COMMODITY MARKET RESEARCH

INTRODUCTION

Normally commodity market organized traders exchanges in which standardized or graded products are bought and sold.

EXPLANATION

World wide there are 48 major commodities exchanges that trade over 96 commodities that ranging from wheat and cotton to silver and oil. Most trading is done using future contracts that is agreement to deliver goods at set time in the future for price and established at the time of the agreement. Future trading prevents from great loss. For example if a seller may signed to agree his product for a two months at a certain price ,if the cotton market declines at the end of two month he will still get the money as agreed. But if the situation is vice verse, the speculators buying the goods will get profit.
it is needed to regulate this commodity market. An independent US regulatory agency, the commodity future trading commission was developed in 1974 to regulate it.

SOME COMMODITY MARKETES

The Global Grain Trading Industry
World Commodity Forecasts Food Feedstuffs and Beverages
Corn Farming in the Us

COMMODITY MARKET EXCHANGES IN INDIA

India has a long history of futures trading in commodities. In India it has been in existence from nineteenth century with trading in cotton through the establishment of Bombay Cotton Trade Association Ltd in 1875.

COMMODITIES WHICH ARE SUITABLE FOR FUTURE TRADING

Here discussed the key factors that, the decide the suitability of commodities for the future trading

1. Commodity should be competitive
2. There should fluctuations in price
3. Free from substantial government control
4. Commodity should have long shelf life and be capable of standardization and gradation



PROBLEMS FACED BY COMMODITY MARKET IN INDIA

The main problems are octroi duty, logistics. If there is a broker in Mumbai and a broker in Bangalore, transportation cost, logistics prevent trading to takes place

CONCLUSION

Commodity market is poised to play an important role of price discovery and risk management of agriculture and other sectors in the supply chain. .New issues and problems will surface as the market evolves.