Determinants of a Successful Commodity Contract - Evidence from Indian Agriculture Futures Market

Determinants of a Successful Commodity Contract - Evidence from Indian Agriculture Futures Market

Author: Neharika Sobti

Publisher:

Published: 2019

Total Pages:

ISBN-13:

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Every year exchanges introduce new futures contracts in the hope to see those garnering volumes but majority of these contracts have never attracted volumes and died their own death. The history of contract innovation is replete with failures. The aim of this study is an attempt to revisit and decipher the determinants of a successful futures contract with the focus on agriculture commodity futures contracts traded in India. This study also raises concern and doubts the utility of SEBI's long list of criteria for eligibility of a commodity contract and its likely success as circulated in the year 2017. The critical issue is does an exhaustive checklist of criterion as proposed by SEBI guarantees success or the modus operandi should be to explore and understand which is that inherent need that a successful contract satisfies which unsuccessful doesn't. .This issue also has a direct bearing on the viability of having futures and option contract for varying commodities and assets. Is success of a commodity more of a magic than a science is the main debate which has been discussed. Using panel random effects model on 30 agriculture future contracts traded on NCDEX in India from 2003-2016, the study found that volatility in the spot prices of the underlying commodity is the most important determinant followed by hedging effectiveness of contract and presence of hedgers. Contrary to the previous studies, size of the underlying commodity, activeness of spot market, homogeneity did not prove to be significant which highlights an important aspect for policy makers and academicians.


Trading and Hedging with Agricultural Futures and Options

Trading and Hedging with Agricultural Futures and Options

Author: James B. Bittman

Publisher: John Wiley & Sons

Published: 2008-03-04

Total Pages: 384

ISBN-13: 1592803296

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Today's Premier Guidebook for Understanding Agricultural Options and Making Them a Key Part of Your Trading and Risk Management Strategy Agricultural futures and options represent a vital niche in today's options trading world. Trading and Hedging with Agricultural Futures and Options takes an in-depth look at these valuable trading tools, and presents clear, proven strategies and techniques for both hedgers and traders to achieve their goals while minimizing risk. Relying on nuts-and-bolts techniques and examples as opposed to the mathematical models and theory favored by other options-trading manuals this practical, hands-on book discusses many topics, including: How hedgers and traders can use options effectively with realistic expectations Methods to understand price behavior including the "Greeks" (delta, gamma, vega, and theta) The importance of volatility and little-known ways to make it work to your advantage For producers and processors, agricultural futures and options are necessary components for controlling costs and hedging risks. For traders, they are proven vehicles for earning exceptional risk-adjusted profits. Whichever side of the aisle you are on, Trading and Hedging with Agricultural Futures and Options will provide you with the answers you need to effectively use these versatile tools and make them an integral part of your business.


Success and Failure of Agricultural Futures Contracts

Success and Failure of Agricultural Futures Contracts

Author: B. Wade Brorsen

Publisher:

Published: 1998

Total Pages:

ISBN-13:

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The objective of this study is to determine the factors contributing to the success or failure of agricultural futures contracts. Commodities with futures markets and without futures markets were selected and analyzed with respect to their product homogeneity, vertical integration, buyer concentration, activeness of their cash market, cash price variability, and size of their cash market. Homogeneity, vertical integration, buyer concentration, and activeness of the cash market were measured by the Delphi approach. An active cash market is a necessary condition for futures contract success. The structure of the marketing channel, the size of the cash market, the activeness of the cash market, the effectiveness of the grading system (homogeneity), liquidity cost, the ability of the own hedge market to bear more risk than the existing cross hedge market, and cash price variability are important in explaining differences in volume and open interest among existing futures markets. Results also suggest that none of the non-traded commodities considered is likely to have a successful contract if it were traded; since, none have an active cash market.


Economics of Futures Trading: For Commercial and Personal Profit

Economics of Futures Trading: For Commercial and Personal Profit

Author: Thomas A. Hieronymus

Publisher: Ceres Books LLC

Published: 2023-08-07

Total Pages: 543

ISBN-13: 0578357976

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Winner of the Award for Publication of Enduring Quality from the American Agricultural Economics Association The classic and must-have book on the commodity futures market For decades, Economics of Futures Trading has been known as “the bible” of the commodity futures market. This updated edition provides the foundation for everything you need to know in commodity basics and the economics of futures trading. In this comprehensive and essential guide, Professor Hieronymus reveals secrets and wisdom attained from decades of hands-on experience and research in the field. His timeless insight provides the fundamentals necessary for trading in pursuit of profits–whether you are new to the world of commodity trading or experienced. Dr. Hieronymus’ witty and engaging writing ushers you into the world of trading so you can attain success in these ever-growing markets. The underlying principles presented in this classic remain unchanged, and your understanding of all the complex concepts in futures trading will be enhanced, such as: Operation and performance of the commodity market. Hedging and speculation. Historical developments. And much more. This remains the ultimate guide and go-to resource for anyone interested in the operation of commodity markets. Set yourself up for success as you navigate the complexity of the market by first gleaning from a gold mine of insight offered in this easy-to-digest classic.


Sustainable Intensification

Sustainable Intensification

Author: Jules N. Pretty

Publisher: Routledge

Published: 2012-06-25

Total Pages: 292

ISBN-13: 1136529276

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Continued population growth, rapidly changing consumption patterns and the impacts of climate change and environmental degradation are driving limited resources of food, energy, water and materials towards critical thresholds worldwide. These pressures are likely to be substantial across Africa, where countries will have to find innovative ways to boost crop and livestock production to avoid becoming more reliant on imports and food aid. Sustainable agricultural intensification - producing more output from the same area of land while reducing the negative environmental impacts - represents a solution for millions of African farmers. This volume presents the lessons learned from 40 sustainable agricultural intensification programmes in 20 countries across Africa, commissioned as part of the UK Government's Foresight project. Through detailed case studies, the authors of each chapter examine how to develop productive and sustainable agricultural systems and how to scale up these systems to reach many more millions of people in the future. Themes covered include crop improvements, agroforestry and soil conservation, conservation agriculture, integrated pest management, horticulture, livestock and fodder crops, aquaculture, and novel policies and partnerships.


Driving Factors for Venture Creation and Success in Agricultural Entrepreneurship

Driving Factors for Venture Creation and Success in Agricultural Entrepreneurship

Author: Arafat, Mohd Yasir

Publisher: IGI Global

Published: 2021-10-22

Total Pages: 356

ISBN-13: 1668423510

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The literature on entrepreneurship research has generally ignored the agricultural sector. Few entrepreneurship scholars who are mostly agricultural economists and rural sociologists have contributed in parallel with an isolated body of work without much integration and a larger research agenda. Most of the work in agriculture entrepreneurship focuses on the traditional operations of the sector but lacks the theoretical framework required for a broader conceptual understanding of entrepreneurship in the agriculture sector. There is not much alliance between these two parallel research streams. Theoretical and methodological differences have constrained the interdisciplinary collaboration. Driving Factors for Venture Creation and Success in Agricultural Entrepreneurship assesses the main themes of agripreneurship, discusses important contextual aspects of the agriculture sector to enhance the understanding of entrepreneurship, and highlights how the key contextual dimensions of the agricultural sector can elucidate some of the less understood aspects of entrepreneurship theory and practice. Covering topics such as agribusiness and farm entrepreneurship, it is ideal for entrepreneurs, agriculturalists, professionals, researchers, students, academicians, and policymakers working in the field of entrepreneurship in various disciplines: management, education, agriculture education, sociology, economics, psychology, and technology.


An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?

An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?

Author: Diao, Xinshen, ed.

Publisher: Intl Food Policy Res Inst

Published: 2020-12-07

Total Pages: 548

ISBN-13: 0896293807

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Agricultural mechanization in Africa south of the Sahara — especially for small farms and businesses — requires a new paradigm to meet the needs of the continent’s evolving farming systems. Can Asia, with its recent success in adopting mechanization, offer a model for Africa? An Evolving Paradigm of Agricultural Mechanization Development analyzes the experiences of eight Asian and five African countries. The authors explore crucial government roles in boosting and supporting mechanization, from import policies to promotion policies to public good policies. Potential approaches presented to facilitating mechanization in Africa include prioritizing market-led hiring services, eliminating distortions, and developing appropriate technologies for the African context. The role of agricultural mechanization within overall agricultural and rural transformation strategies in Africa is also discussed. The book’s recommendations and insights should be useful to national policymakers and the development community, who can adapt this knowledge to local contexts and use it as a foundation for further research.