Are you Looking for Effective Ways for Commodity Trading in India?

The commodity market is a trading place where the commodities are traded instead of stocks or shares and the traders buy or sell their commodities. The place is also known as Multi Commodity Exchange or simply, MCX. Based on the historical figures, commodity trading market is considered to be the oldest prevailing market. The earliest records being traced when derivatives trading started off in commodities was eras back in the 17th century when rice was first traded as a future commodity in Japan. However, in the present days, it is crucial to adhere moneycontrol MCX tips because today, there are several commodities that are traded, which are classified into two categories: soft commodity and hard commodity.

Soft commodities are typically cultivated such as corn, wheat, sugarcane, soy, pulses, etc. But, the concern with soft commodities is that are prone to spoilage and which is just unpredictable because they typically cultivated based on the climatic conditions. Weather conditions play a major role for such commodities which makes it difficult to predict the production.

On the other hand, hard commodities are classically mined from the natural resources that include gold, diamond, crude oil, aluminum, etc. However, the mined products are then processed to refine for producing usable commodities such as crude oil is refined into gasoline. Hard commodities are easier to handle and thus, are more integrated into the industrial process.

Agricultural commodities:

As mentioned above, soft commodities are cultivated and thus, are categorized under agricultural products. As a matter of fact, more than half of the country’s population still lives in the rural areas and so the agriculture is considered as the primary source of living for more than 59% of the population. Also, agriculture contributes about 1/5th of total GDP (Gross Domestic Product). Therefore, the importance of moneycontrol tips for soft commodities cannot be taken for granted to get a great return for the future commodities. Surely, they come with several challenges but there are great potentials as well.

Non-agricultural commodities:

Commodities that are extracted or mined through natural resources and are not cultivated are broadly classified into non-agricultural commodities. These include metals (aluminum, copper, zinc), precious metals (gold, silver, diamond, and platinum), and energy (crude oil). Based on the facts, India has a great extent of deposits of natural resources in form of minerals such as iron ore, copper, gold, and bauxite. Thus, India has major moneycontrol MCX tips followers to meet the front-end demand of industrial metals. With improving infrastructure worldwide, the demand for industrial metals will continue to rise.

The author is associated with the Moneycontrol Tips and he has written many content on share market tips, stock tips and other finance related topics.