daily commodity report as -...

Daily Commodity Report as on Thursday, May 11, 2017

Date : Thursday, May 11, 2017 URL : www.achiieversequitiesltd.com Page No - 1

Open High Low Close % Cng OI

Gold 28086 28145 27970 27996 0.09 6760Silver 37989 38290 37870 37952 0.43 20366

Alum. 121.15 121.2 120.35 120.6 -0.37 1860Copper 359.5 360.4 356.6 358 -0.31 17096Lead 141.2 141.85 139.2 141.7 0.85 1738Nickel 596.7 598.9 586.2 591 -1.01 37185Zinc 169.05 169.55 167.1 167.75 -0.68 3580

Crude 2986 3095 2980 3083 3.84 16021Nat. Gas 208.3 216.3 207.1 213.4 1.76 8813

Cardamom 1041 1055 1041 1052.3 0.93 377Turmeric 5670 5752 5586 5602 -1.68 15835

Jeera 18510 18530 18315 18410 -0.83 17238Dhaniya 5940 6024 5751 5795 -2.16 56570

Wheat 1607 1609 1603 1607 0.12 20540

Soyabean 2944 2949 2922 2926 -0.48 121030Ref. Oil 628.2 630.5 625 626.3 -0.47 54400CPO 498.6 500.5 496.5 497.8 -0.30 4861RMSeed 3759 3762 3725 3732 -0.80 64270Menthol 936.2 939.3 910 912 -2.52 1614Cotton 20700 20740 20600 20700 0.15 5871

USDINR 64.38 64.87 64.38 64.80 0.50 1244190EURINR 70.66 70.78 70.61 70.69 0.04 65272GBPINR 83.66 83.90 83.66 83.83 0.26 40652JPYINR 57.11 57.18 56.96 57.02 -0.54 25321

1

Turmeric dropped due to lower demand from industrial buyers and higher stocks available in the country.Currency

Jeera prices dropped on profit booking after prices gained on a lower output forecast and strong demand from overseas buyers.


Naturalgas rallied as oil price surge, also warmer than normal weather is expected to cover most of the US, generating increased cooling demand.

Ref soyoil prices ended with losses tracking weakness in spot demand and global cues.Cereals

Menthaoil dropped amid of reports that carryover stocks are huge against the current consumption level, while the stocks are also been sufficient. Oil and Oilseeds & Others

Soyabean dropped due to weak trend in the International market but spot prices improve on good meal exports data.

Energy Copper dropped as the market fretted about weak demand in top consumer China after data showed the country's imports of the metal falling.

Zinc prices dropped as pressure continues on fresh signs of a slowdown in Chinese demand.

Nickel prices dropped amid of the concern that the restart of Indonesian nickel ore exports and easing concerns about Philippine nickel ore supply.Spices

Market Round upPrecious Metals

Gold settled flat after U.S. President Donald Trump abruptly fired FBI Director James Comey in a move that shocked Washington.

Base MetalSilver prices traded in range with supportive mode as more upheaval in Washington turned investors away from riskier assets in favor of haven plays.

Crude oil gains as investors cheered the latest report from the EIA showing U.S. crude inventories fell more than expected.

Rekindled fears that North Korea could be gearing up for another weapons test also supported gold.

Gold settled flat after U.S. President Donald Trump abruptly fired FBI Director James Comey in a move that shocked Washington.


CLOSE 37952 RES-1 38204

% CNG 0.43 RES-2 38457

Silver on MCX settled up 0.43% at 37952 recovered on low level of buying although the outlook remains clouded by uncertainty amid relatively subdued demand for precious metals. Silver has lost its shine over the pastthree weeks. Since Comex Silver peaking above $18.50 in mid-April, the commodity has slumped more than 12%. Support was expected to see in yesterday’s session but amid muted reaction to President Trump's firing ofFBI Director James Comey prices recovered but with slow pace. In a rare move, the White House removed the head of the FBI. Critics say the dismissal is related to Comey's investigation of Trump's ties with Russia, but thepresident says Comey was doing a "poor job." From Data side yesterday Import prices in the U.S. rose by more than expected in the month of April, according to a report released by the Labor Department on Wednesday,with the increase partly reflecting a rebound in prices for fuel imports. The Labor Department said import prices climbed by 0.5 percent in April after a revised 0.1 percent uptick in March. Boston Fed President Eric Rosengrensaid the Fed should re-think its forecast for only two more interest rates this year. Earlier this week, several Fed officials signalled that the U.S. central bank would continue on its stated interest rate path of three total ratehikes for 2017. Kaplan said that three total rate hikes in 2017, is the “baseline scenario” but insisted that the Federal Reserve would continue to monitor changes in economic activity, which could pave the way for a morehawkish or dovish approach to future rate hikes. Technically market is under fresh buying and getting support at 37784 and below same could see a test of 37617 level, And resistance is now likely to be seen at 38204, amove above could see prices testing 38457.

BUY SILVER JUL 2017 @ 37900 SL 37600 TGT 38100-38450.MCX

Holdings at ishares silver trust gained by 1.14% i.e. 119.22 tonnes to 10531.96 tonnes from 10412.74 tonnes.

HIGH 38290 SUP-1 37784

LOW 37870 P.P. 38037

Gold on MCX settled up 0.09% at 27996 slightly higher in yesterday’s session while unable to sustain early gains amid muted reaction to President Trump's firing of FBI Director James Comey. Support was seen as investors’appetite for risk eased, after Trump unexpectedly sacked Comey while geopolitical jitters over North Korea returned as gold futures bounced off an eight-week low. Meanwhile the New York Times reported that days before hewas fired, Comey asked the Justice Department for additional resources for the bureau's investigation into Russia's interference in the presidential election. Meanwhile, geopolitical jitters underpinned the move higher in goldprices, after North Korean ambassador to the UK said the country will proceed with its sixth nuclear test. Despite the bounce in gold futures, overall sentiment remained fairly negative as it is widely expected that the FederalReserve will hike interest rates in June. Earlier this week, several Fed officials signalled that the U.S. central bank would continue on its stated interest rate path of three total rate hikes for 2017. Kaplan said that three totalrate hikes in 2017, is the “baseline scenario” but insisted that the Federal Reserve would continue to monitor changes in economic activity, which could pave the way for a more hawkish or dovish approach to future ratehikes. According to market expectation traders are expecting the Federal Reserve to hike interest rates in June, compared to 63% in the previous week. Technically market is getting support at 27929 and below same couldsee a test of 27862 level, And resistance is now likely to be seen at 28104, a move above could see prices testing 28212.

MCX Silver Jul 2017 TRADING IDEA

OPEN 37989 SUP-2 37617 Silver trading range for the day is 37617-38457.

It is too early for the European Central Bank to declare victory in its quest to boost euro zone inflation despite signs the bloc's economic recovery is strengthening, ECB’s Draghi said

Silver prices traded in range with supportive mode as more upheaval in Washington turned investors away from riskier assets in favor of haven plays.

CLOSE 27996 RES-1 28104 The Federal Reserve should hike interest rates three more times this year and at the same time start shedding its bond holdings, a Fed policymaker said.

% CNG 0.09 RES-2 28212 BUY GOLD JUN 2017 @ 27900 SL 27770 TGT 28050-28200.MCX

HIGH 28145 SUP-1 27929

LOW 27970 P.P. 28037

MCX Gold Jun 2017 TRADING IDEA

OPEN 28086 SUP-2 27862 Gold trading range for the day is 27862-28212.

Copper on MCX settled down -0.31% at 358 as the market fretted about weak demand in top consumer China after data showed the country's imports of the metal falling. LME stocks remain near their highest since lastOctober, fuelling pessimism over demand following hefty inflows in LME warehouses last week. Chinese copper imports collapsed by more than 30 percent month on month in April to 300,000 tonnes. Concentrate and oreimports tumbled by 16.6 percent to 1.36 million tonnes. Chinese banks extended 714.0 billion yuan in new loans in April, down from 1.02 trillion yuan in March, though part of that was seen as a payback from the previousmonth's solid numbers and not necessarily the start of a sharp slowdown. Supply of copper scrap has tightened recently after growing in the first quarter, while disruptions at major mines this year are hitting availability. Newcapacities coming online decreased in 2016, and new capacities in 2017 will be mainly commissioned in the second half of the year, explaining the reason behind such a prediction. China's April producer price inflation cooledmore than expected as iron ore and coal prices tumbled further, pressured by fears that domestic demand will not be strong enough to absorb surging supplies of steel. Technically market is under fresh selling as market haswitnessed gain in open interest by 1.77% to settled at 17096 while prices down -1.1 rupees, now Copper is getting support at 356.2 and below same could see a test of 354.5 level, And resistance is now likely to be seen at360, a move above could see prices testing 362.1.

BUY COPPER JUN 2017 @ 357.00 SL 354.00 TGT 360.50-363.00.MCX

Chinese imports of copper collapsed more than 30 percent in April from a month ago to 300,000 tonnes.

LME stocks remain near their highest since last October, fuelling pessimism over demand following hefty inflows in LME warehouses last week.

Copper dropped as the market fretted about weak demand in top consumer China after data showed the country's imports of the metal falling.


CLOSE 358.0 RES-1 360.0

% CNG -0.31 RES-2 362.1

HIGH 360.4 SUP-1 356.2

LOW 356.6 P.P. 358.3

Crudeoil on MCX settled up 3.84% at 3083 surged higher after a significant drawdown in U.S. stockpiles raised hopes the global supply glut will be alleviated. Yesterday US crude stockpiles posted their biggest one-weekdrawdown since December last week as imports dropped sharply, while inventories of refined products also fell, helping boost oil prices that have been weighed down by concerns about oversupply. Crude inventories fell5.2mbls in the week to May 5, the US EIA said, compared with expectations for a decrease of 1.8mbls. While US crude imports fell last week by 799,000 barrels per day, the biggest weekly drop since mid February, to just6.9mbpd, the first time they have been below 7mbpd since early March. Stocks at the Cushing, Oklahoma, delivery hub for US crude fell 438,000 barrels, EIA said. Support also seen after enduring weeks of pressure overworries that a deal between OPEC and non-OPEC producers to reduce supply was not having the desired effect. Elsewhere, investors continued to monitor comments from energy ministers, after Saudi oil chief Khalid Al-Falihsaid Monday, that he was “confident the agreement will be extended into the second half of year and possibly beyond." Oil prices have erased the gains achieved since November, when OPEC and other producers, includingRussia, agreed to cut output by about 1.8mbpd. OPEC is expected to decide at talks on May 25 whether to extend the current deal to cut production for an additional six-months to the end of the year. Technically market isgetting support at 3011 and below same could see a test of 2938 level, And resistance is now likely to be seen at 3126, a move above could see prices testing 3168.

MCX Copper Jun 2017 TRADING IDEA

OPEN 359.5 SUP-2 354.5 Copper trading range for the day is 354.5-362.1.

CLOSE 3083 RES-1 3126 Saudi Arabia's oil minister Khalid al-Falih said that he expected the output deal to be extended to the end of the year or possibly longer.

% CNG 3.84 RES-2 3168 BUY CRUDEOIL MAY 2017 @ 3040 SL 3000 TGT 3085-3120.MCX

Support also seen after reports Saudi Arabia would cut supplies to the region as OPEC battles against rising U.S. output.

HIGH 3095 SUP-1 3011

LOW 2980 P.P. 3053

Crude oil gains as investors cheered the latest report from the EIA showing U.S. crude inventories fell more than expected.

MCX Crudeoil May 2017 TRADING IDEA

OPEN 2986 SUP-2 2938 Crudeoil trading range for the day is 2938-3168.

The new Philippines environment minister said he wants to balance conservation and mining interests, signalling intent to settle a bitter dispute.

Nickel prices dropped amid of the concern that the restart of Indonesian nickel ore exports and easing concerns about Philippine nickel ore supply.

Concerns over liquidity squeezes in China seem to be the main driving force.

Zinc prices dropped as pressure continues on fresh signs of a slowdown in Chinese demand.

HIGH 598.9 SUP-1 585.1

LOW 586.2 P.P. 592.0

Zinc on MCX settled down -0.68% at 167.75 as pressure continues on fresh signs of a slowdown in Chinese demand. However downside seen limited after the news that China plans to boost infrastructure spending in Chinaand the United States are bolstering market sentiment towards zinc. That could support global prices for the base metal that have eased this year after surging in 2016 in the wake of the closure of several giant mines.Concerns over liquidity squeezes in China seem to be the main driving force. The premium for cash zinc versus the three-month price traded at its highest since Feb. 20, indicating tightening nearby supply. China’s refinedzinc production fell to 413,000 tonnes in April 2017, a drop of 3.95% month-on-month and 5.92% year-on-year. Total refined zinc output in the first four months of the year was 1.711 million tonnes, a fall of 1.84% on ayearly basis. Lower zinc prices and domestic zinc concentrate TCs ate into profit at domestic zinc smelters. Besides, enhanced environmental protection in some regions affected mine production, tightening raw materialsupply for zinc smelters. An increasing number of smelters chose to conduct maintenance. Technically market is under long liquidation as market has witnessed drop in open interest by -7.97% to settled at 3580 while pricesdown -1.15 rupees, now Zinc is getting support at 166.7 and below same could see a test of 165.7 level, And resistance is now likely to be seen at 169.1, a move above could see prices testing 170.5.

MCX Nickel May 2017 TRADING IDEA

OPEN 596.7

Nickel on MCX settled down -1.01% at 591 dropped from day's high as the market fretted about weak demand in top consumer China after data showed falling imports of the metal into the country. Meanwhile sentimentsslowly improving as Nickel ore output in the Philippines, the world's top supplier, fell 51 percent in the first quarter due to rains and the suspension of mine operations, government data showed on Wednesday. Of thecountry's 28 nickel mines, 21 reported zero output during the period, the Mines and Geosciences Bureau said. Unprocessed nickel ore shipped in the January to March period totalled 1.71 million dry metric tonnes (DMT)compared with 3.46 million DMT a year ago, the data showed. Most of the Philippines' output is shipped to China where it is used to make stainless steel. Most nickel mines are in the southern Philippines where monsoonrains and rough seas occur between October and March, making it difficult for miners to operate and load ships. Other mines are also under maintenance and care, the bureau said. At least eight nickel mines have beensuspended since last year for environmental breaches under a crackdown launched by former Environment Secretary Regina Lopez. She was ousted last week by a panel of lawmakers that confirm appointments. Technicallymarket is under fresh selling as market has witnessed gain in open interest by 2.23% to settled at 37185 while prices down -6 rupees, now Nickel is getting support at 585.1 and below same could see a test of 579.3 level,And resistance is now likely to be seen at 597.8, a move above could see prices testing 604.7.

BUY NICKEL MAY 2017 @ 590.00 SL 580.00 TGT 602.00-612.00.MCX

Philippine President Rodrigo Duterte said the government cannot scrap an existing mining law but added that he wants to implement stricter measures.


CLOSE 591.0 RES-1 597.8

% CNG -1.01 RES-2 604.7

SUP-2 579.3 Nickel trading range for the day is 579.3-604.7.

CLOSE 167.8 RES-1 169.1 The premium for cash zinc versus the three-month price traded at its highest since Feb. 20, indicating tightening nearby supply.

% CNG -0.68 RES-2 170.5 BUY ZINC MAY 2017 @ 167.00 SL 165.80 TGT 169.20-171.00.MCX

HIGH 169.6 SUP-1 166.7

LOW 167.1 P.P. 168.1

MCX Zinc May 2017 TRADING IDEA

OPEN 169.1 SUP-2 165.7 Zinc trading range for the day is 165.7-170.5.

Turmeric farmers and traders have been hit hard by poor sales during peak season.

Turmeric dropped due to lower demand from industrial buyers and higher stocks available in the country.

Exporters are likely to fetch better realisation due to the quality of the jeera crop.

Jeera prices dropped on profit booking after prices gained on a lower output forecast and strong demand from overseas buyers.

HIGH 5752 SUP-1 5540

LOW 5586 P.P. 5646

Jeera on NCDEX settled down by -0.83% at 18410 on profit booking after prices gained on a lower output forecast and strong demand from overseas buyers. Exporters are likely to fetch better realisation due to the qualityof the jeera crop. Traders are expecting higher demand from overseas markets due to crunch in supplies from Turkey and Syria, other producing counties. Meantime, India's 2016-17 jeera export is estimated at 120,000 ton-second highest in a decade. However, arrivals have been lower during first 7 days of May compared to April. As per data, about 2,450 tonnes of jeera arrived in May (1-7) compared to 7,997 in April (1-7). On the exportfront, country the exports increase by 29.6% to 1,08,513 tonnes in first 11 month of marketing year 2016/17 as per the data release by Dept of commerce, GOI. Recently, Gujarat Agriculture Department in its 3 rd advanceestimates for 2016/17 has revised down the production estimates to 2.12 lt, down 4% from its 2nd estimates and almost 11% compared to last year production of 2.38 lt. At Unjha market in Mehsana, total arrivals are at7000 quintals, up by 1000 quintals from previous trading day. At Jodhpur(Raj.) market in Jodhpur, estimated market supply was at 1200 quintals, higher by 800 quintals as against previous day. In Unjha, a key spot marketin Gujarat, jeera edged down by -97.4 Rupees to end at 18669.25 Rupees per 100 kg.Technically market is under fresh selling as market has witnessed gain in open interest by 6.25% to settled at 17238 while prices down -155 rupees, now Jeera is getting support at 18310 and below same could see a test of 18205 level, And resistance is now likely to be seen at 18525, a move above could see prices testing 18635.

NCDEX Turmeric Jun 2017 TRADING IDEA

OPEN 5670 SUP-2 5480 Turmeric trading range for the day is 5480-5812.

CLOSE

Turmeric on NCDEX settled down by -1.68% at 5602 due to lower demand from industrial buyers and higher stocks available in the country. Turmeric arrivals in the country are lower in first 7 days of May at 11,528 tonnescompared to 20,703 tonnes during April (1-7), as per the data. The lower arrivals are due to poor realization by the farmers. On the export front, country exported about 97,596 tonnes during April-Feb period, up by 26.6%compared to last year exports of 77,087 tonnes, as per government data. There are expectations of improved demand in coming weeks as prices are lower. At Duggirala market, total arrivals are at 3252 quintals, higher by3250 quintals from previous day’s arrivals. At Sangli market, estimated market supply was at 7000 quintals, lower by 1000 quintals as compared to previous day. At Erode market, total arrivals are at 3000 quintals, down by1000 quintals as against previous day. The arrival of turmeric for sale dropped. At the Erode Turmeric Merchants Association Sales Yard, the finger turmeric sold at Rs. 5,369 to Rs. 6,855 a quintal, root variety sold at Rs.5,255 to Rs. 6,011 a quintal. At the Regulated Marketing Committee, the finger turmeric sold at Rs. 5,393 to Rs. 6,455 a quintal, while the root variety sold at Rs. 5,109 to Rs. 6014 a quintal. In Nizamabad, a major spotmarket in AP, the price ended at 5450 Rupees gained 15.6 Rupees.Technically market is under fresh selling as market has witnessed gain in open interest by 8.5% to settled at 15835 while prices down -96 rupees, nowTurmeric is getting support at 5540 and below same could see a test of 5480 level, And resistance is now likely to be seen at 5706, a move above could see prices testing 5812.


CLOSE 5602 RES-1 5706

% CNG -1.68 RES-2 5812 SELL TURMERIC JUN 2017 @ 5700 SL 5850 TGT 5580-5450.NCDEX

NCDEX accredited warehouses turmeric stocks gained by 223 tonnes to 5120 tonnes.

18410 RES-1 18525 NCDEX accredited warehouses jeera stocks gained by 321 tonnes to 2443 tonnes.

% CNG -0.83 RES-2 18635 SELL JEERA JUN 2017 @ 18550 SL 18680 TGT 18420-18300.NCDEX

HIGH 18530 SUP-1 18310

LOW 18315 P.P. 18420

NCDEX Jeera Jun 2017 TRADING IDEA

OPEN 18510 SUP-2 18205 Jeera trading range for the day is 18205-18635.

DAILY MARKET LEVEL FOR METAL AND ENERGY

Mentha oil on MCX settled down by -2.52% at 912 amid of reports that carryover stocks are huge against the current consumption level, while the stocks is also been sufficient. Short term outlook remain weak as first of allprices are trading below 1000 level mark while the huge carryover stock of mentha oil and also prices trading with weakness leading to a glut with synthetic mint oil garnering larger share of the market. Sentimentalweakness will continious for mentha demand as the key consumption sector (Tobacco products) is witnesing slow down in demand. Prices had been under pressure since March after Yogi Adityanath, the Chief Minister of Uttar Pradesh, has banned paan chewing and gutka or tobacco in all government offices in the state. A better price recovery in mentha oil is expected to boost production of the crop by 12% this year. Stock positions of Mentha inMCX accredited warehouses were around 6443 drums, which is 12 drums less against previous day while in process were 36 drums, which is same in comparison to the previous day. Total production of mentha oil during thecurrent season is 32,000-34,000 tonnes against preliminary estimates of around 40,000 tonnes. Mentha oil spot at Sambhal closed at 1061.40 per 1kg. Spot prices was up by Rs.2.50/-.Technically market is under longliquidation as market has witnessed drop in open interest by -0.8% to settled at 1614 while prices down -23.6 rupees, now Menthaoil is getting support at 901.5 and below same could see a test of 891.1 level, And resistanceis now likely to be seen at 930.8, a move above could see prices testing 949.7.

SELL MENTHAOIL MAY 2017 @ 918.00 SL 928.00 TGT 908.00-898.00.MCX

Downside seen limited on expectations that demand from the pharmaceutical industries might pick-up in coming days.

Menthaoil dropped amid of reports that carryover stocks are huge against the current consumption level, while the stocks are also been sufficient.

Mentha oil spot at Sambhal closed at 1061.40 per 1kg. Spot prices was up by Rs.2.50/-.

145.2143.5142.6

137.4138.3140.0

1738

140.9

0.25


Negative Positive

SPREAD 106 425 39.00 6.00 3.90 0.70 5.70

TREND Positive Positive Positive Positive Negative Negative Negative

0.20

579.3 119.827929 37784 3011 208.3 356.2

OI 6760 20366 16021 8813 17096 3580 37185 1860164.3 572.4 119.3

166.7 585.1 120.2165.7

P. POINT 28037 38037 3053 212.3 358.3

27754 37364 2896 199.1 352.4SUPPORT 27862 37617 2938 203.1 354.5

360.0 169.1 597.8 121.1168.1 592.0 120.7

RESISTANCE28279 38624 3241 226.7 363.8 171.5 610.5 122.028212 38457 3168 221.5 362.1 170.5 604.7 121.628104 38204 3126 217.5

CLOSE 27996 37952 3083 213.4

LEAD

141.7

CLOSE 912.0 RES-1 930.8

% CNG -2.52 RES-2 949.7

358 167.75 591.0 120.6

COMMODITIES GOLD SILVER CRUDE NAT.GAS COPPER ZINC NICKEL ALUMINUM

HIGH 939.3 SUP-1 901.5

LOW 910.0 P.P. 920.4

MCX Menthaoil May 2017 TRADING IDEA

OPEN 936.2 SUP-2 891.1 Menthaoil trading range for the day is 891.1-949.7.

11:30am EUR 0.001 01:30pm EUR 0 02:30pm EUR 0 03:55pm USD 0 06:00pm USD 0.002 -0.0016:00pm USD 245K 238K6:00pm USD 0.002 08:00pm USD 52B 67B10:31pm USD 0 2.94|2.2

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

Bank of Japan Governor Haruhiko Kuroda said he expects to meet the central bank's 2 percentinflation target around next fiscal year if the BOJ continues with its current monetary easing.Speaking in the lower house fiscal and monetary policy committee, Kuroda said that the BOJ wouldadjust policy if needed, but that the central bank had recently upgraded Japan's economic outlookand the global economy was growing stronger. "Japan's output gap is improving rapidly and the labormarket is tight," Kuroda said. "If we continue our current aggressive monetary easing I think inflationwill reach 2 percent around fiscal 2018. However, we have delayed the target, so I want to watchinflation expectations and respond quickly if needed." The BOJ offered its most optimistic assessmentof the economy in nine years at its policy meeting last month, but Kuroda said inflation expectationsremain subdued, suggesting the central bank's quantitative easing will remain in place for some time.The BOJ maintained its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent at the meeting. It also kept intact a loose pledge tobuy government bonds so its holdings increase at an annual pace of 80 trillion yen at the meeting.

NEWS YOU CAN USE

ECB Economic BulletinEU Economic ForecastsFOMC Member Dudley SpeaksPPI m/mUnemployment ClaimsCore PPI m/m

DAY

8

European Central Bank policymakers will be able to provide an updated economic assessment in Junewhen more information and the latest set of macroecnomic projections would be available, ECBExecutive Board member Peter Praet said. "Looking forward to our next monetary policy meeting inJune, we will be able to draw on a more expanded information set than is available today, organisedaround new projections and including an updated assessment of the distribution of risks surroundingthe economic outlook," Praet, who is also ECB's chief economist, said in remarks made in Brussels.The euro area recovery is solid and broadening, Praet noted, echoing ECB President Mario Draghi'swords from the April policy session. However, Praet said the macroeconomic repair is not yetcomplete as the ongoing recovery still depends on a high degree of policy support. Further,underlying price pressures remain subdued and headline inflation remain highly volatile, he reiterated. Praet also pointed out that stronger wage growth was needed to achieve a sustained adjustment inthe path of inflation. But domestic wage pressures may only materialize at a relatively late stage inthe economic expression, he added. "Mirroring still weak domestic price pressures, market-basedinflation expectations have failed to correct in a sustainable manner and continue to suggest only avery slow adjustment towards 2 percent," the policymaker said.

The number of Americans filing for unemployment benefits unexpectedly fell last week, suggestingthe labor market remains strong despite a sharp slowdown in job growth in March. Initial claims forstate unemployment benefits slipped 1,000 to a seasonally adjusted 234,000 for the week ended April8, the Labor Department said on Thursday. That was the third straight weekly decline in claims andleft them not too far from a 44-year low of 227,000 hit in February. Claims have now been below300,000, a threshold associated with a healthy labor market, for 110 straight weeks. That is thelongest such stretch since 1970, when the labor market was smaller. The labor market is near fullemployment, with the unemployment rate close to a 10-year low of 4.5 percent. Claims tend to bevolatile around this time of the year because of the different timings of spring and Easter holidays.The four-week moving average of claims, considered a better measure of labor market trends as itirons out week-to-week volatility, fell 3,000 to 247,250 last week. The low level of claims suggeststhat a sharp slowdown in job growth in March was an aberration and that the labor market continuesto tighten.

Wheat procurement by state and central agencies surpassed last year’s total purchases as on dateand totaled around 24.66 million tonnes, as against 20.84 million tonnes during the same period lastyear. In the 2016-17 crop marketing year, the central government purchased 22.9 million tonnes ofwheat for the central pool, almost 22 per cent less than the targeted procurement of 28 milliontonnes. For 2017-18, the Centre has fixed a target of purchasing 33 million tonnes of wheat fromfarmers, almost 44 per cent more than the actual procurement of last year, mainly on the hopes of abumper production. The Centre estimates wheat production in the 2017-18 crop year to be at an all-time high of around 98 million tonnes, on the back of record sowing and favourable weatherconditions. However, according to trade sources, with arrivals reportedly showing signs of tapering offin Madhya Pradesh and Punjab since the past one week, doubts have started creeping in as towhether the Centre would be able to reach the target of 33 million. In Madhya Pradesh, traders saidthat despite a 30 per cent increase in wheat production this year, prices haven’t shown any decliningtrend. Wheat this year in the state is reportedly selling at around Rs 2,000-3,500 per quintal in someplaces, while the poorest quality is commanding around Rs 1,700 per quintal.

Cotton acreage is likely to rise by as much as 10-15% in the ensuing cotton year commencingSeptember as farmers did not get expected prices from pulses, particularly tur, said a senior official atCotton Corporation of India (CCI). India's 2016-17 cotton acreage declined to 10.27 million hectarefrom 11.64 million hectare, according to agriculture ministry data. Last year, government announcedhefty hike in minimum support price (MSP) and also announced bonus and as a result many farmersacross the country switched over to pulses from cotton. "This year the situation is different. Farmersare disillusioned on growing more pulses as they did not get the expected prices though governmentmade arrangements of buying," the official said. "Cotton farmers got very good price this year."Cotton sowing is under progress in Rajasthan and Punjab. India's 2016-17 cotton output stood at35.1 million bales up from 33.8 million bales a year ago on higher yield though acreage was down.During 2016-17, India produced 4.26 million tons of tur and prices fell much below the governmentbuying rate of 5,050 per quintal.

Date : Thursday, May 11, 2017 URL : www.achiieversequitiesltd.com Page No -

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