What are commodity market trading hours?

October 31, 2023by Supriya Kadu0

Commodities play a crucial role in the global economy, enabling the trade of essential goods and raw materials. It is very important to understand the commodity market timings if you want to participate in commodity trading.

These hours mandate when a trader can buy and sell commodities in order to maintain market transparency. In this article, we will delve into the commodity market trading hours, factors that influence them, and the best time for commodity trading. 

 

Commodity Market Trading Hours

 

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What is the commodity market?

 

Commodity Market is a platform where you trade (buy and sell) primary agricultural product and raw materials. Everything from energy sources such as natural gas and crude oil, and agricultural products like corn, wheat and soybeans.

Commodity market has demand from all over the world, making it a global market. Before investing in the commodity market it’s essential to be familiar with the commodity market trading hours.

 

What are Commodity Market Trading Hours?

 

Commodity Market Trading hours is the time period when you can trade commodities. While looking at these timing, let us also have a look trading and clearance holidays and days they fall on.

The commodity market is open from monday to friday weekly. There are weekly holidays on Saturday and sunday. Due to the different time zones and to match with opening and closing of international markets the trading hours are longer.

Commodity market trading timing depends on MCX (Multi Commodity Exchange of India Ltd.). Usually, with consideration of international markets, the market timings are:

 

Market opening hour: 9:15am

Market Closing hour: 11:30 pm

 

Commodity Type Trade start time Trade end time (after beginning of daylight savings in the US in spring) Trade end time (after the end of daylight savings in the US in springs)
Internationally referenced non-agriculture commodities  9:00 am 11:30 pm 11:55 pm
Trade modification 11:45 pm  11:59 pm
Position limit/collateral value set-up/ cut-off end time 11:45 pm  11:59 pm

 

Trading doesn’t take place on Saturdays and Sundays as they are weekly holidays. Besides, there’s a list of holidays when no trading takes place. Below you will find the complete list of holidays:

 

Holiday Date Day Morning Session

(9:00 am to 5:00 pm)

Evening Session

(5:00 pm to 11:40/11:55 pm)

Republic Day January 26, 2023 Thursday Closed Closed
Holi March 07, 2023 Tuesday Closed Open
Ram Navami March 30, 2023 Thursday Closed Open
Mahavir Jayanti April 04, 2023 Tuesday Closed Open
Good Friday April 07, 2023 Friday Closed Closed
Dr.Baba Saheb Ambedkar Jayanti April 14, 2023 Friday Closed Open
Maharashtra Day May 01, 2023 Monday Closed Open
Bakra Eid June 29, 2023 Thursday Closed Open
Independence Day August 15, 2023 Tuesday Closed Closed
Ganesh Chaturthi September 19, 2023 Thursday Closed Open
Mahatma Gandhi Jayanti October 02, 2023 Monday Closed Closed
Dussehra October 24, 2023 Tuesday Closed Open
Diwali Balipratipada November 14, 2023 Tuesday Closed Open
Gurunanak Jayanti November 27, 2023 Monday Closed Open
Christmas December 25, 2023 Monday Closed Closed

 

Agricultural products that are linked internationally are traded between 5:00 p.m. to 9:00/9:30 pm. 

Some of the holidays are clearance holidays; they are declared bank holidays. Trading doesn’t happen these days. Following is the list of clearance holidays:

Holidays Date  Day
Annual Bank Holiday April 1, 2023 Saturday
Buddha Purnima May 5, 2023 Friday
Parsi New year August 16, 2023 Wednesday

 

Factors that Influence Commodity Market

 

Commodity market timings differ on the basis of the commodity being traded. Some factors have a huge impact on the commodity market. Below, we have discussed some factors that influence the commodity markets:

 

Global Supply and Demand

This is one of the primary factors influencing the commodity being traded. If there’s an increase in demand and a decrease in the supply chain, it might lead to extended trading hours. For example, if some geopolitical event affects crude oil production, it will extend the trading timings to meet the demand for the commodity. 

 

Time Zone Differences

As the commodity market operates globally, different time zones play a crucial role in determining trading hours. Different countries have different working schedules, leading to differences in trading sessions.

Before planning their trading activities effectively and aligning them with the respective market hours, traders must consider these different time zones. 

 

Market Regulations

It is one of the factors that plays an important role in setting trading hours and commodity market schedules. These rules guarantee honest and open trading while granting everyone access to the market on an equal footing.

To guarantee market integrity, regulatory agencies set rules and keep an eye on how commodity exchanges operate. They also make sure trading hours are followed.

 

Economic and Political Events

Commodity market timing is hugely impacted by economic and political events. Whenever there’s a change in government policies, natural disasters in economic indicators can create market volatility. Because of this, trading hours can be extended so market participants can react and capitalise on these events. 

 

Best Time for Commodity Trading

 

  • During Opening Hours

One of the finest periods to trade on the commodity market is during the first few hours after the market begins. Joining or quitting a trade at this point is made simpler by strong liquidity and trading volumes.

 

  • Overlapping Trading Hours

When the trading hours of two or more markets overlap, this is another good MCX timing for trading in the commodities market. For instance, there may be more trade in commodities like gold and crude oil as a result of the overlap between the Asian and European markets.

 

  • During Volatile Periods

For some traders, times of market volatility can be difficult, but they can also present fantastic trading chances. Price fluctuations may result from increased market volatility, which makes it simpler to profit from changes in prices.

 

Conclusion

Understanding the Commodity Market Trading hours are very crucial if you want to trade in commodity markets. With this knowledge, investors can manage risks, seize opportunities, and make informed decisions.

Remember that the trading hours mentioned above are subject to change depending on regional holidays and specific changes. 

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Disclaimer: The sole purpose of our financial articles is to provide you with educational and informative content. The content in these articles does not intend any investment, financial, legal, tax, or any other advice. It should not be used as a substitute for professional advice or assistance. 

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DISCLAIMER: Online Trading Institute is providing courses content and any related materials (including newsletters, blog post, videos, social media and other communications) for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments.