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Details of all commodities

that are traded in MCX

COMMODITIES :- A commodity is a basic good


used in commerce that is interchangeable with
other commodities of the same type. Commodities
are most often used as inputs in the production of
other goods or services. The quality of a given
commodity may differ slightly, but it is essentially
uniform across producers. When they are traded on
an exchange, commodities must also meet
specified minimum standards, also known as
abasis grade

BULLIONS:- Bullion is gold and silver that is


officially recognized as being at least 99.5% pure
and is in the form of bars oringotsrather than
coins. To create bullion, gold first must be
discovered by mining companies and removed from
the earth in the form of gold ore, a combination of
gold and mineralized rock. The gold is then
extracted from the ore with the use of chemicals or
extreme heat. The resulting pure bullion is also
called "parted bullion." Bullion that contains more
than one type of metal is called "unparted bullion."

Gold
Gold mini
Gold guinea
Gold petal
Gold global
Silver
Silver mini
Silver micro
Silver 1000

GOLD

Gold is the oldest precious metal known to man and for


thousands of years it has been valued as a global currency,
a commodity, an investment and simply an object of
beauty.
Gold, the most sought-after of all precious metals, 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

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 .

BASE METALS

Aluminium
Aluminium mini
Copper
Copper mini
Lead
Lead mini
Nickel
Nickel mini
Zinc
Zinc mini

BASE METALS:- Aluminium is a chemical element in the


boron group with symbol Al and is the most widely used
non-ferrous metal. Ancient Greeks and Romans used
aluminium salts as dyeing mordents and as astringents for
dressing wounds. It is a silvery white, soft, ductile metal. It
makes up about 8% by weight of the earth's solid surface
and after oxygen and silicon, the third most abundant of all
elements in the earth's crust. Because of its strong affinity
to oxygen, it is not found in the elemental state but only in
combined forms, such as oxides or silicates. The metal
derives its name from alumen, the Latin name for alum .

Aluminium is theoretically 100% recyclable without any loss


of its natural qualities. 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).
Knowing the per capita stocks and their approximate
lifespans is important for planning recycling. By
consumption, aluminium is next to steel.

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

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, hence also dubbed as Dr Copper.

Copper, the best non-precious metal conductor of


electricity, has exceptional strength, ductility, and
resistance to creeping and corrosion to make it the
preferred and safest conductor of electrical wiring in
buildings. Economic, technological, and societal
factors influence the supply and demand of copper.
Land-based resources are estimated at 1.6 billion
tonnes of copper, and resources in deep-sea nodules
are estimated at 0.7 billion tonnes. Worldwide,
approximately one-third of all copper consumed is
recycled copper.

Factors Influencing the Market


Indian copper prices reflect prevailing international
spot market and the USDINR 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
restructuringall 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. It was used by the Romans for pipes, drinking vessels,
and fasteners. Lead is a shiny, gray-blue metal that gets
tarnished easily to a dull gray colour. It is soft and
malleable and is very shiny when molten and is very heavy.
It is also corrosion-resistant. Lead is found very rarely in the
earth's crust as a metal. Galena is the main lead ore. 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.

Factors Influencing the Market


Lead prices in India are fixed based on the rates in the
international spot market, and the Indian rupeeUS 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. However, most of
the nickel is inaccessible in the core of the earth. Some of
the key characteristics of nickel are its high melting point,
resistance against corrosion and oxidation, ductility and
catalytical properties, ease of deposit by electroplating
and formation of alloys readily. 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 generationthe list is almost endless. There are
about 3000 nickel-containing alloys in everyday use.

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 hard and
brittle at most temperatures, but becomes malleable
between 100 C and 150 C. It is a fair conductor of
heat and electricity and burns with a bright bluishgreen 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. However, high levels of zinc exposure
through inhalation, ingestion, and dermal contact
could cause adverse health effects.

Factors Influencing the Market

Zinc prices in India are fixed based on the rates


that rule in the international spot market, and
INRUSD 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.

ENERGY

Energy commodities such as crude are closely watched by


countries, corporations and consumers alike. The average
Western consumer can become significantly impacted by
high crude prices. Alternatively, oil-producing countries in
the Middle East (that are largely dependent
onpetrodollarsas their source of income) can become
adversely affected by low crude prices. Unusual disruptions
caused by weather or natural disasters can not only be an
impetus for price volatility, but can also cause regional food
shortages. Read on to find out aboutthe role that various
commodities playin the global economy and how investors
can turn economic events into opportunities.

Crude oil
Crude oil mini
Brent crude oil
Natural gas

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.

Even though most crude oil is produced by a


relatively small number of companies, and often
in remote locations that are very far from the
point of consumption, trade in crude oil is both
robust and global. Nearly 80% of international
crude oil is transported through waterways in
super tankers.

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

BRENT CRUDE OIL

Brent Crude oil, extracted from the North Sea, is a sweet


light crude oil with less than 0.4% of sulphur and an API
gravity of 30 API. It is light because of its relatively low
density, and sweet because of its low sulphur content. In
fact these are the two main characteristics by which crude
oil are classified-sulphur content and density-which the
petroleum industry measures by its American Petroleum
Institute (API) gravity. Brent Crude is a mix of crude oil from
15 different oil fields in the North Sea and comprises Brent
Blend, Forties Blend, Oseberg and Ekofisk crudes. The Brent
Crude benchmark is known as the Brent Blend, London
Brent, or Brent petroleum.

Brent is the leading global price benchmark for


Atlantic basin crude oils. Originally, Brent Crude
was produced from the Brent oilfield. The name
Brent comes from the naming policy of Shell UK
Exploration and Production, which originally
named all its fields after birds (in this case the
brent goose).

Categories of Brent Crude


oil

West Texas Intermediate (WTI) crude oil is of very high


quality. Its API gravity is 39.6 degrees (making it a "light"
crude oil), and it contains only about 0.24 percent of
sulphur (making a "sweet" crude oil). WTI is generally
priced at about a $2-4 per-barrel premium to OPEC
Basket price and about $1-2 per barrel premium to
Brent, although on a daily basis the pricing relationships
between these can very greatly.
Brent Crude Oil stands as a benchmark for Europe.
India is very much reliant on oil from the Middle East
(High Sulphur). The OPEC has identified China & India as
their main buyers of oil in Asia for several years to come.

Global Scenario
Oil accounts for 40 per cent of the world's
total energy demand.
The world consumes about 76 million bbl/day
of oil.
United States (20 million bbl/d), followed by
China (5.6 million bbl/d) and Japan (5.4 million
bbl/d) are the top oil consuming countries.
Balance recoverable reserve was estimated at
about 142.7 billion tones (in 2002), of which
OPEC was 112 billion tones.

OPEC fact sheet


OPEC stands for 'Organization of Petroleum Exporting
Countries'. It is an organization of eleven developing
countries that are heavily dependent on oil revenues as
their main source of income. The current Members are
Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates and
Venezuela.
OPEC controls almost 40 percent of the world's crude
oil.
It accounts for about 75 per cent of the world's proven
oil reserves.
Its exports represent 55 per cent of the oil traded
internationally.

Indian Scenario

India ranks among the top 10 largest oil-consuming countries.


Oil accounts for about 30 per cent of India's total energy
consumption. The country's total oil consumption is about 2.2
million barrels per day. India imports about 70 per cent of its total
oil consumption and it makes no exports.
India faces a large supply deficit, as domestic oil production is
unlikely to keep pace with demand. India's rough production was
only 0.8 million barrels per day.
The oil reserves of the country (about 5.4 billion barrels) are
located primarily in Mumbai High, Upper Assam, Cambay, KrishnaGodavari and Cauvery basins.
Balance recoverable reserve was about 733 million tones (in
2003) of which offshore was 394 million tones and on shore was
339 million tones.
India had a total of 2.1 million barrels per day in refining capacity.

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. Given its growing resource
base and relatively low carbon emissions
compared with other fossil fuels, natural gas
is likely to play a greater role in the world
energy mix.

Factors Influencing the Market


International natural gas inventory data
US weather conditions
Price of crude oil
Industrial and residential demand in the
U.S.

AGRO COMMODITY

Agriculturalcommodity, as used in this


subchapter, means wheat, cotton, flax,
corn, dry beans, oats, barley, rye, tobacco,
rice, peanuts, soybeans, sugar beets, sugar
cane, tomatoes, grain sorghum, sunflowers,
raisins, oranges, sweet corn, dry peas,
freezing and canning peas, forage, apples,
grapes, potatoes, timber

AGRO COMMODITY
Cardamom
Cotton
Crude palm oil
Kapas
Mentha oil

CARDAMOM

The origins of cardamom are unknown, yet it


is believed that it grew as wild herbs in the
monsoon forests of the Western Ghats in
southern India. Cardamom finds its first
mention in the Charak Samhita (an early text
on Ayurveda) written somewhere between 2nd
century BC and 2nd century AD. The Charak
Samhita says that cardamom is an important
constituent in many medicines. Later, the
spice finds mentions in many Sanskrit texts as
being used in rituals and ceremonies.

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

The use of cotton for fabric is known to date to


prehistoric times; fragments of cotton fabric dated
from 5000 BC have been excavated in Mexico and the
Indus Valley Civilization. The Indus cotton industry was
well developed and some methods used in cotton
spinning and fabrication continued to be used until the
industrialization of India. Between 2000 and 1000 BC
cotton became widespread across much of India. For
example, it has been found at the site of Hallus in
Karnataka dating from around 1000 BC.

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.

CRUDE PALM OIL

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


edible vegetable oil derived from the mesocarp (reddish
pulp) of the fruit of the oil palms, primarily the African oil
palm Elaeis guineensis, and to a lesser extent from the
American oil palm Elaeis oleifera and the maripa palm
Attalea maripa. Palm oil is naturally reddish in colour
because of a high beta-carotene content. It is not to be
confused with palm kernel oil derived from the kernel of
the same fruit, or coconut oil derived from the kernel of
the coconut palm. The differences are in colour (raw palm
kernel oil lacks carotenoids and is not red), and in
saturated fat content; palm mesocarp oil is 41%
saturated, while palm kernel oil and coconut oil are 81%
and 86% saturated respectively.

Factors Influencing the Market

International factors
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.

Domestic factors
Rupee movement
Ending stocks
Domestic oilseed production
Policies, particularly import duties
Economy. Well-being of final consumer
CIRCULARS

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 (twothirds in weight). Lint, commonly known as rui in
Hindi, is the raw material used for manufacturing
of cotton yarn or thread, which is further woven
to make fabrics.

Cotton's strength, absorbency, and capacity to be


washed and dyed 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.

MENTHA OIL

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.

Mentha oil prices have always been quite volatile.


In the last few years, India has emerged as an
export hub for mentha oil and its derivatives,
exposing exporters to high price volatility. Due to
the presence of a liquid futures contract on MCX,
the value chain participants are able to hedge
this price risk on the MCX platform.

Factors Influencing the Market

International factors Import demand from major importing


countries such as China, the U.S., and Singapore.
USDINR rate, the commodity being export-oriented.
Price of synthetic mentha oil in international market.
Domestic factors Production related
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.
Quantum of arrivals during the harvest season.

Consumption
Domestic demand from pharmaceutical companies which usually
increases in winter
Export demand from importing countries