WEEKLY COMMODITY MARKET: CRUDE OIL SOAR 8% ON SAUDI PRODUCTION CUT, GOLD FUTURES DROP MORE THAN 4%

Domestic Commodity markets ended the week with positively and total turnover increased at Rs. 20795508.56 lakh in various futures & option contracts for commodities listed at MCX during the week 4th to 8th Jan 2021. All commodities ended the week with gains except Gold, Silver and Mentha oil.

Base Metals commodities ended the week with gains after traded under pressure in last days. Base metals witnessed strong buying this week supported by dollar decline on demand growth optimism with positive factory output data from China and US. Copper prices got additional support from supply disruption fears from Peru over protest. Among Base Metals commodities, Nickel was trading higher, gained by 6.59% at Rs. 1292.4 per kg. Copper rose 4.59 % and Zinc future up by 2.75%. Aluminium future up by 2.17% and Lead future ended with gains of 0.83%.

Energy index ended the week with positively as natural gas and crude oil have shown a bullish line. Crude oil posted the biggest weekly gain since late September as Saudi Arabia’s plan to slice output spurred a surge in physical crude buying. Crude oil registered nearly 8% weekly gain, touched high of Rs. 3808 per barrel and ended at Rs. 3802 per barrel. Natural gas futures settled at 197.70, climbing 6.63% on this week after heavy volatility.

Bullion prices ended the week with losses. For the week, Gold Feb future saw a 2.54% decline at Rs. 48967 per 10 gms.Gold futures dropped by more than 4% on Friday to log their biggest one-day loss since early November, as yields for U.S. government bonds extended a weekly climb, eroding some appetite for bullion which competes against haven sovereign debt for buyers. Similarly, Silver Mar future was also down by 5.71% at Rs. 64231 per kg.

Agri commodities ended the week mixed where CPO Jan future gained nearly 1.38% and Cotton Jan up by 1.49% but Mentha oil Jan delivery fell by 0.40%.