What are commodities
Commodities refer to raw materials that are extensively used in industry or agriculture, and are purchased and sold on a wholesale rather than retail basis.
Commodities are generally classified into three categories :
- 1. Energy – including crude oil, natural gas, etc.
- 2. Basic raw materials – including gold, silver, copper, aluminum, etc.
- 3. Agricultural products – including sugar, corn, soybeans, etc.
Characteristics of international commodity trading:
First , the price fluctuates greatly and there are many trading opportunities.
Second , the international bulk commodity trading market is a mature financial market, and the prices of bulk commodities are not affected by individuals or institutions, and prices are open, fair and just.