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    Commodity Market

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    Saahil Bhatter
    Commodity markets involve the trading of raw materials and agricultural products. There are two main types of commodity markets - spot markets for immediate delivery and derivatives markets for future delivery. Commodities traded on these markets include agricultural goods, livestock, energy products, metals, and others. Most commodity markets have producers, processors, and aggressive investors as major participants seeking to hedge risks or diversify portfolios. Measures like current ratios and debt-to-equity ratios are used to assess the performance and health of commodity markets over time.

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    Commodity Market

    Uploaded by

    Saahil Bhatter
    25 views14 pages
    Commodity markets involve the trading of raw materials and agricultural products. There are two main types of commodity markets - spot markets for immediate delivery and derivatives markets for future delivery. Commodities traded on these markets include agricultural goods, livestock, energy products, metals, and others. Most commodity markets have producers, processors, and aggressive investors as major participants seeking to hedge risks or diversify portfolios. Measures like current ratios and debt-to-equity ratios are used to assess the performance and health of commodity markets over time.

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    Commodity markets involve the trading of raw materials and agricultural products. There are two main types of commodity markets - spot markets for immediate delivery and derivatives markets for future delivery. Commodities traded on these markets include agricultural goods, livestock, energy products, metals, and others. Most commodity markets have producers, processors, and aggressive investors as major participants seeking to hedge risks or diversify portfolios. Measures like current ratios and debt-to-equity ratios are used to assess the performance and health of commodity markets over time.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    25 views14 pages

    Commodity Market

    Uploaded by

    Saahil Bhatter
    Commodity markets involve the trading of raw materials and agricultural products. There are two main types of commodity markets - spot markets for immediate delivery and derivatives markets for future delivery. Commodities traded on these markets include agricultural goods, livestock, energy products, metals, and others. Most commodity markets have producers, processors, and aggressive investors as major participants seeking to hedge risks or diversify portfolios. Measures like current ratios and debt-to-equity ratios are used to assess the performance and health of commodity markets over time.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 14

    COMMODITY MARKET

    SUBMITTED BY   
    FATHIMA BEGAM S 
    22BBI017
    Ist B.Com B&I (A)
    Sri Krishna Arts And Science College 
    Coimbatore
    INTRODUCTION
    • Commodity market involves buying and selling such as oil,
    gold, and coffee
    • There are hard commodities ,which are generally natural
    resources and soft commodities which are livestock  or
    agriculture goods
    • Spot commodities markets involve immediate delivery,
    which derivates markets entail delivery in the future
    • There are two types of commodity markets are spot
    markets are also referred as physical markets are also
    referred to as physical markets or cash markets where
    buyers and sellers exchange physical commodities for
    immediate delievery
    • A commodity market trades in raw or primary products rather than
    manufactured products. Soft commodities are agricultural products
    such as wheat, livestock, coffee, cocoa, and sugar. Hard
    commodities are mined or extracted, such as gold, rubber, natural
    gas, and oil.
    • Agricultural products such as grains, other plant materials with broad
    commercial use, and some livestock trade actively
    • If a commodity is delivered in standard quantities, it is possible to put
    together deals for negotiated amounts of the commodity knowing the
    amount to be traded
    • Most commodity trading markets have three major constituencies first,
    traders representing commercial organizations that produce or
    process the commodity are the dominant users of the markets
    • Liquid commodities have also found willing and aggressive
    investors as investing institutions have sought new ways to
    diversify their portfolios and increase prospective returns.
    • The measures for commodities vary by commodity. Each industry
    typically has many measures that help assess the market.
    CURRENT RATIO

    Year Current Assets Current Ratio


    Liabilities
    17-18 1,90,647.00 2,00,982.00 0.948

    18-19 2,02,021.00 2,01,787.00 1.001

    19-20 3,30,682.00 3,30,682.00 1

    20-21 2,01,787.00 2,02,021.00 0.998

    21-22 2,00,982.00 1,90,647.00 1.054


    INTERPRETATION :
    From the above table it can be interpreted that the current ratio is
    the lowest in the year 17-18 and highest in the year 21-22. Also
    from the above table it can be concluded that the current ratio does
    not meet the standard ratio of 2:1
    DEBT-EQUITY RATIO :

    Year Debt Equity Ratio


    17-18 1,12,231.00 3,14,632.00 0.356

    18-19 1,68,402.00 4,05,322.00 0.415

    19-20 2,49,802.00 3,91,214.00 0.638

    20-21 1,97,403.00 4,74,483.00 0.416

    21-22 2,06,165.00 4,71,527.00 0.434


    INTERPRETATION :

    From the above table it can be interpreted that the Debt-Equity


    ratio is the lowest in the year 17-18 and highest in the year 19-20.
    Also from the above table it can be concluded that the Debt-Equity
    ratio does not meet the standard ratio of 2:1.
    CONCLUSION
     The ‘commodity futures contract’ is the assurance
    that a trader will buy or sell a certain amount of their
    commodity at a pre decided rate at a certain time
     Lower margins mean one can buy a futures
    contract for a large amount of a precious metal like
    gold by spending only a fraction of the original cost.
     These dealers constantly examine the costs of
    commodities in addition to forecasting the expected
    price changes
    o If the speculator anticipates that the rate of gold will
    decrease, they sell their futures contract. Once the prices
    lower, speculators buy the contract again for a lower price
    than what they sold it
    o Those who produce or manufacture commodities typically
    ‘hedge their risk’ by trading in a commodity futures market.
    REFERENCE

     https://www.investopidia.com
        https://www.moneycontrol.com
        https://www.angelone.com
        https://www.Wikipedia.com

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