Commodities futures on Monday declined due to weak demand
Commodities across board ranging from metals like silver, copper, zinc and aluminium to coriander, cottonseed and guar gum, witnessed decline mainly due to weak demand on Monday.
In contrast to the decline in demand of these commodities were gold and crude oil, which saw a rise in their prices.
Cottonseed oil cake prices on Monday declined by Rs 53 to Rs 2,720 per quintal in futures trade as participants reduced their bets tracking a weak trend in spot market.
On the National Commodity and Derivatives Exchange, cottonseed oil cake for June delivery fell by Rs 53 or 1.91 per cent to Rs 2,720 per quintal with an open interest of 4,240 lots.
Analysts said sell-off by participants at existing levels amid subdued trend in market mainly weighed on cottonseed oil cake prices.
Coriander prices on Monday fell by Rs 300 to Rs 11,120 per quintal in futures trade as speculators reduced their exposure amid weak demand in the spot market.
Similarly aluminium prices today fell by Rs 1.95 to Rs 213.40 per kilogram in the futures market as participants trimmed their positions on a weak trend in the spot market.
On the Multi Commodity Exchange (MCX) , aluminium for delivery in June declined by Rs 1.95 or 0.91 per cent to Rs 213.40 per kg in 2,759 lots.
Analysts said cutting down of positions by participants on easing demand from consuming industries mainly kept aluminium prices lower.
Silver futures too dropped by Rs 174 to Rs 60,763 per kilogram as participants reduced their bets on low demand.
On the MCX, silver contracts for July delivery decreased by Rs 174 or 0.29 per cent to Rs 60,763 per kg in a business turnover of 11,337 lots.
Globally, silver was trading 0.05 per cent lower at $21.67 per ounce in New York.
Guar gum prices fell by Rs 176 to Rs 10,426 per five quintals in the futures market as traders offloaded their holdings in line with a weak trend in spot market.
On the National Commodity and Derivatives Exchange (NCDEX), guar gum for June delivery declined by Rs 176 or 1.69 per cent to Rs 10,426 per five quintals in 190 lots.
Marketmen said slackness in demand in spot market and ample supplies from growing regions put pressure on guar gum prices.
In sharp contrast, gold prices on Monday increased by Rs 19 to Rs 50,853 per 10 grams in futures trade as speculators created fresh positions on a firm spot demand.
On the MCX, gold contracts for August delivery traded higher by Rs 19 or 0.04 per cent at Rs 50,853 per 10 grams in a business turnover of 12,738 lots.
Fresh positions built up by participants led to the rise in gold prices, analysts said.
Globally, gold was trading 0.13 per cent higher at $1,843 per ounce in New York
However zinc prices fell by 0.58 per cent to Rs 309.55 per kilogram in the futures trade as speculators reduced their exposure taking negative cues from spot market.
On the MCX, zinc contracts for June delivery traded lower by Rs 1.80 or 0.58 per cent at Rs 309.55 per kg in 1,048 lots.
Analysts said offloading of positions by participants, owing to slackened demand from consuming industries in physical market mainly weighed on zinc prices.
Copper futures too fell by Rs 8.75 to Rs 732.40 per kilogram as participants cut their positions amid muted demand in domestic market.
On the MCX, copper contracts for June delivery eased by Rs 8.75 or 1.18 per cent to Rs 732.40 per kg in a business turnover of 3,966 lots.
Analysts said trimming of positions by speculators amid muted demand in spot market mainly dragged down copper prices in the futures trade.
Crude oil prices on Monday rose by Rs 94 to Rs 8,467 per barrel as participants widened positions on a firm spot demand.
On the MCX, crude oil for July delivery traded higher by Rs 94 or 1.12 per cent at Rs 8,467 per barrel in 3,978 lots.
Analysts said the raising of bets by participants kept crude oil prices higher in futures trade.
Globally, West Texas Intermediate crude oil was up by 0.07 per cent at $109.64 per barrel, and Brent crude traded 0.06 per cent higher at $113.19 per barrel in New York.
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