The commodity market experienced a mixed bag of price movements on August 1, with industrial metals, excluding zinc, witnessing an uptick on the Multi-Commodity Exchange (MCX). In contrast, precious metals like gold and silver futures faced declines, while crude oil contracts saw a marginal increase. This article delves into the specifics of these price changes across various commodities.
Gold Futures
Gold prices took a hit on Friday, declining by ₹237 to settle at ₹98,532 per 10 grams in futures trade. This drop was attributed to muted demand in the spot market. On the MCX, gold contracts for October delivery fell by 0.24%, with a business turnover of 12,512 lots. Analysts pointed to weak global cues as a significant factor behind the decline. In international markets, however, gold futures saw a slight increase of 0.17%, trading at $3,295.60 per ounce in New York.
Silver Futures
Silver also faced a downturn, with prices decreasing by ₹161 to ₹1,09,811 per kilogram. This decline was largely due to participants reducing their positions in the market. On the MCX, silver contracts for September delivery fell by 0.15%, with a turnover of 20,541 lots. Globally, silver was trading 0.23% lower at $36.63 per ounce, reflecting a broader trend of sell-offs by market participants.
Copper Futures
In a contrasting trend, copper futures rose by 0.24% to ₹878.25 per kilogram, driven by increased spot demand. On the MCX, copper contracts for August delivery saw a rise of ₹2.10, with a business turnover of 6,909 lots. Analysts noted that higher bets by participants contributed to this uptick. Notably, copper prices had previously dropped to an all-time low of ₹861.70 per kilogram after the U.S. administration announced a 50% tariff on copper imports.
Zinc Futures
Zinc prices, however, fell by 0.6% to ₹263.95 per kilogram as speculators reduced their exposure, influenced by negative cues from the spot market. On the MCX, zinc contracts for August delivery traded lower by ₹1.60, with a turnover of 3,396 lots. Analysts indicated that slackened demand from consuming industries in the physical market played a crucial role in this decline.
Aluminium Futures
Aluminium prices experienced a slight increase, rising by 15 paise to ₹250.60 per kilogram. This uptick was attributed to speculators building fresh positions amid a positive trend in the spot market. On the MCX, aluminium for August delivery increased by 0.06%, with a turnover of 4,461 lots. Analysts noted that demand from consuming industries supported aluminium prices in the futures market.
Crude Oil Futures
Crude oil futures fell marginally to ₹6,049 per barrel as participants trimmed their positions, reflecting weak demand in the spot market. On the MCX, crude oil for August delivery declined by ₹3 or 0.05%, with a turnover of 9,579 lots. Globally, West Texas Intermediate crude oil was trading 0.03% higher at $69.28 per barrel, while Brent Crude rose by 0.10% to $71.77 per barrel in New York.
Cottonseed Oil Cake Futures
In a positive turn, cottonseed oil cake prices rose by ₹15 to ₹3,237 per quintal, driven by fresh positions created by speculators amid higher demand. On the National Commodity and Derivatives Exchange (NCDEX), cottonseed oil cake for August delivery traded higher by 0.46%, with an open interest of 64,340 lots. Market analysts attributed this rise to increasing demand for cattle feed.
Coriander Futures
Coriander prices also saw an increase, climbing by ₹22 to ₹7,748 per quintal. This rise was supported by speculators increasing their holdings, tracking a firm trend in the spot market. On the NCDEX, coriander contracts for August delivery rose by 0.28%, with a turnover of 9,760 lots. Restricted supplies from producing regions further pushed up coriander prices.
Guar Gum Futures
Guar gum prices rose by ₹63 to ₹9,847 per quintal, reflecting increased holdings by speculators amid firm spot demand. On the NCDEX, guar gum contracts for August delivery traded higher by 0.64%, with an open interest of 25,350 lots. Analysts noted that the firm physical market trend encouraged traders to raise their bets.
Guar Seed Futures
Finally, guar seed prices increased by ₹20 to ₹5,289 per quintal, driven by speculators widening their positions amid a firm trend in the spot market. On the NCDEX, guar seed contracts for August delivery rose by 0.38%, with an open interest of 34,405 lots. Market analysts indicated that a combination of firm market trends and thin supplies from growing regions contributed to this rise.
Conclusion
The commodity market on August 1 showcased a diverse range of price movements, with industrial metals generally performing well, while precious metals faced challenges. The fluctuations in prices reflect the complex interplay of demand, global cues, and market sentiment. As traders and analysts continue to monitor these trends, the outlook for the commodity market remains dynamic and closely tied to both domestic and international factors.
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