COMMODITY MARKET VERSUS SPOT MARKET

Objective
To analyse the opportunities in the Commodity

Market

Feasibility study of the process of making

deliveries in commodity market to get profit from the difference between spot price and commodity futures price. Indian Exchanges

To analysethe time value of commodities in

Scope of Study
This study will be helpful for the dealers of the

exchange traded commodities

This method of investment may have the

possibility to emerge as an innovative investment technique.

It sometimes gives more profits than that of

even speculators getting in their best time.

Company overview- DBFS

Doha Brokerage and Financial Services Ltd

Established in 1992, as Select Securities,one of the first corporate brokerages in India In the year 2006 Doha Bank took over 49 percent stake in the company and was renamed as DBFS.

Products and Services

Equities Mutual Funds Commodities Portfolio Management Internet trading Derivatives

Evolution of Commodity market in India

Derivatives as a tool for managing risk first originated

in the commodities markets. They were then found useful as a hedging tool in financial markets as well.

In India, trading in commodity futures has been in

existence from the nineteenth century with organised trading in cotton through the establishment of Cotton Trade Association in 1875.

Bombay Cotton Trade Association Ltd., set up in

1875, was the first organised futures market.

Major Commodity Exchanges in India

Multi Commodity Exchange of India Ltd.

(MCX)

National Commodity and Derivatives

Exchange Ltd.(NCDEX)

National Multi Commodity Exchange of India

Ltd.(NMCE)

Major commodities trading in Indian exchang

Bullion Metals Spices Energy Plantations Oil & Oil seeds

Price Ranges of Cardamom

Price Ranges of Gold

Price Ranges of Pepper

Qualities required for Commodities delivery

q Cardamom Liter weight; 380-420 gm Colour; Green

q Pepper Liter weight; 570-600 gm Size; Above 8mm Colour; Black Moisture; Less than 12%

q Rubber RSS 4

Institutions, giving finantial supports

ICICI BNP Paribas Federal Bank Major Stock broking firms South Indian Bank

Limitations of Study
This is an upcoming trend in the market. Not

many people can be viewed as experts in this trade.

Time constraints References for literature review could not be

obtain due to lack of secondary data available on this topic.

Findings & Suggestions

This method of investment is highly profitable

with comparatively lesser risk. It is seen as a potentially growing sector for the future.

Investors should be highly alert to such

opportunities as and when they arise in the market

Thank You