A Study on Performance of Copper in MCX during 2006 to 2012 at Well Worth Share & Stock Ltd, Madurai

Abstract

Commodities are raw materials used to create various products. Commodities include agricultural products such as grains, oilseeds, vegetable oils, pulses and also meats and live stock; energy products such as crude oil and gasoline; and metals such as gold, silver, aluminum and mild steel ingots. There are many other commodities like polypropylene, sugar, cotton, cocoa and coffee, etc., that are also traded. A commodity is something for which there is demand, but which is supplied without qualitative differentiation across a given market. Characteristic of commodities is that their prices are determined as a function of their market as a whole. Well -established physical commodities are actively traded on various spot and derivative markets. The commodity market has evolved significantly from the days when farmers hauled cartloads of wheat, rice and other produce to the local market. By buying futures contracts, they can hedge against underlying price changes in the commodity. Commodity exchanges in India are expected to contribute significantly in the
strengthening- Indian economy to face the challenges of globalization. The Commodity Exchange makes commodity money available to all as a medium of exchange, store of wealth and unit of account.