Commodity research report 08 february 2016 ways2capital

Page 1


✍ MCX DAILY LEVELS DAILY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

DATE

ALUMINIUM COPPER

29 FEB 2016 110.65 108.10 105.55 103.95

300.30

2063

1971

1879

GOLD

05 APR 2016 28422 28098 27774 27649 27450 27325 27126 26802

26478

LEAD

29 FEB 2016 127.55 125.25 122.95 121.55 120.65 119.30 118.35 116.05

113.75

2431

2339

321.65 318.90 316.30 313.55

95.35

305.65

19 FEB2016

327

101.35 100.45 97.90 311

CRUDE OIL

29 FEB 2016 332.40

103

2247

NATURAL GAS 24 FEB 2016 156.70 150.60 144.50

2202

2155

2110

142

138.40 135.90 132.30 126.20

120.10

576

NICKEL

29 FEB 2016 666.10 631.30 596.50

561.70 541.20 526.90 492.10

457.30

SILVER

04 MAR 2016 37509 36942 36375 36090 35808 35523 35241 34674

34107

ZINC

29 FEB 2016 124.15 120.85 117.55 115.55 114.25 112.25 110.95 107.65

104.35

✍ MCX WEEKLY LEVELS WEEKLY

ALUMINIUM COPPER CRUDE OIL

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

29 FEB 2016 112.15 109.15 106.15 104.20 103.15 101.20 100.15 97.15 29 FEB 2016 357.55

GOLD

05 APR 2016 29846 28988 28130 27827 27272 26969 26414 25556

24698

LEAD

29 FEB 2016 147.05

92.75

24 FEB 2016

209

138

2401

2279

2155

2033

1909

270 1417

NATURAL GAS

2647

328.40 322.25 313.80 307.65 299.20 284.55

94.15

1663

19 FEB2016

2893

343

S4

128.95 124.55 119.90 115.55 110.80 101.80

186.80 164.60 152.10 142.40 129.90 120.20

98

75.80

NICKEL

. 29 FEB 2016 685.40 644.80 604.20 579.90 563.60 539.30

482.40

441.80

SILVER

04 MAR 2016 39933 38457 36981 36393 35505 34917 34029 32553

31077

ZINC

29 FEB 2016 140.80 131.55 122.30 117.90 113.05 108.65 103.80 94.55

85.30

523


WEEKLY MCX CALL

BUY CRUDEOIL FEB ABOVE 2200 TGT 2300 SL 2098 BUY GOLD APR ABOVE 27734 TGT 27936 SL 27527

PREVIOUS WEEK CALL

SELL ZINC FEB BELOW 107.30 TGT 105 SL 109.40 - NOT EXECUTED

✍ FOREX DAILY LEVELS DAILY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

DATE

USDINR

25 FEB 2016 68.4 68.20 0

68.05

67.95

67.90

67.80

67.70

67.55

67.35

GBPINR

25 FEB 2016 76.7 76.50 0

76.25

76.10

76

75.85

75.75

75.50

75.25

EURINR

25 FEB 2016

99.50

99.10

98.85

98.65

98.45

98.25

97.85

97.45

JPYINR

99.9 25 FEB 2016 058.6 58.45 5

58.25

58.15

58.10

57.95

57.85

57.60

57.50

R2

R1

PP

S1

S2

S3

S4

✍ FOREX WEEKLY LEVELS DAILY

EXPIRY

R4

R3

DATE

USDINR

25 FEB 2016 70.3 69.60 5

68.80

68.35

68.10

67.60

67.30

66.55

65.80

GBPINR

25 FEB 2016 82.6 80.20 0

77.75

76.90

75.30

74.50

72.85

70.40

68.95

EURINR

25 FEB 2016 106. 103.90 101.10 99.85 65

98.35

97.10

95.60

92.85

90.05

JPYINR

25 FEB 2016 64.0 61.85 5

57.40

56.70

55.20

53

50.80

59.65

58.90

WEEKLY FOREX CALL

BUY GBPINR FEB ABOVE 98.92 TGT 99.50 SL 98.34 PREVIOUS WEEK CALL

L

BUY GBPINR JAN ABOVE 97.52 TGT 98.50 SL 96.89 - NOT EXECUETD.


✍ NCDEX DAILY LEVELS DAILY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

DATE SYOREFIDR

18 MAR 2016 633.20 628.90 624.50 622.30 620.20

618

SYBEANIDR

18 MAR 2016

3990

3928

3866

3840

3804

3778

3742

3680

3618

RMSEED

20 APR 20165

4028

3971

3914

3886

3857

3829

3800

3743

3686

18 MAR 2016 14221 14131 13841

13713 13551 13423 13261 12971

12681

20 APR 2016

JEERAUNJHA CHANA

4215

615.80 611.50

607.10

4165

4115

4095

4065

4045

4015

3965

3915

R3

R2

R1

PP

S1

S2

S3

S4

✍ NCDEX WEEKLY LEVELS WEEKLY

EXPIRY

R4

DATE SYOREFIDR

18 MAR 2016 654.70 642.30 629.90

625

SYBEANIDR

18 MAR 2016

4114

4013

3912

3863

3811

3762

3710

3609

3508

RMSEED

20 APR 2016

4250

4118

3986

3922

3854

3790

3722

3590

3458

18 MAR 2016 16135 15255 14375

13980 13495 13100 12615 11735

10855

20 APR 2016

4164

3609

JEERAUNJHA CHANA

4575

4414

4253

617.50 612.60 605.10 592.70

4092

4003

3931

WEEKLY NCDEX CALL BUY TMC APR ABOVE 8550 TGT 8850 SL 8240 PREVIOUS WEEK CALL SELL REFSOYA FEB BELOW 610 TGT 600 SL 621.20 - CLOSED AT 611.95

3770

580.30


MCX - WEEKLY NEWS LETTERS INTERNATIONAL NEWS � Bullion

Gold was trading near its highest since October on Friday, on track for its strongest weekly gain in a month as the dollar was pressured by growing doubts the Federal Reserve can stick to its interest rate hike campaign. A shaky global economy has lifted buying interest in gold, making it among the best performing assets with a year-to-date gain of nearly 9%. Other precious metals rode on gold's rally, with silver and platinum also at multi-month highs. Silver is eyeing its best week since May last year. Focus is turning to the US employment report due later in the day, with analysts saying a weaker-than-expected reading could stretch gold's rally. Spot gold was flat at $1,154 an ounce by 0211 GMT, after peaking at $1,157.20 on Thursday, its highest since October 29. Gold has gained more than 3% so far this week, on course for its biggest such increase since early January. Bullion's upward momentum increased this week after a key Fed official said there was a need to consider tighter financial conditions and the weakening global outlook in framing US monetary policy That spurred gold bulls, thinking it would be tough for the Fed to raise interest rates again this year after hiking them in December for the first time in nearly a decade. Non-interest bearing gold is quite sensitive to US monetary policy. Its recent upturn has prompted some analysts to have a more positive price outlook on the metal many had thought was bound to fall below $1,000 an ounce as the US lifts rates. HSBC analyst James Steel said gold's rally appeared intact."We see no compelling reason for more than a normal retrenchment before bullion resumes an upward move. The rally is underpinned by risk-off sentiment, a weaker dollar and a shift in global monetary policy," Steel said. US gold for April delivery eased 0.2% to $1,155 an ounce. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, continued to rise, reaching 22.3 million ounces on Thursday, the most since late October. Ahead of the US employment report, economists polled by Reuters are looking for non-farm payrolls to increase by 190,000 in January, after rising by 292,000 in December. The unemployment rate is forecast to remain at a 7-1/2-year low of 5%. Spot silver was steady at $14.85 an ounce, near Thursday's threemonth high of $14.91 and has gained 4% this week. Platinum dropped 0.7% to $901.74 an ounce, not far below a three-month peak, while palladium held close to a one-month top at $514.38

Silver was down 0.1 percent at $14.86 an ounce, after touching a three month high at $14.96. U.S. employment gains slowed more than expected in January as the boost to hiring from unseasonably mild weather faded, but rising wages and an unemployment rate at an eight-year low suggested the labor market recovery remains firm. Non-farm payrolls increased by 151,000 jobs and the unemployment rate slipped one-tenth of a percentage point to 4.9 percent, the lowest since February 2008, the Labor Department said on Friday. The payrolls gain was a sharp step-down from the average 231,000 jobs per month during the fourth quarter.


� Copper

Copper prices declined by 0.69% to Rs 317 per kg in futures trade as participants indulged in trimming positions, tracking a weak trend in base metals overseas. Besides, subdued spot demand from consuming industries fueled the downtrend. At the Multi Commodity Exchange, copper for delivery in current month fell by Rs 1.80 or 0.69% to Rs 317 per kg in a business turnover of 1,252 lots. Similarly, the metal for delivery in far-month April contracts traded lower by Rs 1.55 or 0.60% to Rs 321.20 per kg in 34 lots. Analysts attributed the fall in copper futures to weak trend in global markets after industrial metals retreated amid anxiety over the health of the global economy.

Metals turned lower after the dollar surged post the mixed set of employment data from US and ahead of the long week holiday in the China. U.S. employment gains slowed more than expected in January as the boost to hiring from unseasonably mild weather faded, but rising wages and an unemployment rate at an eight-year low suggested the labour market recovery remains firm. Hedge funds and money managers cut a bearish position in copper to the lowest since early November, in the week to Feb. 2, U.S. Commodity Futures Trading Commission data showed on Friday. Weighing on prices ahead of the holiday was a surge in weekly inventories of copper, zinc and lead in Shanghai Futures Exchange (ShFE) warehouses. Copper stocks jumped 29,317 tonnes, or 13.8 percent, zinc stocks rose 6.6 percent, while lead stocks more than doubled, reversing the fall from the prior week. France committed on Saturday to support the nickel sector in the Pacific territory of New Caledonia which has been severely hit by a slump in prices amid a mounting supply glut.

� Nickel

Nickel prices went up by 0.73% to Rs 592 per kg in futures market after speculators strengthened their positions, driven by a firming trend overseas and pick-up in demand at the domestic spot markets. In futures trading at Multi Commodity Exchange, nickel for delivery in March spurted Rs 4.30, or 0.73%, to Rs 592 per kg, in a business turnover of 93 lots. Similarly, the metal for delivery in February was trading higher by Rs 4.10, or 0.70%, to Rs 585.90 per kg in 1,720 lots. Analysts said besides rising demand from alloy-makers at domestic spot markets, a firming trend in base metals pack in global market, influenced nickel prices at futures trade.

� Lead

Amid bearish global trend and muted domestic demand, lead prices were down by 1.14% to Rs 120.95 per kg in futures trading as participants cut down their bets. Lead for delivery this month declined by Rs 1.40 or 1.14% to Rs 120.95/kg in a business turnover of 449 lots.Similarly, the metal for delivery in March contracts eased by Rs 1.25 or 1.02% to Rs 121.50 per kg in 9 lots. Market men said the fall in lead futures was due to a weak trend


overseas as industrial metals retreated amid anxiety over the health of the global economy. Besides, sluggish demand at the domestic spot markets from battery-makers too weighed on metal futures here, they said. Globally, lead lost 1% to $1,785.50 per tonne at Shanghai after closing at $1,803 yesterday, the highest since October 16.

✍ Zinc

Zinc prices moved down by over 1% to Rs 115.05 per kg in futures market as speculators offloaded their positions in tandem with a weak global trend. At the Multi Commodity Exchange, zinc for delivery in February contracts moved down by Rs 1.20 or 1.03% to Rs 115.05 per kg in business turnover of 1,272 lots. The metal for delivery in March traded fell by a similar margin to trade at Rs 115.60 per kg in 24 lots. Market men said weakness in copper and other base metals at in global markets slowing global growth concerns mainly weighed on zinc prices at futures trade. At the LME, zinc dropped as much as 0.8%

✍ Energy

Crude oil prices last week moved down showing massive weekly losses after two consecutive weekly gains. Some major intraday gains were witnessed last week seeing multi week low dollar index and upon rumors of production cut by major OPEC and non- OPEC countries. Prices today are showing tad gains as the meeting between Saudi minister and Venezuelan minister was quoted to be successful by the former one. In a meeting held on Sunday in Riyadh between the Saudi and Venezuela oil ministers with regards to stabilize crude prices, the Saudi minister said for cooperation between OPEC and other major oil producing nations. The Venezuelan minister is on official tour covering major OPEC and non- OPEC nations for production cut so that the international crude prices may get stabilized. However, no exact steps for any production cut have been mentioned by the kingpin. Coming to other updates, the noncommercial bullish percentage as per the latest CFTC updates came down to 56.40% from last week’s 64.70%. Last Friday, Baker Hughes showed removal of around 31 active crude oil rigs by the US shale drillers. Total active crude rigs operational in the US is around 467. This continuous downfall in rigs might lead to reduced production levels from the United States. EIA had already forecast their levels to be around 8.80 MBPD by mid- 2016. Natural gas futures fell to their lowest level so far this year on Thursday on a smaller-than-expected storage draw and forecasts for warmer weather over the next two weeks. The U.S. Energy Information Administration said utilities pulled 152 billion cubic feet of gas from storage last week. That was slightly less than analysts' 158-bcf forecast in a Reuters poll and compares with draws of 112 bcf in the same week last year and a five-year average draw of 165 bcf. The latest midday U.S. weather model called for warmer-than-normal weather over the next two weeks, a switch from a forecast earlier in the morning calling for seasonably cold weather during that time. That warm weather is expected to continue for the rest of the winter, with February forecast to be 7 percent warmer than normal and March to be 19 percent warmer than normal, according to Thomson Reuters Analytic.


✍ NCDEX - WEEKLY NEWS LETTERS ✍ Chana

During Friday’s trading session NCDEX Chana April opened negative and traded within a range during most part of the day. However at the end of the day it closed positive. NCDEX Chana April futures ended the day at Rs. 4075 per quintal which is 0.24% up against the previous day. As per preliminary reports received from various State Government Agriculture Departments, the total area sown under summer crops as on 05th February, 2016 stands at 7.16 lakh hectares. Out of which summer Pulses in 0.00 lakh hectares. A week before, the total area planted under Rabi crops (i.e. as on 28th January, 2015) was reported at 591.51 lakh hectares. At that time pulses area stood at 139.08 lakh hectares. As per sources, during the week ended Feb 6, 2016 the Pulses Index, fall 5.13% which was main contributor in agri commodities. According to government agency, during 2015 -16 crop year pulses import in the country is around 24.37 lakh hectare from April to October 2015 against 21.17 lakh ton in last year. It is expected that very soon new crop arrival will start in to market amid government is continuously importing pulses which might drag the prices downside. As per Canadian Grain Commission, Canada has exported 541,600 tonnes of lentils during the crop year. It is expected that this year tur production in Burma will be more in comparison to previous year.

According to traders, cold condition has improved after mid-January which is beneficial for pulses as well as for other rabi crop. Also due to decrease in temperature we can see good recovery in crops. This condition will also change the productivity. According to sources, apart from Madhya Pradesh it is expected that chana production will be higher in Maharashtra and Rajasthan also. This year it is estimated that chana production in the country might increase. According to derivative analysis price and volume have increased while open interest has decreased for April month contract.

✍ Cardamom

Cardamom prices tumbled 2.56 per cent to Rs 620 per kg in futures trading today after speculators locked-in gains at prevailing higher levels.Furthermore, weak demand in the spot markets too weighed on prices.At the Multi Commodity Exchange, cardamom for delivery in November plunged by Rs 16.30, or 2.56 per cent, to Rs 620 per kg in a business turnover of 2 lots.Similarly, the spice for delivery in December weakened by Re 1, or 0.13 per cent, to Rs 758 per kg. At MCX platform cardamom, Feb contract traded down as per our view. Traders were exiting their positions from the higher levels as the staggered delivery period is approaching. On spot market front, in an auction held at Kerala the total arrivals reported around 162038 Kgs .The maximum price quoted during the auction was Rs.909\kg while the average prices were around Rs.543\kg. Hence, cardamom Feb contract traded down at Rs.693.90 per kg with 2.56% losses


� Corinder

Coriander prices fell 2.32 per cent to Rs 9,301 per quintal in futures trade today as speculators offloaded their positions, tracking muted spot demand.Besides, ample stock position on account of rising arrivals from major producing belts too weighed on coriander futures.At the National Commodity and Derivatives Exchange, coriander prices for delivery in November fell Rs 221, or 2.32 per cent, to Rs 9,301 per quintal with open interest of 10,830 lots. Expectation of export demand for new crop supported the market sentiments positively. April futures closed the trade at Rs. 6400 per quintal, with gains of 2.24% from its previous close. Arrivals at Kota were reported at 68 tonnes, higher by 9 tonnes and it traded in range Rs. 49015850 per quintal. Similarly, Ramaganj mandi witnessed arrivals of 174.8 tonnes and prices at Rs. 8600 per quintal. As on 1 st Feb, sowing of coriander is complete in 88600 hectares in Gujarat and it is 96% over normal acreage.

� Wheat

Unfavorable weather and dwindling stocks may cause India to import a record volume of wheat over the next year. Following the second consecutive below-average monsoon, India has been facing dry conditions for this year's wheat crop. Periodic heat spells since planting have also added extra stress to the plants. Wheat farming relies heavily on a sufficient monsoon prior to the start of planting in October. The monsoon typically lasts from July through September. Wheat stocks are also falling. To protect food security and sustain the price support program, the government-owned Food Corporation of India (FCI) buys and stores a lot of the wheat, but the total amount held by FCI has fallen each year since 2012. When it comes to its two major grain crops, wheat and rice, India has been rather self-sufficient over the past 30 years and is usually able to produce and store enough grain to feed its growing population.But as the stockpile wanes and if weather hardships become a predominant theme this season, an Indian wheat deficit could help ignite a pulse in the world wheat market for 2016-17.


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This Document has been prepared by Ways2Capital (A Division of High Brow Market Research Investment Advisor 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

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