WEEKLY COMMODITY MARKET: CRUDE OIL POSTS GAINS FOR THE WEEK AND MONTH

Domestic Commodity markets ended the week mixed with total turnover stood at Rs. 21244269 lakh in various futures & option contracts for commodities listed at MCX during the week 22nd to 26th Feb 2021.

Gold Markets initially tried to rally during the week but then broke down significantly during the Friday session. Gold Apr future settled 1% lower at Rs. 45736 per 10 gm and slipped below Rs. 46000 on Friday. Silver Prices followed the trend line of Gold future. Silver Mar Future settled at Rs. 67261 per kg , down by 2.54%.Bullion prices witnessed selling with rise in US bond yields as US 10 year Treasury yields rose above 1.50 per cent to the highest levels since February 2020. The rally in the Bitcoin also pressured precious metals to trade lower.

Base metals complex ended the week lower as most of the commodities have shown downward trend on Friday. Base Metals stated the week with positive note but ended with lower. Copper prices traded off the 10 year highs with selling in equity indices and commodities. Aluminium prices pared some gains after rallying by 6 per cent at SHFE. Copper and Aluminium Feb futures settled with gains of 3.45% and 5.79% respectively. Lead, Zinc, Nickel lose by 3.09%, 2.35%, 0.63% respectively.

Crude oil dipped on Friday but posted gains for the week and month. Crude oil recorded weekly gains of 6.97% at Rs. 4604 per barrel as on lower supply and heavy spot demand. Crude prices face headwinds from the loss of refinery demand after several Gulf Coast facilities were shuttered during the winter storm last week. Natural Gas ended with weak note, lose by 4.85% at Rs. 205.90 per mmBtu.

Here, A bullish sign have shown in Agri commodities with all the commodities ended positively. Mentha oil Feb future ended with gains of 13.04%. CPO and Cotton also railed and registered gains of 3.49% and 1.86% respectively.