Bulk commodities refer to those commodities that are not easy to standardize, decentralize and circulate, with large quantity and wide range and relatively large price fluctuations. Generally speaking, they are all means of production, not consumer goods. The commodity market is characterized by diversification and a wide variety of commodities, covering agricultural products, energy, metals and other commodities.

I. Classification of bulk commodities

Commodities can be divided into three categories: agricultural products, energy and metals.

1. Agricultural products

There are many kinds of agricultural products, including grains, oilseeds, meat, dairy products and cotton. The agricultural product market is often affected by seasonal and climatic factors. Natural factors such as drought, flood and hail will affect the supply and price of agricultural products.

Step 2 be energetic

Energy refers to crude oil, natural gas, coal and nuclear energy, and is an indispensable basic substance in the global economy. Among them, crude oil is one of the most important commodities in the world at present, which affects the economic and political situation of all countries in the world. Different from other commodities, energy prices are usually greatly influenced by geopolitics and environment, in which the increase of American oil production and the promotion of European nuclear energy will cause price fluctuations in the energy market.

3. Metal

The metal market includes nonferrous metals and precious metals. Non-ferrous metals include copper and aluminum. , focusing on industrial and architectural uses; Precious metals include gold and silver, and their value lies not only in practicality, but also in their financial characteristics. The price fluctuation of metal market is usually related to the supply and demand situation in the international market and the monetary policies of governments.

Second, the commodity market

Commodity market is a very typical supply and demand market. When goods flow, the trading behavior of buyers and sellers often directly affects the market price. Another feature of commodity markets is that their prices are directly related to the elasticity of supply and demand. Therefore, when the supply is limited, the price will rise accordingly; When the supply is sufficient, the price will fall.

There are actually many factors affecting the commodity market, involving many different levels of the world economic system. Here are some of the most important factors:

1. The relationship between supply and demand in the international market, including natural conditions, political situation, economic situation and other factors.

2. Monetary policies and monetary prices in different countries and regions have a very important impact on the market price of bulk commodities.

3. Tax, tariff and other policy factors that have a significant impact on commodity market prices in commodity trade.

Third, the investment value of commodities.

As a commodity with practical value, commodity is often regarded as a part of asset allocation. Compared with other high-risk investment products, the investment risk of bulk commodities is usually low, and it can be diversified as a new asset class, thus reducing the overall investment risk.

Investors can participate in the commodity market by buying securities and commodity futures. Because the price of bulk commodities fluctuates greatly, it is necessary to pay attention to risk control, make market analysis and judgment, and formulate reasonable and effective trading strategies when investing in bulk commodities.