To understand about commodity market we are going to a perfect defination of it so it will be easy and clear to understand that what about we are reading this article and how beneficial is it for us.
To make easy understanding about commodity market we can split the commodity in two part: one of them is known as HARD Commodities and second one we can say SOFT Commodities.
Hard Commodities include Natural Gas, Crude Oil, Base Metal, Gold Silver etc while in Soft Commodities we are dealing with Agriculture product like Corn, Wheat, Coffee, Sugar, Soybeans, Pork, etc.
So now it is clear to us that while we are going to trade in Commodity Market it includes all MCX product as well as Agriculture or Agri Commodity product.
Definition of Commodity Analysis:
When you are going to start your business the first thing which is compulsory for everyone is Analysis of your business. Same thing ts apply in trading. When you are going in trading Market Analysis takes an important role. In market you are investing your money so without any analysis no one have guts to invest their money.
Analysis have simple fundamental which are depend on Supply and Demand interaction. An analyst who is sitting in market have their work which are basis of Supply and Demand. They are work to check about Supply Status and Demand Status in market so they can generate perfect accurate calls to achieve maximum profit, as a simple law is behind this, that if any product is in demanding and supply of that product is low according to demand then its price will go high and while it took reverse place i.e. Supply is high but Demand is low then that product price will decrease.
A best example for this, before one year when supply of onion is very low and it have in high demanding then we see its price goes to 80Rs per KG and now when supply is increased and Demand decreased its price comes to 20Rs per KG.
So from above description we can easily define that Commodity Analysis is work that confirm when, which products supply will be high or low and what will demand of that product at that time, so analyst can easily generate calls to acheive maximum profit from market. They looks all commodities and research about their market position and inform us what will be result (i.e. About supply and demand of product) of particular commodities in market.
What is Commodity Technical Calls:
For an market research analyst their main work is to do make profitable calls for traders. They are include to phase to generate best accurate calls from the market one of them is Technical Analysis and other is Fundamental Analysis.
Technical Analysis: In Technical analysis an Research Analyst looks at the charts and market flow that in which direction market will go i.e. Up or Down. What is the prediction from the market chart.
Fundamental Analysis: In this phase of work Research Analyst looks at supply and demand interaction and also looks at the Traders buying and selling position, that on what price a trader is buying or selling a Commodity.
So the analyst generate a Technical Call by merging both Technical and Fundamental Analysis to generate Best Accurate Commodity Calls to achieve maximum profit from the market.