Economics, Econometrics and Finance
7 years ago

Turmeric futures market leads price discovery, shaping spot market trends.

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INTERNATIONAL JOURNAL OF COMMERCE AND BUSINESS MANAGEMENT
Price Discovery of Indian Turmeric in Futures Market
D. Murugananthi, K. M. Shivakumar, N. Ajjan, S. D. Sivakumar

Paper Summary

The study looked at how the price of turmeric in futures trading affects the price of turmeric in the spot market. They found that the futures market leads the spot market in determining prices for turmeric. The futures market influences the spot market prices, showing that the futures market is efficient in discovering prices for turmeric. When the two markets are not in balance, the spot market adjusts more to bring prices back in line. This study proves that the futures market has a significant impact on the prices of turmeric in the spot market.

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