What is Commodity Market

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    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.

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    Delivery and condition guarantees.

    Hedging.

    Futures contracts. Forward contracts.

    Spot trading.

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    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%.

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    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.

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    Agricultural (Grains, and Food and Fiber)

    Livestock & Meat

    Energy

    Precious metals

    Industrial metals

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    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.

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    Precious Metal:- Gold, Platinum, Palladium, Silver.

    Industrial Metals:- Copper, Lead, Zinc, Tin,

    Aluminium,Aluminium alloy, Nickel,Aluminium

    alloy, Recycled steel.

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    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

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    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

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    Kansas City Board ofTrade

    London Metal Exchange

    Winnipeg Commodity Exchange

    National Spot Exchange

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    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.

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