In some transactions, we can notice the problem of bulk trade, so what is bulk trade? What kind of transaction is bulk trade? In this regard, please look down.

What does bulk trade mean?

Bulk trade is simply the trade of bulk commodities, that is, the free circulation of bulk commodities in the world. Generally speaking, the price of bulk commodities comes from two aspects, the first is the futures market and the second is the spot market, so we can see a premium price in international trade, which is caused by the difference between the futures price and the CIF price. Of course, the essence of bulk trade is to pull goods from places with low prices to places with high prices and then sell them locally.

Bulk commodities refer to those materials that enter circulation but do not retail, have commodity attributes, are used for industrial and agricultural production and consumption, and are bought and sold in large quantities. And it can be divided into three parts: first, agricultural fuels, such as oil, natural gas, coal, etc., are mostly based on non-renewable raw materials; The second basic raw materials, such as iron ore and nickel ore; There are also major agricultural products such as corn, soybeans, cotton and garlic.

Therefore, the trade of these products is what we call bulk trade.