Commodity Market Update, October 27: Aluminium futures jump to record high; Crude oil rises

Crude oil futures

Crude oil prices on Monday, October 27, increased by ₹17 to ₹5,444 per barrel in futures trade as participants increased their positions following a firm spot demand.

On the Multi-Commodity Exchange (MCX), crude oil for November delivery traded higher by ₹17 or 0.31% at ₹5,444 per barrel in 14,506 lots.

Analysts said the rise in bets by participants kept crude oil prices higher in futures trade.

Globally, West Texas Intermediate crude for the December contract was trading 0.28% higher at $61.67 per barrel, while Brent crude for the December contract rose 0.26% to $66.11 per barrel in New York.

Aluminium futures

On the MCX, aluminium futures for November delivery soared ₹2.9 to an all-time high of ₹272.20 per kilogram in futures trade as speculators built up fresh positions amid a positive trend in the spot market and supply jitters.

Analysts said fresh positions created by traders amid demand from consuming industries supported aluminium prices in the futures market.

Furthermore, electricity-related problems at aluminium smelting facilities in Iceland and Mozambique intensified concerns over a potential European deficit in duty-free green P1020 aluminium in 2026, according to news reports.

"Sources told Fastmarkets in the week to Wednesday, October 22, that this is a growing worry. Icelandic aluminium smelter Nordural Grundartangi has reduced output by two-thirds. This includes the total shutdown of one of its two potlines due to an electrical equipment failure, operator Century Aluminium said on October 21," Fastmarkets reported.

Copper futures

On the MCX, Copper futures for the November expiry gained as much as 1.22% or ₹12.2 to trade at an intra-day high of ₹1014.85 per kilogram due to higher spot demand. The contract was trading close to its record high of ₹1,032.7 per kg.

Analysts attributed the rise in copper prices to higher bets by participants.

Zinc futures

Zinc contracts for November delivery were also trading close to their lifetime high of ₹299.80 per kilogram. On October 27, it surged as much as ₹2.7 or 0.91% to an intra-day high of ₹299 per kg on the MCX, amid a pick-up in spot demand.

Marketmen said the widening of positions by participants, following a pick-up in demand from consuming industries, kept zinc prices higher in the futures trade.

Guar seed futures

Guar seed prices declined by ₹14 to ₹4,900 per quintal in futures trade amid ample supplies.

On the National Commodity and Derivatives Exchange (NCDEX), guar seed contracts for November delivery fell by ₹14 or 0.29% to ₹4,900 per quintal with an open interest of 44,685 lots.

Marketmen attributed the downward trend in guar seed prices to increasing supplies from growing regions.

Guar gum futures

Guar gum prices fell by ₹28 to ₹8,977 per quintal in the futures trade as traders offloaded their holdings in line with a weak trend in the spot market.

On the NCDEX, guar gum for November delivery declined by ₹28 or 0.31% to ₹8,977 per quintal in 41,640 lots.

Marketmen said slackness in demand in the spot market and ample supplies from growing regions put pressure on guar gum prices.

Cottonseed oil cake futures

Cottonseed oil cake prices rose by ₹34 to ₹2,870 per quintal in futures trade as speculators created fresh positions amid higher demand.

On the NCDEX, cottonseed oil cake for December delivery traded higher by ₹34 or 1.18% at ₹2,870 per quintal, with an open interest of 17,130 lots.

Marketmen said the widening of positions by participants amid increasing demand for cattle feed mainly influenced cottonseed oil cake prices.

Coriander futures

Coriander prices increased by ₹60 to ₹7,990 per quintal in futures trade as speculators increased their holdings, tracking a firm trend in the spot market.

On the NCDEX, coriander contracts for November delivery climbed by ₹60 or 0.75% to ₹7,990 per quintal in 11,410 lots.

A firm trend in the spot market and restricted supplies from producing regions pushed up coriander prices, market analysts said.