PRICING PATTERN IN INDIAN COMMODITY MARKET BASED: METAL& ENERGY MATERIAL
Keywords:
Developing, Productivity, PolicyAbstract
The current commodity price boom in combination with high price volatility is historically unprecedented even in the volatile price history of commodities. Commodity price dynamics have crucial macroeconomic and development implications, in particular for commodity dependent low-income countries. Commodity prices are determined by fundamental supply and demand conditions which have experienced important structural changes in the last decade related to increasing demand from highly growing emerging countries, alternative uses of commodities for energy production, and a reduction in supply due to supply constraints and low productivity. However, these factors alone are not sufficient to explain recent commodity price developments, particularly the large fluctuations between 2008 and2011. Simultaneously to fundamental changes, trading activities on commodity derivative arkets have undergone a major shift related to the increasing presence of financial investors, including banks, institutional investors and hedge funds, that has had effects on the microstructure of these markets and on price dynamics. This paper discusses these changes with regard to fundamental factors and commodity derivative markets and assesses their impact on commodity prices. Further, the paper identifies implications of these developments for
Global Journal of Multidisciplinary Studies Available online at
developing countries and policy reforms with the objective to stabilize commodity prices and mitigate the negative impacts of the commodity price boom on developing countries.
References
Baffles, J. /Halitosis, T. (2010): Placing the 2006//08 Commodity Price Boom into Perspective, World Bank Policy Research Working Paper, July 2010. Washington D.C. [2]Bass, H. (2011): FinanzmärktealsHungerverursacher? Studiefür die Deutsche Welthungerhilfee.V. Bonn.(23.4.2012). [3] Basu, P./Gavin, W. T. (2011): What Explains the Growth in Commodity Derivatives? In:Federal Reserve Bank of St. Louis Review 93(1), 37-48. [4] CFTC (2006): Comprehensive Review of the Commitments of Traders Reporting Program. In: Federal Register 71(119), 35627-35632.
CFTC (2008): Staff Report on Commodity Swap Dealers & Index Traders with Commission Recommendations. Washington, D.C.(23.4.2012).CFTC (2009): About the commitments of traders reports.(23.4.2012). [6]] Cashin, P./McDermott, J. (2002): The Long-Term Behaviour of Commodity Prices: SmallTrends and Big Variables. In: IMF Staff Papers 49(2), 175-199. [7] FAO (2008): The State of Food and Agriculture 2008. Biofuels: prospects, risks andopportunities. Rome.Farooki, M. /Kaplinsky [8] PricewaterhouseCoopers, John Hawksworth, “The World in 2050”. March 2006. [9] World Bank. “Commodity Markets Review.”Various Issues. [10] World Bank. Global Development Finance 2006
Downloads
Published
Issue
Section
License
Copyright Notice
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in World Scholars journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.