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#Commodity Markets
cryptoadznft · 8 months
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Lorenzo and Tyler Culberston are working towards introducing a broad-based lasagna commodities index to be added to the NASDAQ Exchange in 2024
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financearticle · 8 months
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Exploring Commodity Trading with Stock Brokers in India
Commodity trading is a dynamic and lucrative segment of the financial markets, offering investors the opportunity to trade in various commodities such as gold, silver, crude oil, agricultural products, and more. In India, commodity trading is facilitated by stock brokers who provide a platform for investors to participate in this exciting market. In this blog, we will explore the concept of commodity trading, its significance, and how stock brokers play a crucial role in empowering investors to venture into this asset class.
Understanding Commodity Trading:
Commodity trading involves buying and selling physical commodities or commodity futures contracts on exchanges. It allows investors to benefit from price fluctuations in commodities, which are influenced by supply-demand dynamics, geopolitical factors, weather conditions, and other economic indicators.
Types of Commodities Traded:
Commodities can be broadly categorized into two groups: soft commodities (agricultural products like wheat, cotton, and sugar) and hard commodities (metals like gold, silver, and base metals, and energy products like crude oil and natural gas). Each commodity has its own unique characteristics and factors driving its price movement.
The Role of Stock Brokers in Commodity Trading:
Stock brokers act as intermediaries between investors and commodity exchanges. They provide trading platforms, research tools, and expert advice to investors interested in trading commodities. Stock brokers ensure seamless execution of trades and offer real-time market data to help investors make informed decisions.
Commodity Trading Account:
To trade in commodities, investors need to open a separate commodity trading account with a stock broker. This account is linked to a Demat account, enabling the trading and settlement of commodity contracts.
A commodity trading account with good stock brokers is the foundation for successful commodity trading. With their expert research, transparent fee structures, personalized support, and reliable trading platforms, good stock brokers empower investors to explore the world of commodity trading with confidence.
Investors can seize opportunities in commodity markets, diversify their investment portfolios, and potentially benefit from price movements in various commodities. Commodity trading accounts with good stock brokers open up a realm of possibilities for investors, enabling them to achieve their financial objectives and thrive in the ever-evolving commodity markets.
Understanding Commodity Futures and Options:
Commodity trading offers two primary instruments: futures and options contracts. Futures contracts involve an agreement to buy or sell a commodity at a predetermined price and date in the future. Options contracts provide the right, but not the obligation, to buy or sell a commodity at a specific price within a certain period.
Risk Management and Hedging:
Commodity trading provides opportunities for risk management and hedging. Farmers, producers, and industries can use commodity futures contracts to hedge against price fluctuations and mitigate risks associated with their businesses.
Diversification Benefits:
Adding commodities to an investment portfolio can enhance diversification and reduce overall portfolio volatility. Commodities often have a low correlation with traditional asset classes like equities and bonds.
Commodity trading presents a unique opportunity for investors to participate in the price movements of essential commodities that impact various sectors of the economy. Stock brokers in India play a crucial role in facilitating commodity trading, providing investors with the necessary tools, research, and access to commodity exchanges.
As with any form of trading, investors must conduct thorough research, understand market dynamics, and manage risks effectively. With the guidance and support of reliable stock brokers, investors can explore the world of commodity trading with confidence, potentially capitalizing on diverse investment opportunities and achieving their financial objectives. Commodity trading adds depth and diversity to investment portfolios, making it an attractive avenue for both experienced traders and those looking to venture into new asset classes.
In conclusion, exploring commodity trading with stock brokers in India opens up a world of opportunities for investors to participate in the dynamic commodity markets. Commodity trading, with its potential for substantial returns and portfolio diversification, has gained popularity among investors looking to expand their investment horizons.
Stock brokers in India play a pivotal role in facilitating commodity trading, providing investors with the necessary tools, research, and support to make well-informed trading decisions. Through their online platforms and trading terminals, stock brokers offer real-time market data, charting tools, and seamless order placement, making commodity trading accessible and convenient.Additionally, with the rising popularity of mobile trading, commodity trading apps offered by stock brokers have further revolutionized the landscape. Commodity trading apps allow investors to trade on-the-go, access real-time market updates, and manage their commodity trading accounts from the palm of their hands. These apps have enhanced the ease and flexibility of commodity trading, empowering investors to seize opportunities swiftly and effectively.
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101now · 8 months
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Climate change has ravaged India's rice stock. An export ban could trigger a global food crisis.
Harayana, India CNN  —  Satish Kumar sits in front of his submerged rice paddy in India’s Haryana state, looking despairingly at his ruined crops. “I’ve suffered a tremendous loss,” said the third generation farmer, who relies solely on growing the grain to feed his young family. “I will not be able to grow anything until November.” The newly planted saplings have been underwater since July…
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ryzmarket · 9 months
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neyatimes · 10 months
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India's rice export ban could send decade-high prices higher
Women planting rice seedlings in a paddy field in India’s northeastern state of Assam, July 5, 2023. Xinhua News Agency | Xinhua News Agency | Getty Images India banned the exports of non-basmati white rice with immediate effect late Thursday, the latest in the government’s effort to rein in high food prices. The Ministry of Consumer Affairs said the ban would help ensure “adequate availability”…
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finschool · 1 year
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Commodity Market
An Insider's Guide to the Global Trade of Raw Materials
Commodity markets are an essential part of the global economy, allowing for the efficient and fair exchange of raw materials. Commodity market refers to the buying and selling of primary products that are traded in bulk, such as agricultural products, energy resources, precious metals, and industrial metals.
In this guide, we'll demystify the commodity market so you can gain a better understanding of how it works and how you can take advantage of its opportunities. We'll talk about different types of commodities, the mechanics behind trading them, and the risks associated with investing in them. We'll also provide some tips for those looking to invest in this volatile yet potentially rewarding market.
Whether you're a seasoned investor or a beginner just starting out, this guide will give you an insider's view of the global trade in raw materials so you can make wise investments and reap the rewards that come with it.
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What Is Commodity Market?
A commodity market refers to a physical or virtual platform where raw materials, agricultural products, and other goods are traded. Commodities can be traded as futures, options, or spot contracts. Futures contracts are agreements to buy or sell a particular commodity at a predetermined price and date in the future, while spot contracts are agreements to buy or sell a commodity at the current market price.
How Do Commodity Markets Work?
The commodity market is a complex system that brings together buyers and sellers of primary products. These primary products are referred to as commodities.
When investors buy and sell a commodity on the market, they do so based on its base price—what buyers are willing to pay for it—as well as any additional fees associated with additional processing, shipping, or storage costs. When supply exceeds demand (or vice versa), the market price of a commodity can fluctuate drastically. The beauty of commodities is that they offer investors a way to diversify their portfolios as they’re not tied to company or country-specific risks like stocks might be. Furthermore, savvy investors can take advantage of these changing prices by hedging their bets or speculating on future prices in order to maximize profits.
Main Categories of Commodity Market:
Commodity markets can be classified into three main categories:
Energy commodities: This category includes crude oil, heating oil, natural gas, and coal. Energy commodities are primarily traded on the NYMEX or the ICE (Intercontinental Exchange). Prices for energy commodities are affected by geopolitical events, supply/demand dynamics, and seasonal changes in weather that can affect supply or demand.
Metals commodities: Precious metals like gold and silver, industrial metals such as copper and aluminium, and platinum group metals—which include palladium and rhodium—all fall within this category. While a variety of exchanges exist to trade these commodities, one of the most popular is the comex (division of the New York Mercantile Exchange). Demand for metals can be impacted by economic growth trends around the world as well as currency movements.
Agriculture commodities: This category includes commodities such as grains (wheat, corn), soybeans, cotton, coffee, sugar, cocoa beans. Agricultural products are traded on various exchanges around the world including CME Group in the US, Euronext in Europe and MATIF in France. Weather patterns can have a major impact on crop yields which is why agricultural prices tend to be more volatile than other commodity markets.
Factors That Influence Commodity Prices:
There are various factors that can influence commodity prices, including supply and demand factors, global economic conditions, weather patterns, and geopolitical factors.
Supply and Demand: The classic economic forces of supply and demand are key in setting commodity prices. Demand for certain raw materials can fluctuate depending on the economic condition of a region or country, while supply levels may be affected by weather conditions or political unrest. As demand increases and supply decreases, prices will tend to rise; vice versa when demand decreases and supply grows.
Exchange Rates: Exchange rate fluctuations between countries also affect the price of commodities. When the exchange rate between two countries changes significantly, this can create imbalance in the global market for a particular commodity and result in price shifts.
Weather Conditions: Unpredictable weather conditions can drastically alter the market for some commodities, since many agricultural products are affected by severe weather events such as floods, droughts or sudden temperature changes. A crop failure due to drought could lead to soaring prices for a certain commodity, while excess production due to unseasonably wet weather may cause prices to fall dramatically.
Benefits to Business and Investors:
The commodity market provides businesses and investors with an opportunity to benefit from the global trade of raw materials.
Businesses: For businesses, commodity trading can be an effective way to manage price risk by hedging against price fluctuations in raw materials. By locking in prices for raw materials, businesses can ensure a stable supply chain and avoid sudden price spikes.
Investors: For investors, commodity trading can offer portfolio diversification and potentially high returns. Commodity prices are often uncorrelated with other asset classes, making them an attractive addition to a diversified portfolio.
The Future of Global Commodity Markets:
The future of the commodity market is influenced by various factors, including the shift towards renewable energy, advancements in technology, and geopolitical tensions. The increasing trends of globalization and technology are transforming the face of commodity markets and opening up a world of opportunities. With the help of advances in artificial intelligence, predictive analytics and data collection, companies can monitor supply chains in real-time and identify trends to capitalize on market volatility. AI can also be used to analyse large amounts of data quickly, providing traders with more sophisticated insights into the markets.
On the other hand, digitalization has enabled greater efficiency within the sector by streamlining processes such as hedging and risk management. The opportunities for leveraging new technologies to innovate commodity trading are endless - but it's important to remember that success will only come to those who take the initiative to learn how to manoeuvre these untraveled channels.
Conclusion:
In summary, the global commodity market is a complex market and it plays a vital role in the global economy. They provide a platform for producers and consumers to hedge against price volatility and manage their risks. As a participant in this market, it is important to stay informed of current prices and trends, while also understanding the various risks and rewards associated with the trade of raw materials. The future of the commodity market is uncertain, but with advancements in technology and the shift towards renewable energy, the market is likely to undergo significant changes in the coming years and as you build your knowledge and gain experience in the commodity market, you’ll be able to take advantage of the multiple opportunities it offers.
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worldspotlightnews · 1 year
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Opinion: China's new role: relationship coach on the world stage | CNN
Editor’s Note: David A. Andelman, a contributor to CNN, twice winner of the Deadline Club Award, is a chevalier of the French Legion of Honor, author of “A Red Line in the Sand: Diplomacy, Strategy, and the History of Wars That Might Still Happen” and blogs at Andelman Unleashed. He formerly was a correspondent for The New York Times and CBS News in Europe and Asia. The views expressed in this…
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reportwire · 1 year
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Latest News - MarketWatch
Two of four Americans abducted after crossing Mexico border reportedly dead Source link
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plglobal · 1 year
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Commodity Market: Why Are Commodities So Low?
What are commodities?
Before we start with the article, it is important to comprehend the significance of items. It is a monetary decent, generally an asset that has full or impressive exchangeability. The market regards examples of the great as the same or almost so with no respect to who delivered them.
The cost of any ware you can fix as an element of its market all in all. Grounded actual wares are effectively exchanged spot and subordinate business sectors. The accessibility of these products prompts more modest net revenues and lessens the significance of variables other than cost. Most wares like unrefined components, rural items, mining items, and so on It can likewise involve mass as unspecialized items that comprise of synthetic substances and PC memory.
Generally agricultural products are divided into two parts- hard and soft commodities. Hard commodities consist of precious metals like gold, silver, aluminium, helium, and oil. Soft commodities consist of growing goods like wheat, soybean, and rice.
Why are they mispriced?
Commodity markets are recurrent. Prices go through periods of high and low estimation based on supply and demand for goods and its availability. Materials can be harvested, mined, or gathered more efficiently. Hence they become cheaper to produce goods and supply grows. If demand does not grow proportionately, the price reduces.
There is a natural subsidiary and flow to the market. When the prices are high, supply increases till the satisfaction of the demand. Generally, supply continues to increase until it outpaces demand. At some point, prices drop along with supply and surplus product is consumed. If, on the other side of the coin, the economy grows and the demand for goods outweighs the supply, the price increases.
This pendulum oscillates from side to side as the market tries to balance at an equilibrium point. The commodity cycles tend to have wild oscillations due to the lack of actionable data. The long lead time required to build up or slow down an operation.
Now, the pendulum has been artificially pushed to one side and it is about to swing back in full speed. A decade of historically low interest rates has pushed the investors to take riskier and riskier bets in order to find returns. Hence driving up the price of almost all the stocks.
Disinflation
Disinflation is the decrease in the pace of expansion. It is a stoppage in the pace of ascent of the overall value level of labour and products in any country’s GDP over the long run. It happens when there is an expansion in the purchaser value level which dials back from the past period. At the point when the costs are expanding and it is something contrary to reflation.
During the period of recession, competition among the businesses for customers became quite intense. Hence, retailers are no longer able to pass on higher prices along to their customers. The reason for this is that when the bank adopts tight monetary policy.
It becomes expensive to access money that reduces demand for goods and services in the economy. Although demand for the commodities falls, the supply remains the same. Hence, prices fall over time which leads to disinflation.
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usaitbari · 1 year
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Oil plunge, tech collapse and Fed cuts? Strategist shares possible 2023 market 'surprises'
Oil plunge, tech collapse and Fed cuts? Strategist shares possible 2023 market ‘surprises’
A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, August 29, 2022. Brendan McDermid | Reuters After a tumultuous year for financial markets, Standard Chartered outlined a number of potential surprises for 2023 that it says are being “underpriced” by the market. Eric Robertson, the bank’s head of research and chief strategist, said outsized market moves are…
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ascentiv · 2 years
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Starting November 1: Paid subscribers will also receive Buy signals for Stocks as well as Commodity futures. Here’s a preview of today’s signals: [MDT] MEDTRONIC BUY [TGT] TARGET BUY Today's Profit: Up $2,978.00
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worldcottonday · 2 years
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Ensuring that the Cotton sector remains viable and sustainable.
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The mobilisation of innovative technologies and resources is vital to ensure that the Cotton market sector remains viable and sustainable.
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neyatimes · 10 months
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India's reliance on Russian oil may be 'approaching a limit'
An oil refinery, operated by Bharat Petroleum Corp., in Mumbai, India. Dhiraj Singh | Bloomberg | Getty Images India’s ability to import more Russian oil may have hit a limit for the rest of the year, analysts tell CNBC, citing infrastructural and political constraints, as well as limitations to Russian oil flows. “India will look to continue Russian crude imports, but perhaps it has reached its…
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mcxcruidoiltips · 2 years
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A commodity MCX Market is a Platform for Traders to trade in commodities like Base metals, Precious Metals, Energy Like Crudeoil, Natural Gas
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reportwire · 1 year
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Latest News - MarketWatch
Corrected: U.S. government sues to block JetBlue-Spirit merger Source link
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plglobal · 1 year
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WHY SHOULD YOU INVEST IN COMMODITIES
Advantages
Probably the greatest advantage of putting resources into commodities is the way that they will in general secure financial backers against the impacts of swelling. By and large, interest for commodities will in general be high during times of high swelling, which pushes up costs. It’s additionally a decent wage against the U.S. dollar, so when the greenback decays, commodity costs rise.
Beside the advantages of enhancement, there is the possibility to boost returns with commodity contributions. Despite the fact that commodity costs are dependent upon variances on the lookout—exchange rates, loan fees, the worldwide economy—worldwide interest is solid. This emphatically affects the loads of organizations that manage commodities, which can make an interpretation of to positive re-visitations of financial backers.
Commodity merchandise is crude materials. They’re exchangeable and can be purchased and sold in mass. Regularly these crude materials are the structure squares of fabricated items.
Sorts of commodities
Financial backers separate commodities into two classes: hard and delicate. Hard commodities require mining or are boring to discover. Delicate commodities are developed or farmed. There are four principle sorts of commodities.
Horticultural items: Soft commodities. They incorporate harvests like corn, wheat, soybeans, cotton, and wood. 
Animals and meat: Soft commodities. They incorporate live cows, meat, pork stomachs, and milk. 
Energy items: Hard commodities. They incorporate raw petroleum, flammable gas unleaded gas, propane, ethanol, and coal. 
Metals: Hard commodities. They incorporate valuable metals, similar to gold and silver, and modern metals, similar to copper, aluminum, and palladium.
Here are the main three motivations to put resources into commodity markets for a wide range of financial backers-
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1. To differentiate your portfolio
One of the key factors that decide the achievement of your monetary arranging is broadening. Expansion concerning venture portfolios implies putting resources into different resources that are not connected to one another of your portfolio in various resource classes.
The greater part of you would broaden your portfolio in five significant resource classes which incorporate money, shares, fixed pay protections, land, and gold. In the midst of expanded instability in the business sectors, you are either clutching money or putting resources into gold.
Gold is viewed as the most secure shelter for interest in tempestuous occasions and Indians will in general put resources into gold. Since it is considered as an image of riches and has elaborate worth. In any case, actually, the gold in your portfolio is your interest in commodities. Simply like the wide range of various commodities the profits from it are autonomous of the profits generates from stocks and bonds.
Much the same as gold, there are other commodity ventures whose profits are not dependent with values and security markets. The cost of any commodity venture is a component of interest and supply and by doing appropriate exploration and investigation you can make benefits from commodity market speculations.
2. To give a support against swelling
Expansion is the overall ascent in the cost of products and enterprises after some time. For any speculation to be productive, it is significant that the profits created beat the pace of swelling. Higher expansion successfully disintegrates the genuine returns produced by your interests in stocks and fixed pay protections.
Be that as it may, on account of commodities, higher expansion identifies with the greater cost of commodities. Along these lines, in contrast to different speculations, your commodity ventures will bring about a solid execution when expansion is high.
Given the current circumstance when swelling is continually on the ascent, putting resources into commodities will give a fence against expansion.
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Website: https://plglobal.com/
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