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Commodities & Currencies
Weekly Tracker
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Commodities Weekly TrackerContents
Returns
Non Agri Commodities Currencies
Agri Commodities
Non-Agri Commodities
Gold
Silver
Copper Crude Oil
Currencies DX, Euro, INR
Agri Commodities
Chana
Black Pepper Turmeric
Jeera
Soybean
Refine Soy Oil & CPO
Sugar
Kapas
Monday | May 6, 2013
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Commodities Weekly TrackerMonday | May 6, 2013
1.0
0.7 0.6
(0.5) (0.5) (0.5)
(1.1)
(2.0)(2.1)
(1.6)
(1.1)
(0.6)
(0.1)
0.4
0.9
Currencies Weekly Performance
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Commodities Weekly TrackerMonday | May 6, 2013
3.6
2.8
0.8 0.80.5 0.4 0.2
(0.2)
(2.4)(2.5)
(1.5)
(0.5)
0.5
1.5
2.5
3.5
Non-Agri Commodities Weekly Performance
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*Weekly Performance for May contract, Chilli June Contract
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Commodities Weekly TrackerMonday | May 6, 2013
GoldWeekly Price Performance
Spot gold prices increased around 0.5 percent in the last week. The yellow metal
touched a weekly high of $1487.8/oz and closed at $1470.20/oz in last trading session
of the week. In the Indian markets, prices declined by 0.9 percent on account of appreciation in the
Indian Rupee and closed at Rs.26825/10 gms on Friday after touching a weekly low of
Rs. 26365/10 gms.
ETF Performance
Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded
fund, declined by 1.6 percent to 1,065.61 tonnes as on 3rd May 2013 from previous
level of 1,083.05 tonnes as on 26th April 2013.
Factors that influenced upside in gold prices Rise in risk appetite in the global market sentiments
Weakness in the DX.
Favorable economic data from US and Euro Zone.
Further, European central bank (ECB) slashed interest rates to 0.5 percent supported
prices.
Outlook
In the coming week, we expect gold prices to trade on a positive note as a result of
upbeat global market sentiments coupled with weakness in the DX. Further,expectations of favorable economic data from major global economies will support an
upside in the prices. Additionally, decline in US unemployment rate in last week will
act as a positive factor for the prices.
Appreciation in the Indian Rupee will cap gains in the prices on the MCX.
Weekly Technical Levels
Spot Gold : Support 1,465/1,440 Resistance 1,492/1514. (CMP: $1477.20)
Buy MCX Gold June between 26,820-26,780, SL-26,600, Target- 27,400.(CMP:
Rs.27,089)
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
25,500
26,500
27,500
28,500
29,500
30,500
31,500
MCX and Comex Gold Price Performance
MCX-Near Month Gold Futures -Rs/10 gms Comex Gold Futures -$/oz
79.0
79.5
80.0
80.5
81.0
81.5
82.0
82.5
83.0
83.5
84.0
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
Spot Gold Vs US Dollar Index
Spot Gol d -$/oz US Dol lar Inde x
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Commodities Weekly TrackerMonday | May 6, 2013
SilverWeekly Price Performance
Spot silver gained 0.4 percent in the last week. The white metal prices
touched a high of $24.58/oz in the last week and closed at $24.07/oz in last
trade of the week.
On the domestic front, prices fell by 0.1 percent as a result of appreciation
in the Indian Rupee and closed at Rs.44776/kg on Friday after touching a
low of Rs.43172/kg in the last week.
ETF Performance
Holdings in the iShares Silver Trust, the world's largest silver-backed
exchange-traded fund, gained by 0.37 percent to 10,431.39 tonnes as on
3rd May 2013 from previous level of 10,392.42 tonnes as on 26th April
2013 .Factors that influenced upside in silver prices
Rise in gold prices
Upside in the base metals.
Further, favorable economic data from major global economies supported
an upside in the prices.
Optimistic global market sentiments coupled with weakness in the DX .
Outlook
In the coming week, we expect silver prices to trade higher taking cuesfrom rise in the gold prices coupled with upside in the base metals
complex.
Further, expectations of favorable economic data from major global
economies will support an upside in the prices.
Appreciation in the Indian Rupee will cap gains in the prices on the MCX.
Weekly Technical Levels
Spot Silver: Support 23.95/23.30 Resistance 24.70/25.34. (CMP:24.24)
Buy MCX Silver July between 45,000-44,900, SL-44,100, Target -46,400.
(CMP:45,371)
22
24
26
28
30
32
42,000
44,000
46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
MCX and Comex Silver Price Performance
MCX-Near Month Silver Futures -Rs/ kg Comex Silver Futures -$/oz
79.0
79.5
80.0
80.5
81.0
81.582.0
82.5
83.0
83.5
84.0
22.0
24.0
26.0
28.0
30.0
32.0
Spot Silver Vs US Dollar Index
Spot Si lver -$/ oz US Dol lar Inde x
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Commodities Weekly TrackerMonday | May 6, 2013
CopperWeekly Price Performance
Copper prices increased by 3.6 percent in the previous week. The red metal
touched a weekly high of $7306.5/tonne and closed at $7290/tonne in the last
trading session of the week.
On the domestic front, prices ended on positive note by 3.4 percent and closed at
Rs. 395.30/kg on Friday after touching a high of Rs. 395.9/kg in the last week.
Appreciation in the Indian Rupee capped sharp gains in the prices on the MCX.
Copper Inventories
LME copper inventories declined around 1.76 percent in the last week and stood
at 608,700 tonnes as on 3rd May, 2013 as against 619,600 tonnes as on 26th April,
2013 .
Copper inventories in the warehouse monitored by the Shanghai fell by 1.6percent and stood at 213,782 tonnes for the week ending on 3rd May, 2013.
Factors that influenced upside in the copper prices
Rise in risk appetite in the global market sentiments coupled with weakness in the
DX. Further, favorable unemployment rate and consumer sentiment data from US
supported an upside in the prices.
Additionally, decline in LME and Shanghai copper inventories acted as a positive
factor for the prices.
Outlook
Copper prices are expected to trade on a positive note on the back of optimistic
global markets coupled with weakness in the DX.
Additionally, decline in LME and Shanghai inventories along with expectations of
favorable economic data from the major global economies will support an upside
in the prices.
Appreciation in the Indian Rupee will cap gains in the prices on the MCX.
Weekly Technical Levels
LME Copper: Support 7125/6944 Resistance 7471/7652. (CMP: $7290)
Buy MCX Copper June between 387-385, SL-380, Target -405. (CMP:397.30)
365
375
385
395
405
415
425
435
445
455
6,800
7,000
7,200
7,400
7,600
7,800
8,000
8,200
8,400
LME and MCX Copper Price Performance
LME Copper Future ($/tonne) MCX Near Month Copper Contract (Rs/kg)
6,800
7,000
7,200
7,4007,600
7,800
8,000
8,200
8,400
318,000
368,000
418,000
468,000
518,000
568,000
618,000
LME Copper v/s LME Inventory
Copper LME Inventory (tonnes) LME Copper Future ($/tonne)
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Commodities Weekly TrackerMonday | May 6, 2013
Crude OilWeekly Price Performance
On a weekly basis, Nymex crude oil prices increased around 2.8 percent.
On the domestic bourses, prices gained by 1.6 percent and closed at
Rs.5,156/bbl on Friday after touching a high of Rs.5168/bbl in the last week.Appreciation in the Indian Rupee prevented sharp upside in the prices on theMCX.
US Energy Department Facts and Figures
As per the US Energy Department (EIA) report, US crude oil inventoriesincreased more than expectations by 6.7 million barrels to 395.30 millionbarrels for the week ending on 26th April 2013. Crude oil inventories are at thehighest level in last 82 years.
Gasoline stocks fell by 1.8 million barrels to 216.0 million barrels and whereasdistillate stockpiles rose by 0.5 million barrels to 115.80 million barrels for thelast week.
Factors that influenced upside in crude oil prices Unexpected decline in US unemployment rate which led to expectations of rise
in demand for the fuel. Further, decline in the Brent crude oil performance ledto fall in the spread between WTI and Brent which supported an upside in thecrude oil prices.
Additionally, rise in US consumer sentiments coupled with weakness in the DXacted as a positive factor for the prices.
However, sharp upside in the prices was capped on account of increase in EuroZone unemployment rate along with decline in manufacturing data from Chinaand US.
Outlook
We expect crude oil prices to trade on positive note on the back ofexpectations of favorable economic data from the major economies.
Further, weakness in the DX, upbeat global market sentiments along with dropin spread between Nymex and WTI will support an upside in the prices.
However, sharp upside will be capped as a result of rising US crude oilinventories.
Appreciation in the Indian Rupee will cap gains in the prices on the MCX.
Weekly Technical Levels
Nymex Crude Oil: Support: 93.90/91.80 Resistance 97.70/99.85 (CMP:96.49)
Buy MCX Crude May between 5070-5050, SL-5000, Target -5250.(CMP:5198)
86.0
88.0
90.0
92.0
94.0
96.0
98.0
4,700
4,800
4,900
5,000
5,100
5,200
5,300
5,400
Nymex and MCX Crude Oil Price Performance
MCX crude oil (Rs/bbl) NYMEX Crude Oil ($/bbl)
361.3
360.3
363.1369.1
371.7
372.2
376.4
377.53
381.4
384
382.7
385.9
388.6 388.9
387.6
388.6
395.3
360
365
370
375
380
385
390
395
400
Crude Oil Inventories (mn barrels)
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DX/ INRWeekly Price Performance
US Dollar Index (DX) declined around 0.5 percent in the last week.
The Indian Rupee appreciated by more than 1 percent on weekly basis.
Factors that influenced downside movement in the DX
Optimistic global market sentiments which led to fall in demand for the low yielding
currency.
Further, decline in US unemployment rate coupled with rise in consumer sentiments
and non-farm employment change data acted as a negative factor for the currency.
Additionally, US equities traded on a positive note which exerted downside pressure in
the DX.
Factors that influenced movement in the Rupee
Cut in the repo and reverse repo rates by the central banks of the country. Further, selling of dollars from exporters and custodian banks also supported an upside
in the currency.
Additionally, upbeat global and domestic market sentiments coupled with weakness in
the DX acted as positive factor for the Indian Rupee.
FII Inflows
For the month of April 2013, FII inflows totaled at Rs.2,606.30 crores ($483.38 million)
as on 3rd May 2013. Year to date basis, net capital inflows stood at Rs.63,642.70 crores
($11,793.70 million) till 3rd May 2013.
Outlook We expect Indian Rupee to appreciate in the current week on back of expectations of
favorable industrial production and manufacturing output data from the country.
Additionally, weakness in the DX coupled with rise in risk appetite in the global and
domestic market sentiments will support an upside in the currency. However, sharp
upside in the currency will be capped as a result of expectations of deficit in trade
balance data of the country.
Weekly Technical Levels
USD/INR MCX May Support 53.70/53.40 Resistance 54.40/54.80. (CMP: 54.0)
US Dollar Index: Support 81.50/80.90 Resistance 82.60/83.20. (CMP: 82.07)
79.0
79.5
80.0
80.5
81.0
81.5
82.0
82.5
83.0
83.5
US Dollar Index
53.0
53.5
54.0
54.5
55.0
55.5
56.0
$/INR - Spot
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Commodities Weekly TrackerMonday | May 6, 2013
EuroWeekly Price Performance
The Euro appreciated by 0.7 percent in the last week. The Euro touched a
weekly high of 1.3242 and closed at 1.3113 against dollar on Friday.
Factors that influenced upside movement in the Euro
European Central Bank (ECB) cutting the interest rates by 25 bps coupled with
statement from ECB President signaling that bank is ready for negative deposits
rate.
Further, favorable economic data from the region, upbeat global market
sentiments along with weakness in the DX supported an upside in the currency.
However, rise in the Euro Zone unemployment rate capped sharp gains in the
Euro.
News Spanish Manufacturing Purchasing Managers' Index (PMI) increased by 0.5
points to 44.7-mark in April as against a rise of 44.2-level in March. Italian
Manufacturing PMI rose by 1 point to 45.5-level in April from earlier rise of 44.5-
mark a month ago.
European Minimum Bid Rate cut to 0.5 percent in May from earlier 0.75 percent
in April. German Retail Sales declined by 0.3 percent in March as against a fall of
0.6 percent a month ago. Spanish Flash Gross Domestic Product (GDP) declined
by 0.5 percent in last month with respect to earlier fall of 0.8 percent in
February. Unemployment Rate grew by 12.1 percent in March as compared torise of 12 percent a month ago.
Outlook
We expect the Euro to trade on positive note on the back of rise in risk appetite
in the global market sentiments coupled with weakness in the DX. Further, cut in
the interest rates by the European Central Banks (ECB) along with expectations
of favorable economic data from the region will support an upside in currency.
Weekly Technical Levels
EURO/USD SPOT: Support 1.296/1.285 Resistance 1.325/1.340. (CMP: 1.3107)
1.275
1.285
1.295
1.305
1.315
1.325
1.335
1.345
1.355
1.365
Euro/$ - Spot
69.0
69.5
70.0
70.5
71.0
71.5
72.0
72.5
73.0
EURO/INR - Spot
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Chana
Commodities Weekly TrackerMonday | May 6, 2013
Weekly Price Performance
Chana prices declined for the second consecutive week on account of increasing
arrivals & subdued demand at higher levels.
Chana spot as well as May futures settled 3.14% & 3.48% lower w-o-w.
Rising inflows at higher levels
Higher prices since the beginning of the month has led to a significant increase in
arrivals last week which dragged prices lower.
Chana output revised marginally down- Third Advance Estimates
According to the third advance estimates released last week, Chana output is
pegged marginally lower to 8.49 mn tn compared with its second advance
estimates of 8.57 million tonnes. Chana output is expected to breach its 2010-11
record of 8.2 mn tn in 2012-13.Seasonal pressure to keep prices under downside pressure
Chana prices tend to follow a seasonality pattern, wherein prices decline during
the harvesting period and bottom out when arrivals reach their peak in the
month of May. Thus, we expect the current downward trend to continue till the
month end.
World pulses market well-balanced
At the International Pulse Trade and Industries Confederation annual
convention, chick pea (desi), production is pegged up at 9.7 mt from 9.4 mt. in
2012-13 following a huge spurt in Pakistan crop.
Outlook
Downward trend in Chana is expected to continue on the back of increasing
arrivals. However, on the downside prices may not sustain below Rs 3200 per qtl
mark, the level being a Minimum Support price, below which farmers may not
sell their produce. Also stockiest demand may emerge at such low levels and
thus we may see a recovery in the Chana prices June onwards.
Weekly Strategy
Sell NCDEX CHANA June between 3530-3570, SL -3680, Target - 3360 / 3330
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Turmeric
Source: Agriwatch & Reuters
Commodities Weekly Tracker
Weekly Price Performance
Turmeric Futures remained in the negative territory for the third consecutive
week on account of higher arrivals of the new crop coupled with huge carryover
stocks. However, buying by stockists as well as demand from interstate buyers,
supported prices at lower levels. Lower output expectations for 2012-13 crop on
the back of poor sowing also supported the prices. Sowing is reported to be 30-
35% lower compared to last year.
According to the weather department, rainfall in the key grown region (Southern
Peninsula) is reported at 10% below normal. The spot as well as the futures
settled 4.9% and 0.32% lower w-o-w.
Weak exports data
Turmeric exports during Apr-Jan 2013 declined by 4% to 66,550 tn.(Source Factiva)
Lower acreage of Turmeric for the 2012-13 season
Production of turmeric may decline in 2012-2013 season due to weak monsoon as
well as lower turmeric prices. The area covered under Turmeric in A.P. as on 10th
October, 2012 has been reported at 0.58 lakh hectares. The area covered is lower
as compared to last year (0.81 lha), as well as normal as on date (0.67 lha).
Lower production in the 2012-2013 season
Turmeric production in 2012-13 is expected around 50% lower compared to last
year and is expected around 45-50 lakh bags. Production in 2011-12 is reported
at historical high of 90 lakh bags/ 10.62 lakh tns.
Outlook
Turmeric may is expected to trade with a negative bias in the coming week as
higher arrivals of the new crop may pressurize prices. Huge carryover stocks may
also pressurize prices. However, good demand from the overseas as well as the
domestic markets may support prices at lower levels. Lower production estimates
coupled with arrivals of good quality crop may also support prices at lower levels.
Weekly Strategy
Sell NCDEX Turmeric June between 6450-6500, SL -6800, Target - 6000 / 5940.
Monday | May 6, 2013
Source: Reuters & Angel Research.
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Jeera
Source: Ministry of Agriculture, Gujarat.
Commodities Weekly Tracker
Weekly Price Performance
After declining over the last two weeks, Jeera recovered from lower levels last
week on account of short coverings. The pace of arrivals of the fresh crop have
also declined from its peak last month. Prices had declined earlier due to higher
output estimates. Sowing in Gujarat was reported at 3.244 lk ha till Jan 2013. Last
3 years average sowing is 3.189 lk ha. Stocks are reported at around 5-6 lk bags.
The spot as well as the futures settled 1.02% and 2.23% lower w-o-w.
Second consecutive year of higher output
Indias 2013 Jeera output is estimated at 38-40 lakh bags (of 55kgs each), at par
with the production in 2012. However, increase in the exports due to supply
concerns in the global markets offset the impact of higher supplies on the prices
and thus, medium term fundamentals remain supportive for the upside.Global supply concerns boost Jeera exports
Jeera exports during Apr-Jan 2013 stood at 64,400 tn, higher by 86%. (Source Factiva)
Due to lower production in Syria and Turkey, coupled with the ongoing tensions
between them, exports are not taking place and have been diverted to India. They
have stopped shipments. Turkey may start offering its Jeera in the coming days.
International Scenario
According to reports, production in Syria is reported around 22,000 tonnes while
production in Turkey is reported between 5000-7000 tonnes, lower by 20% and
around 50% respectively, raising supply concerns in the international markets.
Indian Jeera in the international market is being offered at $2,600/tn (c&f).
Outlook
Jeera may continue to decline till no fresh overseas demand is seen. However,
prices may recover later in the week if there is any improvement in the domestic
as well as overseas demand. Farmers may also be unwilling to sell their stocks at
lower levels and may hold back their stocks.
Weekly Levels Sell NCDEX Jeera June between 13150-13200, SL -13650, Target - 12480 / 12400.
Monday | May 6, 2013
Source: Reuters & Angel Research.
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Soybean
Commodities Weekly TrackerMonday | May 6, 2013
Weekly price performance
NCDEX Soybean traded in a range bound manner with some negative bias last week.
Imposition of special cash margin coupled with Weak meal export demand
pressurized prices while poor supplies supported prices at lower levels. IMD has alsoforecast a normal monsoon this. The futures settled 0.36% lower w-o-w.
CBOT Soybean gained 1.69% on account of tight supplies of the old US crop.
India's soy meal Exports Fall by 68 Percent during FY12-13 SEA
Indias soy meal exports for the month of April 2013 were 99.451 tonnes, lower by
68.31 percent from 313,832 tonnes a year ago.
Increase in the output in the 3rd Advance Estimates
As per the 3rd Advance Estimates released by the Ministry of Agriculture, soybean
output increased to 14.14 mn tn from 12.24 mn tn in the previous estimates.Imposition of Special margin long on Soybean and Soy meal
Special Margin (in Cash) of 10% on the Long side has been imposed in Soybean and
Soy meal May 2013, June 2013 & July 2013 contracts wef April 30, 2013.
USDA to release its monthly crop report on 10th May
USDA is scheduled to release its monthly crop report. According to market
estimates, the ending stocks are expected to decline.
A jump in Brazil exports
According to the Trade Ministry of Brazil, soybean exports shot up from 3.54 mntonnes in March to 7.15 mn tonnes in April 2013.
Outlook
Poor supplies in the domestic and US markets may support soybean prices in the
current week. Traders also anticipate the USDA monthly report to lower their
soybean ending stocks. However, higher long side margin, normal monsoon forecast,
and weak soy meal exports from India may exert downside pressure at higher levels.
Strategy
Buy NCDEX Soybean June between 3820-3860, SL -3680, Target - 4070 / 4100.
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Refine Soy Oil and Crude Palm Oil
Commodities Weekly TrackerMonday | May 6, 2013
Weekly price performance
Edible oil complex remained in the negative territory taking cues from the
palm oil futures at KLCE. Strong exports data also supported prices. Palm Oilfutures at KLCE declined as traders liquidated long positions ahead of
elections. CPO prices at MCX and KLCE settled 2.29% and 3% lower. Soy oil
also settled 0.18% and 1% lower on NCDEX and CBOT respectively.
Global Scenario
Malaysian palm oil products export for April fell 4.3 percent to 13.1 lakh tons
from March. Better buying witnessed from Indian and European buyers.
Malaysia, the world's No.2 palm oil producer, has set its crude palm oil export
tax for May at 4.5 percent, unchanged from April. The Southeast Asian
country calculated a reference price of 2,347.26 ringgit per tonne for crudepalm oil for May.
Domestic Scenario
Indias imports of palm oil fell for a second straight month in March, as
domestic supply improved and purchases by the worlds biggest buyer
continued to suffer from an import levy imposed in January.
Imports of all vegetable oils, including non-edible oils, fell 7.5 per cent to
896,714 tn in March, pulled down by the drop in palm oil imports.
Stockpiles of edible oil at ports fell nearly nine percent during March to
850,000 tn, the trade body said, off a record of 930,000 tn on March 1.Stocks were still on the higher side despite the decline in monthly imports.
India's imports of palm oil could rise more than 17% in the year to October
2013 to stand at 9 mn tn, compared with 7.67 mn tn of palm oil in 2011/12 as
the edible oil is the cheapest available, despite an import duty.
Strategy
Buy NCDEX Ref Soya Oil June between 680-685, SL -663, Target - 711 / 715.
MCX CPO May Support 433/445, Resistance 463/473.
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Sugar
Commodities Weekly TrackerMonday | May 6, 2013
Weekly Price Performance
Sugar prices settled marginally lower by 0.1% last week as higher supplies is seen
offsetting the summer demand. ICE sugar is currently trading at its lowest levels since June 2010 and settled 0.7%
lower on account of global sugar surplus situation for third consecutive year.
Sugar output likely to fall 3% this year
India is expected to have produced around 24.52 million tonnes (mt) of sugar
during the first six months of the 2012-13 sugar marketing season. In 2012-13,
sugar recovered from crushing was 10.09 per cent.
India sugar reserves at five-year high set to avert imports
Sugar inventories in India, the largest consumer, are poised to surge by 37% to9.2 million tonnes at the start of October, a five-year high as exports grind to a
halt because of slumping global prices even as a drought threatens cane planting.
Exports have plunged to about 35,000 tonnes since 1 October from 3.4 million
tonnes in 2011-2012. .
Brazil to produce record 35.5 million tonnes of sugar
Brazil's main center-south sugar cane crop will produce a record 35.5 mn tn of
sugar in 2013/14 season, an increase of 4.1% from the 34.1 mn tn produced last
year, according to Sugar & ethanol industry association Unica.
US Department of Agriculture officials in Brasilia forecast sugar exports fromBrazil, the top producer and shipper of the sweetener, hitting 29.3m tonnes in
2013-14, for which the cane crush has just begun.
Outlook
Sugar prices are expected to consolidate at lower levels this week. Higher
supplies in the local markets will continue to mount pressure on prices as millers
will release stocks to clear arrears. This will offset summer season demand.
Strategy
NCDEX Sugar May :Support-2850/2920, Resistance- 3020/3100.
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Kapas/Cotton
Commodities Weekly TrackerMonday | May 6, 2013
Weekly Price Performance
Cotton futures recovered last week and settled 1.3% higher on account of short
coverings. Lower levels buying also supported an upside in the prices.
ICE Cotton futures gained 3% last week on strong export sales data and U.S.
plantings delays which prompted worry over upcoming supplies. US export sales for
the week ending April 25 reached 314,400 running bales, up 32% from previous
week and most since mid-January.
Govt Likely to Sell More Cotton this Month
Cotton Corporation & NAFED are expected to offload 8 lakh bales at lower prices.
After an unsuccessful bid to offload of 2.5 lakh bales of cotton in April, the
government has now decided to give it a fresh chance.
Cotton Advisory Board sees lower kharif sowing CAB in its latest meet has projected cotton crop at 34 mn bales for 2012-13 season
compared to the previous estimates of 33 mn bales. Mill consumption is expected to
go up from 22.3 million bales last year to 23.5 million bales.
Exports are estimated at 8.1 mn bales. While Import are estimated 2.5 mn bales.
China to sell high-quality state cotton reserves
China will start to sell its high-quality reserves of fibre, which should spur purchases
by textile mills after Beijing's stockpiling tightened domestic supplies.
Starting on Friday, 19
th
April, govt has offered cotton imported in 2011 andpurchased from the 2012 harvest and has allowed textile mills to buy up to 8
months' worth of consumption. Beijing has said it would offer a total of 4.5 million
tonnes for the auctions to last until end of July.
Outlook
With CCI and NAFED offloading more stocks in the local markets, Cotton may remain
under downside pressure in the current week. However, if international markets
recover sharply, then we may see prices taking a rebound from lower levels.
Strategy
Sell MCX Cotton May between 18500-18600, SL -18950, Target - 17970 / 17890.
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Angel Commodities Broking Pvt. Ltd.
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Commodities Weekly TrackerMonday | May 6, 2013
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