COMMODITY MARKET: PRICES OF AGRI COMMODITIES DROP ON MCX ; CPO DOWN BY OVER 2%

Commodity prices traded mixed on Thursday after witnessing a range bound trading on in the previous session as bullion prices continued upside move on Wednesday and crude oil prices traded lower on lower demand concerns and base metals traded firm on lower supply fears ended in green. Currently Silver, Gold, Aluminium, Copper were trading higher .At the same time, CPO, Natural Gas , Zinc, Kapas, Cotton, Lead, Crude oil, Mentha oil, Nickel were trading lower.

BULLION:

Bullion prices rallied after US FOMC meeting as US Fed chairman stayed with dovish stance, keeping bond buying program unchanged. The higher inflation fears boosted buying in precious metals despite of a rally in equity indices.On MCX, gold Apr futures were up 0.17% to Rs. 44918 per 10 gram after rising to Rs. 45299 at day's high. Silver May future also followed the gold trend and traded up by 0.55% at Rs. 67599 per kg.

ENERGY:

Crude oil prices continued to move downside with rise in official weekly inventory data.MCX Crude Oil March was trading down by 0.54% at Rs. 4651 per barrel and touched a day’s low of 4632. Natural Gas Mar future was trading 1.03% down at Rs. 182.50 per mmBtu. Natural gas remained under pressure ahead of the inventory report however a sharp decline is unlikely unless EIA reports a much smaller withdrawal from storage.

BASE METAL:

Base metals complex traded weak as most of the metals kept to lower trading range on MCX. The expectations of China policy tightening and stalled vaccinations in European countries pressured base metals to trade weak. Copper prices pared some previous gains as workers at Antofagasta mine at Chile agreed to review new wage offer under government mediation. Aluminum prices rallied to a two-year high at LME on higher demand and expectations for tightening supply. Zinc, Lead and Nickel traded negatively down by 0.75%, 0.37% and 0.03% respectively.

AGRI

Agri sectors traded lower on MCX as all the commodities were in negative territory.CPO Mar future down over 2%.At the same time Cotton and kapas were also declined over half percent. Mentha oil Mar future traded lower by 0.06% at Rs. 676.35 per kg.