GOLD

Gold is acquired throughout the world for its beauty, liquidity, investment qualities, and industrial properties. As an investment vehicle, gold is typically viewed as a financial asset that maintains its value and purchasing power during inflationary periods.

Risk management is of critical importance for gold value chain participants, such as mining companies, processors, companies dealing in gold and gold products, jewellers, and even governments which rely on the proceeds of bullion consumption and trade.

Factors Influencing the Market

Above-ground supply of gold from central bank sales, reclaimed scrap, and official gold loans.

Hedging interest of producers and miners.

World macroeconomic factors, such as movement in the dollar and interest rate, and economic events.

In India, gold demand is also influenced by seasonality, that is, marriage and harvesting.

SILVER

Silver is a brilliant grey-white metal that is soft and malleable. The demand for silver breaks down into three important categories: silver in industry, investment, and silver jewellery and decor. Together, these three areas represent more than 95% of the annual silver demand.

Factors Influencing the Market

Economic events such as India's industrial growth, the global financial crisis, recession, and inflation affect prices.

Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.

Commodity-specific events, such as the construction of new production facilities, introduction of new processes, unexpected mine or plant closures, and industry restructuring, too affect the market.

CRUDEOIL

Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits in natural underground pools or reservoirs and remains liquid at atmospheric pressure and temperature. Although it is often called "black gold," crude oil has a wide ranging viscosity and can vary in colour to various shades of black and yellow depending on its hydrocarbon composition. Crude oil can be refined to produce usable products such as gasoline, diesel and various forms of petrochemicals. trade in crude oil is both robust and global. Nearly 80% of international crude oil is transported through waterways in supertankers.

The majority of oil reserve in the world is in the Middle East, at 48 per cent of the known and identified reserves. This is followed by North America, Africa, Central and South America, Eurasia, Asia and Oceania, and Europe.

OPEC controls almost 40 per cent of the world's crude oil, accounts for about 75 per cent of the world's proven oil reserves, and exports 55 per cent of the oil traded internationally.

Factors Influencing the Market

OPEC output, supply, and spare capacities.

US crude and products inventories data.

Weather conditions.

Increased demand from emerging and developing countries; geopolitics.

Speculative buying and selling

NATURAL GAS

Natural gas is a vital component of the world's energy supply. It is one of the cleanest, safest, and the most useful of all energy sources.

Uses include heating homes and operating appliances, such as water heaters, ovens, and cooktops. Industry began to use natural gas in manufacturing and processing plants, in boilers used to generating electricity.

Factors Influencing the Market

International natural gas inventory data.

US weather conditions

Price of crude oil.

Industrial and residential demand in the U.S.

ALUMINIUM

Aluminium is a chemical element in the boron group with symbol Al and is the most widely used non-ferrous metal.According to the International Resource Panel's Metal Stocks in Society report, the global per capita stock of aluminium in use in society (that is in cars, buildings and electronics) is 80 kg. Much of this is in more developed countries (350 kg500 kg per capita) rather than in less-developed countries (35 kg per capita). By consumption, aluminium is next to steel.

The realities of the market call for risk management techniques that are critical for users of aluiminium, such as producers, exporters, marketers, processors, and SMEs.

Factors Influencing the Market

Prices ruling in the international markets.

Indian rupee and US dollar exchange rates.

Economic factors: industrial growth, global financial crisis, recession, and inflation.

Commodity-specific events: construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), and industry restructuring

Government trade policies (implementation or suspension of taxes, penalties, and quotas)

Geopolitical events

COPPER

In world metal consumption, copper ranks third after steel and aluminium. It is a product whose fortunes directly reflect the state of the world's economy, Economic, technological, and societal factors influence the supply and demand of copper. Worldwide, approximately one-third of all copper consumed is recycled copper.

Copper is produced in more than 25 countries today. Because of global dispersion of copper production, the risk of disruption in global supplies is low. On the other hand, because of its importance in construction and power transmission, any disruption in supplies will have a major effect on the economy.

Factors Influencing the Market

Indian copper prices reflect prevailing international spot market and the USD INR exchange rates.

Commodity-specific events, such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring all affect the price of the metal.

Trade policies set by the government (implementation or suspension of taxes, penalties and quotas) affect supplies as they regulate (restricting or encouraging) material flow.

LEAD

Lead has been in use for thousands of years because it is easy to get from the ground and easy to shape and work with.Lead is found very rarely in the earth's crust as a metal.It is usually found in association with zinc, silver, and copper ores. It is one of the most sustainable and recyclable commodities. It can be recycled indefinitely, without loss of its physical or chemical properties.

Lead is principally used for manufacturing batteries, especially the ones used in automobiles, motorcycles, and electric cars. Its incredible density provides protection from radiation and is used in hospitals, dental surgeries, laboratories, and nuclear installations. Lead acid batteries provide vital back-up emergency power supply during power failures in computer installations, banks, telephone exchanges, and aircraft control towers, among others. In earthquake-prone regions, such as Japan and California, the buildings are mounted on lead shock absorbers that help minimize damage during tremors or earthquakes.

Factors Influencing the Market

Lead prices in India are fixed based on the rates in the international spot market, and the Indian rupee US dollar exchange rates.

Economic events such as national industrial growth, global financial crisis, recession, and inflation, affect the metal prices.

Commodity-specific events, such as the construction of new production facilities or processes, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring, affect metal prices.

Trade policies set by the government affect supply as they regulate material flow.

NICKEL

Nickel is a naturally occurring, lustrous, silvery-white metal. It is the fifth most common element on earth and occurs extensively in the earth's crust. Nickel plays an important role in our daily lives, making its way in myriad objects around us like food preparation equipment, mobile phones, medical equipment, transport, buildings, and power generation the list is almost endless. There are about 3000 nickel-containing alloys in everyday use. About 65% of the nickel produced is used to manufacture stainless steel.

Another 20% is used in other steel and non-ferrous alloys, often for highly specialized industrial, aerospace, and military applications. About 9% is used in plating and 6% for other uses, including coins, electronics, batteries for portable equipment, and hybrid cars. In many of these applications there is no substitute for nickel without impairing performance or increasing cost.

Nickel gets precedence over other metals because it offers better corrosion resistance, better toughness, and better strength at high and low temperatures; it also provides a range of special magnetic and electronic properties.

Factors Influencing the Market

Prices ruling in international markets.

Indian rupee and US dollar exchange rates.

Economic events such as national industrial growth, global financial crisis, recession, and inflation, affect the metal prices.

Commodity-specific events, such as the construction of new production facilities or processes, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring, affect metal prices.

Geopolitical events.

ZINC

Zinc is the fourth most widely used metal in the world after steel, aluminium, and copper. It is a fair conductor of heat and electricity and burns with a bright bluish-green flame, giving off zinc oxide fumes. Zinc occurs naturally in the earth's crust and is the 24th most abundant element, with about 1.9 billion tonnes of identified resources. It is an essential trace element and necessary for plants, animals, and microorganisms.

Due to its resistance to non-acidic atmospheric corrosion, zinc plays a vital role in extending the life of buildings, vehicles, ships, and so on. The metal is mainly used as an anti-corrosion agent, and a coat of zinc prevents rusting of galvanized steel. It also finds its use in the automobile, battery, petroleum, paint, fungicide, rubber, and chemical industries a few among the many industrial uses it is being put to today.

Factors Influencing the Market

Zinc prices in India are fixed based on the rates that rule in the international spot market, and INR USD exchange rates.

Economic events, such as the national industrial growth, global financial crisis, recession, and inflation, affect metal prices.

As societies develop, their demand for metal increases based on their current economic position, which could also be referred to as national economic growth factor.

CARDAMOM

India is a major producer and consumer of cardamom, holding the second spot in world production; Guatemala taking the top slot. With no domestic consumption, Guatemala also becomes the largest exporter in the world.

Cardamom is widely used as spice, renowned for its flavour and aroma. In south Asia, green cardamom is largely used in traditional Indian sweets and in the making of tea; in Arabia it is used in the preparation of 'gahwaa strong cardamom coffee that is used to welcome guests; in northern Europe, it is an essential ingredient in sweet foods. Therapeutically, cardamom finds varied uses, such as in the treatment of teeth and gum infections, digestive disorders, throat trouble, and skin problems.

Factors Influencing the Market

Freshness, colour, aroma, and size of the crop.

Production in competing countries, mainly Guatemala.

Annual production in India.

Year-ending stocks at India and Guatemala.

Seasonal variations and time of arrival of new crop in the market.

Domestic consumption, which is influenced by festivals.

COTTON

Cotton is essentially grown for its fibre, which is used the world-over to make textile. Cotton fibre is one of the most important textile fibres, accounting for around 35% of the world's total textile fibre used. Cotton's strength, absorbency, and capacity to be washed and dyed also makes it adaptable to a considerable variety of textile products. Cotton seed is crushed to make cottonseed cake, which is used in livestock feed; and cottonseed oil which is the 5th major edible oil consumed in the world.

Factors Influencing the Market

The domestic demand supply scenario, inter-crop price parity, cost of production, and international price situation are the major factors that influencing prices in the market.

Weather, pests, diseases and other risk factors associated with agricultural crops also have a bearing on cotton production.

Government policies on import, export, and minimum support price are significant influencers of cotton prices.

Cotton yarn prices in different markets across the country show a high correlation of above 90% with India's raw cotton prices.

Global trade is particularly important for cotton. In addition to around 30% of the global cotton fibre produced being traded, it is also traded indirectly as yarn, fabric and clothing.

CPO

Palm oil (also known as dend oil, from Portuguese) is an edible vegetable oil.

Factors Influencing the Market

Indonesia and Malaysia are the major producing and exporting nations. Adverse weather conditions for palm output have an effect on the prices. Wide fluctuations in the currencies of Indonesia and Malaysia also affect palm prices.

Indonesian and Malaysian government policies related with export tax have an effect on the prices.

Since soyoil competes with palm oil in the global vegetable oil market, hence global production, consumption and ending stocks of soya bean and other oilseeds have direct bearing on prices.

Crude oil movement also affects prices, as significant rise in energy prices lead to demand for alternate fuels like biofuel. Vegetable oils are also used in the production of biofuel.

KAPAS

Kapas is unginned cotton or the white fibrous substance covering the seed that is obtained from the cotton plant. Ginning separates the lint (about one-third in weight) from the seed (two-thirds in weight). Cotton seed is crushed to make cottonseed cake, which is used in livestock feed; and cottonseed oil which is the 5th major edible oil consumed in the world. Cotton is classified according to the staple, grade, and character of each bale.

Factors Influencing the Market

The domestic demand supply scenario, inter-crop price parity, cost of production, and international price situation are the major factors that influencing prices in the market.

Weather, pests, diseases and other risk factors associated with agricultural crops also have a bearing on cotton production.

Government policies on import, export, and minimum support price are significant influencers of cotton prices.

In addition to around 30% of the global cotton fibre produced being traded, it is also traded indirectly as yarn, fabric and clothing.

MENTHAOIL

Mentha is an aromatic herb, which also goes by the name Japanese pudina in India. Steam distillation and filtration of dried Mentha arvensis leaves produces mentha oil, which can be processed to yield menthol and other derivatives. Mentha oil and its derivatives are extensively used in food, pharmaceutical, perfumery, and flavouring industry.Much of the increase in mentha oil production, particularly its exports, came in after 2004, after the introduction of futures contracts based on mentha oil as the underlying. India is the largest producer and exporter of mentha oil and its derivatives.

Factors Influencing the Market

Import demand from major importing countries such as China, the U.S., and Singapore.Price of synthetic mentha oil in international market.

Mentha oil price is influenced by an increase or decrease in the mentha crop acreage which depends on the climate during sowing and the price realization in the previous season. Prevailing weather conditions- the incidence of cold wave and heavy rains are harmful during leaf formation.