Download or read book Spot and Futures Markets of Agricultural Commodities in India written by B. S. Sumalatha and published by . This book was released on 2011 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Farmers Participation in India s Futures Markets written by Kushankur Dey and published by Springer Nature. This book was released on 2021-08-23 with total page 145 pages. Available in PDF, EPUB and Kindle. Book excerpt: Futures markets offer numerous advantages in the marketing of agricultural commodities, and in this context, the book examines the major factors and issues that determine the participation of India’s farmers in the futures markets. These include the efficiency of the futures markets in price discovery, the convergence of spot and futures prices, the dissemination of spot price information, and the socio-economic and exchange-related issues affecting farmer participation. It also examines the factors affecting the demand and supply of participation, and the access to futures trading services. The purpose is to identify different factors that can enhance or constrain farmer participation in the futures markets, which may include market characteristics, institutional features, socio-economic issues, and behavioural aspects of farmer participation. A number of organizations related to rural development, as well as farmer producer companies have sought to facilitate farmer participation in the forward/futures market through offering aggregation and other trading services, and the book also examines these efforts towards the exchange-traded derivative markets and the direct and indirect benefits that accrue. The book also studies the efficiency of futures markets in price discovery and price dissemination applying co-integration tests, and error correction and volatility models, using available data of wheat, rapeseed-mustard, cotton, guar seed, castor, cumin and coriander futures contracts traded in the largest agricultural commodity exchanges in India. Besides, case studies are used to examine and understand the institutional roles of aggregators in aggregation efforts towards the forward/futures market. This book covers several states and locations in India to enhance the representation and validity of the findings. It also examines representative farmer organizations which have obtained institutional membership in the forward or futures markets, and identifies areas of further research. In the current scenario, the book would be of immense importance and relevance to governments, commodity exchanges/markets, aggregators, many private and development organizations, as well as interested researchers and students.

Download or read book Price Discovery and Volatility Spillover in the Agricultural Commodity Futures Market in India written by M Ajoy Kumar and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2002, when the government permitted futures trading on most of the commodities and allowed setting up of national level exchanges, trading in agricultural commodities grew very fast with soy oil, soy bean, mustard seed and chana constituting the major share in 2013. The current study attempts to analyze the price behavior in terms of returns as well as volatility between the spot and futures markets for these four commodities. The study uses a combination of VECM and EGARCH models to analyze the data. The study finds existence of long-term equilibrium relationship between the futures and spot prices, with the futures leading the spot. In the short run, futures returns seem to have a stronger impact on the spot returns in most of the commodities.

Download or read book Managing Price Risks in India s Liberalized Agriculture written by and published by Allied Publishers. This book was released on 1998-12 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Futures Trading in Agricultural Commodities written by and published by . This book was released on 1938 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Impact of Futures Trading on Agricultural Commodity Market in India written by Mohammad Irshad VK and published by . This book was released on 2017 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: On agricultural commodity futures, there is always been a doubt, expressed by different bodies and experts on the usefulness and suitability of futures contract in developing in the underlying agricultural commodity market, especially in an agricultural based economy like India. Here an attempt is made to revalidate the impact of futures trading on the agricultural commodity market. The daily price information in spot and futures market for a period of seven years ranging from 2007 to 2014 for five major agricultural commodities are estimated using VAR (Vector Auto Regression) and GARCH (1,1) to test the dynamic interrelationship among the variables. The empirical findings significantly show that comparative advantage of the futures market in disseminating information, leading to a significant price discovery and risk management, that can help to successfully develop the underlying commodity market in India.

Download or read book Role of Commodity Futures on Indian Agricultural Commodity Market written by Velmurugan Palaniappan Shanmugam and published by . This book was released on 2017 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: Against the well-established fact that the usefulness and suitability of futures trading in developing the underlying agricultural commodity market, especially in an agriculture-based country like India are been questioned by various bodies. Through this work, it has been analyzing the role of futures trading on agricultural commodities. The effect of futures trading may be of two kinds, that is by way of hedging the price risk and the other way is through price discovery. The data collected for the analysis are the daily price history of spot and futures of five major agricultural commodities (Castor Seed, Chana, Chilli, Jeera, and Wheat) for a period of 7 years started from 2007 to 2014. Here it is revalidated the relationship between price movements of agricultural commodity futures and underlying spot prices by applying econometric analysis tools like Unit Root Test, and Engel-Granger test of Cointegration. The empirical findings proved that an existence of interrelationship between futures price movement and respective underlying spot prices in Indian agricultural commodity market.

Download or read book Farmers Participation in India s Futures Markets written by Kushankur Dey and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Futures markets offer numerous advantages in the marketing of agricultural commodities, and in this context, the book examines the major factors and issues that determine the participation of India's farmers in the futures markets. These include the efficiency of the futures markets in price discovery, the convergence of spot and futures prices, the dissemination of spot price information, and the socio-economic and exchange-related issues affecting farmer participation. It also examines the factors affecting the demand and supply of participation, and the access to futures trading services. The purpose is to identify different factors that can enhance or constrain farmer participation in the futures markets, which may include market characteristics, institutional features, socio-economic issues, and behavioural aspects of farmer participation. A number of organizations related to rural development, as well as farmer producer companies have sought to facilitate farmer participation in the forward/futures market through offering aggregation and other trading services, and the book also examines these efforts towards the exchange-traded derivative markets and the direct and indirect benefits that accrue. The book also studies the efficiency of futures markets in price discovery and price dissemination applying co-integration tests, and error correction and volatility models, using available data of wheat, rapeseed-mustard, cotton, guar seed, castor, cumin and coriander futures contracts traded in the largest agricultural commodity exchanges in India. Besides, case studies are used to examine and understand the institutional roles of aggregators in aggregation efforts towards the forward/futures market. This book covers several states and locations in India to enhance the representation and validity of the findings. It also examines representative farmer organizations which have obtained institutional membership in the forward or futures markets, and identifies areas of further research. In the current scenario, the book would be of immense importance and relevance to governments, commodity exchanges/markets, aggregators, many private and development organizations, as well as interested researchers and students.

Download or read book An Empirical Examination of the Process of Information Transmission in India s Agriculture Futures Markets written by Sanjay Sehgal and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the process of information transmission in India's agriculture commodity futures market by investigating the price discovery and direction of volatility spillovers between futures and spot prices of nine agricultural commodities viz., Barley, Cardamom, Castor seed, Chana (Chickpea), Chili, Mentha oil, Pepper, Soybean and Refined Soya, traded on Multi-Commodity Exchange (MCX) and National Commodity & Derivatives Exchange (NCDEX). The study uses the daily data from January 01, 2009 to May 31, 2013. The empirical results confirm the price discovery between futures and spot prices, indicating strong information transmission. The volatility spillover results indicate that in the short-run, there is strong volatility spillover from spot to futures market whereas in the long-run it is exactly opposite. Further, the study applies the directional spillover method pioneered by Diebold and Yilmaz (2012) to analyze the direction of informational spillover. The estimated results suggest that the magnitude of volatility based information spillover is low in agri-futures market. With the exception of Soybean and Refined Soya, the spillovers are basically intra-commodity and not inter-commodity. Finally, the study concludes that India's agriculture commodity derivatives market is evolving in the right direction as futures market has started playing pivotal role in the information transmission process.

Download or read book Relationship Between Spot and Futures Markets of Selected Agricultural Commodities written by Velmurugan Palaniappan Shanmugam and published by . This book was released on 2017 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study empirically examines the market which reacts first markets in India by assessing the relationship between the spot and future prices of agricultural commodities such as Soya bean, Chana, Maize, Jeera and Turmeric for a period from January 2010 to March 2015 traded in NCDEX, Empirical results suggest the existence of long-run equilibrium relationships between futures and spot prices for all the 5 agricultural commodities that were taken for this study. Regression model pertaining to Lead-Lag relationship between Spot and Future markets suggests that for the commodities Maize, Jeera and Turmeric, both the spot and future markets price plays the leading role in the price discovery process and said to be informationally efficient and reacts more quickly to each other.

Download or read book Efficiency of Futures Market in India written by VDMV. Lakshmi and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The study aims at examining the efficiency of futures market with a sample of 11 commodities traded on National Commodity and Derivatives Exchange Limited (NCDEX). Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests are applied for testing stationarity and order of integration of both spot and futures market. Zivot-Andrews test of unit root is also applied to ensure reliable results in the event of structural break. Stationarity in spot and futures series at level is observed in case of three commodities, viz., barely, jeera and soybean, and non-stationary at level and stationarity in return series is observed in the case of the remaining eight commodities. To test the cointegrating relationship between both the markets, Johansen test of cointegration is used and finally to observe the direction of causality, Granger causality test is applied. There is evidence of cointegrating relationship indicating the presence of long-run relationship between spot and futures market in eight agricultural commodities. There is also evidence of futures Granger causing spot in the case of six commodities, i.e., barley, castor seed, cotton seed oilcake, gur, mustard seed and refined soya oil. However, there is evidence of bidirectional relationship in the case of remaining five commodities; coriander, jeera, soybean, sugar M grade and wheat. As a whole, it is observed that agricultural commodity futures market is efficient in India.

Download or read book Agricultural Commodity Futures Market written by Gouri Prava Samal and published by New India Publishing Agency. This book was released on 2021-10-11 with total page 4 pages. Available in PDF, EPUB and Kindle. Book excerpt: Instability of commodity prices has always been a major concern of the farmers, processors, merchandisers as well as the consumers in an agriculture-dominated economy. Farmers’ direct exposure to price fluctuations makes it too risky for them to invest in other wise profitable activities. There are various ways to cope with this problem. The agriculture commodity market is one of them. It serves a risk-shifting function and can be used to lock-in prices in advance instead of relying on uncertain price developments in future. Apart from being a vehicle for risk transfer among hedgers and from hedgers to speculators, these markets also play a major role in price discovery. The primary objective of this book is to impart the basic knowledge of derivatives market, types of derivative markets, agriculture futures market, regulator of commodity market, commodity exchanges, price discovery in commodity market and awareness among various stakeholders of commodity market.

Download or read book Performance Of Commodity Derivatives Market In India An Analytical Study written by Dr. Shaik masood and published by Archers & Elevators Publishing House. This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Does speculation with agricultural commodity futures cause price bubbles in the event of negative production shocks written by Tobias Thürer and published by Logos Verlag Berlin GmbH. This book was released on 2016-02-05 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the mid 2000s, an increasing financialization of commodity futures markets is taking place. This has fueled an ongoing discussion about the effect of financial investments on the development of commodity prices. Against this background, the trading activities of financial speculators also come to the fore. There is the concern that such speculators can cause irrational overshootings of agricultural commodity prices, e.g. in the event of global production shocks. In such an event the decrease of total supply induces a price surge menacing food security in developing countries. Yet, the question emerges whether speculation aggravates this price increase, eventually inducing a price bubble. The relevance of this concern is reinforced by the fact that due to climate change an increased frequency and severity of global agricultural production shortfalls is at stake. If speculation evokes an additional threat to food security in the event of a production shock, the political agenda should not be confined to focus solely on the adaptation to climate change. Instead, it is then also necessary to address speculative activities on agricultural commodity markets. This book scrutinises whether speculative bubbles can be identified in the event of severe global production shocks. For this, a framework for tracing the transmission of the futures price's development on the spot market is developed. Using annual data from 1979-2012 for maize it is analysed whether production shock related price bubbles occurred.

Download or read book Futures Trading in Agricultural Commodities written by Sandhya Srinivasan and published by . This book was released on 2008 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: On 7 May, 2008, the Indian Government announced the ban futures trading in four agricultural commodities - chickpea, potato, rubber and soy oil. The purpose of this paper is to examine the rationale behind the ban and study how logical the decision to impose it is. The stated purpose of the ban was to control inflation. However, of the four banned commodities, only the price of potato declined after the ban due to the bumper crop. The rising inflation rate, pegged at 11.42% for the week ended 14 June, 2008, has been attributed to a number of factors, including the 56% increase in global food prices over the past year, record crude oil prices (over $140 a barrel), the diversion of land for bio-fuel production, loose monetary policy in emerging economies, and the adoption of an expansionary fiscal policy by the Government. An analysis of spot and futures prices of the four banned commodities shows a high degree of positive correlation in the prices of the two markets. The prices are interdependent: the futures markets give signals to the spot markets on the direction in which prices will move in the future and the futures prices are determined on the basis of the conditions in the spot markets. Speculation may drive prices further up, but a speculator expects prices to rise due to the market conditions, and doesn't arbitrarily bet on a price rise. The extent to which two markets influence each other depends on the level of integration of the two markets. Developing the spot markets along with the futures markets and ensuring higher participation from the farmers is essential to integrate the futures and spot markets. When the participation by consumers and producers of agricultural commodities in the futures market is low, the debate over the futures ban becomes irrelevant.

Download or read book Indian Commodity Market written by and published by Serials Publications. This book was released on 2010 with total page 806 pages. Available in PDF, EPUB and Kindle. Book excerpt: Papers presented at the Workshop cum Seminar on "Indian Commodity Market Derivatives & Risk Management : the Road Ahead", held at Puducherry during 11-12 September 2009.

Download or read book Volatility Spillovers Between Spot and Futures Markets written by Velmurugan Palaniappan Shanmugam and published by . This book was released on 2017 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: In well-established and matured agricultural commodity futures market, like U.S., the futures markets are expected to serve as a central exchange for both domestic and international information and thus function as a primary mechanism for price discovery and reduce price variability through hedging activities. After having outlined the present status of U.S. agricultural commodities market, a comprehensive study on the volatility spillover between the spot and futures markets of 12 agricultural commodities is carried out to understand the dynamics of volatility factors which hinder the efficiency of those markets, by comparing two different time periods which stand different by various economical and market conditions, for arriving at relative conclusions. The Granger Causality Test results on the direction of flow of volatility between the spot and futures market shows that in majority of the commodities (6 commodities during 1995-2005 & 7 commodities during 2006-2011) there were unidirectional flow of from futures to spot markets, meaning that futures markets has significantly contributed to the volatility of spot market. There were bidirectional relationship in 5 commodities in 1995-2005 & 3 commodities in 2006-2011. This shows that due to information flow from both sides, spot to future markets and future market to spot market, both were equally responsible for causing volatility. Overall there is no evidence of abnormal volatility in the sub-period 2006-2011, compared to1995-2005. Abnormality of non-directional flow is identified in CBOT wheat during 2005-2011 which means that factors beyond futures market were responsible. Whereas, from the GARCH (1, 1) results, in terms of volatility, there is volatility clustering and persistence throughout the study period, with no abnormality during post 2006 period alone. To be specific, we show that volatility in U.S. agricultural commodities markets were prevalent during 1995-2005 and during 2006-2011, which experienced price spikes and price distortions. Hence, we conclude that huge in-flow of funds into the agricultural commodity futures market since 2006 is not the reason for volatility in US agricultural commodity market.