Commodity Market Updates, October 9: Copper futures touch record high; Crude oil rises

Crude oil futures

Crude oil prices on Thursday, October 9, surged ₹23 to ₹5,528 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 ₹23 or 0.41% at ₹5,528 per barrel in 4,368 lots.

Analysts said participants raising their bets kept crude oil prices higher in futures trading.

Globally, West Texas Intermediate crude was trading 1.31% lower at $62.53 per barrel, while Brent crude rose 0.03% to $66.28 per barrel in New York.

Copper futures

Copper futures for October delivery soared 1.57% or ₹15.57 to touch a lifetime high of ₹1,015.05 per kilogram on the MCX.

Copper contracts for November expiry advanced as much as ₹16.2 or 1.61%, to touch a record high of ₹1021.20 per kg.

This comes as a series of mine outages led to the tightening of supply. In September, Freeport-McMoRan declared force majeure, meaning it would be unable to fulfil contracts to customers from its copper mine in Indonesia due to forces beyond its control.

Earlier in September, mining company Freeport said operations at its Grasberg mine were halted after a fatal mudslide.

Grasberg, which is jointly owned by Freeport and the Indonesian government, accounts for around 3% of global copper supply this year (before the disruptions).

Aluminium futures

Aluminium prices rose by ₹2.75 to ₹268.70 per kilogram in the futures trade as speculators built up fresh positions amid a positive trend in the spot market.

On the MCX, aluminium for delivery in November increased by ₹2.75, or 1.03%, to ₹268.70 per kg in 368 lots.

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

Zinc futures

Zinc prices increased by ₹1.75 to ₹295.35 per kilogram in futures trade amid a pick-up in spot demand.

On the MCX, zinc contracts for November delivery traded higher by ₹1.75, or 0.6%, to ₹295.35 per kilogram with a business turnover of 941 lots.

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.

Cottonseed oil futures

Cottonseed oil cake prices fell ₹5 to ₹2,918 per quintal in futures trade as participants reduced their bets following weak trends in the spot market.

On the National Commodity and Derivatives Exchange (NCDEX), cottonseed oil cake for December delivery traded lower by ₹5 or 0.17% at ₹2,918 per quintal, with an open interest of 16,310 lots.

Analysts said a sell-off by participants at existing levels amid a subdued trend in the market mainly weighed on cottonseed oil cake prices.

Coriander futures

Coriander prices eased by ₹106 to ₹8,496 per quintal in futures trade as speculators reduced their positions amid weak demand in the spot market.

On the NCDEX, coriander contracts for November delivery declined by ₹106 or 1.25% to ₹8,496 per quintal in 9,435 lots.

Market analysts said subdued demand in the spot market led to the decline in coriander prices here.

Guar gum futures

Guar gum prices fell by ₹30 to ₹8,900 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 ₹30 or 0.34% to ₹8,900 per quintal in 37,510 lots.

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