Commodities Trading

The National Commodity and Derivatives Exchange Limited – NCDEX, conducts commodity trading in a large variety of commodities that include those listed here:
-Agro Products
-Cashew Castor Seed
-Chana
-Chili
-Coffee – Arabica Coffee – Robusta
-Common Raw Rice
-Common Parboiled Rice
-Crude Palm Oil
-Cotton Seed Oilcake
-Expeller Mustard Oil
-Grade A Parboiled Rice
-Grade A Raw Rice
-Guar
-Gum
-Guar Seeds
-Gur
-Jeera
-Jute sacking bags
-Lemon
-Tur
-Long Staple Cotton
-Maharashtra Lal Tur
-Medium Staple Cotton
-Mentha Oil
-Mulberry Green Cocoons
-Mulberry Raw Silk
-Mustard Seed
-Pepper
-Raw Jute
-RBD
-Palmolein
-Refined Soy Oil
-Rubber
-Sesame Seeds
-Soybean
-Yellow Soybean Meal
-Sugar
-Turmeric
-Urad
-Wheat
-Yellow Peas
-Yellow Red Maize
-Base Metals
-Electrolytic Copper Cathode
-Mild Steel Ingots
-Precious Metals
-Gold
-Silver
-Brent Crude

The commodities traded on the Multi Commodity Exchange of India Ltd – MCX, include:
-Aluminum
-Art Silk Yarn
-Arhar Chuni
-Aniseed Bajra
-Barley
-Betel nut
-Celery Seed
-Camphor
-Chara or Berseem
-Cardamom
-Cinnamon
-Coriander Seed
-Castor oil
-Castor Oil Cake
-Castor Seed
-Chilly
-Clove
-Coffee
-Copper

Also :
• Coconut Oil
• Coconut Oilcake
• Copra
• Cotton
• Cotton Cloth
• Cotton Yarn
• Cottonseed
• Cottonseed Oil
• Cottonseed Oilcake
• Cottonseed Pods
• Guar
• Ginger
• Gold
• Gram Husk
• Gram
• Groundnut
• Groundnut Oil
• Groundnut Oilcake
• Gur
• Hessian
• Jowar
• Jute Goods
• Jute Sacking
• Kulthi Kapas
• Khandsari Sugar
• Lakh (Khesari)
• Lead
• Linseed
• Linseed Oil
• Linseed Oilcake
• Moth Masur
• Mung Chuni
• Maize
• Methi
• Mung
• Nutmegs
• Nickel
• Peas
• Pepper
• Potato
• Ragi
• Rapeseed Oil
• Mustard Oil
• Rapeseed
• Mustard Seed
• Rapeseed Oilcake
• Raw Jute
• Rice
• Bran
• Oilcake
• Rice
• Oil
• Rubber
• Small Millets
• Safflower
• Safflower oil
• Safflower Oilcake
• Sesame
• Sesame Oil
• Sesame Oilcake
• Shellac
• Silk yarn
• Silver
• Silver Coins
• Soya Meal
• Soybean
• Soybean Oil
• Staple
• Fibre
• Yarn
• Sugar
• Sunflower Oil
• Sunflower Oilcake
• Sunflower Seed
• Tamarind seed Oil
• Tea
• Tin
• Tur
• Turmeric
• Urad
• Vanaspati
• Wheat
• Zinc
• Sugar M-30
• Sugar S-30
• Guar gum
• Mentha Oil.

Commodities Broker

The commodities broker is defined as the individual who earns a fee or commission for his role as an agent preparing contracts and carrying out sales. The rate of commission charged by brokers is generally decided by the Government or the regulatory board that controls the exchanges. Though the maximum amount chargeable is determined, the broker can charge less, depending on the volume of trades.

The commodities broker is required to pay a margin amount to the exchange board, which is pre-determined. The best part of being a commodities broker is that whether or not the trader or investor or whoever the client is earns or looses money, the broker will earn his commission. And this commission is not dependent on the client’s profit or loss status.

The commodity trading broker is also responsible for ensuring that al paper work in terms of bills and contracts are in place. They just need to take signatures from their client’s as and when required, as well as make deliveries in accordance.

Some brokers run brokerage firms. On one hand they perform as intermediaries between clients and the exchanges, while on the other hand they also have their own speculation business going on. Large commodities brokerage firms also provide research and consultancy services through their team of expert advisors.

To ensure that you have opted for the appropriate commodities broker you need to do some kind of groundwork. Ideally you need to check out the credentials of the broker. Most of them would have a ready list of clientele or a company profile, which you must go through directly. Also make a comparative study on the rate of brokerage charged.

The most important factor when signing up with any of the commodities broker is to ensure that all terms and conditions are documented and that there is a signed contract or memorandum of understanding as far as risk-taking, payment schedules, delivery schedules, etc., are concerned. Like they say, prevention is better than cure!

Cereals

Cereals are regarded as the staple diet of India. As far as the place cereals hold in the commodities exchange, it is generally regarded amongst the prime. This is because India is largely an agricultural country and apart from the local produce, it is one of the largest exporters of rice and wheat to the world. In commodities when one talks of cereals it refers to:

-Wheat
-Maize
-Rice – The various types being:
-Basmati
-General rice
-Sarbati rice

Wheat is in fact the most consumed cereal grain in the world, as it is the basic ingredient of all baked products. In recent years the world produces between 560 and 580 Million tons, annually. India is placed amongst the four largest wheat producers in the world, the others being China, USA and European Union (EU). India also finds a distinctive place amongst the largest wheat consumers in the world, which also includes countries such as EU, China, Russia, USA and Pakistan.

India’s annual wheat production averages between 65 and 75 Million, which amounts to approximately 35 percent of the country’s entire food grain production being 210-212 million tons.

Basmati Rice, known as the ‘King of Rice’ is the gift of India and Pakistan to the World.

Basmati rice is priced for its characteristic long-grain, subtle aroma and delicious taste.
The grain elongates on cooking giving it a characteristic grain shape and integrity.
Basmati rice can be equated with “champagne” among wines and ‘scotch’ among whiskies
Indian Scenario

Maize is a cereal grain that actually originated in the United States of America. It is in fact regarded as the prime cereal grain, globally, as 33.3 per cent of this grain provides nutrition to humans, and the remaining 66.6 per cent is nutritional fodder for animals. It is used as one of the essential raw materials to produce:
Starch
Oil
Proteins
Food sweeteners
Fuel
India is amongst the seven largest maize producing nations, the others being:
-United States of America
-China
-European Union (EU)
-Brazil
-Mexico
-Argentina
The country’s maize production ranges from 10 to 14 Million tons, annually.

Amongst all the rice-types produced, India is considered world’s principal producer and exporter of what is known as ‘basmati rice’. The country produces, annually, on an average 10-15 Lakh tons, of this about two-thirds is exported around the world and the remaining is consumed domestically. Apart from this, the country produces a variety of other types of rice.

There are certain factors that affect the price of cereals in the commodities market. These include:
-Substitute products that are made available
-Seasonal cycle
-Technology and development
-Natural calamities:
-Typhoon
-Floods
-Droughts
-Earthquake
-Weather:
-Temperature
-Rainfall
-Soil moisture