What is the commodity market?
Commodity market is a place where trading in commodities takes place. It is similar to an equity market, but instead of buying or selling shares one buys or sells commodities. How old are the commodities market? The commodities markets are one of the oldest prevailing markets in the human history. In fact, derivatives trading started off in commodities with the earliest records being traced back to the 17th century when rice futures were traded in Japan. What are the different types of commodities that are traded in these markets? World-over one will find that a market exists for almost all the commodities known to us. These commodities can be broadly classified into the following: • Precious Metals: Gold, Silver, Platinum, etc. • Other Metals: Nickel, Aluminum, Copper, etc. • Agro-Based Commodities: Wheat, Corn, Cotton, Oils, Oilseeds, etc. • Soft Commodities: Coffee, Cocoa, Sugar, etc. • Live-Stock: Live Cattle, Pork Bellies, etc. • Energy: Crude Oil, Natural Gas, Gasoline, etc. What
