The economy of a country depends on the strength of the market that it has within it. India is steadily and rising to become one of the leading economies of the world with a number of different markets which have exponential growth such as the agricultural, industrial, stock exchange real estate and commodity market. These different markets contribute to the significant progress of the economy of the nation.
Commodity trading, in particular is very prominent in the country; where two-thirds of the country depend on agricultural products. An important component of the financial market, the commodity market comprises of a number of products such as precious metals, base metals, energy, crude oil, soft commodities.
Besides the national commodity exchanges in India – similar to the NSE and the BSE there are a number of commodity exchanges such as the Multi-Commodity Exchange (MCX) at Mumbai, the National Commodity and Derivatives Exchange Ltd. (NCDEX) at Mumbai, the National Multi Commodity Exchange (NMCE) at Ahmedabad and the National Board of Trade (NBOT) at Indore. This commodity market functions through two different forms; Over the Counter (OTC) market and the Exchange based market.
In order to make a trading decision in this market it is important to research commodities and require a deep knowledge so as to find out and understand the latest news.
Research is one of the main and essential activities of trading commodities. Usually the main techniques used are fundamental analysis and technical analysis to research commodities or futures market.
There are many commodity research firms which publish commodity research reports either daily or weekly. By going through such reports you can gain a deeper understanding and a clearer vision as to know which commodities to trade in. They may also give you market opinions from a commodity analyst/trader who writes such reports. They provide information regarding the constant fluctuations of the prices; which is very often guided by demand and supply issues.
The Multi-Commodity Exchange (MCX) publishes MCX commodity reports (Commodity Specific Reports) which are specially prepared by the research team to create market awareness and facilitate any further business development. It provides a broad overview of the status of the commodities which are traded at the MCX; what is affecting their supply and demand dynamics or any other market moving factor.
These research reports for the different commodities can be downloaded online.
Commodity reports can be used by traders to maximise their profits and to gain an edge. They however do not assure you of profits but they provide important data to improve risk-adjusted returns.