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COMMODITY
MARKETS
SUBMITTED BY:
ANANT HARICHANDAN 66
NIKHIL KUMTA - 70
KARISHMA LUHARUKA 71
SUBHMOY DAM 91
RAJIV TOLANI - 93
COMMODITY EXCHANGES
Exchange where various commodities and derivatives are traded
Most commodity markets across the world trade in agricultural products
POPULAR EXCHANGES
Name Of Exchange
New York Mercantile Exchange
(NYMEX)
Chicago Board of Trade (CBOT)
London Metals Exchange (LME)
Chicago Board Option Exchange
(CBOE)
Tokyo Commodity Exchange (TCE)
Malaysian Derivatives Exchange
(MDEX)
Commodities Exchange (COMEX)
Multi Commodity Exchange (MCX)
National Commodity & Derivative
Exchange(NCDEX)
contracts
In 2007, the CBOT and the CME merged to form the CME Group
Contd
Trading platform of CBOT
The pit
Open-outcry trading
Trades are made in the pits by bidding or offering a price and
quantity of contracts, depending on the intention to buy (bid) or sell
(offer)
Electronic trading
MULTI-COMMODITY EXCHANGE(MCX)
Established in 2003
Based in Mumbai
The MCX is a demutualized electronic multi commodity futures exchange,
Contd
MCX has been certified to three ISO standards
ISO 9001:2008 quality management standard
ISO 27001:2005 information security management standard
ISO 14001:2004 environment management standard
Conference
Contd
Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil
CRUDE OIL
One of the largest commodity traded & imported in India
Naturally occurring thick dark brown flammable liquid which is obtained
Contd
Exports during July, 2014 were valued at
US $ 27727.60 million
US $ 39956.23 million
ONGC
Indias largest oil & gas exploration & production company producing 69%
Contd
ONGC Videsh has stake in 33 oil and gas projects in 16 Countries
ONGC Videsh made successfully new acquisitions in last one and half year
abroad.
AGRICULTURAL COMMODITIES
Cereals-Wheat
Plantation-Rubber
Oils and seeds-Crude Palm oil
Fiber-Kapas
Spices-Cardamom
Other - Almonds
WHEAT
Combined production of all cereals in 2008-09 is estimated to be 2525
million tonnes.
Annual global wheat production - 600-630 tonnes.
EU-27, China, India, USA and Russia are the five major producers of wheat
accounting for close to 70% of the total global production, with 2008-09
production in these regions being 151, 112.5, 78.6, 68 and 63.8 million
tonnes respectively.
Wheat is the most important cereal traded in the world market. The global
trade in wheat during 2008-09 was sharply up at around 140 million tonnes
in 2008-09 from an average of around 110 - 115 million tonnes in the recent
previous years.
While US (25 - 35 million tonnes), EU-27 (15-25 million tonnes), Canada
(15-20 million tonnes), Australia (8-18 million tonnes) and Argentina (6 12 million tonnes) are major exporters.
The major importing regions are Middle-east Asia, South-east Asia and
North-west Africa. Egypt, Brazil, Indonesia, Algeria are the most important
importing nations.
RUBBER
Thailand, Indonesia, India, China, Malaysia, Vietnam are the major producers of
7.9 million tons in 2003, of which Asian countries have produced 6.76 million
tons.
On the consumption front, global NR consumption is 7.89 million tons in 2003,
of which 1.9 million ton was consumed in India and China alone. The total
synthetic rubber consumption in 2003 was 1.13 million ton.
Around 60 % of the global rubber production is used by the transportation sector.
In this sector, natural or synthetic rubber cannot be used individually and has to
be blended.
world.
Malaysia (13 million tons) and Indonesia (10 million tons) are the major producers. They
with 12-12.5 and 6-7 million tons respectively are major exporters.
India, China and EU are the major importers.
Price competitiveness has been reason for increased consumption of this oil.
Important World Palm oil Markets Bursa Malaysian Derivatives (BMD) is the largest
KAPAS
The world cotton area and production are estimated at around 30-31 million
CARDAMOM
Cardamom is generally produced in the tropical regions of the world. Gautemala is
Spices Board).
Consumption of cardamom has sharply increased throughout the world during the
last two decades. The major consuming countries of cardamom are the Middle
Eastern countries, India, Pakistan, European countries, the US, and Japan. Middle
Eastern countries such as Saudi Arabia and the United Arab Emirates, and South-East
Asian countries such as India, etc., account for more than 60% of the world's
consumption.
Saudi Arabia is the single largest importer of Cardamom in the world, followed by
Kuwait. The list of countries / territories that are the major importers is as follows:
Saudi Arabia, Kuwait, UAE, USA , Japan, Pakistan, Malaysia, Israel, Australia,
Canada, South Africa
ALMONDS
Annual global Sweet almond production - 7 - 8.5 lakh tonnes.
United States of America (California) is the single largest producer,
gold
Works within investment, technology and jewellery sectors in addition to
Scotia)
Socit Gnrale
MMTC
Established in 1963
It is one of the two highest foreign exchange earners for India
Turnover of around US$ 10 billion
Largest international trading company of India
1st Public Sector Enterprise awarded the status of "FIVE STAR EXPORT HOUSE" by GOI
for long standing contribution to exports
Largest non-oil importer in India
MMTC's diverse trade activities encompass :
Third Country Trade, Joint Ventures, Link Deals - all modern day tools of international trading.
Has vast international trade network: includes a wholly owned international subsidiary in
Singapore, Asia, Europe, Africa, Oceania and Americas, giving MMTC global market
coverage.
ACTIVITIES UNDERTAKEN
INDIA'S LEADING EXPORTER OF MINERALS
ONE OF THE WORLD'S LARGEST BUYER OF FERTILIZERS
THE SINGLE LARGEST BULLION TRADER IN THE INDIAN
SUBCONTINENT
THE BIGGEST IMPORTER OF NON FERROUS METALS & INDUSTRIAL
PRODUCTS
MINERALS
MMTCs co-promoted 1.1. million tpa Neelachal Ispat Nigam Ltd. (NINL) consumes
over 2.2 million tons of various types of minerals on annual basis being supplied by
MMTC and others.
Largest supplier of Iron Ore, handling about 15% of Indias total exports.
PRODUCTS TRADED ARE:
IRON ORE
MANGANESE ORE
CHROME ORE
OTHERS
Destination of Exports
Japan, South Korea, China, Middle East etc.
The export is both on the basis of long term and annual spot contracts.
MMTC's mineral sales are on FOB basis only.
METALS
STRATEGIES OF PURCHASE (IMPORTS)
MMTC imports non-ferrous metals generally on CIF/C&F/CFR Main Indian Ports basis.
The purchase price is based on the LME cash settlement price plus premium.
A variety of tailor-made pricing options to suit the requirements of different customers like
monthly average price, flexible quotation period from date of order to 5 to 25 days after B/L
date depending on the shipment from load port, spot pricing etc. are offered.
Contd
Customers have the following options for purchase:
High Seas basis
Ex-godown basis
Ex-FTWZ basis
MMTC imports metals with split Bill of Lading to cater to the need
PRECIOUS METALS
MMTC is an authorized agency of the Government of India for import of
CARBON TRADING
Kyoto protocol
Under UNFCCC
Adopted by parties to the UNFCCC in 1997
Entered into force in 2005
Agreement for the protocol to be followed in two
Contd
Objectives of Kyoto protocol
Commitment to move away from fossil fuel energy sources
Contd
Carbon offsetting
Offset Credits for eco-friendly technologies are purchased
Contd
Clean development mechanism (CDM)
Developed countries can fund emission reduction projects
Contd
Joint implementation (JI)
Developed countries can implement emission reduction
DISADVANTAGES OF CARBON
TRADING
Right to pollute
Slow process
No effective carbon reduction in the atmosphere
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