Alice Blue Commodities (P) Ltd is a commodity broking firm.

Being trading cum cl earing member of Multi Commodity Exchange of India Limited (MCX), National Commo dity & Derivatives Exchange Limited (NCDEX) company offer online trading in more than 52 future commodities. We have specialists from different backgrounds having a broad set of skills and the perfect experience in commodity market. They are able to bring a depth of ta lent and creativity to the company. In order to deliver the best service, we're staffed around the clock. Our knowledge base and avid experience acquired by our technical team leverage o ur customer to benefit much more than that is expected. Time and to market and v alue for money with continued innovation is the main motto of our team. We are trusted for our commitments and our timeliness. SERVICES :: We're constantly thinking creatively, searching for innovations, and working har d to introduce new services. We offer online trading in more than 52 commodity f uture contracts. To enhance client relationship We offer Pro-active Relationship Management: 1.Educating and providing awareness about commodities futures markets to clients . 2.Dedicated relationship team to answer client queries round the clock related t o any of the commodities. 3.Studying price movements and advising clients in trading opportunities on real time basis using various tools 4.Trading Recommendations / Alerts to clients on actively traded commodities via Online messenger, Flash on ODIN terminals. OUR UNIQUE FEATURES :: 1.Instant online fund transfer with Multiple Banks. 2.Efficient uptime & greater stability for high speed. 3.Customized solutions as per client's requirements. 4.Very competitive brokerage rates within the industry. TRAINING AND EDUCATIONAL SEMINARS :: We regularly conduct awareness and educational programs for our esteemed clients , business associates and traders to facilitate knowledge of the advancements be ing made in this sector. TRADABLE COMMODITIES Precious Metals -- (Gold, Silver) Base Metals (Copper and Zinc) Energy (Crude Oil and Natural Gas) Grains (Wheat) Spices (Red Chilli, Cardamom, Jeera, Black Pepper, Turmeric) Pulses (Chana, Urad, Tur) Oil Ref. Soya Oil, Mentha Oil, RBD Palm Olien Others Gaur Seed, Potato, Sugar, Maize, Castor seed, Gaur gum

A commodity is a material that is traded in big quantities and whose quality sta ndards and price are objective and universally applicable. For example, gold is a commodity because quality standards and price of gold are objective and univer sal, but gold jewellery is not a commodity because the price of jewellery depend s on subjective factors such as design, brand image, etc. Other examples of comm odities are: agricultural produce such as foodgrains, pulses, cotton, etc; metal s such as nickel, zinc, aluminium, etc MCX Headquartered in Mumbai, Multi Commodity Exchange of India Ltd (MCX) is a stateof-the-art electronic commodity futures exchange. The demutualised Exchange has permanent recognition from the Government of India to facilitate online trading, and clearing and settlement operations for commodity futures across the country . Having started operations in November 2003, today, MCX holds a market share of o

ver 85%* (as on March 31, 2012 MCX had a market share of 86%) of the Indian comm odity futures market. The Exchange has more than 2,170 registered members operat ing through over 3,46,000 including CTCL trading terminals spread over 1,577 cit ies and towns across India. MCX was the third largest^ commodity futures exchang e in the world, in terms of the number of contracts traded in CY2011 MCX offers more than 40 commodities across various segments such as bullion, fer rous and non-ferrous metals, energy, and a number of agri-commodities on its pla tform. The Exchange introduces standardised commodity futures contracts on its p latform. These contracts in futures exchanges provide an anonymous trading envir onment for ideal price discovery. The Exchange is the world's largest exchange#i n Silver and Gold, second largest# in Natural Gas and the third largest# in Crud e Oil with respect to the number of futures contracts traded. MCX has been certified to three ISO standards including ISO 9001:2008 Quality Ma nagement System standard, ISO 14001:2004 Environmental Management System standar d and ISO/IEC 27001:2005 Information Security Management System standard. The Ex changes platform enables anonymous trades, leading to efficient price discovery. Moreover, for globally-traded commodities, MCXs platform enables domestic partici pants to trade in Indian currency. The Exchange strives to be at the forefront of developments in the commodities f utures industry. MCX was the first exchange in India to initiate evening session s to synchronise with the trading hours of global exchanges in London, New York and other major international markets. It was the first exchange in India to off er futures trading in steel, crude oil, and almond. In June 2005, MCX launched M CXCOMDEX, Indias first real time composite commodity futures index, which provide s our members with valuable information regarding market movements in the key co mmodities, as determined by physical market size in India, which are actively tr aded on our Exchange. We have introduced several other indices, including MCXAgr i (agricultural commodities index), MCXEnergy (energy commodities index) and MCX Metal (metal commodities index). We also have three rain indices, namely RAINDEX MUM (Mumbai), RAINDEXIDR (Indore), and RAINDEXJAI (Jaipur) which track the progr ess of monsoon rains in their respective geographic locations. In December 2009, we launched EFP transactions for the first time in India, which enables parties with futures positions to swap their positions in the physical markets and vice versa. MCX has forged strategic alliances with various national and international trade bodies / associations / organisations, which we believe enables us to grow our business and expand our market presence. Among international alliances, we have formed strategic alliances with a number of exchanges such as the London Metal E xchange, the New York Mercantile Exchange, the LIFFE Administration and Manageme nt (under renewal), the Baltic Exchange Limited, Shanghai Futures Exchange and T aiwan Futures Exchange. NCDEX National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally ma naged on-line multi commodity exchange. The shareholders of NCDEX comprises of l arge national level institutions, large public sector bank and companies. NCDEX is the only commodity exchange in the country promoted by national level i nstitutions. This unique parentage enables it to offer a bouquet of benefits, wh ich are currently in short supply in the commodity markets. The institutional pr omoters and shareholders of NCDEX are prominent players in their respective fiel ds and bring with them institutional building experience, trust, nationwide reac h, technology and risk management skills. NCDEX is a public limited company incorporated on April 23, 2003 under the Compa nies Act, 1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It commenced its operations on December 15, 2003. NCDEX is a nation-level, technology driven de-mutualised on-line commodity excha nge with an independent Board of Directors and professional management - both no t having any vested interest in commodity markets. It is committed to provide a world-class commodity exchange platform for market participants to trade in a wi de spectrum of commodity derivatives driven by best global practices, profession

alism and transparency. NCDEX is regulated by Forward Markets Commission. NCDEX is subjected to various laws of the land like the Forward Contracts (Regulation) Act, Companies Act, Sta mp Act, Contract Act and various other legislations. NCDEX headquarters are located in Mumbai and offers facilities to its members fr om the centres located throughout India. The Exchange, as on February 9, 2012 offered contracts in 34 commodities - compr ising 23 agricultural commodities, 6 precious metals, 2 energy, 1 polymer and 2 other metals. The top 5 commodities, in terms of volume traded at the Exchange, were Soya oil, Gaur Seed, Chana, RM seed and Guar gum. Commodity markets are markets where raw or primary products are exchanged. Thes e raw commodities are traded on regulated commodities exchanges, in which they a re bought and sold in standardizedcontracts. This article focuses on the history and current debates regarding global commodi ty markets. It covers physical product (food, metals, electricity) markets but n ot the ways that services, including those of governments, nor investment, nor d ebt, can be seen as a commodity. Articles on reinsurance markets,stock markets, bond markets and currency markets cover those concerns separately and in more de pth. One focus of this article is the relationship between simple commodity mone y and the more complex instruments offered in the commodity markets. History The modern commodity markets have their roots in the trading of agricu ltural products. While wheat and corn, cattle and pigs, were widely traded using standard instruments in the 19th century in the United States, other basic food stuffs such as soybeans were only added quite recently in most markets. For a co mmodity market to be established, there must be very broad consensus on the vari ations in the product that make it acceptable for one purpose or another. The ec onomic impact of the development of commodity markets is hard to overestimate. T hrough the 19th century "the exchanges became effective spokesmen for, and innov ators of, improvements in transportation, warehousing, and financing, which pave d the way to expanded interstate and international trade. Early history of commodity markets Historically, dating from ancient Sumerian use of sheep or goats, other peoples using pigs, rare seashells, or other items as commodity money, people have sough t ways to standardize and trade contracts in the delivery of such items, to rend er trade itself more smooth and predictable. Commodity money and commodity markets in a crude early form are believed to have originated in Sumer where small baked clay tokens in the shape of sheep or goat s were used in trade. Sealed in clay vessels with a certain number of such token s, with that number written on the outside, they represented a promise to delive r that number. This made them a form of commodity money more than an I.O.U. but less than a guarantee by a nation-state or bank. However, they were also known t o contain promises of time and date of delivery - this made them like a modern f utures contract. Regardless of the details, it was only possible to verify the n umber of tokens inside by shaking the vessel or by breaking it, at which point t he number or terms written on the outside became subject to doubt. Eventually th e tokens disappeared, but the contracts remained on flat tablets. This represent ed the first system of commodity accounting. Classical civilizations built complex global markets trading gold or silver for spices, cloth, wood and weapons, most of which had standards of quality and time liness. Considering the many hazards of climate, piracy, theft and abuse of mili tary fiat by rulers of kingdoms along the trade routes, it was a major focus of these civilizations to keep markets open and trading in these scarce commodities . Reputation and clearing became central concerns, and the states which could ha ndle them most effectively became very powerful empires, trusted by many peoples to manage and mediate trade and commerce. Size of the market The trading of commodities consists of direct physical trading and derivatives t rading. Exchange traded commodities have seen an upturn in the volume of trading since the start of the decade. This was largely a result of the growing attract ion of commodities as an asset class and a proliferation of investment options w

hich has made it easier to access this market. The global volume of commodities contracts traded on exchanges increased by a fi fth in 2010, and a half since 2008, to around 2.5 billion million contracts. Dur ing the three years up to the end of 2010, global physical exports of commoditie s fell by 2%, while the outstanding value of OTC commodities derivatives decline d by two-thirds as investors reduced risk following a five-fold increase in valu e outstanding in the previous three years. Trading on exchanges in China and Ind ia has gained in importance in recent years due to their emergence as significan t commodities consumers and producers. China accounted for more than 60% of exch ange-traded commodities in 2009, up on its 40% share in the previous year. Commodity assets under management more than doubled between 2008 and 2010 to nea rly $380bn. Inflows into the sector totalled over $60bn in 2010, the second high est year on record, down from the record $72bn allocated to commodities funds in the previous year. The bulk of funds went into precious metals and energy produ cts. The growth in prices of many commodities in 2010 contributed to the increas e in the value of commodities funds under management. In order to further diversify their investments and mitigate the risks associate d with inflationary debasement of currencies, an increasing number of pension fu nds and sovereign wealth funds are allocating more capital to real assets such a s a commodities and commodity-related infrastructure. Think-tanks such as the Wo rld Pensions Council (WPC) have argued that, unlike previous recessionary cycles , commodity prices could remain durably at relatively high levels as Gulf Arab, Latin American and Asian governments are less inclined to accommodate G7 nations on the supply front. Commodities trading Spot trading Spot trading is any transaction where delivery either takes plac e immediately, or with a minimum lag between the trade and delivery due to techn ical constraints. Spot trading normally involves visual inspection of the commod ity or a sample of the commodity, and is carried out in markets such as wholesal e markets. Commodity markets, on the other hand, require the existence of agreed standards so that trades can be made without visual inspection. Forward contra cts A forward contract is an agreement between two parties to exchange at some fixed future date a given quantity of a commodity for a price defined today. The fixe d price today is known as the forward price. Early on these forward contracts we re used as a way of getting products from producer to the consumer. These typica lly were only for food and agricultural products. Futures contracts A futures contract has the same general features as a forward contract but is st andardized and transacted through a futures exchange. Although more complex toda y, early forward contracts for example, were used for rice in seventeenth centur y Japan. Modern forward, or futures agreements, began in Chicago in the 1840s, w ith the appearance of the railroads. Chicago, being centrally located, emerged a s the hub between Midwestern farmers and producers and the east coast consumer p opulation centers. In essence, a futures contract is a standardized forward contract in which the b uyer and the seller accept the terms in regards to product, grade, quantity and location and are only free to negotiate the price. Hedging Hedging, a common practice of farming cooperatives, insures against a poor harve st by purchasing futures contracts in the same commodity. If the cooperative has significantly less of its product to sell due to weather or insects, it makes u p for that loss with a profit on the markets, since the overall supply of the cr op is short everywhere that suffered the same conditions. Delivery and condition guarantees In addition, delivery day, method of settleme nt and delivery point must all be specified. Typically, trading must end two (or more) business days prior to the delivery day, so that the routing of the shipm ent can be finalized via ship or rail, and payment can be settled when the contr act arrives at any delivery point. Standardization U.S. soybean futures, for exa mple, are of standard grade if they are "GMO or a mixture of GMO and Non-GMO No.

2 yellow soybeans of Indiana, Ohio and Michigan origin produced in the U.S.A. ( Non-screened, stored in silo)," and of deliverable grade if they are "GMO or a m ixture of GMO and Non-GMO No. 2 yellow soybeans of Iowa, Illinois and Wisconsin origin produced in the U.S.A. (Non-screened, stored in silo)." Note the distinct ion between states, and the need to clearly mention their status as GMO (Genetic ally Modified Organism) which makes them unacceptable to most organic food buyer s. Similar specifications apply for cotton, orange juice, cocoa, sugar, wheat, corn , barley, pork bellies, milk, feedstuffs, fruits, vegetables, other grains, othe r beans, hay, other livestock, meats, poultry, eggs, or any other commodity whic h is so traded. Standardization has also occurred technologically, as the use of the FIX Protoco l by commodities exchanges has allowed trade messages to be sent, received and p rocessed in the same format as stocks or equities. This process began in 2001 wh en the CME launched a FIX-compliant interface and has now been adopted by commod ity exchanges around the world. Regulation of commodity markets In the United States, the principal regulator of commodity and futures markets is the Commodity Futures Trading Commission but it is the National Futures Assoc iation that enforces rules and regulations put forth by the CFTC. Oil Building on the infrastructure and credit and settlement networks established fo r food and precious metals, many such markets have proliferated drastically in t he late 20th century. Oil was the first form of energy so widely traded, and the fluctuations in the oil markets are of particular political interest. Some commodity market speculation is directly related to the stability of certai n states, e.g., during the Persian Gulf War, speculation on the survival of the regime of Saddam Hussein in Iraq. Similar political stability concerns have from time to time driven the price of oil. The oil market is an exception. Most markets are not so tied to the politics of volatile regions - even natural gas tends to be more stable, as it is not traded across oceans by tanker as extensively. Commodity markets and protectionism Developing countries (democratic or not) have been moved to harden their currenc ies, accept International Monetary Fund rules, join the World Trade Organization (WTO), and submit to a broad regime of reforms that amount to a hedge against b eing isolated. China's entry into the WTO signalled the end of truly isolated na tions entirely managing their own currency and affairs. The need for stable curr ency and predictable clearing and rules-based handling of trade disputes, has le d to a global trade hegemony - many nations hedging on a global scale against ea ch other's anticipated protectionism, were they to fail to join the WTO. There a re signs, however, that this regime is far from perfect. U.S. trade sanctions ag ainst Canadian softwood lumber (within NAFTA) and foreign steel (except for NAFT A partners Canada and Mexico) in 2002 signalled a shift in policy towards a toug her regime perhaps more driven by political concerns - jobs, industrial policy, even sustainable forestry and logging practices.

Commodities exchanges

Largest commodities exchanges Exchange Country

CME Group USA Tokyo Commodity Exchange Japan NYSE Euronext USA Dalian Commodity Exchange China Multi Commodity Exchange India Intercontinental Exchange USA, Canada, China, UK Africa Mercantile Exchange Kenya, Africa

Commodity exchanges Abuja Securities and Commodities Exchange Africa Mercantile Exchange Bhatinda Om & Oil Exchange Bathinda Brazilian Mercantile and Futures Exchange Chicago Board of Trade Chicago Mercantile Exchange Commodity Exchange Bratislava, JSC Dalian Commodity Exchange Dubai Mercantile Exchange Dubai Gold & Commodities Exchange Euronext.liffe Hong Kong Mercantile Exchange Indian Commodity Exchange Intercontinental Exchange Iranian Oil Bourse Kansas City Board of Trade London Metal Exchange Minneapolis Grain Exchange Multi Commodity Exchange National Commodity and Derivatives Exchange National Multi-Commodity Exchange of India Ltd National Food Exchange New York Mercantile Exchange New York Board of Trade Rosario Board of Trade Steelbay Winnipeg Commodity Exchange National Spot Exchange GOLD Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency, a commodity, an investment and simply an obje ct of beauty. Major Characteristics Gold (Chemical Symbol-Au) is primarily a monetary asset and partly a commodity. Gold is the world's oldest international currency. Gold is an important element of global monetary reserves. With regards to investment value, more than two-thirds of gold's total accumulat ed holdings is with central banks' reserves, private players, and held in the fo rm of high-karat jewellery.

Less than one-third of gold's total accumulated holdings are used as commodity for jewellery in the western markets and industry. Demand and Supply Scenario Gold demand in 2010 reached a 10-year high of 3,812.2 tonnes, worth US$150billon , as a result of; strong growth in jewellery demand; the revival of the Indian market; strong momentum in Chinese gold demand and a paradigm shift in the official sector, where central banks became net purchase rs of gold for the first time in 21 years. China was the world's largest gold producer with 340.88 tonnes in 2010, followed by the United States and South Africa. In 2010, India was the world's largest gold consumer with an annual demand of 96 3 tonnes. The total supply of gold coming onto the market in 2010 reached 4,108 tonnes, a rise of 2% from 2009 levels. Global Scenario London is the worlds biggest clearing house. Mumbai is under India's liberalised gold regime. New York is the home of gold futures trading. Zurich is a physical turntable. Istanbul, Dubai, Singapore, and Hong Kong are doorways to important consuming re gions. Tokyo, where TOCOM sets the mood of Japan. Indian Scenario India is the largest market for gold jewellery in the world. 2010 was a record y ear for Indian jewellery demand; at 745.7 tonnes, annual demand was 13% above th e previous peak in 1998. In local currency terms, Indian jewellery demand more t han doubled in 2010. A 20% rise in the rupee price of gold combined with a 69% rise in the volume of demand, pushed up the value of gold demand by 101% to 1,342 billion. This compa res with 2009 demand of 669 billon. The rising price of gold, particularly in the latter half of 2010, created a 'vi rtuous circle' of higher price expectations among Indian consumers, which fuelle d purchases, thereby further driving up local prices. Factors Influencing the Market Above ground supply of gold from central bank's sale, reclaimed scrap, and offic ial gold loans.Hedging interest of producers/miners. World macroeconomic factors such as the US Dollar and interest rate, and economi c events.Commodity-specific events such as the construction of new production fa cilities or processes, unexpected mine or plant closures, or industry restructur ing, all affect metal prices. In India, gold demand is also determined to a large extent by its price level an d volatility. Measurement Weight Conversion Table To convert from To Multiply by Troy ounces Grams 31.1035 Million ounces Tonnes 31.1035 Grams Troy ounces 0.0321507 Kilograms Troy ounces 32.1507 Tonnes Troy ounces 32,150.70 Kilograms Tolas 85.755

Kilograms Taels 26.7172 Kilograms Bahts 68.41 Troy ounces Grains 480.00 Troy ounces Avoirdupois ounces Troy ounces Penny weights 20.00 Avoirdupois ounces Troy ounces Short tonne Metric tonne 0.9072

1.09714 0.911458

Purity Gold purity is measured in terms of karat and fineness: Karat: pure gold is defined as 24 karat Fineness: parts per thousand silver Silver (Chemical Symbol-Ag) is a brilliant grey-white metal that is soft and mal leable. Silver has unique properties such as its strength, malleability, ductility, elec trical and thermal conductivity, sensitivity, high reflectance of light, and rea ctivity. The main source of silver is in lead ore, although it can also be found associat ed with copper, zinc and gold and produced as a by-product of base metal mining activities. Secondary silver sources include coin melt, scrap recovery, and dis-hoarding fro m countries where export is restricted. Secondary sources are price sensitive. Silver is unique amongst metals due to the fact that it can be classified as bot h a precious metal and an industrial metal. Today, silver is sought as a valuable and practical industrial commodity and as an investment. Silver is an important element of global monetary reserves. It is an effective portfolio diversifier. Demand and Supply Scenario Silverware achieved an increase of 4.6%, owing to stock-related gains in India. Demand for coins and medals surged yet higher from 2008, rising by 20.7% to reac h a new record high of 78.7 Moz (2,447 t) in 2009 on the back of strong investme nt demand. In 2009, implied net investment soared to 136.9 Moz (4,258 t), buoyed by safe ha ven concerns, which led to strong inflows into both ETFs and physical investment . Scrap supply continued to decrease in 2009 by almost 6% to 165.7 Moz, despite a strong recovery in prices over the year. Most notable increases were seen in Bolivia and Argentina (both +6.8 Moz) with b y largest single decline coming from Australia (-9.4 Moz). Net government sales fell by just over one half to 13.7 Moz (426t) in 2009, prim arily driven by lowest stock sales from Russia, coupled with the continued absen ce of any disposal from China

Global scenario Silver is predominantly traded on the London Bullion Market Association (LBMA) a nd COMEX in New York. LBMA, as the global hub of over-the-counter (OTC) trading in silver, is its main physical market. Comex is a futures and options exchange, where most fund activ ity is focused. Silver is invariably quoted in the US dollars per troy ounce.

Indian scenario India's silver demand averages 2500 tonnes per year, whereas the country's produ ction was around 206.95 tonnes in 2010. Nearly 60% of India's silver demand comes from farmers and rural India, who stor e their savings in silver bangles and coins. Factors influencing Indian market Economic events such as national industrial growth, global financial crisis, rec ession, and inflation affect metal prices. Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring, all affect metal prices. Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect supply by regulating (restricting or encouraging) materi al flow. Geopolitical events involving governments or economic paradigms and armed confli ct can cause major changes. A faster growth in demand against supply often leads to a drop in stocks with th e government and investors. Silver demand is underpinned by the demand from jewellery and silverware, indust rial applications, and overall industrial growth. In India, the real industrial demand occupies a small share in the total industr ial demand of silver. This is in sharp contrast to most developed economies. In India, silver demand is also determined to a large extent by its price level and volatility. COPPER major Characteristics Copper (chemical symbol - Cu) is a malleable and ductile metallic element that i s an excellent conductor of heat and electricity. It is also corrosion resistant and antimicrobial. It stands at the third place in context of the world consumption after steel and aluminium. Copper is an important contributor to the national economies of mature, newly de veloped and developing countries. Copper is one of the most recycled of all metals. It is our ability to recycle m etals over and over again that makes them a material of choice. Demand and supply scenario Copper mine production was up nearly 2%, from 15.805 million MT in 2009 to16.099 million MT in 2010. In 2010, global refined copper production was 19.186 million MT, up from 18.653 million MT in 2009, and global refined copper consumption was 19.200 million MT, compared with 18.243 million MT in the previous year. After substantial surpluses in 2008 and 2009, when it had seen an oversupply of 343,000 MT and 410,000 MT, respectively, the global copper market witnessed defi cit of 14,000 MT in 2010. Global scenario While Chile accounts for 34% of the total world copper mine production, Peru, US A, China, Australia and Indonesia, together are responsible for around 32%. Growth in refined copper usage has been especially strong in Asia, where demand has expanded more than five-fold in less than 30 years. Major refined copper exporting countries are Chile, Zambia, Japan, Russia and Pe ru, while major refined copper importing countries are China, USA, Germany, Ital y and Taiwan. Indian scenario India's production of refined copper is approximately around 4% of the total wor ld production and in terms of figures it is around 600,000 MT. India's consumption of refined copper per annum is around 535,000 MT, which acco

unts for only 3% of the world copper market. Sterlite Industries, Hindalco, and Hindustan Copper are three major producers of copper in India. India is emerging as net exporter of copper from the status of net importer on account of rise in production by these three companies. Two major state-owned telecommunications service providers - BSNL and MTNL, cons ume 10% of the country's copper production. Factors Influencing the Market Copper prices in India are fixed on the basis of the rates that rule on the inte rnational spot market, and Rupee and US Dollar exchange rates. Economic events such as national industrial growth, global financial crisis, rec ession, and inflation affect metal prices. Commodity-5pecific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and s o forth), or industry restructuring, all affect metal prices. Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect supply by regulating (restricting or encouraging) materi al flow. Geopolitical events involving governments or economic paradigms and armed confli ct can cause major changes. There is also a national economic growth factor. Societies, as they develop, dem and metals in a way that depends on their current economic position. LEAD Lead (chemical symbol - Pb) is very corrosion-resistant, ductile, and malleable bluellrey metal that has been in use for at least 5,000 years. It is usually found in association with zinc, silver, as well as copper ores. It is one of our planet's most sustainable and recyclable commodities. It can be re-melted any number of times without ever losing any of its properties. Recycl ed lead accounts for more than 60% of the total lead production. The lead production process consumes less energy as compared to the production o f any other metal. Demand and Supply Scenario In 201 0, world lead mine production was 6.3% higher than in 2009. This was main ly due to rises in China, Mexico and the Russian Federation that more than offse t decreases in Ireland, Peru and the United States. Global refined lead production over 2010 was 9.311 million MT, up from 8.802 mil lion MT in 2009. Global refined lead consumption had risen to 9.329 million MT in 2010, up from 8 .761 million MT in 2009. Global scenario The world's reserve base of lead is estimated at 170 MT. Australia leads with 35 % of the world reserve base of lead, followed by China (21%), USA (11%) and Kaza khstan (4%). Major refined lead producing countries are China, USA and Europe, while major re fined lead consuming countries are China, USA and India. Major refined lead exporting countries are Australia, Germany and Canada, while major refined lead importing countries are USA, United Kingdom and India. Indian scenario In 2009, refined lead production was around 207,000 MT, up from 165,000 MT in 20 08. India's refined lead consumption in 2009 increased by 3% y-o-y to 187,000 MT, up from 181,000 MT in 2008. India imported 125,000 MT of lead in 2009, an increase of 20% compared with lead imports in 2008. The main producers of lead are Hindustan Zinc Limited (HZL) and Indian Lead Limi ted (ILL). Factors Influencing the Market Lead prices in India are fixed on the basis of the rates that rule on the Intern

ational spot market, and Rupee and US Dollar exchange rates. Economic events such as national industrial growth, global financial crisis, rec ession, and inflation affect metal prices. Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and s o forth), or industry restructuring, all affect metal prices. Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect supply by regulating (restricting or encouraging) materi al flow. Geopolitical events involving governments or economic paradigms and armed confli ct can cause major changes. There is also a national economic growth factor. Societies, as they develop, dem and metals in a way that depends on their current economic position.

Crude oil Crude oil is a mixture of hydrocarbons that exists in a liquid phase in natural underground reservoirs. Oil and gas account for about 60 per cent of the total w orld's primary energy consumption. Almost all industries including agriculture are dependent on oil in one way or o ther. Oil & lubricants, transportation, petrochemicals, pesticides and insectici des, paints, perfumes, etc. are largely and directly affected by the oil prices. Aviation gasoline, motor gasoline, naphtha, kerosene, jet fuel, distillate fuel oil, residual fuel oil, liquefied petroleum gas, lubricants, paraffin wax, petro leum coke, asphalt and other products are obtained from the processing of crude and other hydrocarbon compounds. The prices of crude are highly volatile. High oil prices lead to inflation that in turn increases input costs; reduces non-oil demand and lower investment in ne t oil importing countries. Categories of Crude oil West Texas Intermediate (WTI) crude oil is of very high quality. Its API gravity is 39.6 degrees (making it a "light" crude oil), and it contains only about 0.2 4 percent of sulphur (making a "sweet" crude oil). WTI is generally priced at ab out a $2-4 per-barrel premium to OPEC Basket price and about $1-2 per barrel pre mium to Brent, although on a daily basis the pricing relationships between these can very greatly. Brent Crude Oil stands as a benchmark for Europe. India is very much reliant on oil from the Middle East (High Sulphur). The OPEC has identified China & India as their main buyers of oil in Asia for several yea rs to come. Crude Oil Units (average gravity) 1 US barrel = 42 US gallons. 1 US barrel = 158.98 litres. 1 tonne = 7.33 barrels . 1 short ton = 6.65 barrels . Note: barrels per tonne vary from origin to origin. Global Scenario Oil accounts for 40 per cent of the world's total energy demand. The world consumes about 76 million bbl/day of oil. United States (20 million bbl/d), followed by China (5.6 million bbl/d) and Japa n (5.4 million bbl/d) are the top oil consuming countries. Balance recoverable reserve was estimated at about 142.7 billion tones (in 2002) , of which OPEC was 112 billion tones.

OPEC fact sheet OPEC stands for 'Organization of Petroleum Exporting Countries'. It is an organi zation of eleven developing countries that are heavily dependent on oil revenues as their main source of income. The current Members are Algeria, Indonesia, Ira n, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates a nd Venezuela. OPEC controls almost 40 percent of the world's crude oil. It accounts for about 75 per cent of the world's proven oil reserves. Its exports represent 55 per cent of the oil traded internationally. Indian Scenario India ranks among the top 10 largest oil-consuming countries. Oil accounts for about 30 per cent of India's total energy consumption. The coun try's total oil consumption is about 2.2 million barrels per day. India imports about 70 per cent of its total oil consumption and it makes no exports. India faces a large supply deficit, as domestic oil production is unlikely to ke ep pace with demand. India's rough production was only 0.8 million barrels per d ay. The oil reserves of the country (about 5.4 billion barrels) are located primaril y in Mumbai High, Upper Assam, Cambay, Krishna-Godavari and Cauvery basins. Balance recoverable reserve was about 733 million tones (in 2003) of which offsh ore was 394 million tones and on shore was 339 million tones. India had a total of 2.1 million barrels per day in refining capacity. Government has permitted foreign participation in oil exploration, an activity r estricted earlier to state owned entities. Indian government in 2002 officially ended the Administered Pricing Mechanism (A PM). Now crude price is having a high correlation with the international market price. As on date, even the prices of crude bi-products are allowed to vary +/10% keeping in line with international crude price, subject to certain governmen t laid down norms/ formulae. Disinvestment/restructuring of public sector units and complete deregulation of Indian retail petroleum products sector is under way. Market Influencing Factors OPEC output and supply . Terrorism, Weather/storms, War and any other unforeseen geopolitical factors tha t causes supply disruptions. Global demand particularly from emerging nations. Dollar fluctuations. DOE / API imports and stocks. Refinery fires & funds buying. Natural gas Natural gas is a colourless, odourless, environment friendly energy source. It i s a gas consisting primarily of methane. It is found associated with fossil fuel s, in coal beds, as methane clathrates, and is created by methanogenic organisms in marshes, bogs, and landfills. Natural gas is commercially produced mostly fr om oil fields and natural gas fields. Before natural gas can be used as a fuel, it must undergo extensive processing t o remove almost all materials other than methane. The by-products of that proces sing include ethane, propane, butanes, pentanes and higher molecular weight hydr ocarbons, elemental sulfur, carbon dioxide, and sometimes helium and nitrogen. The major difficulty in the use of natural gas is transportation and storage. Wh ile, pipelines are used for inland transport, it cannot be used under oceans, wh ich is essential for global trade. Liquified Natural Gas (LNG) is a proven comme rcial technology for transporting natural gas across oceans. However, as special ships and separate LNG receiving terminals are required, LNG projects are highl y capital intensive in nature.

The major applications of natural gas are: Fuel source for power generation Domestic / Commercial utilization for cooking, warming as piped natural gas Industrial uses: fuel source for boilers, ovens, air conditioners etc Feed source for fertilizer manufacture Compressed Natural Gas (CNG) is being widely used as an alternative automobile f uel Production of petrochemicals like methanol etc. The other fractions obtained in natural gas processing like butane and propane a re used in manufacture of LPG (LIquified Petroleum Gas) Global The world's proven natural gas reserves as on January 1, 2009 are estimated at 1 85.2 trillion cubic metre, of which almost three-quarters are located in the Mid dle East and Eurasia. Russia, Iran, and Qatar together account for about 57% of the total reserves. Natural gas consumption has increased strongly over the past decade. However, de spite this rising consumption, reserves-to-production ratios for most regions ar e substantial. Worldwide, the reserves-to-production ratio is estimated at 63 ye ars. The total global production of natural gas in 2008 is estimated to be 3065.6 bil lion cubic metre with the main producing countries being Russia Federation (602 billion cubic metre), US (582 bcm), Canada (175 bcm) and Iran (116 bcm). The total global consumption of natural gas in 2008 is estimated to be 3018.7 bi llion cubic metre with the main consuming countries being US (657 bcm), Russia F ederation (420 billion cubic metre), Iran (117 bcm), Canada (100 bcm) are the ma jor consumers. Globally, industries consume the largest portion of natural gas, followed by the power sector. Industrial consumption is expected to be around 40% of total glob al consumption by 2030 as projected by Energy Information Administration. The total global trade in 2008 as piped natural gas and as LNG is reported to be 587.3 bcm and 226.5 bcm. While major exporters of piped natural gas are Russia (154 bcm), Canada (103 bcm) and Norway (93 bcm), the major importers are US (104 bcm), Germany (87 bcm) and Italy (75 bcm). The major exporters of CNG are Qatar (40 bcm), Malaysia (29 bcm), Indonesia (27 bcm) and the major importers are Jap an (92 bcm), South Korea (36 bcm) and Spain (30 bcm). World nature gas market Chicago Mercantile Exchange (CME), which has acquired New York Mercantile Exchan ge (NYMEX), runs the world's most liquid natural gas derivative market. Indian scenario Natural gas has gained prominence in India too as in the rest of the world over the last decade. India has consumed around 41.4 bcm of natural gas in 2008, of w hich domestic production is 30.6 bcm and imports as LNG has been 10.79 bcm. The share of imports is expected to increase in the coming years and cross 30%, from current level of around 25%. Fertilizer (41%) and power (37%) are the major users of natural gas in India. Th e fertilizer sector in India is highly subsidized by the Government and it fixes the rate at which natural gas is provided to the fertilizer manufacturing units . Market influencing Natural gas prices, too like that of any other commodity are a function of marke t supply and demand. As there are limited alternatives for changing consumption or production in the short run, changes in supply or demand over a short period often result in large price movements. Strength of economy, weather and crude oil prices are the major demand-side fact ors influencing price. Severe winter in developed countries can increase demand for domestic and commercial heating and is a major influencing factor.

The supply side factors influencing prices are variations in natural gas product ion, imports and storage levels. Hurricanes and severe weather can disrupt suppl y. Macro-economic factors like exchange rates, interest rates and other economical indicators do influence natural gas prices. WHEAT Wheat is one of the world's three most important cereal crops along with maize a nd rice. It is reported to be grown domestically from atleast as early as 9000 B C and is now grown in almost all parts of the world. Wheat is a globally important source of dietary carbohydrate (starch) and protei n (gluten). Its grain is a staple food used to make flour for leavened, flat and steamed breads, biscuits, cookies, cakes, breakfast cereal, pasta, noodles etc and for fermentation to make beer, alcohol, vodka, or biofuel. It is also used f or feeding animals to a limited extent. Different varieties of wheat are grown across the world. The three principal typ es of wheat used in modern food production are: Triticum vulgare (soft wheat), T riticum durum (hard wheat) and Triticum compactum Global scenario The annual global wheat production has been in the range of 600-630 tonnes in th e recent years. However, in 2008-09 it is estimated to have risen sharply to 689 million tonnes. The combined production of all cereals in 2008-09 is estimated to be 2525 million tonnes. EU-27, China, India, USA and Russia are the five major producers of wheat accoun ting for close to 70% of the total global production, with 2008-09 production in these regions being 151, 112.5, 78.6, 68 and 63.8 million tonnes respectively. Wheat is the most important cereal traded in the world market. The global trade in wheat during 2008-09 was sharply up at around 140 million tonnes in 2008-09 f rom an average of around 110 - 115 million tonnes in the recent previous years. While US (25 - 35 million tonnes), EU-27 (15-25 million tonnes), Canada (15-20 m illion tonnes), Australia (8-18 million tonnes) and Argentina (6 - 12 million to nnes) are major exporters, there are a large number of countries importing wheat with maximum demand emanating from developing nations. The major importing regi ons are Middle-east Asia, South-east Asia and North-west Africa. Egypt, Brazil, Indonesia, Algeria are the most important importing nations. Wheat crops around the world have their own unique production cycles of planting and harvest timeframes. Important World Wheat Markets Derivatives exchanges - Chicago Mercantile Exchange, which acquired Chicago Boar d of Trade, Kansas City Board of Trade, Zhenghzhou Commodity Exchange, South Afr ican Futures Exchange, MCX, NCDEX US FOB and EU (France) FOB prices determine the physical prices Indian Scenario India has the largest area in the world under wheat cultivation. However, due to low productivity it is only the third largest producer after EU-27 and China. India's annual production of wheat has been around 75-79 million tonnes from 200 6-07, with production in 2008-09 estimated to be around 78.6 million tonnes. Whe at accounts for around 30-35% of India's total foodgrain production of around 22 0 million tonnes. India's annual wheat consumption is estimated to be around 72 million tonnes currently. Green revolution and increased focus by Government on wheat has helped wheat pro duction to surge sharply from around 6 million tonnes at time of independence to current levels. Close to 90% of the area under wheat is irrigated, which too ha s supported the rise in output over the years. Uttar Pradesh (34%), Punjab (20%), Haryana (13%), Rajasthan (10%) and Madhya Pra desh (10%) are the main wheat producing states of India.

Wheat is cultivated as a rabi crop in India, with sowing being undertaken from O ctober to December and harvesting from March to May. The official marketing seas on of wheat in India is assumed to commence from April. Government plays a major role in the wheat value chain in India as the cereal is very important for the country's food security. The Central Govt. sets the Mini mum Support Price (MSP) every year, which sets the mood for the upcoming season. As govt. agencies have been recently procuring close to 25-30% of annual produc tion, open market prices too do not generally fall below this price. Historicall y, the procurement has been around 15-20%. The procured wheat is used to maintain a minimum buffer stock for meeting unfore seen exigencies, for providing foodgrains required for Public Distribution Syste m (PDS) and the other foodgrain based welfare programmes of the Government. In a ddition, the grain is also sold at pre-determined prices to the open market. Though, India is not a major player in global markets India has resorted to impo rts, whenever there is a supply tightness. India has also exported around 5 mill ion tonnes of wheat in 2003-04. Govt. agencies take the decision to bring in imp orts and the current policies are not in favour of exports. Market Influencing Factors Wheat is an annual, seasonal crop and prices usually tend to rise during the cul tivation period, i.e. December to March due to scarcity in the market and dip du ring the peak arrival period (April and May). Weather has a profound influence on production, especially in Haryana and Punjab as temperature plays a crucial role in determining the yield. The Govt. policies with regard to MSP, buffer stocks, PDS sales, Open Market Sal es, imports / exports are very important influencing factor with regards to Indi an wheat prices. Despite international trade being limited, the several variations in production or consumption at various major or minor producing or consuming country, which i nfluence global prices, are reflected in the domestic long-term price trend. How ever, in the short-term normally there is no significant relation with internati onal prices. Several international agencies like US Dept. of Agriculture, International Grain s Council, Food and Agricultural Organisation release regular, periodic reports on global supply-demand situation, which is widely looked upon by the global pla yers.