Futures Commodity Trading Market
The futures commodity trading market has been gaining momentum since quite a few years. Two years back, in the year 2007, the total volume of trade in the case of the futures market was Rs 36.54 lakh crore when compared to the Rs 34.84 lakh crore in the year 2006.
The largest and the most reputed regulatory bodies for the futures commodity trading has been considered to be the MCX or the Multi Commodity Exchange of India in the terms of the number of contracts as well as the total turn over volume. Various other commodity exchanges where commodity futures are traded are the National Commodity Derivates Exchange or the much commonly called NCDEX as well as the National Multi Commodity Exchange. Other than these 3 exchanges there are twenty two more commodity exchanges in India.
There are more than 90 commodities which are traded in the futures commodity market. These commodities include various agricultural commodities such as jute, gur, wheat, coffee, rice, etc.; various pulses such as chana, urad etc.; oilseeds such as groundnut and coconut oil, sesame seeds, sunflower oil; spices such as turmeric, chillies, pepper, metals such as aluminum, copper, tin; precious metals such as gold as well as silver; crude oil, natural gas, coal and many more.
Out of all the commodities which are traded in the futures commodity market the four major commodities which have the largest share in terms of trading are Gold, Silver, Guar Seed and Chana.
The commodity futures market are of great use to the producers, the investors as well as the traders since they can sell the futures of the commodity (selling a particular amount of the commodity on a particular date at a pre decided fixed price or a particular price) and make sure that they are protected against any sudden changes in the market price.
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