COMMODITY MARKET: NATURAL GAS FUTURES RISE ABOVE 2% CRUDE OIL PRICES FELL ABOVE 2% ON TUESDAY

Domestic commodity market traded negatively on Tuesday with Base Metals and bullion counters were trading with weak note while Energy remained mixed. Commodities Like, Natural Gas, CPO, Cotton were traded with gains. At the same time, Mentha oil, Copper, Silver, Nickel Aluminium were traded on negatively.

Commodities Buzz:

Natural gas futures traded 2.35% higher at Rs 204.40 per mmBtu as participants increased their long positions as seen by the open interest. The price traded at day’s high after a gap-up opening, supported by the bullish EIA report last week, cold weather and increasing LNG demand.

CPO, Cotton were trading higher while Mentha oil fell 1.40% to Rs. 993 per kg as speculators indulged in profit-booking amid subdued spot demand.

Bullion Prices have shown a bearish line. Gold future erased morning gains and traded 0.42% lower at Rs 50205 per 10 gram, reflecting the weakness in global price of the precious metal. Gold saw some selling pressure after trading higher in the early morning session.

Oil prices dropped above 2 per cent on today, adding to steep losses from the previous session, as a new strain of the novel coronavirus in the United Kingdom triggered concerns over fuel demand recovery. On MCX, Crude oil was trading 0.62% lower at Rs. 3507.00 per barrel.

On the Multi Commodity Exchange, aluminium for delivery in December contracts eased by 1.07, per cent, to Rs 162.30 per kg. At the same time , Zinc prices fell by 0.93 per cent to Rs 219.30 per kg in futures trade as speculators reduced their exposure taking negative cues from spot market. Copper, Nickel and Lead Dec future traded lower by 1.39%, 1.11% and 0.55% respectively.