Commodity

Market
Introduction to Commodity Market
• A commodity market is a marketplace for buying,
selling, and trading raw materials or primary
products.
• Natural resources - Precious Metals and Energy.
• Agricultural products and Livestock
Multi Commodity Exchange National Multi Commodity Exchange
(MCX) (NMCE)

Indian Commodity Exchange National Commodity and Derivatives

(ICEX) Exchange (NCDEX)
• Facilitate an exchange of both physical goods and derivative
contracts
• Futures Contracts
• Options Contracts
• Classes of investors :
- Producers, Speculators, Hedgers.
• Inverse relation with both stock and bond markets
 Price Determinants
• Market Demand and Supply
• Global Scenario
• External Factors
• Speculative Demand
• Market Outlook
 Pros & Cons
• Diversification • High Risk
• Inflation Hedge • Limited Returns
• Substantial
Returns