What Are Commodity Markets?
Commodity markets are exchanges where different types of commodities are traded. Trading commodity futures successfully requires extensive understanding and experience, but the idea behind commodity futures is very simple. For example, a farmer planning production for next season may estimate that he needs to grow 1,000 bushels of corn and harvest it next October. Commodities markets can aid the farmer in planning and making sure the has the needed supplies. Without commodity futures, the farmer would have to wait until next year and then try to sell his harvested corn in the cash market. NYMEX Founded in 1882, the NYMEX commodities market in New York is one of the oldest commodities markets in the world. This exchange trades some of the most important industrial materials, including gold, silver, aluminum, palladium, copper and uranium. It is also an important market for trading crude oil and gas. NYMEX is the leader in trading for new commodities futures instruments such as energy fu
