Turkish Lira remains weak, Crude oil trades higher & Upcoming India-US talks

25th Aug – 31st Aug

1. SEBI is working to facilitate MF & PMS into commodities

August 31, 2018

SEBI may allow Mutual Fund and PMS into commodities sector through commodities exchanges. MCX and custodian banks have submitted a report to SEBI on how issues pertaining to MF participation can be facilitated and expedited.

Source: Economic Times.

2. International Energy Agency forecasted Crude to remain above $75 per barrel

August 31, 2018

Emerging markets may feel more pressure of rising inflation as the International Energy Agency (known as IEA) forecasted Crude to remain above $75 per barrel. IEA believes tight supply due to low production in later half of the year may push Crude prices higher.

Source: Business Standard

3. Indian Rice export dropped as Rupee declined

August 31, 2018

The weakening Indian rupee is turning negative to export but orders from Philippines are keeping hopes alive. Indian parboiled rice rate dropped by 5% to $386-$390 per ton this week. Indian rupee fell more than 10% against US dollar this year so far.

Source: Reuters

4. India-US 2+2 Talk on September 6th

August 30, 2018

India and the US are scheduled for a 2+2 dialogue on September 6 for Iran Oil imports. India pretended to stop oil imports from Iran but asked refiners for a drastic reduction from November. During the previous round of sanctions, India continued to buy from Iran which resulted in obstructed insurance and banking channels. US sanctions on Iran is set to re-impose from November 4. China and India are seeking waiver from US as they cannot reduce imports to “zero” as directed by the US.

Source: Economic Times

5. Reserve Bank of India purchased 8 tonnes of Gold

August 30, 2018

RBI has been reported to increase its gold reserves from 558 tonnes in June 2017 to 566 tonnes of gold as of June 2018. India’s gold reserves therefore increased by 8 tonnes. Out of 566 tonnes of Gold, 292 tonnes is held as backing for Notes issues and the balance 274 is treated as an asset of the banking department.

Source: Business Line

6. Lira drops after Moody’s comments

August 30, 2018

The Turkish Lira, which was holding earlier losses and remained out of focus for some time, is back with fresh sell signal from Moody’s. The rating agency warned investors that the worst is yet to come for the country. Ratings agency Moody's on Tuesday downgraded the credit rating of 20 Turkish financial institutions.

Source: Business Insider

7. Crude Oil trades higher on inventory decline

August 30, 2018

Crude oil jumped and closed highest in months on dwindling stock at US. The Energy Information Administration reported that nationwide crude inventories fell 2.57 million barrels last week, larger than the 1.49 million-barrel drop forecasted by analysts.

Source: Bloomberg

8. Cotton crop output projected to decline by 4%

August 29, 2018

Cotton Association of India expects production decline by 4% this year (about 350 Lakh bales) due to rain deficit. Major Cotton growing States are facing issues, including deficit rainfall, and shifting away from cotton to other crops, resulting in a decline in acreage and the outbreak of the pink bollworm infestation.

Source: Business Line