Journal Press India^®

Author Details ( * ) denotes Corresponding author

India’s economy is dependent more on agriculture and farmers are the backbone of the country’s economic development. Yield risk and price risk are among the important problem faced by agricultural product traders and farmers in India. Commodity futures and derivatives play a crucial role in the price risk management process, especially in agriculture commodity derivatives and futures. The main aim of this paper is to study the price volatility of the spices agricultural commodity and to analyze the spices agricultural commodity’s futures price movement by using the technical analysis and to study the challenges faced by the traders while trading in the commodity market. The results reveal that the market has much instability due to the market situations, demand and supply. Commodity exchange has progressed extremelyin these years as it gives a transparency to the traders. This market has a great experience of variations in the market since it has started. It also helps to the hedger to hedge their commodity due to the price risk and arbitrages to make a riskless profit in the market. After the study, it is advocated to the traders that they must initially go through the market analysis of demand, supply and volume of a particular commodity, before going for technical analysis.

Keywords

....

1. Hariharan, R., and Reddy, K. (2018). A study on Indian commodity market with special reference to commodity exchange. International Journal of Research, Science& Management, 5 (6), 15-21.
2. Ramya, R., and Gnanraj.(2016). Commodity Derivatives Market in India: The Past, Present and Future, SJCC Management Research Review, 6(1), 1-13.
3. Thilaga M., and Rajkumar K.P. (2018). Trade Performance of Top 2 National Commodity Exchanges: MCX and NCDEXInternational Journal of Recent Technology and Engineering (IJRTE) ISSN: 2277-3878, 8(3S2).
4. Anand, R.G. (2017). International Journal of Business and Management Invention ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X www.ijbmi.org, 6(9), 61-74.
5. Raveendarnaik A. (2017). The Major Issues In Development Of Commodity Derivatives Market In India,IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668 PP 41-46.
6. Mattos, F., and Garcia, P. (2004). Price Discovery in Thinly Traded Markets: Cash and Futures Relationships In Brazilian Agricultural Futures Markets. Paper presented at the NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management, St. Louis Missouri, April 19-20, 2004.
7. Zapata, H., Fortenbery, T.R., and Armstrong, D. (2005).Price Discovery in the World Sugar Futures and Cash Markets: Implications for the Dominican Republic 2005. Agricultural & Applied Economics, Staff Paper Series No.469, Department of Agricultural & Applied Economics, University of Wisconsin-Madison.
8. Kedarnath, M. (2011).Impact of Futures Trading on Indian Agricultural Commodity Market, MPRA (Munich Personal RePEc Archive) Paper No. 29290, posted 15 Mar 2011, DOI: 10.2139/ssrn.1763910.
9. Ali, J., and Gupta, K B. (2011).Efficiency in agricultural commodity futures markets in India Evidence from co-integration and causality tests. Agricultural Finance Review, Emerald Group Publishing, 71(2), 162-178.
10. Silvapulle, P., and Moosa, I.A. (1999). The relationship between spot and futures prices Evidence from the crude oil market Journal of Futures Markets. John Wiley &Sons, Ltd, 19(2)175-193.