THREE BASIC CONTENTS OF COMMODITY MARKET

THREE BASIC CONTENTS OF COMMODITY MARKET

Trading commodity with commodity is the essence of commodity market. This type of trading started in the human history in very beginning. When human started creating their societies a need of exchanging products appears and early human societies started these types of activities in their societies. It means commodity market is old age concept. In human social life commodity market had been playing vital role because in old time people deals with one another through this system of trade. After very long time concept of money come into existence and people started trading with money. With the use of currency, however, commodity market doesn’t lose its importance in human societies and even in this modern age these types of markets are operating and are considered very important mean of trading.

Commodity is the thing which is demanded in the market and also provided by the supply sources without any discrimination. Mainly commodity market has three basic segments. According to these segments the operations of commodity market can easily be explained. The entire events take place in commodity market remains under the influence of these factors. You can say these three segments are the driver of commodity market. These basic segments are:

• Agriculture products Wheat, sugar, edible oils etc.

Agriculture products are the basic need of every society and every society has to manage enough supply of agriculture products to meet their food needs. Taking in view the importance of food items like Wheat, sugar, edible oils etc. in society every country manage a well operated and well managed commodity market which make the supply of foods items sure to the country. Therefore every country in the world has established own commodity market to trade with the other commodity markets in the world for dealing the issues of agriculture products.

It is a fact that agriculture sector is mainly dependent on natural climatic conditions and weather conditions don’t remain favorable in all parts of the world. The unfavorable climatic changes affect the crops in different parts of world and in those areas there can be shortage of some agriculture commodities. Therefore due to shortage of deficient commodities like Wheat, sugar, edible oils etc. in the climatically affected areas they need extra some supply of those commodities from the other areas. Under such situation agriculture commodity market plays very important role. Similarly the areas where agriculture products are not grown in sufficient amount they also need to import agriculture products to meet their needs.

In the above lines few factors which affect the operation of commodity market are given which also show the importance of commodity market for a country.

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•           Rare Metals

Man always remains interested in rare metals like gold, platinum, silver etc. Due to this interest and rarity of these metals generate a special charm of these metals in the mind of man. That is why everyone likes to have rare metals in his possessions. Moreover these metals had been in use as a currency. Due to this character of rare metals these had been in trade in the world. Commodity market also deals in rare metals. A major part of commodity market operates on trading of rare metals. Especially gold is considered as a stander for trading any other commodity. Therefore it is clear that in the operation of commodity market rare metals acts as catalyst to in enhance its operations. Moreover due to economic changes in the world people like to invest in rare metals because these metals don’t lose their value due to economic recession and the investor escape from any loss. These are the few major reasons of importance of rare metals for commodity market. However, there are lots of other reasons which make rare metals the operator of commodity market

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• Minerals

Importance of energy is vital for every progressing society and the major part of energy needs comes from the fossil fuels like crude oil, petroleum products, Cole etc. Taking in view the importance of energy minerals oils and other related commodities are traded in commodity market frequently. A large portion of commodity market comprises of the transaction of minerals and their related items like crude oil, petroleum products and Cole. The countries which could not produce fossil fuels from their country they import these commodities from those who have these commodities in abundance.

In the above article a brief account of three major parts of commodity market are discussed for the explanation of contents of commodity market for those who want to know about the basics of commodity market and its operation. The new comers in commodity market can rely on some prominent companies like binary and can Trade with [binary] for quick profits and fast, easy withdrawals. They are secure and you will receive a 100% match bonus on your first deposit.