A MODEL TO DETERMINE THE COMMODITY DERIVATIVE TURNOVER IN COMMODITY EXCHANGES IN INDIA

Commodity derivatives are contracts used as price risk management tool. Commodity derivative trading turnover in Indian commodity exchanges is having systematic variation caused by relevant influencing forces to explain its determination. The Indian commodity derivative market turnover is determined by interest rate in Indian call money market, general level of prices and weather condition in India. The interest rate and weather exert positive influence and price level create negative influence. The influence of weather is the largest.