The price of crude oil has crossed $82. Prices on Brent have seen a rise of over 1.5 per cent. Weakness in dollar has led to buying in crude oil. If we look at the reasons for the rise in crude oil, the weakness in the dollar has increased buying in crude. Investors are watching the move of the US Fed. Investors are also keeping an eye on Omicron’s growing cases. Due to less supply than demand, its prices have also gone up. There has been less production of crude from Nigeria, Libya. Investors expect prices to rise further. OPEC+ countries can reduce production if demand falls.
Meanwhile, there has been an increase in the prices of gold and silver. The price of gold on Comex has reached $ 1810. The weakness in the dollar against the world’s other important currencies and fall in bond yields has increased buying in gold.
Natural gas prices on MCX have come down drastically. The weakness in the international market has also increased. There has also been pressure in crude oil.
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Today’s biggest news is coming from Agri Commodity Market. MCX’s stick has run on cotton’s bullishness. To check the inflation of cotton, MCX has imposed an additional margin of 3% on futures. These new rates will be applicable from January 12, 2022.
Now the question is, why have the cotton prices gone up? Significantly, the price of cotton in the country has exceeded that of the international market. Here we are trying to know who will be harmed and who will benefit from this.
Explain that the 3% addition margin imposed by MCX on cotton will be applicable on both buying and selling. These rates of additional margin, effective from January 12, 2022, will be applicable on both existing and upcoming contracts. Let us tell you that due to the rising prices of cotton, traders were demanding to stop trading in cotton. If we look at how much cotton prices have increased in 2021, cotton prices have increased by 17 percent in 3 months, 36 percent in 6 months and 66 percent in 1 year. At the same time, it has increased by Rs 19170 in January 2020, Rs 20760 in January 2021 and Rs 34720 in January 2022.
If we look at the reasons for this rise in prices, then due to the gap between demand and supply, the price of cotton has increased. In the domestic market, the price of 29MM has been around Rs 35000 per bale, while the production was estimated to be 362.18 lakh bales. Cotton production is expected to be lower than expected this year. The crop has been damaged due to unseasonal rains.
Who has suffered the most due to the increase in the price of Toton? Looking at this, the export of cotton from India has decreased due to increase in prices. Let us tell you that we import cotton from Bangladesh, China, Vietnam, India. With the increase in cotton prices, these three countries can move to countries like US, Australia.
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