its my detail study of indian commodity market

1. AN INSIGHT INTO
Commodity market
past ,present and future
CENTRAL UNIVERSITY OF RAJASTHAN(2013-2015) 1
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SURAJ KUMAR DIXIT
2013MCOM021

2. Outlines
Definition
Commodity – History (World)
Commodity – Uniqueness (CONTRIBUTION IN GLOBAL LANDSCAPE)
Classification ofCommodities
Commodity – History(India)
Indian Commodity Market Size
Commodities Offered forTrading
How to Invest
Commodities @Way2Wealth
Risk factor
conclusion
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3. Commodity - Definition
A commodity is any good or service produced by human labour
and offered as a product for general sale on the market
- Karl Max
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A commodity is anything for which there is demand, but which is
supplied without qualitative differentiation across a markets.

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Classification of Commodities
Commodities
Bullion
Gold
Silver
Palladium
etc
Energy
Crude oil
Heating oil
Natural gas
Furnace oil
Etc.
Base Metals
Copper
Zinc
Aluminum
Nickel
Tin
Agriculture
Grains
Pulses
Edible oils/seeds
Spices etc

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Wheat in your bread
Petrol in your vehicle
Coffee on your table
Sugar in your sweets
Chana in your chhole
Gold in your necklace
……… and so on …….
Commodities are everywhere
Commodities – in Real Life

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Indian Share in Global Commodity Market
91%
9%
Global India
Contribution in global landscape
Global Vs. India
 Global commodity has relatively long history
 Size is 9 times larger than India
India
 Commodity futures, though active since 19th
century was banned later in 1970’s
 Commodity volumes shoots up significantly
after re-launch in 2003
 MCX emerged as world’s 4th largest exchange
 Volumes on Indian exchanges are increasing
at CAGR of 73.7 percent
2009 2008
Global 14831317 11712611
India 1469673 1067984
CommodityTrading (Value in Million USD)

8. METAL BULLION
Aluminium,Copper, Lead, Nickel, Steel Long
(Bhavnagar), Steel Long (Govindgarh), Steel
Flat,Tin, Zinc
Gold, Gold HNI, Gold M, i-gold, Silver, Silver HNI, Silver
M, Silver Micro
FIBER ENERGY
Cotton L Staple, Cotton M Staple, Cotton S
Staple, CottonYarn, Kapas, Jute
Brent Crude Oil, Crude Oil, Furnace Oil, Natural Gas, M.
E. Sour Crude Oil,ATF, Electricity(Now delisted),Carbon
Credit
SPICES PLANTATIONS
Cardamom, Jeera, Pepper, Red Chilli,Turmeric,
Cumin Seed, Coriander
Arecanut, Cashew Kernel, Coffee (Robusta), Rubber
PULSES PETROCHEMICALS
Chana, Masur,Yellow Peas,Tur, Urad HDPE, Polypropylene(PP), PVC
OIL & OIL SEEDS
Castor Oil, Castor Seeds, Coconut Cake, Coconut Oil, Cotton Seed, Crude Palm Oil, Groundnut Oil,
Kapasia Khalli, Mustard Oil, Mustard Seed (Jaipur), Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil,
Refined Sunflower Oil, Rice Bran DOC, Rice Bran Refined Oil, Sesame Seed, Soymeal, Soy Bean, Soy
Seeds
CEREALS OTHERS
Maize, Barley, Rice, Sharbati Rice, Basmati
Rice,Wheat
Guar gum, Guar Seed, Gurchaku, Mentha Oil, Potato
(Agra), Potato (Tarkeshwar)
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Structure of Indian Commodity market
20 Other Regional Exchanges
NMCE
Commodity Exchanges
MCX
National
Exchanges
Regional
Exchanges
FMC –The Regulator
NBOTNCDEX
Leadership position with >90% share
MINISTRY OF CONSUMERAFFAIRS

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National Commodity and Derivatives Exchange
Type Private
Industry Business services
Founded 15 Dec ember 2003
Headquarters Mumbai , Maharashtra, India
Key people Samir Shah, MD (incharge)
Prod ucts Options /futures exchange
Website www.ncdex.com
NCDEX Of f ices
NCDEX has offices in Mumbai ,Delhi,Ahmedabad,Indore,Hyderabad,Jaipur and Kolkata.
National Commodity & Derivatives Exchange
Limited (NCDEX) is an online multi commodity
exchange based in India.It is a public limited company
incorporated on 23 April 2003 under the Companies Act ,
1956. It obtained its Certificate for Commencement of
Business on 9 May 2003. It has commen credits
operationson 15 December 2003.NCDEX is the only
commodity exchange in the country promoted by national
level institutions.

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Multi Commodity Exchange
Multi Commodity Exchange of India Ltd is an independent commodity
exchange based in India. It was established in 2003 and is based in Mumbai.
Headquarters: Mumbai, India
Founded: 2003 Type Public
Industry Business services
Founded 10 Nov. 2003
Headquarters Mumbai, India
Key people
ManojVaish, MD
and CEO
Products
Options/futures
exchange
Revenue
Rs 104.39 crore
(2005–2006)
Website www.mcxindia.com
The Multi Commodity Exchange of India Limited (MCX),
India’s first listed exchange, is a state-of-the-art,
commodity futures exchange that facilitates online
trading, and clearing and settlement of commodity
futures transactions, thereby providing a platform for risk
management.The Exchange, which started operations in
November 2003, operates within the regulatory
framework of the Forward Contracts (Regulation)Act,
1952.
MCX has been continuously raising the bar through
effective research and product development, intelligent
use of information and technology, innovation, thought
leadership and ethical business conduct

13. ONLINETRADING SYSTEM
(PROFIT FROM PROMISE)
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EASYWAYTO EARN MONEY
-------------------------------
EASYWAYTO LOOSE MONEY

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How to Invest
Procedure for Trading in Commodities

• Open Demat & Trading A/C
 Filling KYC (Know Your Customer)
 Documents required : Pan Card, Address Proof, Networth, Cancelled cheque (MICR), Photo
etc
• To get familiar with this asset class, start reading research reports and monitor
advisory and execution
• Acquire full knowledge of risk involved in futures
 Mark to Market
 Daily Pay-in & pay-out
 Margin requirements
 Contract expiry & rollover
 Leverage, profit & loss etc

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THE WORLD’S MAJOR COMMODITY FUTURES
EXCHANGES
2008 2007
Rank
1 1 New York Mercantile Exchange
(NYMEX, US)
2 3 Dalian Commodity Exchange
(DCE, China)
3 2 Chicago Board of Trade
(CBOT, US)
4 4 ICE Futures
(formerly IPE, UK)
5 9 Zhengzhou Commodity Exchange
(ZCE, China)
6 5 London Metals Exchange
(LME, UK)
7 7 Shanghai Futures Exchange
(SHFE, China)
8 10 Multi Commodity Exchange
(MCX, India)
9 1+++1 New York Board of Trade
(NYBOT, US)
10 6 Tokyo Commodity Exchange
(TOCOM, Japan)
11 8 National Commodity & Derivatives Exchange
(NCDEX, India)
12 13 Chicago Mercantile Exchange
(CME, US)
13 12 Tokyo Grain Exchange
(TGE, Japan)
14 15 Euronext.LIFFE (EU)
15 16 Central Japan Commodity
Exchange (C-COM, Japan)
16 17 Kansas City Board of Trade
(KCBT, US)
17 18 Winnipeg Commodity Exchange
(WCE, Canada)
18 19 Bursa Malaysia Derivatives
(BMD, Malaysia)
19 14 National Multi-Commodity
Exchange (NMCE, India)
20 20 JSE/SAFEX
(South Africa)
21 22 Brazilian Mercantile & Futures
Exchange (BM&F, Brazil)
22 21 Minneapolis Grain Exchange
(MGEX, US)
Exchange

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Risk Factors

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References:
Wikipedia.org
www.ncdex.com
www.mcxindia.com
www.way2wealth.com
Guru(2007)

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THANKYOU
Team Members
ANKIT
SINGHAL.
UMESH
SINGHAL.
DILEEP K.

20. Your Question`s Are
MOST Welcome...
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