In this video i am explained about commodity market.
Similar to how the shares of a company are traded in the stock market, commodities are bought and sold in the commodities market. This financial market is widely utilized by producers, manufacturers, and wholesale traders as a price discovery mechanism for various goods and commodities.
Just like the stock market, there are dedicated commodity exchanges that enable the market participants to easily buy and sell commodities online. Three primary commodity exchanges are currently operational in India - the Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX), and Indian Commodity Exchange (ICEX).
What are the different commodities that are traded? Most traders and investors simply classify the different commodities into agricultural and non-agricultural commodities. The non-agricultural commodities can be further sub-classified into three different categories - bullion, energy, and base metals. Here’s a brief list of the different types of commodities under each category that is regularly bought and sold in the exchanges.
Bullion - Gold and silver Energy - Crude oil and natural gas Agriculture - Black pepper, cardamom, castor seed, cotton, palm oil, kapas, wheat, paddy, chana, bajra, barley, and sugar, among others Base Metals - Aluminum, copper, lead, nickel, and zinc
