Commodity Market

A commodity market is a regulated marketplace where raw materials and primary goods—such as metals, energy products, and agricultural produce—are bought and sold, either as physical spot transactions or as standardised derivative contracts (futures and options). In India, the two primary commodity exchanges are the Multi Commodity Exchange (MCX), which handles bullion, metals, and energy, and the National Commodity and Derivatives Exchange (NCDEX), which focuses on agricultural commodities. Both are regulated by SEBI. Commodity markets serve a dual purpose: they allow producers and consumers to hedge against adverse price movements, and they give investors and traders a platform to gain exposure to commodity price cycles as a distinct asset class.