What do you understand by a commodity futures market?

What do you understand by a commodity futures market? 

Ans. In case of a future contract, the underlying asset can be a commodity or some financial security. When underlying asset is a commodity, it is called commodity futures market. In India, some facts about commodity futures markets are given below: 

(a) At present there are 18 commodity exchanges in India. 

(b) 41 commodities are allowed to be traded in these exchanges. 

(c) Forwards Market Commission, under the Ministry of Food and Consumer Affairs, acts as a regulatory authority for trading of commodity futures. 

(d) In India, futures are prevalent for perishable as well as storable commodities.