That price seems divorced from the value of any underlying commodity
--in fact, there is no underlying commodity
For instance, derivatives that are based on a particular commodity are generally settled by the payment by one party to the other and not by the physical delivery of the actual underlying commodity
It is important to realize that the goal of these funds is to reflect the performance of the underlying commodity
, minus any expenses associated with operating the fund.
Larger orders from a broad range of customer industries contributed to this record quarterly order intake, giving evidence of GEAs resilience against adverse underlying commodity
prices as for example a still depressed milk price impacting the overall investment mood in particular industries.
ETF tracking errors and technical factors like futures contract rollovers can also affect returns relative to the underlying commodity
According to the company, the decrease in revenue was principally attributable to the reduced purchasing from companies in the oil and gas industry stemming from budget constraints derived from a drastic decline in the underlying commodity
prices year over year.
Commodities are the actual raw materials while 'commodities derivatives' are financial contracts derived from the value of the underlying commodity
Global business manager for Blooomberg's fixed income, commodities and currencies Tod Van Name said, "It is critical that market participants stay connected to the underlying commodity
market fundamentals for a clear and actionable view of what is driving supply and demand.
Around 24 borrowers were given funds by NSEL allegedly in connivance with the exchange's management without any underlying commodity
deposited by those borrowers.
NCDEX will continue to focus on commodities that are crucial to the Indian economy as well on increasing the participation of hedgers - those with genuine exposure to the underlying commodity
such as producers, processors, industrial consumers, exporters, importers and traders.
About 24 borrowers were given the funds by NSEL without any underlying commodity
deposited by them.
Regarding the underlying commodity
price, we see that the average price paid by domestic refiners to acquire a barrel of oil is currently $100.