NISM Certifications · NISM-Series-XV: Research Analyst · Fundamental Analysis of Commodities
For agricultural commodities such as kharif crops, which factor is most directly linked to the supply forecast for the season?
Monsoon rainfall and sowing acreage are most directly linked to the supply forecast of kharif crops. Rain influences planting and yield, so together they determine expected output, which drives agricultural commodity prices, unlike dividends, ratings or demat account numbers.
- AMonsoon rainfall and sowing acreageCorrect
- BDividend declared by listed agri companies
- CCredit rating of the stock exchange
- DNumber of demat accounts opened
Explanation
Crop output depends on acreage sown and yield, which in turn depend heavily on monsoon rainfall. The other options are unrelated to physical crop supply.
Did you get it right without looking?
One question tells you little. A timed set on Fundamental Analysis of Commodities shows your real accuracy, how long you take and where you lose marks.
More Fundamental Analysis of Commodities questions
- Which of the following is most likely to cause the price of crude oil to rise, other things being equal?
- Which of the following developments would most likely push up the price of crude oil, other things being equal?
- An analyst compares a commodity's stocks-to-use ratio. Last year, ending stocks were 20 million tonnes against total annual use of 160 milli…
- Spot price of a non-perishable commodity is Rs 50,000 per unit. Storage and insurance cost is Rs 1,000 per unit for the 3-month period, paid…
- Which of the following would generally be expected to push up the price of crude oil, other things remaining equal?
- Gold spot is Rs 60,000 per 10 grams. A jeweller buys spot and sells a 3-month futures at Rs 61,800. Total cost of carry (financing plus stor…