AKTU Commodity Future Markets and Derivatives (BMBAB304) Syllabus PDF – MBA (Agribusiness Management) 3rd Semester
Commodity Future Markets and Derivatives BMBAB304
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Syllabus — Commodity Future Markets and Derivatives
Download PDFBMBAB304 · 3 credits · L-T-P 3-0-0
Course Outcomes
| CO Code | Course Outcome (CO) Statement | Bloom’s K- Level |
|---|---|---|
| CO1 | Explain the structure, functioning, and importance of commodity futures and derivative markets in agribusiness. | K2 – Understanding |
| CO2 | Analyse the pricing mechanism, role of commodity exchanges, and evaluate the regulatory framework in India and globally. | K4 – Analysing |
| CO3 | Apply trading strategies and techniques for hedging and speculation in commodity markets. | K3 – Applying |
| CO4 | Interpret and evaluate commodity price movements using fundamental and technical analysis tools. | K5 – Evaluating |
| CO5 | Assess the clearing, settlement process, taxation issues, and emerging trends in commodity derivative markets. | K5 – Evaluating |
UNIT I: Introduction to Commodity and Derivative Markets(6 Hours)
Commodities and their classifications; Spot markets and agricultural mandis; Concept of derivatives; Types of derivatives – forwards, futures, options, swaps; Evolution of commodity futures markets; Significance of commodity derivatives in agriculture; Role in price discovery and risk management.
UNIT II: Market Structure and Pricing Mechanisms(10 Hours)
Need for commodity futures markets; Pricing of commodity futures; Basis and cost of carry;
Evaluation of international commodity exchanges (CME, NYMEX, LME); Commodity futures in India – evolution and growth; Role of NCDEX and MCX; Regulatory framework – SEBI and policy reforms; Dynamics of a commodity exchange and trading platforms; Case studies.
UNIT III: Market Participants and Trading Strategies(8 Hours)
Types of market participants – hedgers, speculators, arbitrageurs; Trading strategies – hedging, spreading, speculation; Role of brokers and clearing members; Risk management strategies in commodity markets; Margin requirements and risk control measures; Case studies.
UNIT IV: Market Analysis and Decision Tools(8 Hours)
Fundamental analysis – supply-demand factors, crop reports, weather, government policies;
Technical analysis – chart patterns, trend lines, moving averages, oscillators; Analyzing commodity price chart patterns; Confirming tools – volume analysis, open interest, sentiment indicators; Case studies.
UNIT V: Operations, Clearing and Emerging Trends(8 Hours)
Trading techniques – straddles, strangles, spreads; Clearing and settlement process; Delivery mechanisms – physical and cash settlement; Taxation and accounting issues; Role of technology in commodity trading – electronic platforms, algo trading; Global trends in commodity derivatives; Case studies.
Suggested Readings
- Hull, J. C. (2021). Options, futures, and other derivatives (10th ed.). Pearson Education.
- NISM. (2022). Commodity derivatives: Covering basics of commodity derivatives, indices, futures, and options along with clearing, settlement & risk management of commodity derivatives markets in India. NISM (An Educational Initiative of SEBI).
- Chatnani, N. N. (2019). Commodity derivatives: Markets and applications. Cengage Learning.
- Saha, S. S. (2020). Indian financial system: Financial markets, institutions and services (2nd ed.). McGraw-Hill Education.
- Kolb, R. W., & Overdahl, J. A. (2010). Futures, options, and swaps (5th ed.). Wiley- Blackwell.
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