Achiievers Equities' daily commodity report brings to you market round up and daily trading ideas for MCX, NCDEX futures and options. Get technical analysis on gold, silver,Crudeoil and more.

1. Daily Commodity Report as on Tuesday, December 16, 2014
Date : Tuesday, December 16, 2014 URL : www.achiieversequitiesltd.com Page No - 1

2. Open High Low Close % Cng OI
Precious Metals Market Round up
Gold 27155 27500 27036 27320 0.41 9148
Silver 38583 38889 38198 38315 -1.01 8569
Base Metal
Alum. 120.75 122.15 120.75 121.65 0.83 3544
Copper 410.5 414.9 409.3 409.95 -0.16 10545
Lead 124.65 125.55 124.5 124.7 0.16 2075
Nickel 1042.5 1063.6 1042.5 1046.5 0.55 2950
Zinc 137.85 138.7 136.8 138.45 1.21 3540
Gold gained as rupee weakness supported despite of a stronger dollar ahead of the key Fed meeting later in the
week.
Silver prices fell with expectations growing the Fed will move to hike interest rates next year ahead of a meeting.
Crude dropped below $56 and near a 5-year low after the UAE oil minister said there was no need for an emergency
OPEC meeting.
Energy Copper dropped as concerns grew that economic weakness elsewhere could soon hit the United States.
Crude 3634 3699 3562 3598 -1.10 21366
Nat. Gas 239 246.3 236.2 238.4 0.68 9630
Zinc prices seen supported on expectations that China could move to shore up its economy and on tightening supply. Pulses
Chana 27155 27500 27036 27320 0.41 9148
Spices shortages.
Cardamom 870 891.3 870 887.8 2.56 1623
Turmeric 7778 8010 7778 7978 3.58 19875
Jeera 13305 13385 13125 13195 -0.49 8412
Nickel seen supported on concerns that typhoon season in the Philippines could force a mine closure and lead to
Ref soyoil prices gained as investors worried about government's plan to hike import duty on edible oil. Cereals
Wheat 1658 1669 1658 1666 0.36 1780
Mentha oil prices ended with gains driven by improved demand from consuming industries in the spot market. Oil and Oilseeds & Others
Soyabean 3325 3335 3310 3317 0.00 114900
Ref. Oil 588 593.45 585 593.1 1.15 91435
CPO 417.5 422.8 417 421.7 0.86 2715
RMSeed 4046 4055 4007 4032 -0.35 23690
Menthol 712.9 729 712.9 724 1.77 6989
Cotton 16050 16180 15900 15920 -0.50 3949
USDINR 62.70 63.16 62.64 63.12 1.02 1313827
EURINR 77.96 78.46 77.90 78.41 0.90 48320
GBPINR 98.42 99.16 98.38 98.86 0.72 28767
JPYINR 52.83 53.31 52.79 53.25 0.79 20196
Natural gas dropped from the earlier rise as investors booked profit after prices rallied on cooler changes in near-term
weather patterns.
Soyabean settled flat despite of robust demand for United States soybean in international market and supply
concern in the domestic market.
Chana prices ended with gains due to slow pace of sowing operations and concerns about lower production.
Turmeric prices ended with gains amid rising domestic as well as export demand. Currency
Jeera prices ended with losses as improved weather conditions in major producing areas of western India pressured
market sentiment.
Date : Tuesday, December 16, 2014 URL : www.achiieversequitiesltd.com Page No - 2

3. MCX Gold Feb 2015 TRADING IDEA
OPEN 27155 SUP-2 26821 Gold trading range for the day is 26821-27749.
HIGH 27500 SUP-1 27070 Gold gained as rupee weakness supported despite of a stronger dollar ahead of the key
Fed meeting later in the week.
LOW 27036 P.P. 27285 U.S. manufacturing output recorded its largest increase in nine months in November
CLOSE 27320 RES-1 27534 SPDR gold trust holdings dropped by 2.39 tonnes i.e. 0.33% to 723.36 tonnes from
725.75 tonnes.
% CNG 0.41 RES-2 27749 SELL GOLD FEB @ 27400 SL 27650 TGT 27180-27000-26880.MCX
Gold settled up 0.41% at 27320 as support seen from the Rupee weakness while Comex Gold dropped following a sustained slump in oil prices. Also prices dropped after upbeat U.S. data and expectations for a bullish take
on the economy from the Federal Reserve this week boosted demand for the dollar, which tends to trade inversely with the precious metal. The Federal Reserve reported earlier that U.S. industrial production rose by 1.3% in
November, beating expectations for a gain of 0.7%. Industrial production for October was revised up to 0.1% from a previously reported decline of 0.1%. The report added that the capacity utilization rate, a measure of how
full firms are using their resources, rose to 80.1% last month from an upwardly revised 79.3% in October, beating market calls for an unchanged reading. The data boosted demand for the dollar on expectations that the
Federal Reserve will tighten policy next year. The Fed is due to release its latest statement on interest rates and monetary policy on Wednesday, and expectations the statement will contain language describing a more robust
U.S. economy spurred the dollar to strengthen, which sent gold prices dropping on Monday. While Holdings of SPDR Gold Trust, the world's largest gold-backed ETF, remained unchanged at 725.75 tons on Monday, from its
previous close on Friday. From India Gold imports surged by over six-fold to $5.61 billion in November primarily due to a spike in demand during the marriage and festival season, raising fresh concerns of widening current
account deficit. Technically market is getting support at 27070 and below same could see a test of 26821 level, And resistance is now likely to be seen at 27534, a move above could see prices testing 27749.
MCX Silver Mar 2015 TRADING IDEA
OPEN 38583 SUP-2 37776 Silver trading range for the day is 37776-39158.
HIGH 38889 SUP-1 38045 Silver prices fell with expectations growing the Fed will move to hike interest rates next
year ahead of a meeting.
LOW 38198 P.P. 38467 Bullion trading under pressure after upbeat U.S. data and expectations for a bullish take
on the economy.
CLOSE 38315 RES-1 38736 Investors also continued to mull over the global economic scenario with signs of slowdown
in China and a sluggish eurozone economy.
% CNG -1.01 RES-2 39158 SELL SILVER MAR @ 38600 SL 39000 TGT 38250-37850-37560.MCX
Silver settled down -1.01% at 38315 fell with expectations growing the Federal Reserve will move to hike interest rates next year ahead of a meeting on Wednesday that will mark the final comments on the economic outlook
for 2014. Bullion dropped on Monday after upbeat U.S. data and expectations for a bullish take on the economy from the Federal Reserve this week boosted demand for the dollar, which tends to trade inversely with the
precious metal. The Federal Reserve reported earlier that U.S. industrial production rose by 1.3% in November, beating expectations for a gain of 0.7%. Industrial production for October was revised up to 0.1% from a
previously reported decline of 0.1%. The report added that the capacity utilization rate, a measure of how full firms are using their resources, rose to 80.1% last month from an upwardly revised 79.3% in October, beating
market calls for an unchanged reading. The data boosted demand for the dollar on expectations that the Federal Reserve will tighten policy next year. The Federal Reserve is due to release its latest statement on interest
rates and monetary policy on Wednesday, and expectations the statement will contain language describing a more robust U.S. economy spurred the dollar to strengthen, which sent gold prices dropping on Monday.
Elsewhere, a soft regional factory gauge failed to seriously cushion gold's losses. The New York Federal Reserve’s index of manufacturing conditions fell unexpectedly in December, dropping into negative territory for the first
time in almost two years, according to data released on Monday. Technically market is getting support at 38045 and below same could see a test of 37776 level, And resistance is now likely to be seen at 38736, a move
above could see prices testing 39158.
Date : Tuesday, December 16, 2014 URL : www.achiieversequitiesltd.com Page No - 3

4. MCX Crudeoil Dec 2014 TRADING IDEA
OPEN 3634 SUP-2 3483 Crudeoil trading range for the day is 3483-3757.
HIGH 3699 SUP-1 3541 Crude dropped below $56 and near a 5-year low after the UAE oil minister said there was
no need for an emergency OPEC meeting.
LOW 3562 P.P. 3620 UAE said OPEC won’t cut output even if crude oil prices fall to USD40/bbl.
CLOSE 3598 RES-1 3678 IEA slashed its global oil demand growth forecast for 2015 to 900kbpd, with the OPEC
having cut its oil demand forecast a few days earlier.
% CNG -1.10 RES-2 3757 SELL CRUDE OIL DEC 50% @ 3694 AND BAL 50% @ 3725 SL ABV 3770 TGT 3628-3570-
3524. MCX (STBT)
Crudeoil settled down -1.1% at 3598 tracking weakness with Nymex Crude oil which plummeted over 3 percent to close at $55.91 a barrel on Monday, as oversupply concerns and worries over global demand continued to
weigh down oil. The OPEC is in no hurry to cut oil production even as oil prices continue their epic collapse, a top official from member nation UAE said. The UAE, along with Saudi Arabia among other OPEC nations appear
unfazed over an epic drop in prices that has left crude oil at its cheapest since the Great Recession. UAE energy ministers Suhail Al-Mazrouei downplayed the suggestion the OPEC will have an emergency meeting to discuss
whether to keep output unchanged. In fact, Al-Mazrouei said OPEC should wait another few months before even discussing an unscheduled meeting. Last week, the IEA slashed its global oil demand growth forecast for 2015
to 900,000 barrels per day, down 230,000 barrels per day from a previous forecast, with the OPEC having cut its oil demand forecast a few days earlier. A likely drop in crude oil output is due amid reports of clashes in major
Libyan ports Es Sider and Ras Lanuf, and a strike by Nigerian oil workers. Meanwhile, traders look ahead to the outcome of the U.S. Fed's monetary policy decision, due on Wednesday. Investors continued to remain focused
on the U.S. Federal Reserve's monetary policy, with markets expecting some clues as to the timing of interest rate hikes at the conclusion of its monetary policy meet later this week. Technically market is under long
liquidation and getting support at 3541 and below same could see a test of 3483 level, And resistance is now likely to be seen at 3678, a move above could see prices testing 3757.
MCX Copper Feb 2015 TRADING IDEA
OPEN 410.5 SUP-2 405.8 Copper trading range for the day is 405.8-417.
HIGH 414.9 SUP-1 407.9 Copper dropped as concerns grew that economic weakness elsewhere could soon hit the
United States.
LOW 409.3 P.P. 411.4 Robust U.S. manufacturing data sparked more speculation that Fed meeting could result in
signaling it will raise interest rates earlier
CLOSE 410.0 RES-1 413.5 Data showed activity in the U.S. manufacturing sector recorded its largest increase in nine
months in November, pointing to underlying strength in economy.
% CNG -0.16 RES-2 417.0 SELL COPPER FEB @ 412 SL 416 TGT 408.50-404.50.MCX
Copper settled down -0.16% at 409.95 fell the most in two weeks as a gauge of confidence among homebuilders in December trailed market estimates, while industrial output rose the most since May 2010 in the U.S., the
world’s second-biggest consumer of the metal. Base metals finished mostly lower on demand concerns after a measure of sentiment among US homebuilders missed forecasts in December. LME copper inventories have lifted
slowly since mid-August, when stocks touched a six-year low. Copper stocks at the Shanghai Future Exchange have trended lower over the last month but are above the lows recorded in mid-June. Chinese bonded warehouse
copper stocks have decreased from 850kt in April to 570kt in October. Demand for copper-financing deals help drive Chinese bonded warehouse copper holdings. These financing deals use cheap offshore funds to import
copper which is then used as collateral for lending into property and other markets. The fall in copper stocks held at Chinese bonded warehouses over the last few months indicates growing scrutiny over commodity financing
after a Chinese company used false warehouse receipts to collateralise multiple loans from banks at China’s Qingdao port. This was also a major factor in the fall in China’s copper imports for the better part of this year. The
fall in growth in China’s economy, industrial production, fixed asset investment and PMI through this year will likely lead to weaker underlying copper demand and prices – particularly if China’s property sector continues to
retrench. However, the rising scrutiny over commodity financing is the key near-term risk we see to China’s copper demand profile. Technically market is getting support at 407.9 and below same could see a test of 405.8
level, And resistance is now likely to be seen at 413.5, a move above could see prices testing 417.
Date : Tuesday, December 16, 2014 URL : www.achiieversequitiesltd.com Page No - 4

5. MCX Zinc Dec 2014 TRADING IDEA
OPEN 137.9 SUP-2 136.1 Zinc trading range for the day is 136.1-139.9.
HIGH 138.7 SUP-1 137.3 Zinc prices seen supported on expectations that China could move to shore up its
economy and on tightening supply.
LOW 136.8 P.P. 138.0 China's economic growth could slow to 7.1 percent in 2015 from an expected 7.4 percent
this year, held back by a sagging property sector, the central bank said.
CLOSE 138.5 RES-1 139.2 Zinc daily stocks at Shanghai exchange came up by 252 tonnes.
% CNG 1.21 RES-2 139.9 SELL ZINC DEC BELOW 138.10 SL 139.50 TGT 137.40-136.60-135.50.MCX
Zinc settled up 1.21% at 138.45 as US economic data released overnight were positive, strengthening expectations for hawkish tone by the US Fed during its December policy meeting. While Higher side will be capped due to
tumbling crude oil prices and mixed economic indicators, and closed at USD 2,174.25/mt, down USD 18/mt or 0.82%. Crude continued its slide on Monday, with WTI crude oil down 3.29% at a new 5-year low of USD
55.91/bbl. The tumble in crude buffeted emerging markets, leading to a 11% depreciation in Russia’s rubble. Russia’s central bank responded by raising benchmark interest rate from 10.5% to 17% to curb the depreciation
in its currency and inflation risks. The rout in crude is also expected to weigh on the euro zone’s inflation in the coming few months, which will pose greater deflationary risks and depress commodities markets. The US
Federal Reserve reported Monday that seasonally adjusted industrial output grew 1.3% MoM in November, the biggest monthly increase since May 2010. Output in the manufacturing sector rose 1.1% YoY for the same
period, while the capacity utilization rate climbed to 80.1%, above 79.4% expected. This encouraging economic numbers suggest that the US economy is strengthening. Investors continued to remain focused on the U.S.
Federal Reserve's monetary policy, with markets expecting some clues as to the timing of interest rate hikes at the conclusion of its monetary policy meet later this week. Technically market is under fresh buying as market
has witnessed gain in open interest by 23.52% to settled at 3540 while prices up 1.65 rupee, now Zinc is getting support at 137.3 and below same could see a test of 136.1 level, And resistance is now likely to be seen at
139.2, a move above could see prices testing 139.9.
MCX Nickel Dec 2014 TRADING IDEA
OPEN 1042.5 SUP-2 1029.8 Nickel trading range for the day is 1029.8-1072.
HIGH 1063.6 SUP-1 1038.2 Nickel seen supported on concerns that typhoon season in the Philippines could force a
mine closure and lead to shortages.
LOW 1042.5 P.P. 1050.9 Support also seen on expectations that China's stockpiles of nickel ore will run out early to
mid-next year, after Indonesia banned exports
CLOSE 1046.5 RES-1 1059.3 Activity in China's factory sector shrank in December for the first time in seven months as
new orders declined, a preliminary private survey showed
% CNG 0.55 RES-2 1072.0 BUY NICKEL DEC @ 1045-1049 SL BELOW 1034 TGT 1058-1070-1084. MCX (BTST)
Nickel settled up 0.55% at 1046.50 maintained upward track, tracking gains from LME Nickel which touched as high as USD 16,860/mt. The US Federal Reserve reported Monday that seasonally adjusted industrial output
grew 1.3% MoM in November, the biggest monthly increase since May 2010. Output in the manufacturing sector rose 1.1% YoY for the same period, while the capacity utilization rate climbed to 80.1%, above 79.4%
expected. This encouraging economic numbers suggest that the US economy is strengthening. The National Association of Home Builders/Wells Fargo builder sentiment index published Monday fell this month to 57, still close
to a 9-year high. Readings above 50 indicate more builders view sales conditions as good, rather than poor. Meanwhile, the Fed was rumored to change its forward guidance to prepare for an interest rate hike next year. As a
result, the US dollar index rose 0.18% to finish at 88.48, piling considerable pressure on base metals. HSBC’s China flash manufacturing PMI for December is expected to come in downbeat on Tuesday against a continuing
slide in crude and depressed commodities prices. Market participants should remain cautious before the release of the Fed’s minutes. Technically market is under short covering as market has witnessed drop in open interest
by -18.12% to settled at 2950 while prices up 5.7 rupee, now Nickel is getting support at 1038.2 and below same could see a test of 1029.8 level, And resistance is now likely to be seen at 1059.3, a move above could see
prices testing 1072.
Date : Tuesday, December 16, 2014 URL : www.achiieversequitiesltd.com Page No - 5

6. NCDEX Chana Jan 2015 TRADING IDEA
OPEN 3080 SUP-2 3024 Chana trading range for the day is 3024-3218.
HIGH 3170 SUP-1 3072 Chana prices ended with gains due to slow pace of sowing operations and concerns about
lower production.
LOW 3073 P.P. 3121 India 2014-15 rabi gram sowing until Nov 21 at 5.46 million hectares as compared to 6.47
million hectare previous year.
CLOSE 3121 RES-1 3169 NCDEX accredited warehouses chana stocks gained by 525 tonnes to 38780 tonnes.
% CNG 0.87 RES-2 3218 BUY CHANA JAN @ 3070-3080 SL BELOW 3000 TGT 3122-3164-3198. NCDEX (1 WEEK)
Chana settled up by 0.87% at 3121 due to slow pace of sowing operations and concerns about lower production. India 2014-15 rabi gram sowing until Nov 21 at 5.46 million hectares as compared to 6.47 million hectare
previous year. Area covered under chana is reported to be 4.09 million hectare as compared to 5.30 million hectare last year which is down 22.7% year on year. Lower prices on the back of record output and comfortable
supplies may force farmers to switch over to other remunerative crops such as mustard and coriander which could yield better returns. Due to this, the government has set a target of 9.3 million tons for chana output for
2014-15 rabi season, down 5.87% compared to previous year. The 4th government advance estimates pegged total pulses output for 2013-14 at 19.27 million ton, up from 18.34 million ton earlier. Agriculture ministry has
estimated chana record output at 9.88 million ton up from 8.83 million ton a year ago. According to the fourth advanced estimates released by the Ministry of Agriculture, chana output in 2013-14 is estimated at 9.88 million
tonnes, up 11.9 per cent compared with 8.83 million tonnes the previous year. The Government had initially set a target of 8.66 million tonnes. Increased acreage and favourable climatic conditions in the major producing
States such as Madhya Pradesh, Maharashtra, Rajasthan and Karnataka also helped to push up the yield. Technically market is under short covering as market has witnessed drop in open interest by -9.04% to settled at
96100 while prices up 27 rupee, now Chana is getting support at 3072 and below same could see a test of 3024 level, And resistance is now likely to be seen at 3169, a move above could see prices testing 3218.
NCDEX Turmeric Apr 2015 TRADING IDEA
OPEN 7778 SUP-2 7690 Turmeric trading range for the day is 7690-8154.
HIGH 8010 SUP-1 7834 Turmeric prices ended with gains amid rising domestic as well as export demand.
LOW 7778 P.P. 7922 Besides, tight stocks position in the physical market on restricted arrivals from producing
belts too supported prices.
CLOSE 7978 RES-1 8066 NCDEX accredited warehouses turmeric stocks dropped by 20 tonnes to 2190 tonnes.
% CNG 3.58 RES-2 8154 BUY TURMERIC APR @ 7850 SL 7760 TGT 7940-8020-8150.NCDEX
Turmeric settled up by 3.58% at 7978 amid rising domestic as well as export demand. Besides, tight stocks position in the physical market on restricted arrivals from producing belts too supported the upside. As per the
market sources, the total production of turmeric in the current year is expected to be around 35-37 lakh bags against 52 lakh bags of the last year. This is mainly due to weak production forecast in major producing states
such as Andhra Pradesh and Tamilnadu. Sources mentioned that weak rainfall so far in the major growing regions of turmeric in the state such as Nizamabad and Warangal will reduce the crop to 17-18 lakh bags from 22
lakh bags projected in the last year. While the total crop size of turmeric in Karnataka is estimated lower at 5 lakh bags from 7 lakhs bags in 2013-14 due to weak rainfall so far in the current year and poor price realization
from turmeric crop. At Erode market estimated market supply was at 4000 quintals, down by 8000 quintals as compared to previous day. At Nizamabad market estimated market supply was at 300 quintals, higher by 50
quintals from previous trading day. After several months the price crossed Rs. 7,000 a quintal in all the markets. In Nizamabad, a major spot market in AP, the price ended at 6573.7 rupees gained 122.5 rupees.Technically
market is under fresh buying as market has witnessed gain in open interest by 11.97% to settled at 19875 while prices up 276 rupee, now Turmeric is getting support at 7834 and below same could see a test of 7690 level,
And resistance is now likely to be seen at 8066, a move above could see prices testing 8154.
Date : Tuesday, December 16, 2014 URL : www.achiieversequitiesltd.com Page No - 6

7. MCX Menthaoil Dec 2014 TRADING IDEA
OPEN 712.9 SUP-2 705.9 Menthaoil trading range for the day is 705.9-738.1.
HIGH 729.0 SUP-1 715.0 Menthaoil spot is at 820/-. Spot market is up by Rs.10/-.
LOW 712.9 P.P. 722.0 Mentha oil prices ended with gains driven by improved demand from consuming industries
in the spot market.
CLOSE 724.0 RES-1 731.1 Besides, tight stock positions in the physical market following restricted arrivals from
producing region too fuelled the uptrend.
% CNG 1.77 RES-2 738.1 BUY MENTHA OIL DEC @ 720-723.50 SL BELOW 708 TGT 730-738-746. MCX (BTST)
Mentha oil settled up by 1.77% at 724 driven by improved demand from consuming industries in the spot market. Besides, tight stock positions in the physical market following restricted arrivals from producing region too
fuelled the uptrend. Mentha oil production is expected to fall this year by 30 per cent to 40,000 tonnes from 55,000 tonnes a year ago, with acreage under the commodity declining as farmers sentiment were dampened due
to lower prices. Mentha oil arrivals to the spot market, especially from the Chandausi in Uttar Pradesh, have increased substantially. The resulting fall in prices was capped due to lower production of the commodity this
season. Acreage is expected to fall by 20 per cent this year, to 17,500 hectare on the back of a large carry-over stock from last year, which also had an impact on prices. However, export demand for the spice is expected to
go up in the coming weeks. Last year, the total production of mentha oil stood at 55,000 tonnes, out of which 40 per cent of the crop is carry forwarded for the current year. Mentha oil rose to an all-time record of an
average of Rs 2,570 a kg in March 2012, after a massive shortage in availability was reported despite huge global demand. Mint product exports from April to June stood at 4,350 tonnes compared to 3337 tonnes last year, a
rise of 30 per cent, according to data from Spices Board of India. Technically market is under short covering as market has witnessed drop in open interest by -4.13% to settled at 6989, now Menthaoil is getting support at
715 and below same could see a test of 705.9 level, And resistance is now likely to be seen at 731.1, a move above could see prices testing 738.1.
COMMODITIES GOLD SILVER CRUDE NAT.GAS COPPER ZINC NICKEL ALUMINUM LEAD
124.7
126.3
125.9
125.3
124.9
124.3
123.9
123.3
2075
DAILY MARKET LEVEL FOR METAL AND ENERGY
CLOSE 27320 38315 3598 238.4 409.95 138.45 1046.5 121.65
27998 39427 3815 254.5 419.1 141.1 1080.4 123.7
27749 39158 3757 250.4 417.0 139.9 1072.0 122.9
27534 38736 3678 244.4
413.5 139.2 1059.3 122.3
138.0 1050.9 121.5
137.3 1038.2 120.9
136.1
1029.8 120.1
135.4 1017.1 119.5
RESISTANCE
P. POINT 27285 38467 3620 240.3 411.4
SUPPORT 26821 37776 3483 230.2 405.8
26606 37354 3404 224.2 402.3
OI 9148 8569 21366 9630 10545 3540 2950 3544
Positive Positive
1
27070 38045 3541 234.3 407.9
TREND Positive Positive Positive Positive Positive Positive Positive
SPREAD 121 655 53.00 2.50 3.70 0.65 6.00
0.80
Date : Tuesday, December 16, 2014 URL : www.achiieversequitiesltd.com Page No - 7

8. PREV
NEWS YOU CAN USE DAY TIME ZONE ECONOMICAL DATA EXP
French Flash Manufacturing PMI
French Flash Services PMI
German Flash Manufacturing PMI
German Flash Services PMI
Flash Manufacturing PMI
Flash Services PMI
Italian Trade Balance
1:30pm EUR 48.7 48.4
1:30pm EUR 48.6 48.8
2:00pm EUR 50.4 49.5
2:00pm EUR 52.6 52.1
2:30pm EUR 50.5 50.1
2:30pm EUR 51.6 51.3
2:30pm EUR 1.97B 2.01B
3:30pm EUR 19.8 11.5
3:30pm EUR 20.1 11
3:30pm EUR 18.2B 17.7B
7:00pm USD 1.06M 1.08M
7:00pm USD 1.04M 1.01M
8:15pm USD 56.1 54.8
8
Oil producers group OPEC can ride out a slump in oil prices and keep output unchanged, its head said
on Sunday, arguing market weakness did not reflect supply and demand fundamentals and could
have been driven by speculators. Speaking at a conference in Dubai, Abdullah al-Badri defended
November's decision by the Organization of the Petroleum Exporting Countries to not cut its output
target of 30 million barrels per day (bdp) in the face of a drop in crude prices to multi-year lows. "We
agreed that it is important to continue with production (at current levels) for the ... coming period.
This decision was made by consensus by all ministers," he said. "The decision has been made. Things
will be left as is." OPEC policy remains a crucial factor in global economic prospects after Brent crude
settled at below $62 a barrel on Friday, following a steep descent which hammered energy stocks and
currencies exposed to crude exports. The move left benchmark grades nearly half levels set earlier
this year and doused appetite for riskier assets, pushing investors into the safety of government debt
despite strong U.S. consumer sentiment. In a further reaction to slumping oil, stock markets across
the Middle East fell sharply on Sunday, adding to a plunge in Gulf equity markets which has wiped out
roughly $150 billion of value since the end of October.
An index measuring business sentiment in Japan was down slightly in the fourth quarter of 2014, the
Bank of Japan revealed on Monday in its quarterly Tankan business survey. The large manufacturers'
index came in with a score of 12, missing forecasts for 13, which would have been unchanged from
the third quarter. The outlook score is a little more ominous, suggesting that the index will fall to 9 in
the first quarter of next year - shy of forecasts for 13, which also would have been unchanged. The
survey is closely watched by the Bank of Japan for formulating policies. Large industry capex is now
seen higher by 8.9 percent, topping expectations for 8.1 percent and up from 8.6 percent in the three
months prior. The large non-manufacturers index was at 16, beating expectations for 14 and up from
13 in Q3. The outlook score was 15 versus forecasts for 13 - which would have been unchanged. The
medium-sized manufactures index saw a score of 7, up from 5 in the third quarter but with an outlook
of 1 for Q1. Medium-sized non-manufacturers also came in at 7, unchanged from the previous three
months but with an outlook of 4.
German ZEW Economic Sentiment
ZEW Economic Sentiment
Trade Balance
Building Permits
Housing Starts
Flash Manufacturing PMI
Tue
Consumer sentiment in the U.S. has improved by much more than expected in the month of
December, according to a report released by Thomson Reuters and the University of Michigan. The
report said the preliminary reading on the consumer sentiment index for December came in at 93.8
compared to the final November reading of 88.8. Economists had expected the index to show a more
modest increase to 89.5. With the much bigger than expected increase, the consumer sentiment
index reached its highest level since January of 2007. Paul Dales, Senior U.S. Economist at Capital
Economics, said, "Confidence is clearly being boosted by record high equity prices, the breakneck
pace of job growth and the plunge in gasoline prices." "At face value, this survey is consistent with
annualized real consumption growth accelerating from 2.2% in the third quarter to around 5.0% in
the fourth," he added. "We currently think that 3.0% is more plausible, but it is clear in which
direction the risks lie." The jump by the headline index reflected a notable increase by the survey's
gauge of consumer expectations, which surged up to a nearly eight-year high of 86.1 in December
from 79.9 in November.
Rabi sowing continues to be a cause for concern with area under most crops being lower compared
with the corresponding period a year ago. Prospects for a late pick-up look tough with the storage
level in the major 85 reservoirs dropping to lower than the last 10 year’s average and the North-East
Monsoon being deficient.Data from the Ministry of Agriculture on Friday showed that overall coverage
of crops is also lower at 470.44 lakh hectares (lh) against 503.66 lh. The area under wheat is down to
241.91 lh against 251.32 lh a year ago. Poor soil moisture, owing to 12 per cent deficient South-East
Monsoon during June-September and late start to the cane crushing season in Uttar Pradesh resulting
in sugarcane harvest being delayed have affected wheat coverage. In Uttar Pradesh, sugar mills
began crushing late demanding that the State Government cane price be linked to sugar rates as
suggested by the C Rangarajan Committee. Coverage of coarse cereals is down at 46.22 lh against
50.62 lh, while chana, the main rabi pulses crop, is also seeing a drop in area. It is down by over 14
lh, despite prices showing a tendency to rise over the last couple of weeks. Overall pulses coverage
too is lower by some 13 lh, a trend that was witnessed during kharif crop too since growers shifted to
cash crops such as cotton. Oilseed crushing this oil year (November to October) is expected to be
lower than last year by 15-20 per cent on the back of higher imports of edible oil and lower arrivals of
Last year, 33 million tonnes of oilseeds were crushed domestically. The disparity in crushing currently
stands at $40 to $50 a tonne, which is not viable for a crusher. Also, the margins have decreased and
it has been negligible for the past two years, which has had a negative impact. Edible oil imports have
been constantly hitting new highs with domestic consumption rising coupled with cheaper
international rates of edible oil. Crude palm oil is currently being imported at $650 a tonne and crude
soybean oil at $840 a tonne. Indian prices of RBD palm oil price on Kandla port is currently at Rs
55,000 a tonne. Last oil year, edible oil imports stood at 11.8 million tonnes, which was record
imports and this year it is expected to go up to 12.3 million tonnes, which will also be at an all-time
high. Domestic consumption of edible oil is rising two-to-three per cent every year. The sector has
asked the government raise the import duty on crude palm oil to make the refining and fats business
viable. Owing to a five per cent difference between crude and refined oil, the edible oil business has
suffered immensely. Since the edible oil crushing and refining business offers disparity, large players
are focusing on value-added segment, where business potential is quite high. Solvent Extractors’
Association of India (SEA) has asked the government to raise import duty on crude vegetable oil to
five per cent from 2 5 per cent currently and refined oil to 15 per cent from 7 5 per cent
Date : Tuesday, December 16, 2014 URL : www.achiieversequitiesltd.com Page No -

9. Date : Tuesday, December 16, 2014 URL : www.achiieversequitiesltd.com Page No - 9