Non- Agriculture commodities
Broadly speaking commodities can be divided in two categories: Soft and Hard

Soft commodities are typically grown. Corn, wheat, soybean, Soybean oil, sugar are all examples of "soft" commodities. Many soft commodities are subject to spoilage, which can create huge volatility in the short term. Weather plays a huge role in the softs market, which makes predicting supply especially difficult.

On the other Hard" commodities are typically mined from the ground or taken from other natural resources: gold, oil, aluminum. In many cases, initial products are refined into further commodities, as oil is refined into gasoline. Because "hard" commodities are easier to handle than "softs," and because they are more integrated into the industrial process, most investors focus on these products

While Nonagricultural commodities can include everything that is not agriculture, the derivative segment has evolved in Industrial Metals, Energy and Precious Metals.

India has huge deposits of natural resources in form of minerals like copper, iron ore, bauxite, and gold. Even on demand front India is one the major consumer of industrial metals and largest consumer of Gold. India is one of the few high growth economies. With growing focus on infrastructure the demand for these metals will continue to rise. India's energy consumption has been increasing at one of the fastest rates in the world due to population growth and economic development.

Precious Metals

A precious metal is a rare, naturally occurring metal of high economic value. The best-known precious metals are gold and silver. Other precious metals include the platinum group metals: ruthenium, rhodium, palladium, osmium, iridium, and platinum. The demand for precious metals is driven not only by their practical use but also by their role as investments and a store of value.

Gold is known for its role of an alternative asset in case of economic or political uncertainty. India being the biggest gold consumer also plays a key role in gold market. Silver is the cheapest precious metal but has close correlation with gold and rightly called poor man's gold. Platinum group metals are mostly used for industrial purposes.

Gold and silver are few of the highly liquid commodities on Indian and global commodity exchanges. Physical market for these metals is equally developed.

Gold   Silver

Base Metals Complex

Base metal complex is alternatively known as Non-Ferrous complex and includes metals like - Copper, Aluminium, Lead, Nickel and Zinc. They are used extensively in industrial applications. Availability is region specific while the usage is worldwide. As a result the price discovery is global. This complex has attracted the attention of the investment community giving different dimension to their importance. London Metal Exchange (LME) is considered to be benchmark for base metals pricing.

Copper   Aluminium   Steel   Nickel   Led   Zinc


Energy sources can be divided into two major groups- renewable (an energy source that can be easily replenished) and nonrenewable (an energy source that we are using up and cannot recreate). We get most of our energy from nonrenewable energy sources, which include the fossil fuels - crude oil, natural gas, and coal.

Crude oil is a vital source of energy for the world and will likely remain so for many decades to come. It is used to produce fuel for transportation, for power generation and to produce many other industrial fuels. Most countries are significantly affected by developments in the oil market, either as producers, consumers, or both. India being a growing economy and a major consumer plays an important role in crude oil market.

Natural gas is also used for transportation, electricity generation or residential/industrial heating but is a much cleaner source of energy than oil or gas. Natural gas is gaining a significant share in India's energy mix to reduce dependence on oil and coal.

Crude oil is one of the most liquid commodities on domestic and international exchange.

Crude Oil   Natural Gas

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