In 2011 a downward trend in commodity prices was witnessed locally and globally, observed Pakistan Mercantile Exchange (PMEX) in its overview of international domestic commodity markets for the year 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 would sap demand for raw materials. During the year 2011, the traded volumes at the exchange increased to Rs802.2 billion from Rs184.4 billion in the corresponding period of the previous year, a growth of 335 per cent. Analysts said a rebound rally is possible in the near term but gold is far from retesting all-time highs. Gold prices fluctuated between $1309.9 and $1900.2 per ounce in the year, 2011.
The precious yellow metal gained nearly 10 per cent this year despite a last quarter dip and a steep decline from September’s highest ever hit of $1,900 an ounce, its smallest annual rise in three years. It remained down 18 per cent from a record $1,900.2 set in September, and finished the fourth quarter with its first quarterly loss in more than three years. During 2011, the gold saw its traded volumes at the exchange increasing to Rs581 billion from Rs137 billion in the corresponding period of previous year, a growth of 324 per cent.
Crude oil price fell from $113.83, the highest in the month of April to its lowest $76.56 a barrel in the month of October. Crude recovered in last quarter of the year. During 2011, crude oil witnessed its traded volumes at the exchange increasing to Rs98 billion from Rs29.3 billion in the corresponding period of previous year, a growth of 234 per cent. Oil prices ended 2011 up eight per cent as a fresh wave of supply concerns capped a year of unrest and disruptions in North Africa and Middle East that overwhelmed concerns about the economic health of large consuming nations.
Silver logged its first annual loss in three years on Friday, backtracking from a near-doubling in price during 2010, as worries about the global economy and silver prices fluctuated between $26.60 – 48.40 in synchrony with a recent slide in gold hurt demand. Silver shattered by almost 10 per cent over the year of 2011. A continuous growth has been witnessed in the first quarter of year. During 2011, silver saw its traded volumes at the exchange surging to Rs123 billion from Rs17.2 billion in the corresponding month previous year, a growth of 612 per cent. Silver prices peaked near $50 in late April. In the following months, it was a bumpy ride as markets were driven more by eurozone headlines than fundamentals. Silver experienced a sharp sell-off in September, but found support near $26 per ounce. In domestic market a downward trend in the prices of IRRI-6 has been witnessed in last quarter of the year, 2011. Price movement fluctuated wider; maximum price was Rs3,850 per 100 Kg in July and minimum price was Rs2,900 per 100 kg on the second last trading day of December. A drop of 15.22 per cent has been observed over the year 2011. In international market, despite the rise, palm oil posted its first annual decline since 2008. It lost more than 16 per cent this year, a performance that pales in comparison to the 42 per cent gain in 2010.
In domestic market, a downward trend in the prices of palm oil has been witnessed over the year, 2011. Maximum price Rs5,560 was in the month of February while the minimum price was Rs4,500 per 37.324 kg noticed in the month of October. A drop of 11.59 per cent has been observed in prices in 2011.