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.
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:
|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:
(9:00 am to 5:00 pm)
(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:
|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.
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.
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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