Commodity report 07 april 2014

Page 1

FOR PERIOD: 07th APRIL 2014 TO 12th APRIL 2014

WEEKLY COMMODITY REPORT

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IMPORTANT ECONOMIC EVENT OF THE WEEK Date

Currency

Event

Forecast

Previous

Apr 7

EUR

German Industrial Production m/m

0.3%

0.8%

Mon

EUR

Sentix Investor Confidence

14.1

13.9

USD

Consumer Credit m/m

14.1B

13.7B

Apr 8

EUR

French Gov Budget Balance

Tue

EUR

French Trade Balance

-4.9B

-5.7B

USD

NFIB Small Business Index

92.3

91.4

USD

JOLTS Job Openings

3.99M

3.97M

USD

FOMC Member Kocherlakota Speaks

USD

FOMC Member Plosser Speaks

Apr 9

EUR

German Trade Balance

18.0B

17.2B

Wed

USD

Wholesale Inventories m/m

0.5%

0.6%

USD

Crude Oil Inventories

-2.4M

USD

10-y Bond Auction

2.73|2.9

USD

FOMC Meeting Minutes

USD

FOMC Member Tarullo Speaks

Apr 10

EUR

French Industrial Production m/m

0.2%

-0.2%

Thu

EUR

French CPI m/m

0.6%

0.6%

EUR

ECB Monthly Bulletin

59.2

60.0

EUR

Italian Industrial Production m/m

0.2%

-0.2%

EUR

French CPI m/m

0.6%

0.6%

EUR

ECB Monthly Bulletin

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-12.7B

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EUR

Italian Industrial Production m/m

-0.2%

1.0%

USD

Natural Gas Storage

USD

30-y Bond Auction

USD

Federal Busget Balance

-76.5B

-193.5B

Apr 11

EUR

German Final CPI m/m

0.3%

0.3%

Fri

USD

PPI m/m

0.1%

-0.1%

USD

Core PPI m/m

0.2%

-0.2%

USD

Prelim UoM Consumer Sentiment

81.2

80.0

USD

Prelim UoM Inflation Expectations

3.63|2.4

3.2%

GOLD GOLD LITTLE CHANGED AFTER FIFTH MONTHLY DROP ON GLOBAL ECONOMY Gold swung between gains and losses, after the longest run of monthly declines since 1997, as investors weighed improving global economic data amid speculation that central banks will press on with stimulus. Gold for immediate delivery was at $1,579.41 an ounce at 3:46 p.m. In Singapore from $1,579.58 yesterday. Prices are set to decline 0.1 percent this week after dropping 5.1 percent in February for the fifth monthly drop as investment holdings plunged 4.2 percent. Bullion for April delivery was little changed at $1,578.90 on the Comex in New York. Prices fell 5.7 percent this year after a 12-year rally in 2012 as investor cut holdings in exchange-traded products to the lowest since September. European Central Bank President Mario Draghi said this week that the bank is far from exiting stimulus, while U.S. Federal Reserve Chairman Ben S. Bernanke defended the bank’s asset purchases. Goldman Sachs Group Inc. said that the commodity’s price cycle had turned as the U.S. economy recovers.

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GLOBAL RECOVERY Jobless claims in the U.S. dropped in the week that ended Feb. 23, the government said yesterday. German unemployment unexpectedly fell in February amid signs that Europe’s biggest economy is recovering, and Japan’s industrial production in January rose for the second straight month. Two Chinese manufacturing indexes showed today the world’s second-largest economy expanded at a slower-than-estimated pace. Cash bullion of 99.99 percent purity on the Shanghai Gold Exchange lost 1 percent to 320.70 yuan a gram ($1,602.89 an ounce). Most-active futures were little changed at 29,550 rupees per 10 grams ($1,686.40 an ounce) on the Multi Commodity Exchange of India Ltd. Silver for immediate delivery was little changed at $28.53 an ounce, poised for a fourth weekly loss. Platinum dropped as much as 0.6 percent to $1,574.37 an ounce, the lowest since Jan. 8. The metal is set for a third weekly fall. Palladium declined 0.4 percent to $725.85 an ounce. CRUDEOIL OIL FALLS TO 2013 LOW ON CHINA, EUROPE MANUFACTURING West Texas Intermediate oil slipped to the lowest level this year as manufacturing expanded less than forecast in China and contracted in Europe, bolstering concern that fuel demand will decline. Futures fell 1.5 percent after data showed China’s manufacturing growth slowed for a second month while factory output declined in the euro area and the U.K. The factory data helped the U.S. Dollar strengthen against the British pound and the euro. A stronger dollar curbs the appeal of raw materials to investors. Crude oil for April delivery fell $1.37 to $90.68 a barrel on the New York Mercantile Exchange, the lowest settlement since Dec. 24. Prices dropped 2.6 percent this week. The volume of all futures traded was down 1.5 percent from the 100-day average at Web: www.ways2capital.com

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3:10 p.m. Brent oil for April settlement dropped 98 cents, or 0.9 percent, to end the session at $110.40 a barrel on the London- based ICE Futures Europe exchange. It was the lowest close since Jan. 15. Volume was 52 percent above the 100-day average. The European benchmark grade traded at a premium of $19.72 to WTI, up from $19.33 yesterday. CHINESE MANUFACTURING In China, the world’s biggest oil-consuming country after the U.S., manufacturing slowed last month, the PMI report from the Federation of Logistics and Purchasing in Beijing showed. The reading fell to 50.1 last month from 50.4 in January. A gauge of U.K. Manufacturing based on a survey of purchasing managers slid to 47.9 last month, according to Market Economics and the Chartered Institute of Purchasing and Supply. In the euro region, a factory gauge was unchanged in February at 47.9, marking a 19th month of contraction, according to a separate Market report today. Futures rebounded from the day’s lows as U.S. consumer confidence increased and a report showed that manufacturing grew at the fastest pace since June 2011. The Institute for Supply Management said its factory index rose to 54.2, the highest reading since June 2011. DOLLAR RALLY The economic data helped the dollar climb to the highest level against the euro in almost three months after Italian elections this week delivered a four-way parliamentary split. The U.S. currency also rose above $1.50 against the pound for the first time since July 2010. The Standard & Poor’s GSCI Index of 24 commodities fell as much as 1.3 percent to 640.03, the lowest level since Dec. 31.

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SAUDI PRODUCTION Saudi Arabia, OPEC’s biggest producer, pumped 9 million barrels a day, the least since May 2011, according to the survey. Output was down 100,000 barrels from January and 900,000 barrels from May, when production reached the highest since at least January 1989. U.S. crude inventories increased 1.13 million barrels to 377.5 million last week, the highest level since July, a Feb. 27 Energy Information Administration report showed. Output climbed to 7.12 million barrels a day in the week ended Feb. 15, the most since August 1992. Net-long positions in West Texas Intermediate oil held by money managers, or wagers on rising prices, climbed to 221,534 in the week ended Feb. 15, the highest level since March

2012,

according

to

the

Commodity

Futures

Trading

Commission’s

Commitments of Traders report. Electronic trading volume on the Nymex was 463,360 contracts as of 3:11 p.m. It totaled 455,826 contracts yesterday, 14 percent below the three-month average. Open interest was 1.66 million contracts. BASE METALS COPPER, ALUMINUM FALL TO THREE-MONTH LOWS ON CHINA DATA Copper and aluminum fell to three- month lows on signals that manufacturing may sag in China, the world’s biggest consumer of industrial metals. Two gauges of Chinese manufacturing showed a pace of expansion that was lower than analysts estimated, signaling the nation’s economic recovery may be losing steam. Combined copper inventories monitored by exchanges in Shanghai, London and New York have climbed to the highest since May 2010. Copper futures for May delivery dropped 1.3 percent to settle at $3.501 a pound at 1:18 p.m. on the Comex in New York. Earlier, the price touched $3.4725, the lowest for a

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most-active contract since Nov. 19. On the London Metal Exchange, aluminium for delivery in three months fell 1.5 percent to $1,975 a metric ton. Earlier, the price touched $1,956, the lowest since Nov. 23. The metal dropped for the 10th straight session, extending the longest slump since June. Copper on the LME fell 1.4 percent to $7,703 a ton ($3.49 a pound). Lead, zinc and tin also dropped, while nickel rose. In a report titled “Buying the Dip,” Goldman Sachs Group Inc. said today that copper will rebound as China’s imports pick up and the U.S. housing market recovers. The price may rise to $9,000 a ton in six months, the bank said. Industrial metals and energy led commodities lower today. The Standard & Poor’s GSCI Spot Index of 24 raw materials erased this year’s gain. TECHNICAL OVERVIEW

• • • •

MCX GOLD APRIL Resistance 2 – 33476 Resistance 1 – 30314 Support 1 – 27152 Support 2 – 23990

MCX SILVER MAY • Resistance 2 – 49523 • Resistance 1 – 45325 1. Support 1 – 41127 • Support 2 – 36929

• • • •

MCX CRUDE OIL APRIL Resistance 2 – 6547 Resistance 1 – 6239 Support 1 – 5931 Support 2 – 5623

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• • • •

MCX COPPER APRIL Resistance 2 – 430 Resistance 1 – 411 Support 1 – 392 Support 2 – 372

• • • •

MCX NICKEL APRIL Resistance 2 – 1104 Resistance 1 – 1008 Support 1 – 912 Support 2 – 817

• • • •

MCX LEAD APRIL Resistance 2 – 136 Resistance 1 – 128 Support 1 – 120 Support 2 – 113

• • • •

MCX ZINC Resistance 2 – Resistance 1 – Support 1 – Support 2 –

• • • •

MCX ALUMINIUM APRIL Resistance 2 – 118 Resistance 1 – 107 Support 1 – 102 Support 2 – 97

• • • •

MCX NATURAL GAS APRIL Resistance 2 – 314 Resistance 1 – 283 Support 1 – 253 Support 2 – 223

128 122 116 110

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NCDEX NEWSLETTER 1. Regulations of the Exchange: The launch of October 2014 expiry futures contracts in Soybean (SYBEANIDR) which was scheduled to be launched on April 01, 2014 has been postponed till further notice. 2. Wheat stock: Wheat stock in central pool warehouses was registered at 17.83 million T on 01 April compared to 22.35 million T on 1st March 2014. The highest accumulated stock is in Punjab (7.00 million T) followed by Haryana (2.94 million. 3. Brazil Soybean Harvesting And Exports Updates: Brazil exports 6.23 million tons of soybeans in March 2014, up 75.9 percent compared to same period of the last year. While, on the harvesting side, Brazilian farmers had harvested around 70 percent of the total soybean acre. 4. Jeera Unjha Market Reported Higher Due to Arrival Pressure: At Unjha market in Mehsana, Jeera (Cumin Seed) Loose New opened high at Rs. 10375 -10475 per quintal, up by 0.96 per cent from previous trade, due to arrival pressure. 5. Castor Seed Cash & Futures Markets May Move Downward. Castor seed arrivals start increasing and it would pressurize market to move downward in the weeks ahead. During last four weeks arrivals in various mandis have increased from 50,000 bags to 80,000 bags. 6. The following Future Contract are trading with high volume on NCDEX: Soyabean- MAY Contract Refi. Soya- MAY Contract Castorseed- MAY Contract RM SeedMAY Contract DhaniyaMAY Contract ChanaMAY Contract

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This Document has been prepared by Ways2Capital (A Division of High Brow Market Research Investment Advisory Pvt Ltd). The information, analysis and estimates contained herein are based on Ways2Capital Equity/Commodities Research assessment and have been obtained from sources believed to be reliable. This document is meant for the use of the intended recipient only. This document, at best, represents Ways2Capital Equity/Commodities Research opinion and is meant for general information only. Ways2Capital Equity/Commodities Research, its directors, officers or employees shall not in any way to be responsible for the contents stated herein. Ways2Capital Equity/Commodities Research expressly disclaims any and all liabilities that may arise from information, errors or omissions in this connection. This document is not to be considered as an offer to sell or a solicitation to buy any securities or commodities. All information, levels & recommendations provided above are given on the basis of technical & fundamental research done by the panel of expert of Ways2Capital but we do not accept any liability for errors of opinion. People surfing through the website have right to opt the product services of their own choices. Any investment in commodity market bears risk, company will not be liable for any loss done on these recommendations. These levels do not necessarily indicate future price moment. Company holds the right to alter the information without any further notice. Any browsing through website means acceptance of disclaimer.

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