Tag: Commodities

Oil prices rose to a 10-month high on Friday, supported by China's move to boost its economy and expectations that major global interest rate hike cycles were nearing their end.

India received below-normal rainfall for the third consecutive week, which is likely to have a significant impact on the agricultural sector and water supply in the country. The deficit rainfall is expected to affect the production of crops such as rice, wheat, and soybean, and could lead to water shortages in some regions. The government has taken some measures to mitigate the impact of the rainfall deficit, but more needs to be done to ensure that the country is prepared for the challenges posed by the deficit rainfall.

Oil prices rose on Wednesday as expectations of tighter global supply outweighed concerns of slower demand in some countries. OPEC+ producers are expected to keep output cuts in place, while Libya's oil exports have been disrupted by a storm. Demand for oil could slow in China, but overall, oil prices are expected to remain volatile in the near term.

The area under kharif crops in India was at 108.9 million hectares as of Friday, up slightly from last year. However, sowing of pulses is lagging due to erratic rainfall. Acreage under sugarcane is up, but there are concerns about production next season. Sowing of sunflower is lagging due to deficient rainfall in major growing states. Rainfall in September is expected to be normal, with above-normal precipitation in some areas.

The UN food agency's food price index fell in August to a new two-year low, as most food commodities declined. However, rice prices rose to a 15-year high following Indian export restrictions. The National Commodity and Derivatives Exchange is in talks with the Maharashtra government to launch subsidized options contracts in turmeric for farmers.

Gold prices in India edged lower on September 11, tracking a decline in the US Dollar. The fall in gold prices was supported by the weakening of the US Dollar and the ongoing buying spree by China's central bank. Gold prices are expected to remain volatile in the near term, but the ongoing buying spree by China's central bank could support gold prices in the long term.

Oil prices edged lower in early Asian trade on Monday, but stayed above $90 a barrel, supported by tightening supplies after Saudi Arabia and Russia extended supply cuts. However, concerns about the economic outlook in China, the world's biggest oil importer, weighed on sentiment. The International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) are due to release their monthly reports this week, which could provide more clarity on the outlook for oil demand.

Global financial markets came under pressure last week as investors turned their attention to a number of key issues, including China's real estate troubles, the potential for more Fed rate hikes, and differing opinions on Europe's rate outlook. The US dollar index surged to a six-month high, while US treasury yields rose. Global equity markets fell, and oil prices rose. The upcoming week will bring a focus on US inflation figures, retail sales data, the ECB monetary policy meeting and a range of Chinese economic data releases. Investors should monitor these factors and adjust their investment strategies accordingly.