Commodity Markets

The foundation of global supply chains and industrial production

These dynamic global marketplaces facilitate the exchange of raw materials and primary products. When you participate in commodity markets, you're trading standardized contracts for physical goods ranging from agricultural products to energy resources and precious metals.

Agricultural

Wheat, Corn, Soybeans

Energy

Oil, Gas, Coal

Metals

Gold, Silver, Copper

Soft Commodities

Cotton, Sugar, Coffee

Agricultural Commodities

Trading standardized contracts for physical goods essential to global economies and industries.

Examples

Wheat, corn, soybeans

Major Exchanges

CME Group, ICE

Trading Vehicles

Futures, options, ETFs

Price Influencers Primary factors that drive price movements in this commodity category.

Weather, crop yields, demand

Key Participants

Farmers, food producers, speculators

Market Size (2023)

~$2.4 trillion

Volatility Level

High (seasonal patterns)

Storage Considerations

Perishable, seasonal

Did you know? Agricultural commodities are among the oldest traded goods, with futures contracts dating back to ancient Japan and rice markets.

Energy Commodities

Trading standardized contracts for physical goods essential to global economies and industries.

Examples

Crude oil, natural gas, coal

Major Exchanges

NYMEX, ICE

Trading Vehicles

Futures, options, ETFs, spreads

Price Influencers Primary factors that drive price movements in this commodity category.

Geopolitics, production levels, reserves

Key Participants

Energy companies, airlines, traders

Market Size (2023)

~$5.7 trillion

Volatility Level

Very high (geopolitical factors)

Storage Considerations

Complex, location-specific

Did you know? Oil is priced in different grades (WTI, Brent, etc.) with quality and location affecting price. Brent crude represents about two-thirds of all oil contracts worldwide.

Metals Commodities

Trading standardized contracts for physical goods essential to global economies and industries.

Examples

Gold, silver, copper

Major Exchanges

COMEX, LME

Trading Vehicles

Futures, options, ETFs, physical

Price Influencers Primary factors that drive price movements in this commodity category.

Economic conditions, industrial demand

Key Participants

Mining companies, manufacturers, investors

Market Size (2023)

~$3.8 trillion

Volatility Level

Moderate to high

Storage Considerations

Durable, compact

Did you know? Gold has maintained its value throughout human history, with approximately 190,000 tonnes of gold having been mined in total—enough to fill three Olympic-sized swimming pools.

Soft Commodities

Trading standardized contracts for physical goods essential to global economies and industries.

Examples

Cotton, sugar, coffee

Major Exchanges

ICE, NYBOT

Trading Vehicles

Futures, options, ETFs

Price Influencers Primary factors that drive price movements in this commodity category.

Climate, harvests, consumer trends

Key Participants

Manufacturers, processors, traders

Market Size (2023)

~$1.5 trillion

Volatility Level

High (weather dependent)

Storage Considerations

Varying shelf-life, condition-sensitive

Did you know? Coffee is the second most traded commodity in the world after oil, with over 2.25 billion cups consumed worldwide every day.

Key Commodity Market Facts

  • Standardized Contracts: Most commodities trade via futures contracts with specified quantity, quality, and delivery locations.
  • Price Discovery: Commodity markets provide transparent price discovery for essential goods used worldwide.
  • Risk Management: Producers and consumers use commodity markets to hedge against future price fluctuations.
  • Global Infrastructure: Modern commodity markets rely on sophisticated global storage, transportation, and delivery systems.

Click on a commodity category above to view detailed information