KEDIA COMMODITY YEARLY REPORT 2010

  Verdana">2009 is belonged to Metals, bullion, equity, foreign currencies, bonds and the emerging markets. Just about everything else posted a decline over this stretch or failed to produce a meaningful gain adjusted for inflation. Bullion shined brightest in terms of cost during 2009, in part due to Reserve Bank of India buying bullion from IMF, but as investment tools they were way behind the benchmark stock index Sensex that gave returns of over 80%. Also rally in 2009 was seen with agri-commodity prices rallying to multi-year highs on the back of below average monsoons and thereby supply concerns. This lead to food inflation hitting a 10 year high of 19.95% for the period ended Dec. 5, 2009. An Agro commodity price in 2009 has been extraordinary with prices of most of the commodities at its multi years high due to supply concerns. Rising food prices contributed to a faster-than-expected 4.78% surge in the wholesale price index during November. Along with the prices, the volumes at NCDEX also surged more than 100% from January 2009 to December 2009. Considering the individual commodities Turmeric was the major gainer among the agri commodities.