8/4/2019 What is Commodity Market
1/12
Commodity markets are markets where raw orprimary products are exchanged.
It covers physical product (food, metals, electricity)
markets but not the ways that services, including
those of governments, nor investment nor debt, can
be seen as a commodity.
8/4/2019 What is Commodity Market
2/12
Delivery and condition guarantees.
Hedging.
Futures contracts. Forward contracts.
Spot trading.
8/4/2019 What is Commodity Market
3/12
The trading of commodities includes physical
trading of food items, Energy and Metals, etc. and
trading of derivatives.
In the five years up to 2007, the value of global
physical exports of commodities increased by 17%
while the notional value outstanding of commodity
OTC derivatives increased more than 500% and
commodity derivative trading on exchanges more
than 200%.
8/4/2019 What is Commodity Market
4/12
Agricultural contracts trading grew by 32% in 2007,
energy 29% and industrial metals by 30%.
Precious metals trading grew by 3%, with higher
volume in New York being partially offset by
declining volume in Tokyo.
OTC trading accounts for the majority of trading in
gold and silver.
8/4/2019 What is Commodity Market
5/12
Agricultural (Grains, and Food and Fiber)
Livestock & Meat
Energy
Precious metals
Industrial metals
8/4/2019 What is Commodity Market
6/12
Agricultural Products:- Corn, Oats, Rough Rice,Soybeans, Rapeseed, Soybean Meal, Soybean Oil,Wheat, Cocoa, Coffee C, Cotton No.2, Sugar No.11,
Sugar No.14. Livestock and Meat:- Lean Hogs, Frozen Pork
Bellies, Live Cattle, Feeder Cattle.
Energy:- WTI Crude Oil, Brent Crude, Ethanol,
Natural Gas, Heating Oil, Gulf Coast Gasoline,RBOB Gasoline, Propane, Uranium.
8/4/2019 What is Commodity Market
7/12
Precious Metal:- Gold, Platinum, Palladium, Silver.
Industrial Metals:- Copper, Lead, Zinc, Tin,
Aluminium,Aluminium alloy, Nickel,Aluminium
alloy, Recycled steel.
8/4/2019 What is Commodity Market
8/12
Abuja Securities and Commodities Exchange
Bhatinda Om & Oil Exchange Bathinda
Brazilian Mercantile and Futures Exchange
Chicago Board ofTrade Chicago Mercantile Exchange
Commodity Exchange Bratislava, JSC
Dalian Commodity Exchange
Dubai Mercantile Exchange Euronext.liffe
Intercontinental Exchange
8/4/2019 What is Commodity Market
9/12
Minneapolis Grain Exchange
Multi Commodity Exchange
National Commodity and Derivatives Exchange
National Multi-Commodity Exchange of India Ltd
National Food Exchange
New York Mercantile Exchange
New York Board ofT
rade Rosario Board ofTrade
Steelbay
8/4/2019 What is Commodity Market
10/12
Kansas City Board ofTrade
London Metal Exchange
Winnipeg Commodity Exchange
National Spot Exchange
8/4/2019 What is Commodity Market
11/12
The 2008 global boom in commodity prices - for
everything from coal to corn was fueled by heated
demand from the likes of China and India.
Speculation in forward markets.
Farmers are expected to face a sharp drop in crop
prices as a result of bad rainfall.
Other commodities, such as steel, are also expectedto fall due to lower demand.
8/4/2019 What is Commodity Market
12/12