Commodity market is the market where buying and selling of commodities takes place. It is the primary economic sector for the trading of essential goods and products. The commodities can be segmented as Agricultural commodities and Non Agricultural commodities.
We trade in Agricultural Commodities like castor, chana, guar-gum, cotton, etc. over the recognized stock exchanges and as well as in the spot market. This helps us to hedge and avoid risk.
We also trade in Non Agricultural Commodities consists Precious metals (Gold, Silver, Platinum), Precious Metals are the safe haven assets that will retain at least some of its value if other classes are failing in value. We also trade in spot market to hedge.
Commodity market has evolved significantly from time to time. From barter system to the cutting edge trading through electronic platforms commodities are being traded globally on various platforms.
Indian commodity market has always been center of attraction for global investors. Being major producer and exporter of agro commodities, Indian commodity market is known for global agro physical traders. The recent regulation changes and introduction of options derivatives has increased scope and will gradually increase size of Indian commodity market.