1 / 10

5 Best Commodity Market Ideas

Commodity markets are a little different in terms of trading from traditional equity markets and thus, here are 5 best commodity market ideas that can work in India.

Download Presentation

5 Best Commodity Market Ideas

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Investmentz.com 5 Best Commodity Market ideas

  2. What are commodity markets? Commodity markets are a little different in terms of trading from traditional equity markets. • A commodity market is a market that trades in primary economic sector rather than manufactured products. • Soft commodities are agricultural products such as wheat, coffee, cocoa, fruit and sugar. • Hard commodities are mined, such as gold and oil.

  3. 5 best commodity market ideas that can work in India: • Cautious to negative on MCX crude • Uncertainty factors could help MCX gold • Using bounces-to-sell strategy for copper might help • Going short-term negative on MCX zinc could be a good option • Long trade on NCDEX cumin on shortfall in supply could be a good option

  4. Cautious to negative on MCX crude • OPEC is finding it increasingly difficult to influence crude prices, which means that MCX crude could come under pressure. • Moreover, Russia has joined the OPEC consortium in terms of cuts in crude supply. • However, the US appears to enjoy a few clear distinctive advantages in terms of expansion in crude supply. • Further, Trump has already withdrawn from the Paris Climate Agreement, which opens significant opportunities for the US for undertaking substantial expansion of its shale capacity. • Thus, going cautious to negative on MCX crude.

  5. Uncertainty factors could help MCX gold • The World Gold Council has announced that the gold demand for 2017 will not be substantially more than the previous year. • Although India and China are the highest consumers of gold, gold prices will not be driven by consumption demand. • Moreover, volatility in North Korea and Middle East coupled with other global factors could influence the direction gold prices takes. • All these uncertainty factors could help MCX gold.

  6. Using bounces-to-sell strategy for copper might help • The fact that copper has corrected for two weeks on-the-trot gives it a weak outlook. • Thus, waiting for a bounce in price to sell could be a good strategy. • Moody’s recently downgrading China doesn’t help copper prices either, since China contributes more than half of global copper demand.

  7. Going short-term negative on MCX zinc could be a good option • Owing to environmental inspections, many zinc mines in the Hunan province of China were shut down. This led to subdued supply of zinc. • Post completion of inspections, zinc supplies have started flooding the markets, which has brought prices under pressure as well. • Moreover, strength of the US Dollar will weigh on MCX Zinc. Thus, going short-term negative on MCX zinc could be a good option

  8. Long trade on NCDEX cumin on shortfall in supply could be a good option • With more than 70% of the world’s supply of cumin, India is the world’s largest producer of cumin. • Other cumin producer such as Syria and Turkey are much smaller. Exports of cumin in India are expected to remain buoyant despite higher prices of the commodity. • The commodity saw decent open interest gains, which again indicate towards pricing heading upwards. Therefore, long trade on NCDEX cumin on shortfall in supply could be a good option.

  9. Contact Details • To know more about commodity trading and for effective trading tips, please call us on 91-22-2858 4545 or contact us at http://www.investmentz.com/

More Related