Daily Commodity Report as on Wednesday, April 12, 2017

Date : Wednesday, April 12, 2017 URL : www.achiieversequitiesltd.com Page No - 1

Open High Low Close % Cng OI

Gold 28840 29229 28765 29193 1.58 7282Silver 41460 42275 41321 42187 1.98 12607

Alum. 124.25 124.25 123.1 123.75 0.00 1893Copper 373.55 374.6 369.55 373.25 0.19 15909Lead 145.4 146.8 143.35 145.85 0.45 2007Nickel 654.7 657.6 632.2 638.1 -2.13 32029Zinc 168.25 168.4 164.85 166 -1.43 6429

Crude 3436 3456 3407 3448 0.70 13730Nat. Gas 210.7 211.1 203.5 203.9 -2.63 6015

Cardamom 1220 1273 1220 1263.2 1.85 813Turmeric 6284 6314 6226 6250 -0.22 18945

Jeera 19250 19745 19250 19495 1.59 18678Dhaniya 7303 7425 7184 7213 -1.29 58680

Wheat 1665 1672 1664 1666 0.18 10500

Soyabean 2916 2938 2913 2918 0.17 129900Ref. Oil 621.8 624.8 620.2 621.5 0.36 58010CPO 511.5 517.2 511.5 513.7 0.21 6215RMSeed 3871 3914 3864 3871 0.05 67110Menthol 985.4 990.8 976 978.1 -1.08 2336Cotton 20830 21000 20780 20820 0.24 6390

USDINR 64.84 64.84 64.56 64.63 -0.12 1318623EURINR 68.69 68.75 68.50 68.68 0.22 64814GBPINR 80.59 80.63 80.22 80.39 0.07 45220JPYINR 58.60 58.65 58.37 58.50 0.50 19456

Market Round upPrecious Metals

Gold prices rallied as investors fled risk assets and sought refuge in safe-haven gold amid rising geopolitical tensions.

Base MetalSilver rallied as support seen after investors fled risk assets and sought refuge in safe-haven gold amid rising geopolitical tensions

Crude oil finished higher as prices rebounded on talk of a possible extension to the OPEC-led production cut agreement.

Natural gas dropped to settle at 203.90 posted its biggest losses in four weeks as traders cautious about whether.

Ref soyoil prices gained on short covering amid speculation over thin arrivals. Cereals

Mentha oil prices ended with losses amid easing demand at the spot market. Oil and Oilseeds & Others

Soyabean prices gained due to expectations of higher demand from crushers and in export market.

Energy Copper traded in range weighed down by concerns about oversupply as the world's top two copper mines look to recover from disruptions.

Zinc fell to a new three-month trough as the market focus is on receding supply worries.

Nickel dropped as the two biggest nickel miners in the Philippines, said prices for the metal would be robust this year due to growing demand from China.Spices

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Turmeric prices dropped due to rising arrivals on the back of increased output.Currency

Jeera prices gained due to expectation of good exports demand at the spot market.

Date : Wednesday, April 12, 2017 URL : www.achiieversequitiesltd.com Page No - 2

TRADING IDEA

OPEN 28840 SUP-2 28598 Gold trading range for the day is 28598-29526.

HIGH 29229 SUP-1 28895

LOW 28765 P.P. 29062

MCX Gold Jun 2017

CLOSE 29193 RES-1 29359 SPDR gold trust holdings gained by 0.50% i.e. 4.15 tonnes to 842.42 tonnes from 838.26 tonnes.

% CNG 1.58 RES-2 29526 BUY GOLD JUN 2017 @ 29150 SL 29000 TGT 29300-29450.MCX

HIGH 42275 SUP-1 41581

LOW 41321 P.P. 41928

Gold on MCX settled up 1.58% at 29193 gained tracking firmness from Comex Gold prices which rallied in yesterday session to finish at their highest level since November, jumped almost $20.30 to settled at $1,274.20 anounce, reaching its highest closing level in five months as US tensions with North Korea and Russia, as well as the upcoming presidential election in France raised investment demand for gold. Global tensions escalated asWestern countries were joined by Middle Eastern allies in a push to isolate Syrian President Bashar al-Assad following a chemical attack in the country last week. Uncertainty about the result of the upcoming Frenchpresidential election and possible U.S. military strikes against Syria and North Korea also boosted demand for safe-haven assets among jittery investors. While Holdings of SPDR Gold Trust, the world's largest gold-backedexchange-traded fund, rose 0.21 percent to 838.26 tonnes on Monday from 836.49 tonnes on Friday. Technically gold price broke through an important resistance level (its 200 dma) on Tuesday, crossing above the $1,260-per-ounce threshold for the first time since November. This represents a five-month high for the yellow metal, which added 0.65% on Tuesday to trade around $1,264/oz. In the week ahead, investors will be eyeing toFriday’s U.S. data on retail sales and inflation ahead of the long Easter weekend. Technically market is under fresh buying as market has witnessed gain in open interest by 10.1% to settled at 7282 while prices up 454rupees, now Gold is getting support at 28895 and below same could see a test of 28598 level, And resistance is now likely to be seen at 29359, a move above could see prices testing 29526.

MCX Silver May 2017 TRADING IDEA

OPEN 41460 SUP-2 40974 Silver trading range for the day is 40974-42882.

Tensions escalated as Western countries were joined by Middle Eastern allies in a push to isolate Syrian President following a chemical attack.

Silver rallied as support seen after investors fled risk assets and sought refuge in safe-haven gold amid rising geopolitical tensions

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CLOSE 42187 RES-1 42535

% CNG 1.98 RES-2 42882

Silver on MCX settled up 1.98% at 42187 tracking gains from Comex Silver which was up 2.1 percent at $18.29 an ounce after marking its lowest in more than two weeks at $17.71 in the previous session as investors fledrisk assets and sought refuge in safe-haven gold amid rising geopolitical tensions. Global tensions escalated as Western countries were joined by Middle Eastern allies in a push to isolate Syrian President Bashar al-Assadfollowing a chemical attack in the country last week. Uncertainty about the result of the upcoming French presidential election and possible U.S. military strikes against Syria and North Korea also boosted demand for safe-haven assets among jittery investors. Meanwhile, the Federal Reserve plans to raise U.S. interest rates gradually so as to sustain healthy growth without letting the economy overheat, Fed Chair Janet Yellen said on Monday.Rising interest rates lift the opportunity cost of holding non-yielding bullion. From India Wedding season demand at the domestic spot market gave more upside. Also Latest holdings of the largest silver-backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10,208.21 tonnes, remain unchanged from previous business day. In the week ahead, investors will be eyeing to Friday’s U.S. data on retail sales and inflationahead of the long Easter weekend. Technically market is under short covering as market has witnessed drop in open interest by -6.25% to settled at 12607 while prices up 821 rupees, now Silver is getting support at 41581and below same could see a test of 40974 level, And resistance is now likely to be seen at 42535, a move above could see prices testing 42882.

BUY SILVER MAY 2017 @ 42100 SL 41850 TGT 42480-42850.MCX

Federal Reserve plans to raise U.S. interest rates gradually so as to sustain healthy growth without letting the economy overheat

Date : Wednesday, April 12, 2017 URL : www.achiieversequitiesltd.com

Investors poured into safe-haven assets, after expectations grew the U.S. may take military action against North Korea.

Gold prices rallied as investors fled risk assets and sought refuge in safe-haven gold amid rising geopolitical tensions.

MCX Crudeoil Apr 2017 TRADING IDEA

OPEN 3436 SUP-2 3388 Crudeoil trading range for the day is 3388-3486.

OPEC countries wants to extend the group’s agreement to cut crude production for another six months when OPEC meets in May.

HIGH 3456 SUP-1 3418

LOW 3407 P.P. 3437

Crude oil finished higher as prices rebounded on talk of a possible extension to the OPEC-led production cut agreement.

CLOSE 3448 RES-1 3467 Support seen on geopolitical worries, North Korea’s foreign ministry warned that it was ready for “war” if the US makes further military moves.

% CNG 0.70 RES-2 3486 BUY CRUDEOIL APR 2017 @ 3420 SL 3380 TGT 3465-3499.MCX

HIGH 374.6 SUP-1 370.4

LOW 369.6 P.P. 372.5

Crudeoil on MCX settled up 0.70% at 3448 flipped to small gains in yesterday session and extended a lengthy rally reaching its highest closing level in a month after news raised expectations the world’s biggest crudeexporters will extend an agreement to cut output. Support seen after Saudi has told OPEC officials that it wants to extend the cartel’s agreement to cut crude-oil production for another six months when the group meets inMay, according to people familiar with the matter. Concerns about global-crude output grew after the U.S. airstrike on Syria late last week and the reported shutdown of Libya’s Sharara oil field over the weekend after anunknown group blocked a pipeline. Adding to geopolitical worries, North Korea’s foreign ministry warned early Tuesday local time that it was ready for “war” if the U.S. makes further military moves like the one seen Sunday,when it sent a Navy strike group to the region. Sentiments still remain firm as support seen after the API said yesterday that Crude inventories in the US fell 1.3mbls at the end of last week, a surprise drop with marketexpecting a build in supplies. While now traders are eyeing on Wednesday official data from the US EIA will be released. Last week, figures by the two groups diverged with API showing a crude draw and EIA a build. For thepast week, API also reported gasoline stocks dropped 3.7mbls and distillates declined by 1.6mbls. Supplies at the storage hub of Cushing Oklahoma rose by 360,000 barrels, API said. Technically market is getting support at3418 and below same could see a test of 3388 level, And resistance is now likely to be seen at 3467, a move above could see prices testing 3486.

MCX Copper Apr 2017 TRADING IDEA

OPEN 373.6 SUP-2 367.4 Copper trading range for the day is 367.4-377.6.

Page No - 4

CLOSE 373.3 RES-1 375.5

% CNG 0.19 RES-2 377.6

Date : Wednesday, April 12, 2017 URL : www.achiieversequitiesltd.com

Copper traded in range weighed down by concerns about oversupply as the world's top two copper mines look to recover from disruptions. Copper has faltered after BHP Billiton restarted production in Chile last week andFreeport McMoRan said it was waiting for final details on a temporary export permit in Indonesia. Concerns over supply disruptions had sent the metal to a 1-1/2 year high of $6,204 in mid-February. The discount of LMEcash copper to the three-month contract was at $32 a tonne, close to the biggest in four years, indicating adequate supply of refined metal in the market. Union representatives and executives from miner Southern Copper inPeru failed to reach an accord to end an indefinite strike, the union said. Eurozone industrial production declined 0.3% in February compared with expectations of a 0.1% increase for the month and the January data wasrevised significantly lower to an increase of 0.3% compared with the original estimate of 0.9%. There was a sharp 4.7% decline in energy output for the month while non-durable consumer goods production also declined onthe month. In contrast, capital goods and intermediate goods output both increased for the month. Technically market is under short covering as market has witnessed drop in open interest by -2.74% to settled at 15909while prices up 0.7 rupees, now Copper is getting support at 370.4 and below same could see a test of 367.4 level, And resistance is now likely to be seen at 375.5, a move above could see prices testing 377.6.

SELL COPPER APR 2017 @ 375.50 SL 378.50 TGT 371.80-369.50.MCX

A Southern Copper Corp spokesman said its operations in Peru were near normal as workers started an indefinite strike, despite sources said 80% of capacity was affected.

Prices have faltered since shipments resumed from BHP Billiton's Escondida mine in Chile.

Copper traded in range weighed down by concerns about oversupply as the world's top two copper mines look to recover from disruptions.

TRADING IDEA

OPEN 168.3 SUP-2 162.8 Zinc trading range for the day is 162.8-170.

HIGH 168.4 SUP-1 164.4

LOW 164.9 P.P. 166.4

MCX Zinc Apr 2017

SUP-2 617.2 Nickel trading range for the day is 617.2-668.

CLOSE 166.0 RES-1 168.0 Zinc continues to see plenty of sellers lined up on every rally amid increasingly aggressive CTA selling and ongoing long liquidation

% CNG -1.43 RES-2 170.0 SELL ZINC APR 2017 @ 169.00 SL 170.50 TGT 167.50-165.00.MCX

Page No - 5

CLOSE 638.1 RES-1 653.0

% CNG -2.13 RES-2 668.0

Date : Wednesday, April 12, 2017 URL : www.achiieversequitiesltd.com

Nickel on MCX settled down -2.13% at 638.1 as the two biggest nickel miners in the Philippines, said prices for the metal would be robust this year due to growing demand from China. However downside seen limited aspowerful cyclone that hit New Caledonia and shuttered nickel operations has moved offshore. Forecasts from the likes of the World Bank show prices could average around $11,000 in 2017 that would compare to around$9,500 last year. San Francisco Federal Reserve Bank President John Williams said on Tuesday the U.S. central bank should raise interest rates three or four times this year, and begin to trim the Fed's multitrillion-dollarbalance sheet in late 2017. At least 12 major Chinese cities are requiring newly bought homes to be held for at least two to three years before they can be sold, the first time that cities in the country are taking suchmeasures and suggesting intensified government efforts to cool the red-hot property market. China's producer price inflation cooled for the first time in seven months in March as iron ore and coal prices tumbled, pressuredby fears that domestic demand is not strong enough to absorb surging supplies of steel. With nickel an important component of steel products, regulations on the steel industry will, in turn, affect nickel prices. The US hasalready enforced a number of tariffs on Chinese steel imports, a development that China is not happy about. Technically market is under fresh selling as market has witnessed gain in open interest by 17.31% to settled at32029 while prices down -13.9 rupees, now Nickel is getting support at 627.6 and below same could see a test of 617.2 level, And resistance is now likely to be seen at 653, a move above could see prices testing 668.

SELL NICKEL APR 2017 @ 645.00 SL 655.00 TGT 636.00-630.00.MCX

Forecasts from the likes of the World Bank show prices could average around $11,000 in 2017 that would compare to around $9,500 last year.

However downside seen limited as powerful cyclone that hit New Caledonia and shuttered nickel operations has moved offshore.

Nickel dropped as the two biggest nickel miners in the Philippines, said prices for the metal would be robust this year due to growing demand from China.

Diversified miner Vedanta Resources said refined zinc production at its India unit rose nearly 40 percent in the fourth quarter.

Zinc fell to a new three-month trough as the market focus is on receding supply worries.

HIGH 657.6 SUP-1 627.6

LOW 632.2 P.P. 642.6

Zinc on MCX settled down -1.43% at 166 felling to a new three-month trough as the market focus is on receding supply worries. LME zinc ended down 1.8 percent at $2,570, having hit its lowest since early January at$2,558. Diversified miner Vedanta Resources said refined zinc production at its India unit rose nearly 40 percent in the fourth quarter. Zinc continues to see plenty of sellers lined up on every rally amid increasinglyaggressive CTA selling and ongoing long liquidation. Chinese consumer prices weakened further in March, but were little changed compared to a year ago, while producer prices rose at a steady pace. Beijing’s officialconsumer price index (CPI) rose 0.9% from a year ago, after slowing to 0.8% in February, the National Bureau of Statistics said in a report on Wednesday. UK consumer prices rose 0.4% in March compared with expectationsof a 0.3% increase and the year-on-year rate was unchanged at 2.3%. The annual rate was in line with consensus forecasts and equalled the highest rate since September 2013. The core inflation rate declined to 1.8% from2.0% and compared with expectations of a smaller decline to 1.9%. The ILZSG estimates that the market was in a deficit of 27,400 tonnes in January 2017 compared with a surplus of 6,000 tonnes in January 2016. The zincmarket was in a deficit of 268,000 tonnes in 2016 compared with a surplus of 189,000 tonnes in 2015. Technically market is under fresh selling as market has witnessed gain in open interest by 8.93% to settled at 6429while prices down -2.4 rupees, now Zinc is getting support at 164.4 and below same could see a test of 162.8 level, And resistance is now likely to be seen at 168, a move above could see prices testing 170.

MCX Nickel Apr 2017 TRADING IDEA

OPEN 654.7

TRADING IDEA

OPEN 19250 SUP-2 19000 Jeera trading range for the day is 19000-19990.

HIGH 19745 SUP-1 19245

LOW 19250 P.P. 19495

NCDEX Jeera May 2017

19495 RES-1 19740 NCDEX accredited warehouses jeera stocks dropped by 153 tonnes to 675 tonnes.

% CNG 1.59 RES-2 19990 BUY JEERA MAY 2017 @ 19300 SL 19100 TGT 19480-19650.NCDEX

Page No - 6

CLOSE 6250 RES-1 6302

% CNG -0.22 RES-2 6352 SELL TURMERIC MAY 2017 @ 6350 SL 6450 TGT 6250-6150.NCDEX

NCDEX accredited warehouses turmeric stocks gained by 170 tonnes to 2624 tonnes.

Date : Wednesday, April 12, 2017 URL : www.achiieversequitiesltd.com

Turmeric on NCDEX settled down by -0.22% at 6250 due to rising arrivals on the back of increased output. Turmeric farmers and traders have been hit hard by poor sales during peak season. Many traders and farmersexpected good sales of turmeric during the peak period, which started a month ago. But, this year, for the first time in recent history, both farmers and traders are in agony due to poor production and tepid demand fromNorth India. India's Apr-Dec turmeric export 25% to 85,500 ton on year. Last year, India exported 68,500 ton in the same period. At Warangal market arrivals were reported at 1500 bags, up by 1300 bags from previoustrading day. At Duggirala market traders reported arrivals at 1552 quintals, higher by 48 quintals as compared to previous day. At Erode market sources reported arrivals at 5000 quintals, lower by 3000 quintals as againstprevious day. The arrival of turmeric especially the new turmeric increased. At the Erode Turmeric Merchants Association Sales yard finger turmeric sold at Rs. 5,299 to 8,033 a quintal, root variety sold at Rs. 5,199 to 7,014.At the Regulated Market Committee finger turmeric sold at Rs. 6,299 to 7,786, root variety sold at Rs. 6,039 to 7,089. At the Erode Cooperative Marketing Society finger turmeric sold at Rs. 6,569 to 7,855 a quintal, rootvariety sold at Rs. 6,011 to 7,027. In Nizamabad, a major spot market in AP, the price ended at 5981.65 Rupees dropped -2 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by4.81% to settled at 18945 while prices down -14 rupees, now Turmeric is getting support at 6214 and below same could see a test of 6176 level, And resistance is now likely to be seen at 6302, a move above could seeprices testing 6352.

At Erode market sources reported arrivals at 5000 quintals, lower by 3000 quintals as against previous day.

Turmeric prices dropped due to rising arrivals on the back of increased output.

The latest spell of rainfall last month is estimated to have spoiled 30 per cent of the standing crop.

Jeera prices gained due to expectation of good exports demand at the spot market.

HIGH 6314 SUP-1 6214

LOW 6226 P.P. 6264

Jeera on NCDEX settled up by 1.59% at 19495 due to expectation of good exports demand at the spot market. Though, some gains were capped on ample stocks position following higher supplies from the producing belt. Onthe export front, the Country exports increase by 32.7% to 1,01,188 tons in first 10 month of marketing year 2016/17. Exporters are likely to fetch better realisation due to the quality of the jeera crop. A recent assessmentby the Federation of Indian Spices Stakeholders in Udaipur, Rajasthan, has forecast India’s cumin seed production at 5.83 million bags of 40 kg each (233,280 tonnes) this year against 4.20 million bags of 40 kg each(168,320 tonnes) last year. The latest spell of rainfall last week is estimated to have spoiled 30 per cent of the standing crop. Production estimates for 2016-17 are lower due to a decline in the jeera acreage in Gujarat. TheCentre pegs production of jeera in the state at 221,000 tonnes, down 11 per cent from last year’s output of 238,000 tonnes. The output is far lower than the normal of 346,000 tonnes in Gujarat in 2013-14. According todata, 33,110 tonnes of jeera arrived in the markets between March 1 and March 20, against 34,107 tonnes during the same period last year. India exports an average of 15,000 tonnes of jeera during March, April and May.In Unjha, a key spot market in Gujarat, jeera edged up by 133.1 Rupees to end at 18846.45 Rupees per 100 kg.Technically market is under fresh buying as market has witnessed gain in open interest by 6.74% to settled at18678, now Jeera is getting support at 19245 and below same could see a test of 19000 level, And resistance is now likely to be seen at 19740, a move above could see prices testing 19990.

NCDEX Turmeric May 2017 TRADING IDEA

OPEN 6284 SUP-2 6176 Turmeric trading range for the day is 6176-6352.

CLOSE

TRADING IDEA

OPEN 985.4 SUP-2 966.8 Menthaoil trading range for the day is 966.8-996.4.

HIGH 990.8 SUP-1 972.4

LOW 976.0 P.P. 981.6

MCX Menthaoil Apr 2017

LEAD

145.9

CLOSE 978.1 RES-1 987.2

% CNG -1.08 RES-2 996.4

373.25 166 638.1 123.75

COMMODITIES GOLD SILVER CRUDE NAT.GAS COPPER ZINC NICKEL ALUMINUM

29359 42535 3467 208.9

CLOSE 29193 42187 3448 203.9

375.5 168.0 653.0 124.3166.4 642.6 123.7

RESISTANCE29823 43489 3516 216.5 380.6 171.6 678.4 125.429526 42882 3486 213.8 377.6 170.0 668.0 124.8

P. POINT 29062 41928 3437 206.2 372.5

28431 40627 3369 193.7 365.3SUPPORT 28598 40974 3388 198.6 367.4 617.2 122.6

28895 41581 3418 201.3 370.4

OI 7282 12607 13730 6015 15909 6429 32029 1893160.8 602.2 122.1

164.4 627.6 123.2162.8

Range Bound Positive

SPREAD 137 457 34.00 5.40 4.15 0.60 6.20

TREND Positive Positive Positive Negative Positive Negative Negative

0.45

Date : Wednesday, April 12, 2017 URL : www.achiieversequitiesltd.com Page No - 7

0.4

DAILY MARKET LEVEL FOR METAL AND ENERGY

Mentha oil on MCX settled down by -1.08% at 978.1 amid easing demand at the spot market. Further, ample stocks position on increased supplies from Chandausi in Uttar Pradesh too led to the decline in mentha oil prices.Prices also remained under pressure on speculation that the area under cultivation can increase this year resulting good production. Total production of mentha oil during the current season is 32,000-34,000 tonnes againstpreliminary estimates of around 40,000 tonnes. Unfavourable weather conditions during harvesting period led to the drop in production. On the demand side, the seasonal demand emerges during winter season, especiallyfrom the pharma sector. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year. This implies that export demand for the complete financial year can be between27000 and 29000 MT quite cheaper, versus 23000 of total exports last year. Farmers are keeping most of the stocks in their hands. Most buyers are willing to buy at these levels. Since farmers are keeping most of stocks,thus whenever requirement arises, industry people will be purchasing from the farmers. Trade sources estimate that total area under Mentha planting has dropped by 20% to 1.75 lakh ha this season resulting into aproportionate fall in Mentha oil production this year. Mentha oil spot at Sambhal closed at 1118.40 per 1kg. Spot prices was down by Rs.-14.90/-.Technically market is under fresh selling as market has witnessed gain inopen interest by 3.13% to settled at 2336 while prices down -10.7 rupees, now Menthaoil is getting support at 972.4 and below same could see a test of 966.8 level, And resistance is now likely to be seen at 987.2, a moveabove could see prices testing 996.4.

SELL MENTHA OIL APR @ 988 SL ABV 998 TGT 978-968. MCX (STBT)

Further, ample stocks position on increased supplies from Chandausi in Uttar Pradesh too led to the decline in mentha oil prices.

Mentha oil prices ended with losses amid easing demand at the spot market.

Mentha oil spot at Sambhal closed at 1118.40 per 1kg. Spot prices was down by Rs.-14.90/-.

150.8148.8147.3

140.3141.8143.8

2007

145.3

11:30am EUR 0.004 0.005Tentative EUR 0 0.41|1.56:00pm USD -0.003 0.0028:00pm USD -0.7M 1.6M10:31pm USD 0 3.17|2.311:30pm USD -150.0B -192.0B

0 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 00 0 0 0

TIME ZONE ECONOMICAL DATA EXP

8

German industrial orders picked up in February after plummeting the previous month and theEconomy Ministry said an upturn in the sector was on the cards, although a rise in contracts forGermany's factories was weaker than expected. Contracts rose 3.4 percent on the month, data fromthe Economy Ministry showed on Thursday. That missed the Reuters consensus forecast for a 4.0percent increase but came after an upwardly revised drop of 6.8 percent in January. The data comesafter a survey that showed manufacturing growth reached its highest level in almost six years inMarch, driven by an increase in orders for intermediate goods, suggesting the sector will contribute toan economic expansion in the first quarter. February's increase was driven by the strongest surge indomestic demand since May 2011, with companies in Germany ordering 8.1 percent more goods thanthey ordered in January, when they had significantly scaled back orders. But foreign orders failed tocontribute, with a breakdown showing bookings from the euro zone fell by 2.4 percent while non-eurozone contracts increased by 1.6 percent. A breakdown of the February data showed demand forintermediate goods soared while appetite for consumer products rose and contracts for capital goodsedged up.

Japanese households' inflation expectations have risen for the first time in nearly two years, a centralbank survey showed, suggesting consumers are taking notice of a series of price increases for foodand household products. The percentage of households who expect prices to rise one year from nowstood at 67.0 percent in March, up from a four-year low of 64.7 percent in December, the Bank ofJapan's quarterly survey on people's livelihoods showed. The last time the survey showed a growingnumber of households anticipating price hikes a year hence was in June 2015. In the latest survey,79.3 percent expected inflation to pick up five years from now, compared with 77.6 percent inDecember. Japan's core consumer price index rose 0.2 percent in February from a year earlier. It wasthe second straight month of rises after a year of declines, but the figure remained far below theBOJ's target of 2 percent. Still, shoppers are beginning to see higher prices on supermarket shelves,for items from butter to dry seaweed, as a weaker yen makes imported materials more expensive andlabor shortages hike logistics costs.

Cotton spinners in India are considering production cuts during the current financial year to sustainprofit margins, which were under pressure due to a sharp increase in the price of cotton over the lastfew months. Experts estimate an average production cut of 15 per cent for financial year 2017-18, ifthe current scenario continues. A recent study by rating agency Care estimates India's cotton yarnproduction at 3,936 million kg for financial year 2016-17, nearly five per cent lower than 4,138 millionkg output reported in the previous financial year. For the past few years, cotton yarn production hasincreased by 3 -3.5 per cent to meet domestic demand and exports. India's cotton-spinning industryhas been struggling with profitability for over two years due to a sharp decline in yarn exportsfollowing a slump in Chinese demand. Chinese textiles mills, which used to manufacture fabric afterimporting yarn from India, have now slowed down following the government's policy of discouragingenergy-intensive industries. This has hit India's cotton yarn manufacturers hard. "Many spinning mills,especially in the unorganised sector, are struggling with profitability due to a sharp increase inproduction costs. Not only have prices of raw materials like cotton gone up, labour cost has also risensubstantially over the past few years. Interestingly, spinning mills have not been able to pass on theincrease in production costs due to weak demand.

Food Corporation of India (FCI) faces stiff competition from private entities in Madhya Pradesh onwheat procurement. The market price is presently above the government's Minimum Support Price(MSP). This has led the government-owned entity to set up camps near major harvesting centres, toease farmers’ transport and sale issues. “There is neck-and-neck competition between FCI and privateplayers in Madhya Pradesh, where procurement started a week ago. We believe only half the quantityoffered by farmers has come to us,” said a senior FCI official in the state. The agency has procuredabout 500,000 tonnes till now. FCI says it had procured 3.99 million tonnes of wheat from MP in the2016-17 rabi marketing season (RMS), 17.4 per cent of the 22.96 mt from across the country. For theRMS of 2017-18, the government’s target for FCI in the state is 8.5 mt. This, the official felt, wouldnot be achieved, with private agencies offering a higher price. “So, we started setting up purchasecentres near the major production belt. So, farmers supply to us, though we offer Rs 75-100 a quintalless, as they get timely payment. Also, farmers do not want to take a transportation risk in terms ofwheat supply to the mandis (wholesale markets). They are not sure of the selling price there, as thatfluctuates upon demand and supply. In case, wheat is not sold promptly in the market, they wouldhave to pay demurrage. By selling to us, they are sure of getting the MSP,” said the official.

Date : Wednesday, April 12, 2017 URL : www.achiieversequitiesltd.com Page No -

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German WPI m/m

Some policymakers argued for an easing in the European Central Bank's commitment to cut ratesfurther when the macroeconomic outlook worsened, saying that the economic situation and thebalance of risks have clearly improved, the minutes of the ECB Governing Council's March 8-9 policysession showed. "The view was put forward that removing the downward bias regarding interest rateswould be in line with a gradual and cautious adjustment of the Governing Council's forward guidance,in step with changes in the Governing Council's assessment," the minutes, which the ECB calls "theaccount" said. An argument was made that some indicators have started to suggest an increasinglyexpansive monetary policy, the report said. It was crucial to keep the forward guidance well alignedwith the bank's evolving assessment to underpin the consistency and credibility of the GoverningCouncil's communication, as both deflationary risks and associated market expectations of furtherrate cuts had largely vanished, the minutes said. However, it was also pointed out that the easingbias was an integral part of the Governing Council's forward guidance and of the monetary policystance, which contained an important forward-looking signalling component.

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Date : Wednesday, April 12, 2017 URL : www.achiieversequitiesltd.com Page No - 9