This power point presentation include all about commodity market. Here commodity market , meaning ,commodities , definitions, historic background,benefits and finally conclusion about commodity market. This is my first power point presentation at the time of studying master of commerce and also uploading first presentation.

2. Assignment
On
Commodity Market
Department of Commerce
Yogi Vemana University
Submitted by : Kethineni Venkatasiva
Subject : Organizational Behaviour

3. DOCKET
Meaning
Definition
Historic Background
Benefits
Commodity Trading Apps
Conclusion

4. Meaning
Commodity :
Any products that can be used for commerce
or an article of commerce which is traded on
an authorized commodity exchange is known
as commodity
Market :
Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large

5. Commodities
Oil Coffee Gold Foxtile Milets
Jowar Gas Cattle Beans

6. Definiton
• A commodity market involves buying, selling,
or trading a raw product, such as oil, gold, or
coffee. There are hard commodities, which are
generally natural resources, and soft commodities,
which are livestock or agricultural goods.

7. Historic Background

13. Price
Discovery
Based on inputs regarding
specific market information,
the demand and supply
equilibrium, weather forecasts,
expert views and comments,
inflation rates, Government
policies, market dynamics,
hopes and fears, buyers and
sellers conduct trading at
futures exchanges. This
transforms in to continuous
price discovery mechanism.
The execution of trade between
buyers and sellers leads to
assessment of fair value of a
particular commodity that is
immediately disseminated on
the trading terminal.

14. Price Risk
Management
Hedging is the most common
method of price risk
management. It is strategy of
offering price risk that is
inherent in spot market by
taking an equal but opposite
position in the futures market.
Futures markets are used as a
mode by hedgers to protect
their business from adverse
price change. This could dent
the profitability of their
business. Hedging benefits
who are involved in trading of
commodities like farmers,
processors, merchandisers,
manufacturers, exporters,
importers etc.

15. Import- Export
competitiveness:
The exporters can hedge their price
risk and improve their
competitiveness by making use of
futures market. A majority of
traders which are involved in
physical trade internationally
intend to buy forwards. The
purchases made from the physical
market might expose them to the
risk of price risk resulting to losses.
The existence of futures market
would allow the exporters to hedge
their proposed purchase by
temporarily substituting for actual
purchase till the time is ripe to buy
in physical market. In the absence
of futures market it will be
meticulous, time consuming and
costly physical transactions.

16. Predictable
Pricing
The demand for certain
commodities is highly price elastic.
The manufacturers have to ensure
that the prices should be stable in
order to protect their market share
with the free entry of imports.
Futures contracts will enable
predictability in domestic prices.
The manufacturers can, as a result,
smooth out the influence of changes
in their input prices very easily.
With no futures market, the
manufacturer can be caught
between severe short-term price
movements of oils and necessity to
maintain price stability, which
could only be possible through
sufficient financial reserves that
could otherwise be utilized for
making other profitable
investments.

17. Upstox App Edelweiss App Commodity Beat
App
ET Market App
Angel Broking
App
Thomson
Returns App Money Control
App
IIL Trading App
Commodity Trading Apps

18. Conclusion
A combined approach to commodity research tends to offer optimal results.
The fundamental and technical analysis used together amounts to covering
many bases when it comes to understanding the present state of a market and
predicting future price behavior for that market. It is important to keep in
mind that knowledge of macroeconomic factors also plays an important role
in the direction of raw material prices.
As commodities tend to be highly volatile assets, unexpected events
can always throw a monkey wrench into even the most robust analysis. It is
that volatility that attracts speculators, traders, and investors alike. Price
volatility creates the opportunity for profits but at the same time, makes the
raw material markets dangerous from a risk perspective.