Top 5 Commodity Market Ideas

 Top 5 Commodity Market Ideas

Commodities markets are a bit different in terms of trading from traditional stock markets, so here are the 5 best commodity market ideas that may work in India:
Top 5 Commodity Market Ideas

Beware of negativity on MCX's rough

OPEC is finding it increasingly difficult to influence crude oil prices, which means MCX crude could come under pressure. Additionally, Russia has joined the OPEC consortium regarding crude supply cuts, however, the United States appears to have distinct advantages in terms of expanding crude oil supply. In addition, Trump has already withdrawn from the Paris climate agreement, which opens up great opportunities for the United States to significantly increase its capacity to produce shale oil. Therefore, caution turns negative on MCX crude.

Uncertainty Factors Can Help MCX Gold

The World Gold Council has announced that the demand for gold for 2017 will not be much more than the previous year. Although India and China are the main consumers of gold, gold prices will not be determined by consumer demand. In addition, fluctuations in North Korea and the Middle East as well as other global factors can influence the direction of gold prices. All of these uncertainties can help MCX Gold.

Using a rebound strategy to sell copper can help 

The fact that the copper was corrected for two weeks continuously gives it a poor outlook. So waiting for prices to rebound before selling might be a good strategy. China's recent downgrade by Moody's isn't helping copper prices either, as China contributes more than half of global copper demand.

Going for a short-term liability on MCX zinc might be a good option

Due to environmental inspections, many zinc mines in China's Hunan Province have been closed. This has led to a low supply of zinc. Once the inspections were completed, zinc supplies began to flood the markets, which also put pressure on prices. Additionally, the strength of the US dollar will affect MCX Zinc. So switching to a short-term liability on MCX zinc might be a good option.

Trading long on NCDEX latency with a short offer can be a good option

With over 70% of the global cumin supply, India is the world's largest cumin producer. Another cumin product like Syria and Turkey is much smaller. Cumin exports to India are expected to remain dynamic despite rising raw material prices. The commodity saw good gains in open interest, again indicating an upward trend in prices. Therefore, a long latency NCDEX trade with a limited supply can be a good option. 
To learn more about commodity trading and for effective trading tips, please call us at 22-91-2858-4545.
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