A Presentation On ,

COMMODITY TRADING

What is Commodity trading ?

It is a market where primary products are exchanged. Such as Gold, Silver, Agricultural commodities, Metals, Crude etc.

Types of Commodity Exchanges

NCDEX (National Commodity and Derivative Exchange)

MCX (Multi-Commodity Exchange).

History of Commodity Trading

The first recorded instance of futures trading occurred with rice in 17th Century in Japan.
The

Chicago Board of Trade was established in 1848

In

the 1870s and 1880s the New York Coffee, Cotton and Produce Exchanges were born.
The

biggest increase in futures trading activity occurred in the 1970s when futures on financial instruments started trading in Chicago.

ABOUT COMMODITY TRADING

Commodity Trading also provides hedging, trading and arbitrage opportunities to market players. The FMC is the regulatory body for Commodity Trading in futures/forward trade in India. The FMC has its headquarters in Mumbai and the regional office is located at Kolkata. There are some 21 commodity exchanges in India. But most of these commodity exchanges are regional, offline and commodity specific. The government has recently allowed four national level multi-commodity exchanges to trade in all permitted commodities

Types of Commodities

Precious Metals : Gold and Silver Base Metals Energy Pulses Spices : Copper, Zinc, Steel : Crude oil, Natural Gas : Chana, Urad : Jeera,Turmeric,Cardamom

Others

: Guar Seed and Guar Gum

Commodity Trade Learning

Commodity trading is basically a exposed to ideas plus practical experience watching the market on a day to day basis.
For further details need to refer the books of commodity trading, as the process is to be followed on the day to day market activity.

Indias commodity trading to gain $1.25 trillion

Turnover on Indian commodity exchanges led by MCE of India ltd. India will increase the maximum positions that traders may hold in agricultural commodities May reach Rs 50 trillion ($1.26 trillion) in the year from April as rule changes boost trading in sugar and soybean oil.

BC Khatua, chairman of the Forward Markets Commission.

ABOUT NCDEX

NCDEX is an online commodity exchange based in India. It is a closely held Pvt.Ltd incorporated on 23rd April 2003,under the companies Act,1956.

It received its Certificate for Commencement of Business on 9th May 2003.

It is regulated by FMC in respect of futures trading in commodities.

ABOUT MCX

MCX is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai.

It has an average daily turnover of around US$1.55 billion.

It features amongst the worlds top three bullion exchanges and top four energy exchanges.

NCDEX TOP GAINERS/LOSERS

GAINERS Commodity

Closing Price
1178.80 21297.00 3807.00

BARLEY JAIPUR SILVER DELHI TURMERIC NIZA.

LOSSERS Commodity

Closing Price
1725.00 30890.00 648.40

SUGAR-KOLHAPUR STEEL MILD-GHAZI. GUR-NEW-MUZZ.

MCX TOP GAINERS /LOSERS

GAINERS Commodity

Closing Price
823.50 371.40 317.20 5010.0

NICKEL NATURAL GAS COPPER CRUDE OIL

LOSSERS Commodity

Closing Price
20991.0 73.35 738.50

PLATINUM LEAD CARDAMOM

ADVANTAGES OF COMMODITY TRADING

Leverage Ability to go short No Time Decay There are no balance sheets, no complicated financial statements----all you have to do is follow the supply and demand position of the commodities you trade in very closely.

LATEST NEWS OF COMMODITY TRADING

FMC is likely to raise price for jeera and turmeric ZINC output capacity to rise 14%

Copper price dip part of larger commodities retreat.

Analysts expect bumper output for soybean Tea export decline 29% in FY08.

Chicago Board of Trade Future Market

Thank You

Presented By Furkan Y.Kamdar