What is commodity market
What is commodity market


What is commodity market. Commodity market is a physical or virtual market for buying, selling and trading raw or basic products. There are currently 50 major commodity markets worldwide, which trade in about 100 primary commodities.

The goods are divided into two types: hard and soft goods. Hard materials are usually the natural resources to be mined or extracted - such as gold, rubber and oil, while soft goods are agricultural products or livestock - corn, wheat, coffee, sugar, soybeans and pork.
Futures & Commodities Trading Predictions / Commodities Trading Strategy and Education

Key Takeaways
The commodity market consists of buying, selling or trading in raw materials such as oil, gold or coffee.
There are hard goods, which are usually natural resources, and soft goods, such as livestock or farm goods.
Investors may be exposed to commodities by investing in commodities through futures contracts or investing directly in commodities.
Leading US Barter Chicago Board of Trade Chicago Mercantile

How Commodity Markets Work
Commodities can be invested in many ways. An investor can buy stocks in corporations whose business is based on commodity prices or buy mutual funds, index funds, or exchange-traded funds (ETFs), which focus on commodity companies. The most direct way to invest in commodities is to buy in futures contracts. The futures contract obligates the holder to buy or sell an item at a future delivery date at a predetermined price.

Commodity market type
The major exchanges in the U.S., with commodities, Chicago and New York, with multiple exchanges elsewhere in the country. The Chicago Board of Trade (CBOT) was founded in 1848 in Chicago. The commodities traded at CBOT include corn, gold, silver, soybean, wheat, oats, rice and ethanol. The Chicago Mercantile Exchange (CME) trades commodities such as milk, butter, feeder cattle, cattle, pork, wood, and thin pigs.

Commodity Futures Trading Commission (CFTC) is the major regulatory body for commodity markets.
New York Board of Trade (NYBOT) commodities include coffee, cocoa, orange juice, sugar and ethanol trading. The New York Mercantile Exchange (NYMEX) trades on its exchange of oil, gold, silver, copper, aluminum, palladium, platinum, heating oil, propane and electricity.what is commodity market try to explain may b u will like it... 

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