Types of commodities: What are the most popular types of commodities traded today?

Website design By BotEap.comThere are a few reasons why commodities are divided into different types. First of all, they exist to facilitate price comparison. These differences also exist for the convenience of the trade and to facilitate your investigation. However, for almost every type of commodity out there, you’ll want to know a few basics to get you started. When it comes to which one is best for you, there are a few different options to consider.

Website design By BotEap.comEnergies: The first on our list has been very active in recent times. It features many different products that provide energy to heat and power homes and businesses. This includes petroleum, petroleum by-products, crude oil, heating oil, propane, natural gas, and even coal. In this section of commodity types there is a minimum price that the exchange establishes. There is also a standard contract size, which is the amount covered by the futures contract.

Website design By BotEap.comGrains – Next on the list of commodity types are cereals. This includes wheat, oats, corn, rice, and soybeans. It can also include many other agricultural products. The Chicago Board of Trade or CBOT is quite involved with these guys. They are generally sold as future operations. These types of commodities also have a minimum and also standard contract size.

Website design By BotEap.comSofts: Softs include coffee, cocoa, sugar, cotton wool, and orange juice. The most common exchange of these commodities is the coffee, sugar and cocoa exchange or CSCE. The reason the oranges themselves are not marketed as types is because eighty percent of them are made into frozen concentrate, so this is what is marketed instead. Cotton bags from New York even have the name Frozen Concentrated Orange Juice or FCOJ as one of the things they market.

Website design By BotEap.comMeat: Meat is another type of popular commodity. This includes live cattle, pork belly, and lean hogs. This is primarily traded at the Kansas City Board of Commerce or KCBT. This is where cattle have historically been traded. The raw material appears to be less volatile than others. Often times, this particular type of product is also grain dependent, as grain feeds most of the livestock.

Website design By BotEap.comFinance – The last of the types of commodities that we will look at is known as finance. This type is mentioned here because most of the futures or options trade, rather than the real estate. This means that financial commodities are often listed on the same exchanges. This includes US Treasuries and can be found on the CBOT and the S&P 500 indices. This exchange also trades stocks as a financial product.

Website design By BotEap.comAs you can see, there are a few different types of commodities. There are different exchanges in which these various commodities are traded. Now that you know the basics, you should feel a little more comfortable when it comes to navigating this maze of various types of commodities.