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Let us look at the top commodities in terms of volumes and value. Which are the best commodities to trade in India and the top commodities in India for trading in futures. We shall typically focus on MCX high-volume commodities since it is the most liquid exchange of the two. We also focus on the most active commodities in terms of volumes traded and value traded and we shall take 2021 as the base to compute our rankings. Here is a quick look at the ranking of top commodities for 2021.
We look at top commodities under the following 10 categories.
There are a few renowned top commodities markets in India. Some of the best commodities to trade for beginners include Multi Commodity Exchange (MCX), Indian Commodity Exchange (ICEX) and National Commodity and Derivatives Exchange (NCDEX). Over here one can trade top commodities on electronic trading platforms.
Price determination is eased by the top commodities market, where the forces of supply and demand decide how much a commodity will be priced at. Price confirmation is told by participants of the market, profitable variables, global trends, and other important information.
There are different types of items that are regarded as the best commodities to trade in India. Different types of goods can have different variations and grades within their category, which are also tradable. People can trade these commodities depending on what buyers and sellers need. Here are a few of the top commodities in India:-
Trading commodities in India involves a diverse array of items such as agricultural products, power, and cereals, each with variations and grades. Prices are influenced by factors like climate, supply-demand dynamics, and geopolitical events, making these commodities crucial for various sectors including business, transportation, and households.
We will use the tabular ranking of commodities by volumes and volumes and identify the top commodities for the year to date 2021.
In the table below we look at the most active Agro commodities by traded value on the MCX for the year to date 2021. Here is the top commodities ranking of the category.
Instrument Type | Year | Segment | Commodity | Traded Contract(Lots) | Total Value (Lacs) | Avg Daily Turnover (Lacs) |
FUTCOM | 2021 | AGRO COMMODITIES | CPO | 730973 | 7851491.11 | 44865.66 |
FUTCOM | 2021 | AGRO COMMODITIES | COTTON | 323786 | 1848680.39 | 10563.89 |
FUTCOM | 2021 | AGRO COMMODITIES | MENTHA OIL | 23609 | 101022.63 | 577.27 |
FUTCOM | 2021 | AGRO COMMODITIES | RUBBER | 9447 | 15890.80 | 90.80v |
FUTCOM | 2021 | AGRO COMMODITIES | KAPAS | 2834 | 7195.69 | 41.12 |
In the table below we look at the most active Base Metal Contracts by traded value on the MCX for the year to date 2021. Here is the top commodities ranking of the category.
Instrument Type | Year | Segment | Commodity | Traded Contract(Lots) | Total Value (Lacs) | Avg Daily Turnover (Lacs) |
FUTCOM | 2021 | BASE METALS | COPPER | 2987589 | 52518383.35 | 300105.05 |
FUTCOM | 2021 | BASE METALS | NICKEL | 1765229 | 35094967.03 | 200542.67 |
FUTCOM | 2021 | BASE METALS | ZINC | 1440822 | 16456942.06 | 94039.67 |
FUTCOM | 2021 | BASE METALS | ALUMINIUM | 713385 | 6768815.23 | 38678.94 |
FUTCOM | 2021 | BASE METALS | LEAD | 608054 | 5174924.23 | 29571.00 |
OPTFUT | 2021 | BASE METALS | COPPER | 671 | 12169.06 | 69.54 |
OPTFUT | 2021 | BASE METALS | ZINC | 2 | 21.84 | 0.12 |
In the table below we look at the most active Bullion Contracts by traded contracts on the MCX for the year to date 2021. Here is the top commodities ranking of the category.
Instrument Type | Year | Segment | Commodity | Traded Contract (Lots) | Total Value (Lacs) | Avg Daily Turnover |
FUTCOM | 2021 | BULLION | SILVERMIC | 33618627 | 23019578.14 | 131540.45 |
FUTCOM | 2021 | BULLION | GOLD PETAL | 10408919 | 490992.75 | 2805.67 |
FUTCOM | 2021 | BULLION | SILVERM | 9489668 | 32481320.60 | 185607.55 |
FUTCOM | 2021 | BULLION | GOLDM | 4566208 | 21620069.83 | 123543.26 |
FUTCOM | 2021 | BULLION | SILVER | 3156891 | 64741130.30 | 369949.32 |
FUTCOM | 2021 | BULLION | GOLD | 1601667 | 76024519.73 | 434425.83 |
FUTCOM | 2021 | BULLION | GOLDGUINEA | 1267930 | 482172.12 | 2755.27 |
OPT-OUT | 2021 | BULLION | GOLD | 215708 | 10454344.92 | 59739.11 |
OPT-OUT | 2021 | BULLION | SILVER | 111566 | 2288548.96 | 13077.42 |
OPT-OUT | 2021 | BULLION | SILVERM | 5739 | 19184.55 | 109.63 |
OPTCOM | 2021 | BULLION | GOLDM | 372 | 1869.62 | 10.68 |
In the table below we look at the most active Energy Contracts by traded contracts on the MCX for the year to date 2021. Here is the top commodities ranking of the category.
Instrument Type | Year | Segment | Commodity | Traded Contract (Lots) | Total Value (Lacs) | Avg Daily Turnover (Lacs) |
FUTCOM | 2021 | ENERGY | NATURAL GAS | 30682294 | 89000348.30 | 508573.42 |
FUTCOM | 2021 | ENERGY | CRUDEOIL | 13152573 | 62197891.09 | 355416.52 |
OPTFUT | 2021 | ENERGY | CRUDEOIL | 6158394 | 31793388.00 | 181676.50 |
In the table below we look at the most active Commodity Indices by traded contracts on the MCX for the year to date 2021. Here is the top commodities ranking of the category.
Instrument Type | Year | Segment | Commodity | Traded Contract (Lots) | Total Value In Lacs | Avg Daily Turnover (Lacs) |
FUTIDX | 2021 | INDEX | MCXBULLDEX | 480195 | 3563750.77 | 20364.29 |
FUTIDX | 2021 | INDEX | MCXMETLDEX | 261648 | 1956626.14 | 11180.7 |
Commodity futures and options can be traded on Indian commodity bourses like MCX, NCDEX, NSE, and BSE. Normally, commodity trading is predominantly done by those with existing exposure to an underlying. However, speculation is also quite common in the commodity markets. For beginners, the most recommended approach is to stick to the most liquid contracts in bullion or energy that are liquid.
One more option that beginners have is to trade the two commodity indices of bullion and base metals. The advantage with indices is that beginners don’t have to take on too much risk of individual commodity price fluctuations.
There is nothing like the best commodity but ideally traders should focus on the commodity that is most liquid. Today, there are two indices viz. the index on bullion and the index on base metals that is quite actively traded in the Indian context. Traders can even trade in these indices which are more diversified and hence de-risked for the trader. This reduces their overall risk of trading and the vulnerability to a single commodity volatility.
That varies from time to time and depends on the price. For example, through most of 2019 and 2020, gold and silver were among the most profitable commodities to trade. In the last 1 year, base metals like copper, zinc and aluminium have been extremely profitable commodities to trade. Eventually it depends on how you craft your strategy and maintain trading discipline. The basic rules in commodity trading remain the same.
Yes, India is a significant commodity exporter, with top commodities including **top commodities** like petroleum products, gems, and jewelry.
Factors affecting commodities pricing in India include **best commodities to trade** supply and demand, production costs, economic growth, geopolitical events, natural disasters, and government policies.
Yes, the trading of commodities in India is governed by rules set by the Securities and Exchange Board of India (SEBI), ensuring fair and transparent trading practices.
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