Commodity report ways2capital 09 feb 2015

Page 1


✍ NCDEX DAILY LEVELS DALLY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

SYOREFIDR

20 APR 15

623.60

614.75

605.90

601.40

597.05

592.55

588.20

579.35

570.50

SYBEANIDR

20 APR 15

3,571.33 3,529.33 3,487.33 3,463.67 3,445.33

3,421.67 3,403.33 3,361.33 3,319.33

RMSEED

20 APR 15

3,472.33 3,421.33 3,370.33 3,339.67 3,319.33

3,288.67 3,268.33 3,217.33 3,166.33

JEERAUNJHA 20 MAR 15 15,966.67 15,516.67 15,066.67 14,883.33 14,616.67 14,433.33 14,166.67 13,716.67 13,266.67 CHANA

20 APR 15

3,662.33 3,622.33 3,582.33 3,559.67 3,542.33

3,519.67 3,502.33 3,462.33 3,422.33

CASTORSEED 20 MAR 15 4,245.67 4,192.67 4,139.67 4,110.33 4,086.67

4,057.33 4,033.67 3,980.67 3,927.67

✍ NCDEX WEEKLY LEVELS WEEKLY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

SYOREFIDR

20 APR 15

657.30

635.80

614.30

605.60

592.80

584.10

571.30

549.80

528.30

SYBEANIDR

20 APR 15

3,815.00 3,700.00 3,585.00 3,524.00 3,470.00 3,409.00 3,355.00 3,240.00 3,125.00

RMSEED

20 APR 15

3,580.33 3,496.33 3,412.33 3,360.67 3,328.33 3,276.67 3,244.33 3,160.33 3,076.33

JEERAUNJHA 20 MAR 15 17,023.33 16,308.33 15,593.33 15,116.67 14,878.33 14,401.67 14,163.33 13,448.33 12,733.33 CHANA

20 APR 15

3,876.67 3,767.67 3,658.67 3,599.33 3,549.67 3,490.33 3,440.67 3,331.67 3,222.67

CASTORSEED 20 MAR15

4,803.00 4,574.00 4,345.00 4,202.00 4,116.00 3,973.00 3,887.00 3,658.00 3,429.00


✍ MCX DAILY LEVELS DALLY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

27 FEB 15

119.95

118.60

117.25

116.55

115.90

115.20

114.55

113.20

111.85

COPPER

27 FEB 15

371.20

365.70

360.20

357.40

354.70

351.90

349.20

343.70

338.20

CRUDE OIL

19 FEB15

3,667.33 3,525.33 3,383.33 3,321.67 3,241.33 3,179.67 3,099.33 2,957.33 2,815.33

GOLD

03APR 15

29,251.33 28,492.33 27,733.33 27,267.67 26,974.33 26,508.67 26,215.33 25,456.33 24,697.33

LEAD

27 FEB 15

117.28

116.43

115.58

115.22

114.73

114.37

113.88

113.03

112.18

NATURAL GAS 24 FEB 15

173.03

169.23

165.43

163.27

161.63

159.47

157.83

154.03

150.23

NICKEL

27 FEB 15

1,004.47 981.47

958.47

949.93

935.47

926.93

912.47

889.47

866.47

SILVER

05 MAR 15 41,892.00 40,373.00 38,854.00 37,939.00 37,335.00 36,420.00 35,816.00 34,297.00 32,778.00

ZINC

27 FEB 15

138.23

136.63

135.03

134.47

133.43

132.87

131.83

130.23

128.63

✍ MCX WEEKLY LEVELS WEEKLY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

27 FEB 15

121.75

119.75

117.75

116.80

115.75

114.80

113.75

111.75

109.75

COPPER

27 FEB 15

402.80

385.45

368.10

361.35

350.75

344.00

333.40

316.05

298.70

CRUDE OIL

19 FEB 15

4,443.33 4,010.33 3,577.33 3,418.67 3,144.33 2,985.67 2,711.33 2,278.33 2,278.33

GOLD

03 APR 15 30,604.67 29,439.67 28,274.67 27,538.33 27,109.67 26,373.33 25,944.67 24,779.67 23,614.67

LEAD

27 FEB 15

120.88

118.83

116.78

115.82

114.73

113.77

112.68

110.63

108.58

NATURAL GAS 24 FEB 15

203.03

190.23

177.43

169.27

164.63

156.47

151.83

139.03

126.23

NICKEL

27 FEB 15

1,075.67 1,029.67 983.67

962.33

937.67

916.33

891.67

845.67

799.67

SILVER

05 MAR 15 44,392.00 42,123.00 39,854.00 38,439.00 37,585.00 36,170.00 35,316.00 33,047.00 30,778.00

ZINC

27 FEB 15

142.50

139.30

136.10

135.00

132.90

131.80

129.70

126.50

123.30


� MCX - WEEKLY NEWS LETTERS INTERNATIONAL NEWS GOLD PRICE CONTINUE TO SLUMP AS PRECIOUS METAL SELL OF Gold continued to fall in Friday afternoon London trading, trading at three-week lows after forecast-beating US jobs data resulted in a cross-complex sell-off. Spot gold was last at a price of $1,232.70/1,233.50 per ounce, down $31.90 and not far from its intraday low of $1,228.20, its cheapest since January 15.The US created 257,000 new jobs in January, surpassing the predicted 236,000, although the unemployment rate rose to 5.7 percent from 5.6 percent. As well, the change in non-farm payroll employment for November was revised to 423,000 from 353,000 and the change for December was revised to 329,000 from 252,000. Over the twomonth period, employment gains were 147,000 higher than previously reported, setting up the strongest three-month gain in 17 years. Average hourly earnings increased 12 cents to $24.75 following a decrease of five cents in December. Over the year, average hourly earnings have risen 2.2 percent. Other metals also felt the force of a stronger dollar, which was last at 1.1315 against the euro. Silver was 60 cents lower in price at $16.61/16.66 per ounce after hitting a low of $16.56, platinum fell $21 to $1,224/1,229 and palladium was down $3 at $783/788.

Base metals outlook: Prices likely to improve The global aluminium market will remain in deficit in 2015, although the scale of the supply shortfall is set to narrow from last year's level, as production growth rates are expected to remain high, especially in China, where output growth could reach nine per cent. The global economy remains riddled with uncertainties but, nevertheless, we remain confident that aluminium demand is set for another year of expansive growth, with 5.8 per cent forecast. That said, there are certainly some major headwinds in some regions - notably Europe, likely to keep Q1 of 2015 buying activity lean, at best. Despite the steep fall in copper prices at the start of this year, fundamentally, this market is not in bad shape at all. And, if anything, the outlook is getting tighter, not looser. We are now forecasting a small supply deficit this year, as we believe demand remains fairly resilient and sub-$6,000/tonne prices will see the Chinese State Reserve Bureau stockpiling more metal. Meanwhile, the supply side is on course to underperform significantly, with 2015 already well on the way to being a record year in terms of unplanned disruptions. So, our view is that copper prices have become disconnected from the underlying fundamentals, which is not sustainable. Therefore, we are still looking for copper to end this year comfortably above the Q1 lows and well on the way to recovering the losses inflicted since mid-2014. Like copper, lead is another market that has underperformed its fundamentals. Exchange stocks


are low relative to consumption, destocking in China has left inventories lean there, and supply and demand are roughly balanced, overall. In addition, production cuts are emerging and the lower prices are making it more difficult for secondary producers to get scrap. So, as with copper, there is a case for lead pricing to improve during this year, and that is our baseline assumption. The nickel market got too bullish, too soon, in 2014. In the end, the Indonesian ore export ban didn't improve the overall fundamentals anywhere near as much as the nickel bulls had hoped. But the supply-demand balance is still tightening, and 2015 is when that will really start to be felt. Nickel prices will probably remain volatile in the short term given broader issues but, once the dust settles, falling nickel pig iron production and the end to the relentless London Metal Exchange stock build should lay the foundation for a sustainable improvement in prices this year and the next. Like nickel, the zinc market is waiting for the fundamentals to tighten. The expectation of tightness was priced in by last year's rally but closure of the giant Century mine in Australia is the key event in the bull story now and that closure will not happen until later this year. It remains to be seen how much effect it, and the closure of other mines, will really have on the concentrate market and, ultimately, the refined market. Our view has been that the supply gap the zinc bulls are looking for won't be a big deal. All eyes in the tin market will be on China, Indonesia and Myanmar this year, to see how crucial supply-side issues pan out. There is the potential for production to accelerate further in China, fuelled by the continued emergence of Myanmar as a major source of concentrate, while there is the potential for Indonesian supply to be further constrained by the government's trade policy tinkering. Overall, we are neutral on tin's fundamental outlook in the short to medium term.

SHFE copper price highest in 2 weeks despite increased inventory Base metals ended Friday trading on the Shanghai Futures Exchange (SHFE) mostly higher, with copper hitting its best price in two weeks.Demand for copper in China this week is said to be robust despite the forthcoming Chinese New year, a Singapore-based trader said. The active SHFE April copper futures rose 670 yuan to end at 41,670 yuan, its highest in two weeks. The April contract has gained more than six percent since January 26. Generally, credit is still tight, so you get more traders buying on spot. Most are rushing to get


the papers done before the holidays although the goods will only be shipped out after the Chinese New Year,” the trader added.In wider Asian markets, the performance was mixed. The Shanghai Composite and Hang Seng were both lower since the open this morninig after a senior official from the People's Bank of China (PBoC) said the latest reserve-ratio cut by the central bank "is not the start of strong stimulus". The Shanghai Composite is currently down 1.9 percent and the Hang Seng is lower by 0.38 percent whereas the Nikkei 225 is higher by 0.82 percent.For the day ahead, US non-farm payrolls will probably dominate market focus. Markets are looking for a slightly slower 236,000 increase in January’s print from December’s 252,000 reading. The unemployment rate is expected to stay at 5.6 percent. Investors are eyeing the performance of the labour market for a cue on the timeline for the Fed to increase interest rates. The dollar is weaker with the dollar index at 93.58.Data out yesterday showed a larger-than-expected US trade deficit which weakened the dollar as dollar-denominated goods are considered less price-competitive.“To some extent as a weaker dollar would likely boost LME copper and that could in turn give SHFE some lift',” said Fastmarkets head of research, William Adams.In the metals, spot copper in Changjiang is up 0.8 percent at Rmb 41,550-41,800, which means the backwardation with the futures has narrowed again, last at an equivalent of $33 per tonne. The LME/Shanghai copper arb ratio is last at 1 to 7.25 meaning the arb window remains closed.Open interest fell around 23,000 positions to 367,218. Still, it remains robust, with the two-week average at 300,000-400,000 compared with previous averages of around 200,000-300,000. Weekly copper stocks in warehouses monitored by the SHFE increased 2,354 tonnes this week at 139,396 tonnes. with most of the inflow coming from warehouses in Shanghai.

US STOCK LOWER AT CLOSE OF STOCK At the close in New York, the Dow Jones Industrial Average fell 0.34%, while the S&P 500 index lost 0.34%, and the NASDAQ Composite index declined 0.43%.The best performers of the session on the Dow Jones Industrial Average were Verizon Communications Inc (NYSE:VZ), which rose 3.07% or 1.47 points to trade at 49.33 at the close. Meanwhile, JPMorgan Chase & Co (NYSE:JPM) added 1.97% or 1.12 points to end at 57.89 and Goldman Sachs Group Inc (NYSE:GS) was up 1.47% or 2.66 points to 183.43 in late trade.The worst performers of the session were Intel Corporation (NASDAQ:INTC), which fell 1.92% or 0.65


points to trade at 33.29 at the close. Nike Inc (NYSE:NKE) declined 1.66% or 1.55 points to end at 91.79 and Visa Inc (NYSE:V) was down 1.61% or 4.38 points to 267.42. The top performers on the S&P 500 were Harris Corporation (NYSE:HRS) which rose 9.63% to 76.18, FLIR Systems Inc (NASDAQ:FLIR) which was up 6.82% to settle at 33.97 and VeriSign Inc (NASDAQ:VRSN) which gained 5.30% to close at 59.97.The worst performers were Expedia Inc (NASDAQ:EXPE) which was down 11.51% to 77.87 in late trade, Scana Corporation (NYSE:SCG) which lost 5.31% to settle at 60.47 and Public Service Enterprise Group (NYSE:PEG) which was down 5.30% to 40.59 at the close.The top performers on the NASDAQ Composite were ROI Acquisition Corp (NASDAQ:EVRY) which rose 41.94% to 1.320, Recon Technology Ltd (NASDAQ:RCON) which was up 23.92% to settle at 2.590 and Stereotaxis Inc (NASDAQ:STXS) which gained 23.56% to close at 2.150. The worst performers were Rentrak Corporation (NASDAQ:RENT) which was down 29.68% to 56.62 in late trade, TrovaGene Inc (NASDAQ:TROV) which lost 23.59% to settle at 4.470 and China HGS Real Estate Inc (NASDAQ:HGSH) which was down 21.45% to 3.150 at the close. Falling stocks outnumbered advancing ones on the New York Stock Exchange by 1678 to 1116 and 1 ended unchanged; on the Nasdaq Stock Exchange, 1465 fell and 1303 advanced, while 5 ended unchanged. The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 3.86% to 17.50.

NCDEX - WEEKLY NEWS LETTERS Indian Soya Oilmeal exports fall by 63% in January: The total export of oilmeals during April.’14 to Jan.,15 is reported at 2,021,117 tons compared to 3,626,404 tonnes i.e. down by 44%. In Jan., 2015, export of oilmeals is reported at 159,892 tonnes compared to 435,966 tonnes in Jan., 2014 i.e. down by 63%. Export of soybean meal greatly reduced in last 10 months due to total disparity for soybean meal in international market. Brighter side is the share of rapeseed meal has increased from


738,591 to 939,946 tons, while ricebran extractions export doubled in last 10 months.Oilmeal import by South Korea from India during April’14-Jan.’15 is reported at 730,571 tons compared to 901,661 tons, consisting 426,874 tons of rapeseed meal, 301,639 tons of castor meal and 2,058 tons of soybean meal. Iran imported of 322,091 tons compared to 1,084,954 tons last year consisting of 180,300 tons of soybean meal and 141,791 tons of rapeseed meal.Thailand imported of 189,026 tons compared to 307,704 tons, consisting 181,762 tons of rapeseed meal and 7,264 tons of soybean meal.Vietnam imported 244,422 tons compared to 183,236 tons last year consisting of 57,555 tons of rapeseed meal, 17,927 tons of soybean meal, 1,186 tonnes of groundnut meal and 167,754 tons of Deoiled Rice Bran Extraction.Taiwan imported 61,142 tonnes compared to 104,824 tons of last year consisting of 30,897 tons of rapeseed meal, 22,685 tons of castor meal and 7,560 tons of soybean meal. Europe imported 208,911 tons compared to 533,418 tonnes of last year.

Chana Feb traded on negative note due to sluggish demand: NCDEX Chana Feb. futures traded on negative note on Friday and closed 0.69% down due to sluggish demand on expectation of new crop arrivals in less than a month’s time. Overall sentiments look mixed for Chana amid expected lower output and duty-free export allowed till Mar 2015. As per the Govt data, Chana has been sown over 81.98 lakh hectares which is less 16.5 % As on Jan 23, 2015 as compared to last year’s 98.16 lakh hac. The Weather so far has been conducive to the growth of Chana crop in the growing states. Considering favorable weather conditions in the coming days and thereby a normal yield, we expect Chana production to hover around 84-86 lakh tonnes in 2014-15. Deliveries on NCDEX increased by 134%, Castor seed breaks all previous records: The deliveries on the National Commodity and Derivatives Exchange (NCDEX), the leading commodity exchange of India has witnessed overwhelming response during January 2015 by increase of 134.22% m-o-m with 252789 MT of commodities delivered through the exchange platform in the month. Castor seed broke all records with deliveries worth Rs. 947.95 Cr. The ADTV of all commodities for the January, 2015 stood at Rs. 3362.32 crores. For the agri segment, the monthly total volume was Rs. 68229.65 crores. The top three commodities were Chana, Refined Soya Oil and Castor Seed. The total traded volume for Chana was Rs. 11873.73 crores with over 45% y-o-y rise. 10 MT Guar seed has seen excellent participation; clocking a volume of Rs. 6900.09 crores, 161.44% y-o-y growth. Coriander leads m-o-m delivery segment by 1146.97% rise followed by Cotton seed oil cake (640%),R M Seed (245%), Soyabean (214%) and Jeera (164%). The Exchange successfully completed entire delivery process of


Castor seed without any delivery default and proved its domain expertise through transparent delivery mechanism. In the month of December the total Open Interest of Castor Seed reached a high of 4,47,988 MT with more than 70% open interest accumulated in January expiry contract. The Exchange proactively ensured adequate availability of space in approved warehouses. The Castor seeds deposits reached to more than 4.25 lakh MT and the total deliveries on the Exchange platform crossed more than 2 lakh MT, highest ever in the history for Castor. This has improved the confidence of the market on the systems put in place by the Exchange to support real price discovery.


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