MTECHTIPS’-Indian Agri-Commodities 2012: Traders’ paradise as Gold was outperformed
Most agricultural commodities traded on Indian Comexes have generated more than 25% return on a high and low basis in 2012. (Gold, in hindsight provided only 12% return on an average for the year 2012.)Those who are new to this market and have no proper knowledge-base of trading in agriculture commodities run a heavy risk incurring losses, thanks to the complexes’ volatility. But, if we look at the positive side of this volatility then, it was trader’s paradise as smartest of the lot earned profits from movements in both sides.Some good buying sentiments were witnessed in commodities like cardamom and soybean while commodities like chilli and jeera saw some selling sentiments. But the former lot of commodities were not able to sustain their gains as they fell drastically from high levels.In fact, some steps were taken by FMC to curb volatile movements in the segment by banning trading in commodities like guar and by hiking the margin of some high-volatile commodities like pepper and soya on regular intervals depending on their price movements.