Achiievers equities commodity report

Daily Commodity Report as on Wednesday, January 07, 2015

Date : Wednesday, January 07, 2015 URL : www.achiieversequitiesltd.com Page No - 1

Open High Low Close % Cng OI

Gold 27100 27449 27083 27394 1.32 7184Silver 37166 38136 37052 37914 2.40 9930

Alum. 114.95 114.95 112.4 112.6 -1.87 3619Copper 393.05 393.7 390.55 391.65 0.01 16044Lead 117.4 118.6 116.75 117.2 0.00 2055Nickel 960 984.8 956.8 970.1 0.65 5199Zinc 138.2 139.15 137.3 137.45 -0.54 4089

Crude 3197 3207 3047 3069 -4.54 35108Nat. Gas 189.4 189.4 179.7 183 -3.73 9615

Chana 27100 27449 27083 27394 1.32 7184

Cardamom 1086.7 1098 1057.3 1061.5 -1.61 1286Turmeric 9138 9384 8730 9342 2.75 26220

Jeera 15750 15875 15145 15355 -2.66 11670Dhaniya 8290 8350 8211 8265 -0.17 7490

Wheat 1705 1707 1701 1706 -0.23 2880

Soyabean 3509 3542 3491 3512 0.86 73870Ref. Oil 648.5 651.85 645.6 649.8 0.46 73915CPO 465 466 460.9 463.8 0.22 3943RMSeed 3520 3533 3486 3505 -0.20 33790Menthol 759.9 766.1 748.1 762.8 0.73 9988Cotton 15710 15740 15650 15680 -0.06 5818

USDINR 63.79 63.93 63.61 63.89 0.30 1278575EURINR 76.08 76.20 75.86 76.08 0.23 43878GBPINR 97.25 97.32 96.81 97.09 -0.10 29003JPYINR 53.36 53.83 53.36 53.69 1.38 15526

Market Round upPrecious Metals

Gold rallied to a three-week high extending gains on safe-haven buying as stock markets slid on mounting concern over Greece.

Base MetalSilver rallied more than 2% extending gains on safe-haven buying as stock markets slid on mounting concern over Greece's future.

Crude oil fell to fresh five-and-a-half year lows on views US crude oil inventories expanded last week, exacerbating surplus concerns.

Natural gas prices fluctuated due to investors monitoring unstable changing weather forecasts for the next two-week period.

Ref soyoil prices ended with gains as prices seen supported after the government hiked import duty on edible oil.Cereals

Mentha oil ended with gains on the back of strong demand from consuming industries in spot markets.Oil and Oilseeds & Others

Soyabean prices gained on supply worries after untimely monsoon rains in India has damaged the crops and on robust demand.

Energy Copper prices seen under pressure because of a policy shift by Beijing that could lift Chinese output.

Zinc prices dropped as overall sentiments are weak also yesterday major economic indicators from Europe and the US were sluggish.Pulses

Nickel prices rose as support seen after the huge growth in the increasing demand for nickel in every part of the world.Spices

Chana prices ended with losses on subdued demand after government extended the duty free of import of chana.

Turmeric prices ended with gains amid rising domestic as well as export demand in the spot market. Currency

Jeera prices dropped due to profit-booking at prevailing higher levels.


MCX Gold Feb 2015 TRADING IDEA

OPEN 27100 SUP-2 26943 Gold trading range for the day is 26943-27675.

HIGH 27449 SUP-1 27169 Gold rallied to a three-week high extending gains on safe-haven buying as stock markets slid on mounting concern over Greece.

LOW 27083 P.P. 27309 Political uncertainty in Greece ahead of the country's elections on Jan. 25 has renewed fears of a possible Greek exit from the euro zone.

Gold settled up 1.32% at 27394 lifted on views that the ECB may commit to more stimulus after a gauge of the Euro-area services and manufacturing sector expanded less than initially forecast in 4Q14. Fears that Greecemay leave the Euro currency union also prompted gold futures higher on stronger safe-haven demand. The precious metal has also benefited from some disappointing U.S. economic data today, with weaker than expectedresults for both factory orders and the service sector. With orders for durable and non-durable goods falling, the Commerce Department's report showed new orders for U.S. manufactured goods dropped more than expectedin November. Meanwhile, activity in the U.S. service sector grew at a notably slower rate in December, touching a six-month low, a report from the Institute for Supply Management showed Tuesday. A Greek exit could setoff a domino effect where other eurozone members struggling to cope with austerity decide to leave the currency bloc as well. Meanwhile doubts over gold's rally persisted as seen in the holdings of SPDR Gold Trust, theworld's largest gold-backed exchange-traded fund, that fell 0.42 percent to 707.82 tonnes on Tuesday to a fresh six-year low. Investors will be eyeing key economic data due from Europe and the United States later in theday for cues. In news from the physical markets, the Perth Mint's sales of gold coins and minted bars fell to a four-month low in December, with annual sales declining by a third. Technically market is under fresh buying asmarket has witnessed gain in open interest by 2.53% to settled at 7184, now Gold is getting support at 27169 and below same could see a test of 26943 level, And resistance is now likely to be seen at 27535, a move abovecould see prices testing 27675.

MCX Silver Mar 2015 TRADING IDEA

OPEN 37166 SUP-2 36617 Silver trading range for the day is 36617-38785.

CLOSE 27394 RES-1 27535 SPDR gold trust holdings dropped by 2.99 tonnes i.e. 0.42% to 707.82 tonnes from 710.81 tonnes.

% CNG 1.32 RES-2 27675 BUY GOLD FEB @ 27200 SL 27050 TGT 27380-27550.MCX

HIGH 38136 SUP-1 37266 Silver rallied more than 2% extending gains on safe-haven buying as stock markets slid on mounting concern over Greece's future.

LOW 37052 P.P. 37701 Political uncertainty in Greece ahead of the country's elections on Jan. 25 has renewed fears of a possible Greek exit from the euro zone.

CLOSE 37914 RES-1 38350 Holdings at ishares silver trust dropped by 0.29% i.e. 29.78 tonnes to 10216.18 tonnes from 10245.96 tonnes.

% CNG 2.40 RES-2 38785 BUY SILVER MAR @ 37400 SL 36950 TGT 37850-38250.MCX

Silver settled up 2.4% at 37914 jumped extending gains on safe-haven buying as stock markets slid on mounting concern over Greece's future in the euro zone and as oil prices tumbled. Political uncertainty in Greece aheadof the country's elections on Jan. 25 has renewed fears of a possible Greek exit from the euro zone. The S&P 500 fell below the 2,000 level for the first time since Dec. 17 on Tuesday, while other U.S. stock indexes extendedtheir fall and the U.S. dollar turned lower against a basket of major currencies. Investor sentiment was also rattled by a drop in oil prices to fresh 5-1/2 year lows as crude futures fell more than 4 percent, extending steeplosses as worries over a global supply glut intensified. The pervasive uncertainty prompted investors to buy assets perceived as offering safety such as U.S. and German government bonds, the Japanese yen, and gold. In theweek ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market. Wednesday’s Federal Reserve meeting minutes will bealso closely watched. Bullion lost in 2014 amid indications a strengthening U.S. economic recovery will force the Fed to start raising interest rates sooner and faster than previously thought. Expectations of higher borrowingrates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise. Technically market is under fresh buying as market has witnessed gain inopen interest by 7.11% to settled at 9930, now Silver is getting support at 37266 and below same could see a test of 36617 level, And resistance is now likely to be seen at 38350, a move above could see prices testing38785.


MCX Crudeoil Jan 2015 TRADING IDEA

OPEN 3197 SUP-2 2948 Crudeoil trading range for the day is 2948-3268.

HIGH 3207 SUP-1 3009 Crude oil fell to fresh five-and-a-half year lows on views US crude oil inventories expanded last week, exacerbating surplus concerns.

LOW 3047 P.P. 3108 Crude oil prices continued to be hampered by worries of a supply glut amid renewed concerns about the future of the eurozone.

Crudeoil settled down -4.54% at 3069 plunging to its lowest in more than five years ahead of the weekly official U.S. crude stockpile report with inventories expected to rise. Oil prices continued to be hampered by worries ofa supply glut amid renewed concerns about the future of the eurozone. Also Oil extended declines on Tuesday after Saudi Arabia's King Abdullah said in a speech read for him that the country would deal with the challengeposed by lower oil prices "with a firm will," giving no signs the No. 1 crude exporter will cut supplies. With the falling crude prices, U.S. stocks also continued to drop sharply amid continued speculation over the probable exitof Greece from the euro region, depending on the outcome of the general elections scheduled for the end of January. A Greek exit could set off a domino effect should other eurozone members struggling to cope withausterity decide to leave the currency bloc as well. Crude oil prices have plummeted from above $100 just this summer, with gasoline prices in the U.S. down for 102 straight days. The world's major oil suppliers show nosigns of cutting production anytime soon, with Saudi Arabia and others willing to sweat out smaller rivals who cannot cope with $40-$50 oil for very long. Meanwhile US crude inventory unexpectedly fell by 4 million barrelslast week, while gasoline and distillate stocks showed bigger-than-expected builds, the American Petroleum Institute data showed after Tuesday's settlement. Technically market is under long liquidation as market haswitnessed drop in open interest by -0.05% to settled at 35108, now Crudeoil is getting support at 3009 and below same could see a test of 2948 level, And resistance is now likely to be seen at 3169, a move above could seeprices testing 3268.

MCX Copper Feb 2015 TRADING IDEA

OPEN 393.1 SUP-2 388.8 Copper trading range for the day is 388.8-395.2.

CLOSE 3069 RES-1 3169 US crude inventory unexpectedly fell by 4mbls last week, while gasoline and distillate stocks showed bigger-than-expected builds, the API said

% CNG -4.54 RES-2 3268 SELL CRUDE OIL JAN BELOW 3060 SL 3120 TGT 3020-2960-2925.MCX

HIGH 393.7 SUP-1 390.3 Copper prices seen under pressure because of a policy shift by Beijing that could lift Chinese output.

LOW 390.6 P.P. 392.0 China’s Ministry of Finance recently announced a 9% new export rebate for several copper semis and an increase in export rebate for copper foil to 17%.

CLOSE 391.7 RES-1 393.5 New policy may push up refined copper demand and expected an at least 6% growth in China’s copper demand in 2015.

% CNG 0.01 RES-2 395.2 SELL COPPER FEB BELOW 393 SL ABV 397.50 TGT 390.10-386.80-383.60. MCX (STBT)

Copper settled at 391.65 traded near the lowest level in more than four years on Tuesday, as sentiment was hit amid growing fears that Greece might exit the euro zone. Appetite for riskier assets weakened amid uncertaintyover Greece’s future in the euro zone if left-wing anti-austerity party Syriza win elections due to be held later this month. The US dollar index, traded near a nine-year high, boosted by the diverging policy outlook betweenthe Federal Reserve and central banks in Europe and Japan. A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of othercurrencies. The red metal slumped approximately 18% in 2014 as concerns over the global economic outlook and the impact on future copper demand prospects dampened the appeal of the commodity. Also China hasremoved its 15-year old export quotas on rare earths after the WTO said the measure violated rules. Chinese rare earth exporters now only require a sales contract to acquire export licenses. China accounts for ~90% of theworld’s supply of rare earths. In the week ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market. Wednesday’sFederal Reserve meeting minutes will be also closely watched. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets whenrates are on the rise. Technically market is getting support at 390.3 and below same could see a test of 388.8 level, And resistance is now likely to be seen at 393.5, a move above could see prices testing 395.2.


MCX Zinc Jan 2015 TRADING IDEA

OPEN 138.2 SUP-2 136.2 Zinc trading range for the day is 136.2-139.8.

HIGH 139.2 SUP-1 136.9 Zinc prices dropped as overall sentiments are weak also yesterday major economic indicators from Europe and the US were sluggish.

LOW 137.3 P.P. 138.0 Growth in the U.S. services sector braked in December and new orders for manufactured goods dropped for a fourth straight month in November

Zinc settled down -0.54% at 137.45 as overall sentiments are weak also yesterday major economic indicators from Europe and the US were sluggish. Euro zone economy remained weak. Orders received by factories inNovember in the US fell for the fourth straight month, meaning US manufacturing slowed. This caused crude oil prices to slump and US stocks to plunge. Nonetheless, China approved 300 infrastructure construction projectsworth RMB 7 trillion, which will come online in 2015. This inspired the market somewhat. LME zinc prices opened at USD 2,186/mt, then fluctuated around USD 2,183/mt, testing USD 2,200/mt but fell back down, and closingat USD 2,174.75/mt, down USD 8.25/mt. In the US, the December ISM Non-manufacturing PMI dipped to a refreshed 6-month low in December. All sub-indices were reported lower than November’s readings, with the sub-index tracking prices paid down to only 49.5, below the 50 mark for the first time since September 2009. The nation’s factory orders dwindled 0.7% MoM in November, down for a fourth consecutive month and shy ofexpectations. This indicates a slowdown in US manufacturing activity. Durable goods orders for November decreased 0.9% MOM in November. Financial data firm Markit reported that US final Service PMI slipped to a troughlast seen in February 2014, while the final composite PMI dropped to the lowest since October 2013. In the week ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indicationson the strength of the recovery in the labor market. Wednesday’s Federal Reserve meeting minutes will be also closely watched. Technically market is getting support at 136.9 and below same could see a test of 136.2 level,And resistance is now likely to be seen at 138.7, a move above could see prices testing 139.8.

MCX Nickel Jan 2015 TRADING IDEA

OPEN 960.0 SUP-2 942.6 Nickel trading range for the day is 942.6-998.6.

CLOSE 137.5 RES-1 138.7 Zinc daily stocks at Shanghai exchange came down by 26 tonnes.

% CNG -0.54 RES-2 139.8 SELL ZINC JAN @ 138.90 SL ABV 140.20 TGT 137.80-136.50. MCX (STBT)

HIGH 984.8 SUP-1 956.4 Nickel prices rose as support seen after the huge growth in the increasing demand for nickel in every part of the world.

LOW 956.8 P.P. 970.6 The demand for nickel in global market is mainly affected by the increase in the production of stainless steel in all the developing countries.

CLOSE 970.1 RES-1 984.4 The euro zone economy ended 2014 with its worst quarter for over a year, according to surveys of activity.

% CNG 0.65 RES-2 998.6 SELL NICKEL JAN @ 975 SL 990 TGT 960-942.MCX

Nickel settled up 0.65% at 970.103 as support seen after the huge growth in the increasing demand for nickel in every part of the world. The demand for nickel in the global market, is mainly affected by the increase in theproduction of stainless steel in all the developing countries. The metal is made to use in all the sectors which are the part of industrial development, and hence the demand for nickel is expected to rise much higher. Accordingto the statement released by the RNCOS; ‘Global Nickel Market Outlook 2016’, both the aviation as well as the aerospace industry is growing rapidly, and these industries, mainly relies ion nickel based super alloys, as it hasthe ability retain strength and also resist metal fatigue in very high temperatures. The strength, light weight, and also the metal’s aesthetic appearance make the nickel alloys an excellent choice in making the parts and alsothe components, which is required in aerospace as well as in the aviation operations. In the US, the December ISM Non-manufacturing PMI dipped to a refreshed 6-month low in December. The nation’s factory ordersdwindled 0.7% MoM in November, down for a fourth consecutive month and shy of expectations. Financial data firm Markit reported that US final Service PMI slipped to a trough last seen in February 2014, while the finalcomposite PMI dropped to the lowest since October 2013. HSBC’s China Service PMI rose slightly in December, undergirded by robust expansion in new business and upbeat employment sub-index, even as themanufacturing index fell over the same month. Technically market is getting support at 956.4 and below same could see a test of 942.6 level, And resistance is now likely to be seen at 984.4, a move above could see pricestesting 998.6.


NCDEX Chana Feb 2015 TRADING IDEA

OPEN 3518 SUP-2 3410 Chana trading range for the day is 3410-3576.

HIGH 3538 SUP-1 3448 Chana prices ended with losses on subdued demand after government extended the duty free of import of chana.

LOW 3455 P.P. 3493 However downside seen limited on fears of fall in output due to lower acreage and adverse weather.

Chana settled down by -1.19% at 3487 on subdued demand after government extended the duty free of import of chana. Worried over the fall in acreage and likely decline of output, the government extended the duty freeof import of chana till Mar 31 2015. However downside seen limited on fears of fall in output due to lower acreage and adverse weather. In 2013-14, India produced record 9.9 million ton chana up from 8.8 million ton a yearago thanks to favourable 2013 monsoon. As a result, prices remained depress almost the entire year, save for a period of last one month, when prices rose on apprehension that government may not extend the duty freeimport and fall in output. Government had fixed minimum support price (MSP) Rs 3,100 for the current marketing year and Rs 3,175 per quintal for the next year beginning Mar. The chana 2014-15 planted area is down inmajor producing states Madhya Pradesh (-17%),Andhra Pradesh(-30%),Maharashtra (-25%), Karnataka (6%) and Uttar Pradesh (5%). According to Ministry of Agriculture, total rabi pulses acreage till Jan. 2, 2015 is downby 10% to 129.99 lakh hectare(Ha.) as compared with last year’s area coverage of 144.79 lakh hectare during the corresponding week. In Delhi spot market, chana dropped by -36.9 rupee to end at 3479.4 rupee per 100kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -7.74% to settled at 67670 while prices down -42 rupee, now Chana is getting support at 3448 and below same could see atest of 3410 level, And resistance is now likely to be seen at 3531, a move above could see prices testing 3576.

NCDEX Turmeric Apr 2015 TRADING IDEA

OPEN 9138 SUP-2 8498 Turmeric trading range for the day is 8498-9806.

CLOSE 3487 RES-1 3531 Total rabi pulses acreage till Jan. 2, 2015 is down by 10% to 129.99 lakh hectare(Ha.)

% CNG -1.19 RES-2 3576 BUY CHANA FEB @ 3420 SL 3380 TGT 3460-3520.NCDEX

HIGH 9384 SUP-1 8920 Turmeric prices ended with gains amid rising domestic as well as export demand in the spot market.

LOW 8730 P.P. 9152 Besides, tight supplies in the physical market following restricted arrivals from producing regions supported the upside.

CLOSE 9342 RES-1 9574 At Erode market estimated market supply was at 11000 quintals, higher by 1000 quintals from previous trading day.

% CNG 2.75 RES-2 9806 BUY TURMERIC APR @ 9200 SL 9050 TGT 9340-9480-9600.NCDEX ---------------------------ZEE

Turmeric settled up by 2.75% at 9342 amid rising domestic as well as export demand in the spot market. Besides, tight supplies in the physical market following restricted arrivals from producing regions supported theupside. At Erode market estimated market supply was at 11000 quintals, higher by 1000 quintals from previous trading day. At Nizamabad market reported arrivals at 1000 quintals, higher by 600 quintals as compared toprevious day. Many buyers were keen on buying quality hybrid turmeric and also local root variety turmeric. Sowing of Turmeric in AP for the 2014-15 season is reported at 0.13 lakh ha, as against 0.1 lakh ha last year. Thearea in Telanaga stood at 0.446 lakh ha against 0.431 lakh ha last year. Spot turmeric prices decreased in Erode markets owing to heavy arrivals. Enthused by the uptrend in prices last week, many growers brought 11,000bags for sale. But buyers, who have very negligible number of upcountry demand, quoted lower price and purchased 50 per cent of the arrivals. The fluctuation in prices will continue till the arrival of the new crop by the lastweek of January. The price of the hybrid finger variety which touched Rs. 10,888 a quintal last week, decreased by Rs. 800. The hybrid root variety lost Rs. 1,100 and the local finger variety decreased by Rs. 700, while theroot variety by Rs. 500. In Nizamabad, a major spot market in AP, the price ended at 7998.75 rupees dropped -6.5 rupees.Technically market is under fresh buying as market has witnessed gain in open interest by 0.92% tosettled at 26220, now Turmeric is getting support at 8920 and below same could see a test of 8498 level, And resistance is now likely to be seen at 9574, a move above could see prices testing 9806.


MCX Menthaoil Jan 2015 TRADING IDEA

OPEN 759.9 SUP-2 741.0 Menthaoil trading range for the day is 741-777.

HIGH 766.1 SUP-1 751.9 Menthaoil spot is at 878/-. Spot market is up by Rs 8/-.

LOW 748.1 P.P. 759.0 Mentha oil ended with gains on the back of strong demand from consuming industries in spot markets.

CLOSE 762.8 RES-1 769.9 Prices had been in corrective mode since last 3years after Govt stated banning of Gutkha in some states which having negative impact on demand.

% CNG 0.73 RES-2 777.0 BUY MENTHA OIL JAN ABV 753 SL BELOW 740 TGT 762-774-785.MCX (BTST)

391.65 137.45 970.1 112.6

Mentha oil settled up by 0.73% at 762.8 on the back of strong demand from consuming industries in spot markets against lower arrivals from Chandausi in Uttar Pradesh. As per the Latest reports from Spice Board indicatethat for the period April/December last year, exports for Mint value-added products like Oil, Menthol and its crystals rose 94% in volumes at 17,850 tonnes and 39% in value at Rs 2202 Cr w.r.t. same period the previousyear. Prices had been in corrective mode since last 3years after Govt stated banning of Gutkha in some states which continues having negative impact on Mentha Oil demand. As farmers are not getting lucrative returns fromthe crop due to weakness in the prices and poor demand with High carry stock this year farmers can divert to some other cash crop that can support the prices in Q1Y15 as that can reduce the production from 60000 tonnesto ~45-50000 tonnes as compare to last year. At Rampur market total arrivals are at 4 Drums(1-drum=180kg), up by 2 Drums(1-drum=180kg) as compared to previous day. At Barabanki market arrivals were reported at110 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Bareilly market estimated market supply was at 2 Drums(1-drum-180kg), steady as against previous day’s arrival. At Sambhal marketsources reported arrivals at 60 Drums(1-drum=180kg), lower by 20 Drums(1-drum=180kg) as against previous day. Technically market is under short covering as market has witnessed drop in open interest by -0.9% tosettled at 9988 while prices up 5.5 rupee, now Menthaoil is getting support at 751.9 and below same could see a test of 741 level, And resistance is now likely to be seen at 769.9, a move above could see prices testing 777.

DAILY MARKET LEVEL FOR METAL AND ENERGY

COMMODITIES GOLD SILVER CRUDE NAT.GAS COPPER ZINC NICKEL ALUMINUM LEAD

117.2

27535 38350 3169 188.3

CLOSE 27394 37914 3069 183

393.5 138.7 984.4 114.2138.0 970.6 113.3

RESISTANCE27901 39434 3329 198.0 396.7 140.5 1012.4 116.727675 38785 3268 193.7 395.2 139.8 998.6 115.8

P. POINT 27309 37701 3108 184.0 392.0

26803 36182 2849 168.9 387.1SUPPORT 26943 36617 2948 174.3 388.8 942.6 110.8

27169 37266 3009 178.6 390.3

OI 7184 9930 35108 9615 16044 4089 5199 3619135.1 928.4 109.2

136.9 956.4 111.7136.2


Positive Range Bound

SPREAD 220 673 63.00 0.40 4.30 0.95 7.20

TREND Positive Positive Positive Positive Positive Positive Positive

0.90

120.2119.4118.3

114.5115.6116.4

2055

117.5

1.15

12:30pm EUR -6K -14K2:25pm EUR 0.133 0.1322:30pm EUR 0 48.92:40pm EUR 0 0.0033:30pm EUR 0.006 0.0073:30pm EUR 0.115 0.1153:30pm EUR -0.002 -0.0023:30pm EUR 227K 208K6:45pm USD -42.3B -43.4B7:00pm USD 0.9M -1.8M9:00pm USD 0 0

0 0 0 00 0 0 0

Italian Prelim CPI m/mADP Non-Farm Employment ChangeTrade BalanceCrude Oil Inventories00

PREV

China's services sector grew at its fastest pace in three months in December as new orders remainedstrong, a private survey showed, an encouraging sign of strength even as manufacturing activityslows and the property market softens. The robustness in the services sector contrasted sharply withsurveys last week which showed Chinese factories were struggling at the end of 2014, suggesting afurther loss in economic momentum. Those findings reinforced expectations that more stimulusmeasures are on the cards, either in the form of more liquidity injections by the central bank, interestrate cuts or reductions in the amount of reserves banks must hold to encourage them to lend. TheHSBC/Markit Services Purchasing Managers' Index(PMI) picked up to 53.4 last month fromNovember's 53.0, well above the 50-point level that separates growth from contraction in activity ona monthly basis. A sub-index measuring new business cooled slightly to 53.9 in December from a 2-1/2 years high of 54.2 in November, but remained well in expansion territory. The labor market wasalso buoyant, with the employment sub-index hitting an 18-month high as companies expanded.Chinese leaders suggested last year they could tolerate somewhat slower economic growth as long aslabor markets remained healthy.

Wed

German Retail Sales m/mGerman Unemployment ChangeItalian Monthly Unemployment RateRetail PMICPI Flash Estimate y/yCore CPI Flash Estimate y/yUnemployment Rate

NEWS YOU CAN USE DAY TIME ZONE ECONOMICAL DATA EXP

Saudi Arabia made deep cuts to its monthly oil prices for European buyers on Monday, a move someanalysts said reflects the kingdom's deepening defense of market share, although it also hiked pricesin Asia from record lows. State oil firm Saudi Aramco cut the official selling price (OSP) for its ArabLight crude to Northwest Europe, a region that buys only a small proportion of Saudi Arabia's crude,by $1.50 a barrel for February, putting it at a discount of $4.65 a barrel to the Brent WeightedAverage (BWAVE), the lowest since 2009. However, Aramco also raised its February price for its ArabLight grade for customers for Asia - the largest of its major markets, accounting for more than half ofits exported crude - by 60 cents a barrel versus January to a discount of $1.40 a barrel to theOman/Dubai average. The $2 discount to Asia in January was the largest in records going back morethan a decade, but traders had been expecting Aramco to hike prices by at least 20 to 30 cents due tothe narrowing spread in the Dubai market. The Arab Light OSP to the United States, the fifthconsecutive monthly cut, was set at a premium of 30 cents a barrel to the Argus Sour Crude Index(ASCI) for February, down 60 cents from the previous month.

Non-oil private sector activity in Saudi Arabia improved further in December, supported by fasteroutput growth, data from a survey conducted jointly by Markit Economics, Saudi British Bank andHSBC Bank showed. The seasonally adjusted purchasing managers' index, or PMI, for the non-oilprivate sector rose slightly to 57.9 from 57.6 in the previous month. Any reading above 50 suggestsexpansion in the sector. Non-oil private sector output advanced in December from last month, withmarketing and the start of new projects amongst the factors. New order intakes also increased inDecember, underpinned by advertising and generally firmer demand. Firms continued to lift theirstaffing levels during the month due to the ongoing growth in workloads. The rate of job creation rosefor the ninth month in a row. On the prices front, input price inflation was unchanged in December,while selling prices charged by firms were little changed since the prior month.

Sugar output in India rose 27 per cent in the ongoing season’s first quarter (October-December) overthe same period a year before. Data compiled by the Indian Sugar Mills Association (Isma) showedoutput at 7.46 million tonnes, compared with 5.86 mt in October-December 2013. This was despite alate start to cane crushing. It usually begins in October (the sugar year runs from October of one yearto September of the next) but there was a delay in cane price fixation and on dealing with the arrearsto farmers, so factories delayed commencement. “Almost all mills across the country are operating at100 per cent capacity. This will ensure the crushing season comes to an end earlier this year,” said anindustry expert. By end-December, 481 mills were in operation, compared to 485 a year before at thesame time. In Maharashtra, 171 working mills had produced 3.28 mt of sugar till December 31, ascompared to 155 operational mills and 1.04 mt a year before. In Uttar Pradesh, 117 mills reported acumulative output of 1.72 mt, compared to 119 mills and 1.12 mt earlier. Sugar recovery in the statewas 9.25 per cent this year than the 8.75 per cent last year.

Faced with a steep 45% decline in exports between April-November, oilmeal exporters have urged thegovernment to incentivise its shipment to abroad. India’s oilmeal exports have been witnessingsteady decline over the last three years. After a record 5.60 million tonnes of oilmeal exports in 2011-12, its shipment fell to 4.85 million tonnes in the following year and 4.33 million tonnes in 2013-14.But, the year 2014-15 has been the slowest in many years with overall exports at 1.42 million tonnesbetween April – November period as against 2.6 million tonnes in the corresponding period last year.Sanction hit Iran has started purchasing oilmeals from Brazil and Argentina which works out tocheaper of upto $100 a tonne than import from India. Also, European countries have opted topurchase from these natural global suppliers. While India’s oilmeal exports to Iran fell by a steep 70%at 242,291 tonnes between Apr – Nov 2014, that of European Union nosedived by a staggering 83%to a mere 65,304 tonnes in the first eight months of the current fiscal compared with 379,056 tonnesin the comparable period last year. Exports to Taiwan and South Korea also fell by 29% and 19% to54,584 tonnes and 568,275 tonnes respectively in the period under consideration.



Documents

Achiievers equities commodity report