What is a Commodity ?
Commodities are the raw materials required to keep economies around the world in motion. There are four primary categories of commodities currently traded on the Market Including :
This includes Gasoline, Heating Oil, Natural Gas and Crude Oil.
Livestock and Meat:
Lean Hogs, Pork Bellies, Live Cattle and Feeder cattle are all included in this Category.
Gold, Silver, Platinum and Copper are all traded daily in the Commodities Exchange.
This category includes raw materials such as Corn, Soybeans, Cocoa, Coffee, Cotton and Sugar.
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Products are not made in the same place where they are required. More often than not, the production house or the supply chain will be in a completely different place from that of the place where there is a requirement. It is the traders who distribute the product from the place of production to various locations as per the demand. In fact, an apt example would be a commodity like oil, which is predominantly produced in the Middle East and yet it is sold more in the Asian countries.