Commodities

Crude oil, guar gum gain on easing Omicron fears, vaccine optimism

Our Bureau | | Updated on: Dec 09, 2021
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Pharma comment on protection from three vaccine doses helps lift mood

Crude oil gained on the Multi Commodity Exchange (MCX), while guar gum was up on the National Commodities and Derivatives Exchange (NCDEX), as crude oil prices increased in the global market on Thursday.

Crude palm oil (CPO) futures traded flat on MCX in the initial hour of Thursday morning.

Crude oil December futures were trading at ₹5,508 against the previous close of ₹5,468, up by 0.73 per cent.

Concerns have eased over the impact of the Omicron variant of coronavirus on the economy, helping the global oil market stay optimistic about demand. Meanwhile, some global pharma companies have announced that a three-dose course of their vaccine would help protect against Omicron.

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However, the gains were muted following the reimposition of curbs by countries such as the UK and Denmark, among others.

February Brent oil futures were trading at $76.27, up by 0.59 per cent; the January crude oil futures on WTI were trading at $72.95, up by 0.82 per cent.

December CPO futures were trading at ₹1,119 on MCX in the initial hour of trading on Thursday morning, against the previous close of ₹1,114, up by 0.41 per cent. One of the reasons for this is the forecast for heavy rainfall in the major CPO-producing nations.

There were reports that major CPO producers such as Indonesia and Malaysia were likely to face heavy rainfall during January to March of next year, following an intensified La Nina weather condition. Market participants felt that the flooding associated with the heavy rainfall may affect operations in palm oil plantations during the first quarter of next year.

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December nickel futures were trading at ₹1,569.50 on MCX on Thursday morning, as against the previous close of ₹1,574.20, down by 0.30 per cent.

NCDEX

The December futures of guar gum were trading at ₹10,541 on NCDEX in the initial hour of Thursday morning, against the previous close of ₹10,331, up by 2.03 per cent.

Guar gum gains when crude oil prices rise as it is used in oil extraction.

The December futures of turmeric (unpolished) were down by 1.31 per cent in the Thursday morning trading. The December futures of turmeric (unpolished) were trading at ₹7,860 on NCDEX on Thursday morning, against the previous close of ₹7,964.

Published on December 09, 2021

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