Commodities in extremely simple terms are described as natural sources, chemicals & physical products one can feel, taste, grow, smell, mine, consume and deliver. Commodities are exchangeable with other commodity products of the similar type, and which a trader can buy or sell.
Commodities have a value which is mostly subject to supply & demand.
Commodities are being bought and sold for money or further commodities for lots of centuries in local & international commodity markets. For as long as investors have engaged in buy and sell, they have required a system to manage the delivery of commodity goods and make commerce extra efficient & predictable.
In 1971’s, an important change happens in United State commodity trading, when the modern ‘Commodity Future Trading’ was initiated. This has altered the way commodities were being bought and sold for centuries.
A commodity future agreement represents a contract to buy or sell a particular type and level of commodity for deliverance at a particular time in the future at an decided upon place at a market measured rate. In actuality, commodity futures typically lead to the delivery of a real product, because the agreement positions are usually closed out previous to the delivery date.
In India, National Multi Commodity Exchange of India Limited (NMCE) got recognition from Govt. Of India to establish commodity future market trading in the year November 2002. In the year 2003, one more exchange, Multi Commodity Exchange of India (MCX) was developed for Bullion and Energy sectors.
Commodity Exchanges in India:-
Commodity products are being bought & sold on Commodity Exchanges. Commodity exchanges give electronic way or platform for traders to trade in different options accessible. An individual or single cannot directly walk off to exchange and build the trade. Commodity exchange authorizes brokers and sub brokers, who interact with clientele (investors) on behalf of commodity exchange and charges or brokerage fees or commission for their services and Commodity Tips.
Note: Forward Markets Commissions (FMC ) managed the commodity markets in India. It is the same a like to SEBI.
There are many exchanges available in India for commodity product trading:
1. Multi Commodity Exchange of India Ltd (MCX):
MCX is the India based Online commodity futures exchange. MCX gives online Commodity MCX Tips for trading and facility along with clearance and settlement processes for the commodity futures crosswise India.
MCX is the biggest commodity exchange in India and it holds a market share of approximately 80%. MCX permits trading in more than fifty commodities across the field like bullion, energy, metals, weather and Agri market products.
Few key facts about MCX (Added on 27 Sept 2011)
- MCX, among the primary exchanges to start in India, accounts for a maximum 80% of the country’s commodity futures marketplace. It ranked the world’s 6th biggest commodity futures exchange by many numbers of agreement traded.
- MCX recorded an earnings of 63,933 billion Indian currencies ($1.3 billion) in 2009 and 2010, a share of 82.34% of the whole value of the commodity futures in India.
- Top listed agreement: Gold, crude oil, copper, silver, nickel, natural gas, zinc is the top bought & sold commodities.
- Most traded contracts: Silver, gold & crude oil.
2. National Commodity & Derivatives Exchange Ltd (NCDEX):
Incorporated in the 2003, NCDEX is the online multi commodity exchange placed in Mumbai in India. NCDEX suggests trading in approximately 59 commodities crosswise multiple segments involving agricultural, metals & energy. While the quantity is very less with NCDEX, it gives Commodity NCDEX Tips and options to buy and sell in almost every of the commodities as MCX.
Few key points about NCDEX (Added on 27 Sept 2011)
- Launched in the 2003, NCDEX is the 2nd biggest exchange and is supported by leading economical & financial institutions and the state owned banks.
- NCDEX logged an earnings of 9,176 billion Indian currencies ($185 billion) in 2009 and 2010, accounting for about 12% of the whole value of the commodity futures in the country.
- Top listed agreements: Soyoil, soybean, pulses and rapeseed.
- Most traded agreement: Soy oil, Guar seed & pulses.
3. National Multi-Commodity Exchange of India Ltd (NMCE):
Incorporated in the 2002, NMCE was the 1st mulch-commodity exchange placed in Ahmadabad in India. NMCE provides trading in Oils & Oil Seeds, Pulses, Base Metals, Spices Precious Metals and other commodities.
A few key features about NMCE (Added on 27 Sept 2011)
- Based in the Ahmadabad, NMCE was the 1st commodity exchange in India to be supported after the Indian Govt. Decustomised the platform for the commodity futures. It ongoing with futures in gold & silver.
- NMCE’s earnings stood at 2,279 billion Indian currencies ($46 billion) in 2009 and 2010.
- Top listed agreement: Farm commodity products.
- Most traded contracts: Soy oil, Rapeseed & pulses.
4. MCX Stock Exchange (MCX-SX)
Incorporated in the 2008, MCX-SX is an online platform for the trading in currency derivatives. MCX-SX provides currency, futures agreements in Euro-Indian Rupee (EURINR), United State Dollar-Indian Rupee (USDINR), Pound Sterling-Indian Rupee (GBPINR) & Japanese Yen-Indian Rupee (JPYINR).
5. Indian Commodity Exchange (ICEX)
Incorporated in the 2009, ICEX is placed in Gurgaon based on the commodity futures trading exchange.
Key facts about (Added on 27 Sept 2011)
- ICEX is now creating up its warehouse arranged & facilities. Reliance Exchange next Ltd. is its fasten traders with MMTC Ltd., Indian Potash Ltd., KRIBHCO, Indiabulls Financial Services Ltd. and IDFC among further partners.
- It posted an earnings of 1364.25 billion Indian currencies ($27.5 billion) in its early first year of business (2009 and 2010).
- Top listed agreements: Copper Cathode, Gold, Crude Oil, Silver.
- Most traded agreements: Crude Oil, Gold & copper cathode.
6. Ace Commodity Exchange (ACE)
Ace Commodity Market Exchange, earlier recognized as Ahmadabad Commodity Exchange Ltd, in progress futures processes in 2010, but has been in the trading business more than fifty years.
Below are a few key points about (Updated on 27 Sept 2011)
- The Kotak group is a mainstream stakeholder.
- Top listed agreements: Farm commodities.
- Most traded agreements: Pulses Soybean & soy oil.
Note: The conclusion to decide which exchange you would similar to to trade (MCX Vs NCDEX) depends on lots of factors including:
- The volume of trades & liquidity – Many lively commodity traders wish MCX over further exchanges because the size at MCX is bigger and thus gives more liquidity.
- There are some commodities, which are particularly available in definite exchange.
- Trade fees different from exchange to exchange & commodity to commodity.
END OF THE DAY REPORT (11 JUNE 2015):
Nifty ends below 8000 mark ahead of CPI & IIP numbers.
The markets failed to extend the previous day’s pull back on Dalal Street on the back of PSU bank as sharp selling seen after RBI (Reserve Bank of India) said that they need a higher -than-budgeted capital infusion. Nifty breaks its crucial point that is 8000 marks and given closing below it while Sensex falls near around 2 percent and ends at 26370.
HEADLINES FOR THE DAY:
- Shares of PSU bank were under pressure; ALBK hits fresh low.
- NBCC surged on a new partnership with Malaysian JV for redevelopment.
- Engineers India reported that company bagged a new order of Rs 150 crore.
- Shareholders give nod for merger of group firms; Stock gains.
- VEDL (Vedanta ltd) moved higher in a weak market ahead of merger with the Cairn.
KEY STOCKS FOR THE DAY:
- Shares of HUL gains as much as after the company decided to withdraw Knorr noodles.
- Astra Zen pharma reported that company had launched Forxiga (dapaglifozin), a breakthrough treatment for Type 2 diabetes mellitus; stock locked with upper circuit.
- Glenmark Pharma surged after gets nod for Calcipotriene Cream from USFDA (United States Food & Drug Administration)
- ICICI bank plans to raise Rs 50000 crore from private placement of securities including bonds and NCDs (non-convertible debentures).
- TVS motors gains on reported that the company wins new patents for three wheeler engines.
- BEML rallied and hits fresh high in an otherwise weak market after the company told that they had received new orders from Delhi Metro Rail Corporation.
- Tata Motors fall as the company is suffering from the effects of a slowdown in the crucial Chinese market.
- Index heavyweight Reliance Industry dips ahead of its AGM which is held tomorrow that is on 12th June 2015.
- Aurobindo Pharma moved higher in an otherwise market as the company is planning to invest in various activities such as product filings, capacity expansion etc. Worth Rs 900 crore.
- Nalco gains after rating agency started stock rating to outperform.
- Chennai Petroleum hits fresh high on NSE on the back of huge trading volumes.
SOME STOCKS FOR NEXT TRADING SESSION:
- Shares of Kitex EQ were trading near around its important resistance level, above it more buying could be seen as well as breakouts are expected in the next trading session. Buy above 900 targets 909/918.10/927.30 maintain SL of 890.
- Allahabad Bank (albk EQ) hits fresh low in NSE after RBI that they need a higher -than-budgeted capital infusion. More selling pressure could be seen enter below 90.40 targets 89.50/88.50/87.60 SL 91.40.
- European shares moved higher as hopes for progress on the Greek debt front lent some support and as EQ recovered from a 6 day downturn sparked by a sell off in European bonds.
- China shares gain after the close upward moment led by Retailers, Software & Computer Services and Gas, Water & Multiutilities.
News TO WATCH OUT:
- Watch out IIP (India Industrial Production – YoY) & CPI India (Consumer Price Index – YoY) numbers on Friday i.e. On 12th June 15.