844
29777
7031
Positive
41048
41764
41432
41240
40908
40716
40384
40192
10102
Positive
3268
3353
3315
3291
3253
3229
3191
3167
18572
Positive
134.5
140.5
139.2
136.8
135.5
133.1
131.8
129.4
10926
Positive
311.1
318.7
315.1
313.2
309.6
307.7
304.1
302.2
29128
Positive
126.4
128.5
127.5
126.9
125.9
125.3
124.3
123.7
5008
Positive
581.0
594.0
589.5
585.2
580.7
576.4
571.9
567.6
19679
Positive
104.3
106.8
105.6
105.0
103.8
103.2
102.0
101.4
3890
Positive
114.4
116.6
115.9
115.2
114.5
113.8
113.1
112.4
3593
Positive
SPREAD
266
680
52.00
9.70
4.70
0.65
6.40
0.70
0.8
RESISTANCE
P. POINT
SUPPORT
Date :
Thursday, May 19, 2016
URL : www.achiieversequitiesltd.com
LEAD
Page No -
7
NEWS YOU CAN USE
DAY
Final consumption contributed a larger share of China's economic growth in the first quarter of 2016
than it did in 2015, according to an article in the official People's Daily. Final consumption accounted
for 84.7 percent of growth in gross domestic product (GDP) in January-April, the article said without
citing the source of the data. Investment contributed 35.8 percent of growth, while net exports were a
drag on growth at -20.5 percent. The article said consumption's first quarter contribution was 22
percentage points higher than that for the year-ago period, indicating a significant increase in
consumption's role in driving China's economy. The National Bureau of Statistics (NBS) republished
the People's Daily article on its website, indicating the data is likely from official sources. Consumption
contributed 66.4 percent to GDP growth for all of 2015. First-quarter data is often higher than the fullyear breakdown as trade and investment slow down due to the long Lunar New Year holidays early
each year, while consumer spending and services increase. The composition of China's GDP growth is
closely watched by analysts looking for evidence of economic restructuring, but its release has been
unreliable of late.
Jens Weidmann, the president of Deutsche Bundesbank and European Central Bank (ECB) Governing
Council member, said that the ECB may be blurring the lines between monetary and fiscal policy. He
said to German newspaper Die Welt that that these blurred lines could be the reason for recent
criticism of the ECB's monetary policy. Weidmann also said that the Governing Council was of the
opinion that monetary policy needs to expand in the current economic environment and that both
himself and ECB President Mario Draghi see eye to eye on the importance of price stability. "We may
sometimes come to different conclusions on difficult issues but when it comes to the importance of
price stability and the economic conditions for that, we agree." He also said that recent discussion and
criticism surrounding the ECB had some grounds: "The vehemence of the debate perhaps also stems
from some of the measures we have taken so far having blurred the boundaries between monetary
and fiscal policy and having redistributed government liability risks via central bank balance sheets."
The summer rains of the last two days over Tamil Nadu have come as a major relief to farmers across
the State. The standing crops, including sugarcane and paddy, which are in early stages of planting
will benefit. Paddy transplanting in major production areas and sugarcane planting for the 2016-17
crushing season (October-September) have been done. This sprinkling of summer rains will help
establish the crops well, say farmers. Prior to the rains, the temperatures had hit a high during the
summer and in tandem with the chronic shortage and erratic supply of power, even farmers with
groundwater were uncertain of irrigation. Now this takes care of water for the next few days. By June,
wind energy production kicks in and this augments the power supply in the State. The rains spell
good news for the farmers. Summer rains normally account for about one-sixth of the States average
rainfall of about 920 mm annually. But in recent years rains in summer have been scarce and the
spell over the last couple of days was sorely needed. S Radhakrishnan, a paddy farmer in TV Puthur
Village, Cuddalore district, who finished transplanting a short term three-month paddy crop last
month, is happy. While there is no groundwater shortage in his area, power to the pump sets could
not be taken for granted. Now the rains over the last couple of days have ensured his crops get
adequate water. K Venkatesan, a farmer in Cuddalore, said the rains over most of central and
Date :
Thursday, May 19, 2016
Thu
ECONOMICAL DATA
TIME
ZONE
1:30pm
EUR
Current Account
5:00pm
EUR
ECB Monetary Policy Meeting Accounts
6:00pm
USD
Philly Fed Manufacturing Index
6:00pm
USD
Unemployment Claims
6:45pm
USD
FOMC Member Fischer Speaks
7:30pm
USD
CB Leading Index m/m
8:00pm
USD
FOMC Member Dudley Speaks
8:00pm
USD
Natural Gas Storage
EXP
PREV
19.6B
19.0B
0
0
3.2
-1.6
276K
294K
0
0
0.004
0.002
0
0
75B
56B
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
Industrial production in the U.S. rebounded by much more than anticipated in the month of April, the
Federal Reserve revealed in a report, with utilities output showing a substantial increase. The report
said industrial production advanced by 0.7 percent in April after slumping by 0.9 percent in March.
Economists had expected production to edge up by 0.2 percent compared to the 0.6 percent drop that
had been reported for the previous month. The rebound in industrial production was led by the sharp
jump in utilities output, which surged up by 5.8 percent in April after tumbling by 3.3 percent in
March. The Fed said demand for electricity and natural gas returned to a more normal level after
being suppressed by warmer-than-usual weather in March. The report also said manufacturing output
crept up by 0.3 percent in April following a 0.3 percent dip in the previous month. On the other hand,
mining output saw another significant decrease, sliding by 2.3 percent in April after falling by 3.0
percent in March. The Fed also said capacity utilization for the industrial sector climbed to 75.4
percent in April from a revised 74.9 percent in March.
Coffee output in the next crop year is expected to drop by around a quarter to the lowest in nearly
two decades as poor rains and hot temperatures hit plantations during the crucial flowering stage, the
head of an industry body said. India is the world's sixth-biggest coffee producer, although is well
behind leaders Brazil and Vietnam. Nonetheless, lower production from India could provide more
support to global prices, already surging due to a drop in the output in top producer Brazil. "Dry
weather is hitting plantations in the crucial flowering stage. On a conservative basis, we are
estimating a 25 per cent drop in production," Baba P. S. Bedi, chairman of the Karnataka Planters
Association (KPA) told. The southern state of Karnataka accounts for about 70 per cent of India's total
output. India is likely to produce 350,000 tonnes coffee in the current season ending on September
30, according to estimates by the state-run Coffee Board. With a 25 per cent reduction in Karnataka,
production could drop to 263,000 tonnes in the 2016-17 crop year, the lowest since 1998-99. The
Coffee Board is expected to provide its first production forecasts for 2016/17 by mid-June, said D R
Babu Reddy, an agricultural economist at the Board.
URL : www.achiieversequitiesltd.com
Page No -
8
Date :
Thursday, May 19, 2016
URL : www.achiieversequitiesltd.com
Page No -
9