Prices of Major Commodities Show Downward Trend


Prices of Major Commodities Show Downward Trend
Karachi: Commodity prices showed downward trend both locally and globally in 2011. Commodities posted the first annual drop since 2008, paced by declines in cotton, copper and cocoa on concern that the sovereign debt crisis in Europe and a cooling Chinese economy will sap demand for raw materials. In 2011, the traded volume at the Pakistan Mercantile Exchange (PMEX) increased to Rs802 billion with traded lots of 2,896,830 as compared to Rs184 billion with traded lots of 700,673 in 2010. According to Commodity Round-Up 2011 prepared by PMEX, gold gained nearly 10 per cent in the year despite a last quarter dip and a steep decline from September`s ever highest hit of $1,900 an ounce. It remained down 18 per cent from a record $1,900.2 per ounce in September and finished the fourth quarter with its first quarterly loss in more than three years. Gold price fluctuated between $1,309.9 to $1,900.2 per ounce in 2011. During 2011, the traded volume of gold at PMEX increased to Rs581 billion in 2011 from Rs137 billion in the corresponding period of 2010. Oil prices ended 2011 up eight per cent as a fresh wave of supply concerns capped a year of unrest and disruption in North Africa and the Middle East that overwhelmed concerns about the economic health of large consuming nations. Crude oil prices fell from $113.83 per barrel the highest in the month of April 2011 to its lowest $76.56 per barrel in October 2011. Crude oil recovered in the last quarter of 2011. During 2011, the traded volume at the PMEX increased to Rs98 billion from Rs29.3 billion in same period of 2010. Silver shattered almost 10 per cent in 2011. Silver price peaked near $50 per ounce in late April 2011 and dropped in September 2011 to $26 per ounce. Silver price fluctuated between $26.60 to $48.40 per ounce in 2011.
Source: PTI