Commodity Market News
Unlike equities and debt, commodity markets run on a different set of economic principles
altogether. Commodity markets are largely driven by demand and supply factors. For
example, a sudden contraction in supply or a sudden expansion in demand can lead
to a sharp rise in commodity prices. On the other hand, a sudden expansion of supply
or a fall in demand can led to a sharp fall in the price of commodities. Between
November 2014 and February 2016, the price of crude oil fell from around $110/bbl
to almost $35/bbl in the Brent crude market. This was driven by a surge in supply
of shale from the US and a peaking out of demand for oil. Since the beginning of
2017, prices of most metals have gone up sharply largely due to supply hurdles and
a spurt in demand from China. That is why Commodity Market News becomes so important.
Commodity Market News – What it covers:
Commodity market news captures the key data points and the news flows on four broad
categories of commodities that are traded actively in the Indian commodity futures
market viz. precious metals, industrial metals, energy and agricultural commodities.
When it comes to the commodity markets, different commodities have different set
of driving factors. For example, gold futures will be largely driven by global gold
prices/oz and the demand-supply scenario. The domestic metal futures prices are
driven by the prices on the London Metals Exchange (LME), which in turn is driven
by supply and Chinese demand factors. Energy is again a global commodity with prices
being determined by supply units like the OPEC, Russia, and the United States etc.
Similarly demand for crude oil is impacted by refining capacity, number of electric
vehicles, fuel efficiency etc. Agricultural commodities are one area where domestic
factors play an important role. It is hard to cover such a wide array of data points
and news from disparate sources. That is why the Commodity Market News page gives
you a one-screen view of all the commodity news that is relevant to you as a commodity
Connecting the dots on commodity prices…
What the commodity market news page does is to help you connect the dots. The news
goes beyond mere headlines and includes a clickable explanation of the news. For
example, if the price of MCX gold has gone up sharply, you need to understand whether
this trend is sustainable or is likely to reverse. That will decide your trading
position. That is only possible if you understand the news underlying the price
movement and the demand and supply dynamics being impacted by the news. The long-term
versus short term nature of the news also helps the trader to decide whether the
trading view should be for the short term, medium term or long term.
The big advantage for you in the commodity market news page is that the actual price
movements, volume movements and the commodity rankings are all juxtaposed with the
news. That enables you to easily correlate the event with the actual impact. Effectively,
it enables you to be a smarter and savvier commodities trader.