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Market Efficiency of Agricultural Commodity Futures in India

The commodity derivative market in India has corroborator phenomenal increment .The main functioning of the futures market came under serutiny during 2008-2009 due to price rise and the contribution of futures market in stabilizing spot prices was highly discussed.The study aims at examine the weak form of Efficient Market speculation in the context of a spring commodity market - National Commodity Derivatives Exchange (NCDEX), which is considered as the prime commodity derivatives market in India. For best result in commodity segment we discover best Intraday Tips service Provider India. Auto Interaction and Run test have been used to test the efficiency of the agricultural commodity market. It has been observed that the factor is high for losing in the beginning and the values continue to fall as the lags increase. However, the fall in the values of an Auto Interaction quotient is not much. This may advise that information embedded in a longer period of retardation would be as impressive in determining future price as that of information embedded in short time periods. The results of Autocorrelation and Run test define that both spot and futures prices are weak form efficient.

With help of best mcx tips provider list in India .An agriculture-dominated economy like India, farmers face not only big risk, but also price risk as the Government has reduced its direct market interference to encourage private participation based on market forces. This has got to growth exposure of agricultural produce to price and different market risks. Commodity futures and derivatives have an important, role to play in the price risk management process, especially in agriculture. Deferment this into consideration, the current paper analyzes the efficiency of agricultural commodity markets by judging the relationships between futures prices and spot market prices of three agricultural commodities i.e. turmeric, cotton and castor seed in India. The efficiency of the futures market for three agricultural commodities, traded at one of the biggest commodity exchanges of India, i.e. National Commodity & Derivatives Exchange Ltd, has been explored by using Ordinary least squares regression analysis and Granger causality tests.

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