Hi traders 
I believe, understanding commodities & their underlying makes it an advantageous asset class to consider.
Why? Because price fluctuations in commodity markets are primarily driven by changes in the underlying assets. Let’s understand this with an example:
During the lockdown when we were clueless about the future and markets were collapsing, and crude hit its all-time low. Saudi Arabia was eager to sell its oil, even at a loss, in order to prevent a glut on the market. Reliance bought it at that level and made massive profits.
This kind of special situation can bring a barrel of opportunities. So how can one find such situations?
Factors affect commodity prices:
Commodity prices are influenced by several factors. Supply and demand dynamics play a crucial role. Factors such as geopolitical tensions, natural disasters, and changes in government policies impact supply.
Economic growth, global consumption patterns, and seasonal demand fluctuations affect demand. Additionally, currency fluctuations, interest rates, and speculative trading also impact commodity prices.
Accessing commodity data:
To find special situations or even to keep up with the data, reliable sources are necessary. You can access commodity data from reputable financial websites and market platforms.
For crude oil and natural gas data in the Indian markets:
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Crude Oil: Check daily data for Brent crude oil prices on the ICE website (www.theice.com).
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Natural Gas: Access real-time prices and historical data for natural gas futures on the MCX website (www.mcxindia.com).
To analyze the data:
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Monitor price trends, supply and demand factors, and macroeconomic indicators.
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Use technical analysis tools and consider geopolitical events, production levels, inventories, and consumption patterns.
Here are a few more links which can help you to find more data:
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Investing.com: Crude Oil Price | WTI Price Chart - Investing.com India
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World Gold Council: https://www.gold.org/
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Financial Times: Commodities | Financial Times
Frequency of data publication:
Commodities data is typically released on specific days of the week or month, depending on the commodity and the relevant market. The following is a general breakdown of when data is published for popular commodities in the Indian markets:
a) Crude Oil:
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Data Publication: Weekly
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Release Day: Every Wednesday
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Source: The Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas (Petroleum Planning & Analysis Cell)
b) Gold and Silver:
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Data Publication: Daily
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Source: Multi Commodity Exchange (MCX) (Bhavcopy)
c) Natural Gas:
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Data Publication: Weekly
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Release Day: Every Thursday
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Source: The Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas (https://www.ppac.gov.in/)
d) Agricultural Commodities (e.g., Wheat, Soybean, Cotton):
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Data Publication: Weekly or Monthly
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Release Day: Varies (typically released on Wednesdays or Fridays)
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Source: Ministry of Agriculture and Farmers Welfare (http://agricoop.gov.in/)
To know more about MCX margins and more. Check out this blog.
Capitalizing on market events:
Commodity markets are influenced by significant events that create trading opportunities. For example, geopolitical tensions impacting crude oil production or changes in global oil inventories can affect prices.
By monitoring such events and understanding their potential impact, you can speculate on price movements. During past events like the OPEC production cuts or disruptions in oil supplies, you could take advantage of price volatility through futures contracts or options.
Trading in commodities in the Indian market offers diversification and protection against inflation. Understanding the factors affecting commodity prices and staying informed through reliable sources is crucial for successful trading.
By leveraging commodity data and capitalizing on market events, you can navigate the dynamic landscape and make informed investment decisions.
We recently launched a custom strategy builder & pre-built strategies for commodities trading on our Options Trader platform. Check it here - Now Live: Introducing Strategy Builder for Commodity & Currency Options with Pre-built Strategies
Do let me know what other sources you use for checking commodity data.
Thanks,
Sudhanshu.