The Basics of the Commodity Markets

The Basics of the Commodity Markets

The primary purpose of the commodity markets is to provide information on the prices of commodities. By studying these prices, business entities can make informed decisions about future price trends. Many manufacturing entities use commodities as a raw material for production. Retailers use commodity prices to set their retail prices. This is because the price…

Investing in Commodity Markets

Investing in Commodity Markets

  Commodity markets are the markets that deal directly with the production of goods. For instance, wheat is not produced by the wheat farmer, but traded instead on the commodity markets. A commodity market is simply a market which trades in the main economic sector instead of manufactured items, like sugar, cocoa and fruit. Hard…

Risk Factors of Commodities Trading

A commodity market is simply a market which trades in the main economic sector instead of specific manufactured goods, for example, sugar, cocoa and milk. Soft commodities are generally mined, including oil and gold. More recently, financial institutions have begun to trade in financial futures contracts as well. Financial futures involve borrowing funds and therefore…