CURRENT AFFAIRS

Detailed explanation-1: -Two of the best-known commodity exchanges in the U.S. are the Chicago Mercantile Exchange Group and the New York Mercantile Exchange. Traders rarely take delivery of physical commodities, but trade futures contracts, agreeing to buy or sell commodities at an agreed-upon price by a predetermined date.

Detailed explanation-2: -Commodities are often split into two broad categories: hard and soft commodities. Hard commodities include natural resources that must be mined or extracted-such as gold, rubber, and oil, whereas soft commodities are agricultural products or livestock-such as corn, wheat, coffee, sugar, soybeans, and pork.

Detailed explanation-3: -Commodity Derivatives segment of NSE provides trading in Futures. Instruments are available on Bullion and Energy Futures. By establishing prices for futures, the commodity derivatives markets helps buyers and sellers determine prices of commodities in physical markets, thus linking the two markets.

Detailed explanation-4: -Commodity trading in India To start commodity trading, one needs to open a Demat account with the National Securities Depository Limited (NSDL) or Central Depository Services (India) Limited (CDSL). The Demat account functions as a holding account for all your investments in a ‘dematerialised’ or electronic state.