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How are international commodity prices priced?
Two ways of international commodity pricing

Futures pricing is mainly applicable to commodities that can be processed through standardized contracts. However, if the quantity and quality of the transaction and the transaction time cannot be standardized, the price can only be determined through commercial negotiations between the main suppliers and demanders in the international market.

There are two main ways to price international commodities: one is to determine the futures contract price of commodities through the futures market, so as to provide the price benchmark for spot trade of commodities. In this way, the futures market has become the key to commodity pricing. The other is that the main supply and demand sides of commodities determine the benchmark price through consultation. In this way, the market structure, strength and even negotiation skills of the supply and demand sides will affect the price of goods.

Agricultural products, metals, energy products and other international commodities are mostly priced through the futures market, and different types of commodities have gradually formed various pricing centers based on the futures market. The prices of metals such as copper, aluminum, lead and tin are mainly determined by the London Metal Exchange, the prices of agricultural products such as soybeans, corn and wheat are mainly determined by the Chicago Mercantile Exchange, and the prices of energy such as crude oil are mainly determined by the New York Mercantile Exchange.