Daily Commodity Roundup as on Friday, March 26, 2021
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Daily Commodity Roundup as on Friday, March 26, 2021 Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 1
1726.55 25.10 58.56
INTERNATIONAL MARKET UPDATE
GOLD $ SILVER $ CRUDE $
-0.02 0.42 -4.28
1.1781 1.37573 109.201
EURUSD GBPUSD USDJPY
0.11 0.19 0.03
LME 8837 LME 2796 LME 16205
COPPER 0.43 ZINC 0.58 NICKEL 0.22
2265 LME 1939 92.77
LME $ INDEX
ALUMINIUM 0.38 LEAD 0.10 -0.09
48440 14325 32420
SENSEX NIFTY DJIA
-1.51 -1.54 -0.01
72.62 S&P 3889 21522
USDINR NIKKEI
-0.08 INDEX -0.55 -0.86
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 2
MCX Gold Apr 2021
Gold prices dropped weighed down by a stronger dollar and higher U.S. Treasury yields.
Gold yesterday settled down by -0.37% at 44695 weighed down by a
stronger dollar and higher U.S. Treasury yields. Treasury yields climbed
after Fed Chair Jerome Powell told that 2021 was "going to be a very,
very strong year in the most likely case." Sentiment in wider financial
markets remained weak as investors grew wary following a new round of
coronavirus restrictions in the euro zone. Gold's gains were kept in check
by data showing the number of Americans filing new claims for
unemployment benefits dropped to a one-year low last week, a day after
U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome
Powell expressed their confidence in the U.S. recovery. The number of
Americans filing for unemployment benefits dropped to 684 thousand in
the week ended March 20th, its lowest since the pandemic hit the labor
market in March 2020 and well below market expectations of 730
thousand, adding to signs of a gradual job recovery. China's net gold
imports via Hong Kong fell 0.2% in February from the previous month,
Hong Kong Census and Statistics Department data showed. Net gold
imports via Hong Kong to China, the world's top consumer of the metal,
stood at 4.192 tonnes in February, compared with 4.2 tonnes in January,
the data showed. Technically market is under long liquidation as market
has witnessed drop in open interest by -16.31% to settled at 5988 while
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
prices down -165 rupees, now Gold is getting support at 44522 and below
same could see a test of 44348 levels, and resistance is now likely to be 44892 45028 44601 44695 -0.37 5988
seen at 44949, a move above could see prices testing 45202.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
45376 45202 44949 44522 44348 44095
Trading Ideas :
# Gold trading range for the day is 44348-45202.
# Sentiment in wider financial markets remained weak as investors grew wary following a new round of coronavirus restrictions in the euro zone.
# Data showed the number of Americans filing new claims for unemployment benefits dropped to a one-year low last week
# China's net gold imports via Hong Kong ease 0.2% m/m in February
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 3
MCX Silver May 2021
Silver prices dropped as a stronger U.S. dollar overshadowed support from lower bond yields and worries that lockdowns across Europe
Silver yesterday settled down by -0.58% at 64869 as a stronger U.S.
dollar overshadowed support from lower bond yields and worries that
lockdowns across Europe would take a toll on the pace of economic
recovery. Sentiment in wider financial markets remained weak as
investors grew wary about the economic outlook following a new round of
coronavirus restrictions in the euro zone and potential U.S. tax hikes. The
number of Americans filing new claims for unemployment benefits
dropped to a one-year low last week as economic activity rebounds after
weather-related disruptions in February. But the labor market is not out
of the woods yet, with the weekly jobless claims report from the Labor
Department showing a staggering 18.953 million people were still
receiving unemployment checks in early March. It will likely take years for
a full recovery from the pandemic's scarring. U.S. factory activity picked
up in early March amid strong growth in new orders, but supply chain
disruptions because of the COVID-19 pandemic continued to exert cost
pressures for manufacturers, which could keep inflation fears in focus.
Data firm IHS Markit said on Wednesday its flash U.S. manufacturing PMI
increased to 59 in the first half of this month from a final reading 58.6 in
February, when activity took a step back after a cold snap hit large parts
of the country. Technically market is under long liquidation as market has
witnessed drop in open interest by -5.96% to settled at 10725 while OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
prices down -376 rupees, now Silver is getting support at 63788 and 65159 65198 63411 64869 -0.58 10725
below same could see a test of 62706 levels, and resistance is now likely
to be seen at 65575, a move above could see prices testing 66280.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
67362 66280 65575 63788 62706 62001
Trading Ideas :
# Silver trading range for the day is 62706-66280.
# Sentiment in wider financial markets remained weak as investors grew wary about the economic outlook following a new round of coronavirus restrictions
# The number of Americans filing new claims for unemployment benefits dropped to a one-year low last week
# U.S. factory activity picked up in early March amid strong growth in new orders
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 4
MCX Crude oil Apr 2021
Crude oil prices dropped as fuel demand concerns re-emerged alongside fresh coronavirus pandemic lockdowns
Crude oil yesterday settled down by -4.32% at 4255 as fuel demand
concerns re-emerged alongside fresh coronavirus pandemic lockdowns,
trimming overnight gains spurred by the grounding of a giant container
ship blocking crude shipments through the Suez Canal. The market was
also helped by data showing U.S. gasoline demand improved and refinery
run rates were picking. Given the persistent demand worries and falling
prices, expectations are growing that the Organization of the Petroleum
Exporting Countries and allies, together called OPEC+, will roll over their
current supply curbs into May at a meeting scheduled for April 1. With oil
prices making steady gains earlier this year, OPEC and other producers
had hoped to ease output cuts, but industry sources say a fresh wave of
lockdowns around the world threatens to tear up those plans. The OPEC+
group of producers, which are holding back millions of barrels of daily
supply, surprised the market on March 4 by deciding to hold output
broadly steady. U.S. crude and fuel stockpiles rose last week and
refineries increased capacity use in their recovery from last month's
unusual cold that hit southern U.S. states, the Energy Information
Administration said. Crude inventories rose by 1.9 million barrels in the
week ended March 19 to 502.7 million barrels, compared with
expectations for a 272,000-barrel drop. Technically market is under long
liquidation as market has witnessed drop in open interest by -8.93% to
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
settled at 3987 while prices down -192 rupees, now Crude oil is getting
support at 4164 and below same could see a test of 4074 levels, and 4405 4418 4201 4255 -4.32 3987
resistance is now likely to be seen at 4381, a move above could see
prices testing 4508. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
4598 4508 4381 4164 4074 3947
Trading Ideas :
# Crude oil trading range for the day is 4074-4508.
# However, the market was also helped by data showing U.S. gasoline demand improved and refinery run rates were picking.
# Given the persistent demand worries and falling prices, expectations are growing that OPEC+, will roll over their current supply curbs into May.
# As Europe tightens lockdowns, OPEC+ to keep oil taps tight
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 5
MCX Copper Apr 2021
Copper prices dropped as the U.S. pandemic response continued to outpace Europe's, which has been hobbled by extended lockdowns and delayed vaccine rollouts.
Copper yesterday settled down by -0.98% at 662.2 as the U.S. pandemic
response continued to outpace Europe's, which has been hobbled by
extended lockdowns and delayed vaccine rollouts. LME cash copper was
at a $4.25 a tonne discount to the three-month contract, its biggest
discount since Jan. 21, as inventories in LME warehouses have jumped
64% so far this month. Yangshan copper premium fell to $64 a tonne, its
lowest since Jan. 12, indicating weakening demand for imported copper
into top consumer China. China will maintain credit support continuity and
stability for small and micro firms, the country's central bank said. The
People's Bank of China, in a statement about a meeting with 24 banks in
Beijing that took place on Monday, said it will maintain the policy stance
that housing is for living and not for speculation. The central bank also
said it will guide commercial banks to step up support for carbon
emissions reduction financing. Workers at Antofagasta's Los Pelambres
copper mine in Chile have accepted a contract offer and abandoned the
threat of a strike, the union said. The global world refined copper market
showed a 24,000 tonnes surplus in December, compared with a 93,000
tonnes deficit in November, the International Copper Study Group (ICSG)
said in its latest monthly bulletin. Technically market is under fresh
selling as market has witnessed gain in open interest by 6.51% to settled
at 2930 while prices down -6.55 rupees, now Copper is getting support at OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
657.7 and below same could see a test of 653.1 levels, and resistance is 665.70 667.10 657.85 662.20 -0.98 2930
now likely to be seen at 667, a move above could see prices testing
671.7.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
676.3 671.7 667.0 657.7 653.1 648.4
Trading Ideas :
# Copper trading range for the day is 653.1-671.7.
# China cbank to maintain credit support continuity, stability for small firms
# LME cash copper was at a $4.25 a tonne discount to the three-month contract , its biggest discount since Jan. 21
# Warehouse stock for Copper at LME was at 121675mt that is down by -275mt.
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 6
MCX Zinc Apr 2021
Zinc settled flat after the dollar index extended gains after initial claims fell more than expected to a pre-pandemic low of 684K
Zinc yesterday settled up by 0.02% at 217 after the dollar index
extended gains after initial claims fell more than expected to a pre-
pandemic low of 684K and GDP growth for Q4 was revised slightly higher
to 4.3%. Early in the session, the greenback was already edging higher
as investors weighed prospects of slower global growth against the overall
outperformance of the US economy supported by the combination of ultra-
easy monetary policy, unprecedented government spending, and a
successful vaccine rollout. However, domestic zinc smelters have cut
output more than expectations in March-April due to restrictions on
energy consumption and tight zinc concentrate supply, while downstream
demand has improved, which will weigh on zinc social inventories and
support zinc prices. The global zinc market was oversupplied by 11,700
tonnes in January after a revised surplus of 23,500 tonnes in December,
data from the International Lead and Zinc Study Group (ILZSG) showed.
For 2020, the surplus in the roughly 13.5 million tonne a year market was
536,000 tonnes, according to the ILZSG. The third round of COVID-19
outbreak in Europe aggravated the market's cautious sentiment.
Germany and the Netherlands successively announced an extension of
the blockade period. Technically market is under short covering as market
has witnessed drop in open interest by -2.46% to settled at 1743 while
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
prices up 0.05 rupees, now Zinc is getting support at 215.7 and below
same could see a test of 214.3 levels, and resistance is now likely to be 216.8 217.7 215.3 217.0 0.02 1743
seen at 218.1, a move above could see prices testing 219.1.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
220.5 219.1 218.1 215.7 214.3 213.3
Trading Ideas :
# Zinc trading range for the day is 214.3-219.1.
# Further concerns over the world's recovery from the pandemic weighed on investor sentiment.
# However, domestic zinc smelters have cut output more than expectations in March-April due to tight zinc concentrate supply
# Warehouse stock for Zinc at LME was at 271225mt that is down by -125mt.
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 7
MCX Nickel Apr 2021
Nickel prices gained as Global nickel market surplus shrank to 8,400 tonnes in January from a revised surplus of 14,700 tonnes in the previous month
Nickel yesterday settled up by 0.65% at 1180.5 as Global nickel market
surplus shrank to 8,400 tonnes in January from a revised surplus of
14,700 tonnes in the previous month, data from the International Nickel
Study Group (INSG) showed. Last year, the roughly 2.4 million tonne a
year global market saw a surplus of 122,800 tonnes compared with a
deficit of 32,200 tonnes in 2019, according to the Lisbon-based INSG.
However upside seen limited amid concerns about a surge in COVID-19
cases across Europe and the negative impact of restrictive measures and
vaccine delays LME nickel inventories climbed to their highest since July
2018 at 261,204 tonnes. Pressure seen due to concerns over a third
COVID-19 wave in Europe, potential U.S. tax hikes and escalating
tensions between the West and China sapped risk appetite. Data showed
Germany Manufacturing PMI jumped to 66.6 in March of 2021 from 60.7
in February, well above forecasts of 60.8, flash estimates showed. The
reading pointed to a record growth in factory activity amid a record
output rise and rising sales to Asia (particularly China), Europe and the
US. Many manufacturers highlighted difficulties keeping up with demand,
which was reflected in an unprecedented rise in factory backlogs of work.
Technically market is under short covering as market has witnessed drop
in open interest by -2.52% to settled at 1778 while prices up 7.6 rupees,
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
now Nickel is getting support at 1162.6 and below same could see a test
of 1144.6 levels, and resistance is now likely to be seen at 1193.5, a 1163.8 1188.4 1157.5 1180.5 0.65 1778
move above could see prices testing 1206.4.
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
1224.4 1206.4 1193.5 1162.6 1144.6 1131.7
Trading Ideas :
# Nickel trading range for the day is 1144.6-1206.4.
# However upside seen limited amid concerns about a surge in COVID-19 cases across Europe and the negative impact of restrictive measures and vaccine delays
# LME nickel inventories climbed to their highest since July 2018 at 261,204 tonnes.
# Warehouse stock for Nickel at LME was at 261204mt that is down by -456mt.
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 8
NCDEX Jeera Apr 2021
Jeera prices gained due to constraints in supply as the end of season approaches.
Jeera yesterday settled up by 0.27% at 13235 due to constraints in
supply as the end of season approaches. Support was also seen from the
export side as exporters switched to Indian cumin seed this time.
Demand for Indian Cumin has improved from UAE and Vietnam in recent
months. Acreage under Jeera in leading producing state of Gujarat was at
4.64 lakh hectares (lh), marking a jump of around 11% compared to the
same time last year which may not allow any significant price
appreciation of cumin in coming weeks. Some support seen as a
statement from the Spices Board said the export of spices, which had
fetched ₹12,273.81 crores in the first half of the current fiscal between
April and September, had grown by 19 per cent compared to the
corresponding period last year. Cues coming from spot market of
improved demand from domestic stockiest as a recovery of demand
during the festive season on the eve of makar Sankranti and Ramjan
toward January to mid-may can be seen which also supported prices. As
India going to start it vaccination in the whole country from 16th January
onwards it is raising the expectation of trader regarding the boost in
demand of Jeera from export as well as from domestic which was dropped
in 2020 due to Covid. In Unjha, a key spot market in Gujarat, jeera edged
down by -40.6 Rupees to end at 13100 Rupees per 100 kg. Technically
market is under short covering as market has witnessed drop in open
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
interest by -1.43% to settled at 1443 while prices up 35 rupees, now
Jeera is getting support at 13160 and below same could see a test of 14700 14870 14700 14820 -0.03 4362
13080 levels, and resistance is now likely to be seen at 13325, a move
above could see prices testing 13410. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
15060 14965 14890 14720 14625 14550
Trading Ideas :
# Jeera trading range for the day is 13042-13622.
# Support was also seen from the export side as exporters switched to Indian cumin seed this time.
# Demand for Indian Cumin has improved from UAE and Vietnam in recent months.
# In Unjha, a key spot market in Gujrat, jeera edged down by -41.2 rupees to end at 13059 rupee per 100 kg.
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 9
NCDEX Turmeric Apr 2021
Turmeric prices gained as high domestic demand, coupled with fears of lower output, have fuelled turmeric prices.
Turmeric yesterday settled up by 4% at 8268 as high domestic demand,
coupled with fears of lower output, have fuelled turmeric prices. Prices
also remained supported amid crop quality concerns and sharp surge in
demand. Due to climatic adversities and poor quality, turmeric growers
are looking at lower yields. Area under turmeric cultivation was expected
to go up, but that did not happen, and prices are firming up on the back
of strong domestic and export demand. Turmeric consumption had surged
during the whole of 2020 as people resorted to it an immunity booster
against Covid-19. Prices also seen supported amid expectation of
decrease in Turmeric sown area in the kharif sowing season 2020 across
Nizamabad and Marathwada regions. Covid-19 raised expectations
regarding the consumption of turmeric as a body immune enhancer, but it
did not last long. Poor quality of arrivals is another reason for the drop in
demand. Therefore, many traders in Erode started buying turmeric from
the markets of Andhra Pradesh and Maharashtra as the prices were low
there. Despite 2% freight, they are saving 5% on costs. Apprehensions
are there that water logging and higher moisture due to recent rains in
October in major Turmeric growing regions of Telangana, Maharashtra,
Karnataka is likely to have adverse impact on overall productivity of
Turmeric. In Nizamabad, a major spot market in AP, the price ended at
7594.75 Rupees dropped -28.1 Rupees. Technically market is under short
covering as market has witnessed drop in open interest by -4.02% to OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
settled at 7750 while prices up 318 rupees, now Turmeric is getting 7988 8268 7818 8268 4.00 7750
support at 7968 and below same could see a test of 7668 levels, and
resistance is now likely to be seen at 8418, a move above could see
prices testing 8568. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
8868 8568 8418 7968 7668 7518
Trading Ideas :
# Turmeric trading range for the day is 7668-8568.
# Prices also remained supported amid crop quality concerns and sharp surge in demand.
# Due to climatic adversities and poor quality, turmeric growers are looking at lower yields.
# In Nizamabad, a major spot market in AP, the price ended at 7594.75 Rupees dropped -28.1 Rupees.
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 10MCX Mentha oil Apr 2021
Mentha oil gains on low level buying after prices dropped amid weak demand from cosmetics and toiletries sector in India.
Mentha oil yesterday settled up by 0.59% at 957.4 on low level buying
after prices dropped amid weak demand from cosmetics and toiletries
sector in India. The COVID-19 outbreak has had a huge impact on the
worldwide economy, and has posed a similar influence on the aroma
chemicals market. The market has been faced with the lack of migrant
labor, supply chain disruptions, shutdown of manufacturing activities, to
name a few. Support also seen on the expectation that India’s fragrance
industry which had been slow, now slowly gaining the positive momentum
post the COVID unlock down. Headed towards a new decade, the
fragrance industry has received a much needed boost with the
acceptance of trendy dhoop sticks and dhoop cones which has seen an
increased 20% demand day by day. The global aroma chemicals market
is likely to record a steady CAGR of about 4% during the assessment
period of 2020-2030. Growing demand for aroma chemicals in the food &
beverage and fragrance industry will underpin the growth of the market.
Strict regulations in relation to artificial flavours are complimenting to the
expansion of natural aroma chemicals in the food sector. Out of India's
total mentha oil exports, nearly 55% goes to China while 16% goes to the
US and around 5% goes to Singapore. In Sambhal spot market, Mentha
oil dropped by -17.6 Rupees to end at 1072.4 Rupees per 360 kgs.
Technically market is under fresh buying as market has witnessed gain in
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
open interest by 18.18% to settled at 39 while prices up 5.6 rupees, now
Mentha oil is getting support at 955.4 and below same could see a test of 955.00 958.60 955.00 957.40 0.59 39
953.4 levels, and resistance is now likely to be seen at 959, a move
above could see prices testing 960.6. RESIST 3 RESIST 2 RESIST 1 SUPPORT 1 SUPPORT 2 SUPPORT 3
962.6 960.6 959.0 955.4 953.4 951.8
Trading Ideas :
# Mentha oil trading range for the day is 953.4-960.6.
# In Sambhal spot market, Mentha oil dropped by -17.6 Rupees to end at 1072.4 Rupees per 360 kgs.
# The COVID-19 outbreak has had a huge impact on the worldwide economy, and has posed a similar influence on the aroma chemicals market.
# The global aroma chemicals market is likely to record a steady CAGR of about 4% during the assessment period of 2020-2030.
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 11DAILY MARKET TRADING LEVEL
NCDEX
NCDEX Chana Apr NCDEX Cotton Apr NCDEX Jeera Apr NCDEX Guarseed10 NCDEX Turmeric NCDEX Rmseed Apr NCDEX Soyabean
COMMODITIES MCX CPO Mar 2021 Ref.Soya oil
2021 2021 2021 Apr 2021 Apr 2021 2021 Apr 2021
Apr 2021
CLOSE 4951 20660 14820 3762 8268 5744 1112.3 5800 1248.9
5052 21760 15060 3831 8868 5852 1176.2 5986 1322
RESISTANCE 5011 21460 14965 3815 8568 5813 1160.1 5903 1306
4981 21060 14890 3789 8418 5778 1136.2 5852 1277
P. POINT 4940 20760 14795 3773 8118 5739 1120.1 5769 1261
4910 20360 14720 3747 7968 5704 1096.2 5718 1232
SUPPORT 4869 20060 14625 3731 7668 5665 1080.1 5635 1216
4839 19660 14550 3705 7518 5630 1056.2 5584 1187
Cng in OI -0.95 7.71 3.19 -2.49 -4.02 -5.03 -19.61 -4.21 -6.86
TREND Short Covering Fresh Selling Fresh Selling Long Liquidation Short Covering Short Covering Long Liquidation Short Covering Long Liquidation
LME DAILY STOCK POSITION ECONOMICAL DATA
0 TIME ZONE DATA Forecast Previous
COPPER
-275 ALUMINIUM NICKEL LEAD ZINC
-125 2:30pm EUR German ifo Business Climate 93.1 92.4
-456
-2000 -1575 All Day EUR Euro Summit 0 0
Commodity
LME STOCK Stock
COPPER -275 121675
-4000 Day 2 EUR EU Economic Summit 0 0
ALUMINIUM -12125 1934425
NICKEL -456 261204
6:00pm USD Core PCE Price Index m/m 0.001 0.003
-6000 LEAD -1575 119500
ZINC -125 271225
6:00pm USD Goods Trade Balance -85.5B -83.7B
-8000
6:00pm USD Personal Income m/m -0.069 0.1
-10000 6:00pm USD Personal Spending m/m -0.008 0.024
-12000 6:00pm USD Prelim Wholesale Inventories m/m 0 0.013
-12125
7:30pm USD Revised UoM Consumer Sentiment 83.6 83
-14000
7:30pm USD Revised UoM Inflation Expectations 0 0.031
LME STOCK
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 12NEWS YOU CAN USE The Bank of Japan must seek ways to encourage corporate investment to promote digitalisation and a carbon-free society, one of its board members said at a January meeting, suggesting that the idea could emerge as a future policy option. Meeting for a rate review weeks after the government rolled out fresh curbs to prevent the spread of the coronavirus pandemic, BOJ policymakers warned of various risks that cloud their projections of a moderate economic recovery. Among them was the chance the pandemic could prod firms to put off investment for innovation, minutes of the Jan. 20-21 meeting showed. “It’s important to encourage corporate activities for future growth such as research and development investment, business portfolio reforms, and efforts on digitalisation and decarbonisation,” one of the members was quoted as saying. “It’s crucial for the BOJ to devise monetary policy means to boost firms’ and households’ growth expectations by showing its determination to never allow a return to deflation,” the member said. The euro area private sector returned to growth in March underpinned by a record expansion in manufacturing as global demand continued to revive from the pandemic, survey results from IHS Markit showed. The composite output index rose to an eight-month high of 52.5 in March from 48.8 in February. The reading was forecast to climb to 49.1. The score exceeded the neutral level of 50.0 for the first time since last September, suggesting expansion in the private sector. Divergent trends were seen by sector. Manufacturing output growth improved sharply to a record high, while the service sector was again hit by virus-related restrictions. The manufacturing Purchasing Managers' Index reached a record 62.4 from 57.9 in the prior month. The score was well above forecast of 57.7. Although the services PMI advanced to a seven-month high of 48.8 from 45.7 in February, the reading was below the neutral 50.0. The expected reading was 46.0. According to flash survey, the manufacturing upturn in the currency bloc was led by a record surge of factory production in Germany. Germany also outshone in terms of service sector performance. India's edible oil consumption is expected to contract for the second straight year in 2020/21 as a rally in vegetable oil prices to multi-year highs curbs retail buying, industry officials told. Lower demand in India, the world's biggest importer of vegetable oils, could limit a rally in benchmark Malaysian palm oil prices which are trading near their highest level in a decade. Edible oil consumption could fall to 21 million tonnes in 2019/20 marketing year ending on Oct. 31 from 22 million a year earlier, he said. In 2018/19 demand was around 23 million tonnes. India's edible oil consumption usually rises by 2-3% per annum because of rising population and prosperity, but this year it will likely fall by around 5%, he said. Lower consumption would reduce imports as India fulfils more than 70% of its demand through imports. "Imports fell last year due to lockdown. This year a combination of very high prices and increased availability of oilseeds would bring down imports," said Atul Chaturvedi, president of the Solvent Extractors Association of India. India's edible oil imports could fall to 12.5 million tonnes in 2020/21 from last year's 13.2 million, the lowest in six years, Chaturvedi said. Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 13
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written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein. Our proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. The
views expressed in this research report reflect the personal views of the analyst(s) no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The
compensation of the analyst who prepared this document is determined exclusively by SCSPL however, compensation may relate to the revenues of the Systematix Group as a whole, of which investment banking, sales and trading are a part. Research analyst(s) and sales persons of
SCSPL may provide important inputs to its affiliated company(ies).
Foreign currency denominated commodities, wherever mentioned are subject to exchange rate fluctuations, which could have an adverse effect on their value or price, or the income derived from them. In addition, the values of which are influenced by foreign currencies effectively
assume currency risk.
SCSPL, its directors, analyst(s) or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on the basis of this report including but not restricted to changes in the currency rates, reduction
in the income, etc.
SCSPL and its affiliates, officers, directors, and employees may: (a) from time to time, have long or short positions in, and buy or sell the commodities/commodities derivatives thereof, of company(ies) mentioned herein or (b) be engaged in any other transaction involving such
commodities/commodity derivatives and earn brokerage or other compensation (financial interest) or act as a market maker in the financial instruments discussed herein or have other potential material conflict of interest with respect to any recommendation and related information and
opinions. The views expressed are those of the analyst and the company may or may not subscribe to the views expressed therein.
SCSPL, its affiliates and any third party involved in, or related to, computing or compiling the information hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of this information. Without
limiting any of the foregoing, in no event shall SCSPL, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind. The company accepts no liability whatsoever for the actions of third parties. The
Report may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the report refers to website material of the company, the company has not reviewed the linked site. Accessing such website or following such link through the report or the website of
the company shall be at your own risk and the company shall have no liability arising out of, or in connection with, any such referenced website
SCSPL will not be liable for any delay or any other interruption which may occur in presenting the data due to any technical glitch to present the data. In no event shall the SCSPL be liable for any damages, including without limitation, direct or indirect, special, incidental, or
consequential damages, losses or expenses arising in connection with the data presented by SCSPL through this presentation.
SCSPL or any of its other group companies or associates will not be responsible for any decisions taken on the basis of this report. Investors are advised to consult their investment and tax consultants before taking any investment decisions based on this report.
Systematix Commodities Services Private Limited.:
Registered and Corporate address: The Capital, A-wing, No. 603 – 606, 6th Floor, Plot No. C-70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
CIN - U01119MH1994PTC266348 | MCX SEBI Reg No.: INZ000043009 | NCDEX SEBI Reg No.: INZ000043009 Member Code: MCX: 29790 | NCDEX: 534
Date : Friday, March 26, 2021 URL : www.systematixshares.com Page No : 14You can also read
