COMMODITY

INVESTMENTS
BY :
A-57 ANJALI SONI
A24 PINANG MODI
B-08 HIREN CHAVLA
B-26 KANIKA MAHESHWARI

Commodity exchanges
World wise

New york mercantile exchange

London metal exchange
Chicago mercantile exchange
Chicago board of trade
Shanghai metals exchange

In India
Www.Mcxindia.Com
Www.Ncdex.Com
Www.Nmce.Com

Commodities

Types of commodity investment

Commodity market

Trades
Chicago board of trade (CBOT) is considered to be
benchmark for soy complex pricing
And bursa malaysia exchange is considered to be benchmark
for crude palm oil pricing.
London metal exchange (lme) is considered to be benchmark
for base metals pricing.
New York stock exchange sells highest Crude oil
Shanghai Metals Exchange is the largest metal exchange in
china and one of the largest in the world

Trades in india
In terms of volume
MCX
1. Crude oil
2. Silver
3. Copper

NCDEX
1. Soya
2. Castor
3. Guarseed

In terms of value
MCX
1.
2.
3.

Crude Oil
Gold
Silver

NCDEX
1.
2.
3.

Soya Bean
RM seed
Guar Seed

Why invest in commodities ?

Investors in commodity markets

Individuals
Producers / farmers
Importers / exporters
Commodity financers
Agricultural credit providing agencies
Hedgers, speculators, arbitrageurs
Large scale consumers. For e.G. Refiners, jewelers, textile
mills
Corporate having risk exposure in commodities.

How to invest ?

Technicalities
Dematerialized or demat form of commodities
Options in commodity derivatives
Calculation of the value of the trade
Beneficiary account
Process
Charges
Days

The pay-in and pay-out time for e-series contracts

Technicalities
Sales tax
Applicability
Registration

Future contract
Definition
Process

Difference between contracts and underlying

Custody charges
Expiry and Rollover in Commodity Futures
Margin

RISK MEASUREMENT
Standard deviation is applied to the annual rate of return
of an investment to measure the investment's volatility.
Standard deviation is also known as historical volatility
and is used by investors as a gauge for the amount of
expected volatility.

Historical ROI of GOLD

Historical Risk:
Standard deviation: 1561.987

Historical ROI of crude oil

Historical Risk
Standard deviation: 1194.194

Risk factors associated in

commodity market
National monetary policy
Foreign exchange rates
Weather
Production
Demand/supply
Seasonality
Inflation
Global economic factors
Political instability

 WWW.MONEYCONTROL.COM
WWW.MCX.COM
WWW.KOTAKCOMMODITIES.COM
WWW.NCDEX.COM
WWW.VALUERESEARCH.COM
WWW.COMMODITYONLINE.COM
WWW.THEICE.COM
WWW.ECONOMICSTIMES.COM

Thank you