Commodity Markets: Understanding the Difference between Agri and Non-Agri Universes

The commodity universe can be broadly divided into two main categories: agricultural and non-agricultural commodities.

Agricultural commodities include grains, oilseeds, spices, fibres, and the Guar complex. These markets are closely tied to physical factors such as weather, seasonality, crop output, domestic policy, and import-export conditions.

Non-agricultural commodities, on the other hand, are more exposed to global prices, currencies, geopolitics, and industrial activity. This includes precious metals like Gold and Silver, energy products like Crude Oil and Natural Gas, and base metals such as Copper, Aluminium, and Zinc.