Do the Spot Prices Influence the Pricing of Future Contracts? An Empirical Study of Price Volatility of Future Contracts of Select Agricultural Commodities Traded on NCDEX (India)

2009 ◽  
Author(s):  
Gurbandini Kaur ◽  
D. N. Rao
Keyword(s):  
Empirical Study ◽  
Price Volatility ◽  
Agricultural Commodities ◽  
Spot Prices

Marketing of Agricultural Commodities in India

2020 ◽  
pp. 1335-1357
Author(s):  
Rakhi Arora
Keyword(s):  
National Level ◽  
Marketing Mix ◽  
Commodity Futures ◽  
Commodity Market ◽  
Agricultural Commodities ◽  
Futures Trading ◽  
Commodity Exchange ◽  
Spot Prices ◽  
The Government

Commodity market is a fast paced dynamic market with liquidity and Commodity Exchange providing a platform for trading in various agri and non agri commodities at nationalized exchanges for discovering the price of agricultural goods in India since 2003. This also provides an opportunity to farmers, manufacturers or individuals for hedging and arbitrage to minimizes the losses due to fluctuations in the futures as well as spot prices. Though the Government has taken many steps time to time to control the prices of listed commodities by imposing restrictions like imposing daily margin limits and banning futures trading in speculative commodity/commodities if required but it is still being questioned. This chapter emphasizes on the working of the National Level Commodity Exchanges in India in general, the share of major agricultural commodities traded across National Level Commodity Exchanges in India, the marketing mix for agricultural commodities in India and the benefits and challenges of commodity futures derivatives for investors in India.

Marketing of Agricultural Commodities in India

2017 ◽  
pp. 185-212
Author(s):  
Rakhi Arora
Keyword(s):  
National Level ◽  
Marketing Mix ◽  
Commodity Futures ◽  
Commodity Market ◽  
Agricultural Commodities ◽  
Futures Trading ◽  
Commodity Exchange ◽  
Spot Prices ◽  
The Government

Commodity market is a fast paced dynamic market with liquidity and Commodity Exchange providing a platform for trading in various agri and non agri commodities at nationalized exchanges for discovering the price of agricultural goods in India since 2003. This also provides an opportunity to farmers, manufacturers or individuals for hedging and arbitrage to minimizes the losses due to fluctuations in the futures as well as spot prices. Though the Government has taken many steps time to time to control the prices of listed commodities by imposing restrictions like imposing daily margin limits and banning futures trading in speculative commodity/commodities if required but it is still being questioned. This chapter emphasizes on the working of the National Level Commodity Exchanges in India in general, the share of major agricultural commodities traded across National Level Commodity Exchanges in India, the marketing mix for agricultural commodities in India and the benefits and challenges of commodity futures derivatives for investors in India.

scholarly journals The Impact of Futures Price Volatility to Spot Market : Case of Coffee in Indonesia

2019 ◽  
Vol 15 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Anis Erma Wulandari ◽  
Harianto Harianto ◽  
Bustanul Arifin ◽  
Heny K Suwarsinah
Keyword(s):  
Exchange Rate ◽  
Price Volatility ◽  
Spot Market ◽  
Futures Market ◽  
Spot Price ◽  
Price Risk ◽  
Price Inflation ◽  
Spot Prices ◽  
Futures Price ◽  
The Impact

Indonesia is the world 4th largest coffee producer after Brazil, Vietnam and Colombia with export potential and higher national consumption concluded in 2017 while the coffee production was relatively stagnant. This was led the producer to not only the production risk but also the price risk which then emphasize the importance of futures markets existence as price risk management. This study is performed to examine the impact of futures price volatility to spot market using ARCH-GARCH toward primary data of coffee futures and spot prices of 1172 trading days starting from January 2014 to June 2018. The ARCH-GARCH analysis result indicates that futures price volatility and monetary variables are impacting the volatility of spot price. Arabica spot price volatility is impacted by volatility of Arabica futures price, inflation and exchange rate while Robusta spot price is impacted by Robusta futures price volatility and exchange rate. This is confirming that futures market plays dominant role in spot price discovery. Local futures and spot prices are also found to be significantly influenced by volatility of offshore futures prices which indicates that emerging country futures market is actually influenced by offshore futures market which the price itself used as price reference.

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