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Warehouses

In the Indian context, warehouses are necessary for the commodity sector and commodity future trading especially for farmers because agricultural commodities constitute a major segment of the Indian economy. Warehousing forms the basic platform of delivery based trading in commodity futures. Warehouses play a significant and decisive role in the proper and efficient functioning of commodity futures trading, as most...

LME WAREHOUSE

LME Warehouse has most important place in the base metal trading. It gives the indication about the stock position of the base metal in the warehouses. The inventories in the warehouses impact the prices of the base metal in the market. Inventories have a negative correlation with the prices of base metal. When the inventories increase in the warehouses then the prices of base metal decline in the market and vice...

Electricity

Year 2009 is another significant milestone and a moment of pride for the Indian commodity markets. India has joined the select group of developed countries, which offers electricity futures on an exchange platform. With this MCX has now further diversified its basket of energy products after crude oil, furnace oil, natural gas and aviation turbine fuel. India’s commodity futures exchange MCX (Multi Commodity...

Coal

Coal is the largest source of fuel for the generation of electricity world-wide, as well as the largest world-wide source of carbon dioxide emission. Most people do not realize that when they use electricity, they are also using coal. In developing countries half of the world’s population depends on coal for heat. There are two major types of coal – coking coal and thermal or steaming coal. Coking coal...

Seasonal Effect on Commodity Prices

Many things in nature are reoccurring. Reoccurring events in nature are often referred to as seasonal. There are so many factors that affect the prices of commodity like demand and supply in the market, the prices of other commodities, natural causes, geopolitical conditions etc. Despite all these factors season is one major factor that affects the commodity prices and demand to trade in agro commodities; one...

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