Commodity refers to the material commodity that can enter the circulation field, but is not a retail link, and has the property of commodity and is used for industrial and agricultural production and consumption.
In the financial investment market, bulk commodities refer to homogeneous and tradable commodities widely used as industrial basic raw materials, such as crude oil, non-ferrous metals, steel, agricultural products, iron ore and coal. Including three categories, namely energy commodities, basic raw materials and agricultural and sideline products.
The price features are as follows:
1, the price fluctuates greatly. Only when commodity prices fluctuate greatly, traders who intend to avoid price risks need to use forward prices to determine prices first. For example, some commodities are subject to monopoly prices or planned prices, and the prices are basically unchanged. There is no need for commodity operators to use futures trading to avoid price risks or lock in costs.
This is a huge supply and demand. The function of the futures market is based on the extensive participation of both the supply and demand sides of commodities. Only goods with large spot supply and demand can fully compete in a wide range and form authoritative prices.
3. It is easy to classify and standardize, and the quality standard of the delivered goods is agreed in advance in the futures contract. Therefore, futures varieties must be commodities with stable quality, otherwise, it will be difficult to standardize.
4. Easy to store and transport. Commodity futures are generally long-term delivery commodities, which requires these commodities to be easy to store, not easy to deteriorate and convenient to transport, so as to ensure the smooth delivery of futures.
kind
There are about 20 kinds of agricultural and sideline products, including tea, apples, corn, soybeans, wheat, rice, oats, barley, rye, pork breast, pigs, live cattle, calves, soybean flour, soybean oil, cocoa, coffee, cotton, wool, sugar, orange juice, rapeseed oil, eggs and so on. Among them, soybean, corn and wheat are called the three largest.
10 metal products: including gold, silver, copper, iron, aluminum, lead, zinc, nickel, palladium and platinum. 5 kinds of chemical products: crude oil, heating oil, unleaded gasoline, propane, natural rubber, etc.