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. Commodities are often judged according to their trading attributes, so their formation often has no essential definition. Generally speaking, commodities generally fall into two categories: commodities and rights and interests. Commodities are mainly minerals, energy, chemicals, metals, wood and agricultural products; Rights and interests include institutions that trade property rights, stock rights, creditor's rights, forest rights, mining rights, carbon emission rights, emission rights, intellectual property rights, cultural and artistic rights, and financial assets rights.
The more commodities are traded, the related trading market can be formed. According to the current global commodity trading market, silver is the most traded product, with silver as the main product, accounting for 2 1% of all markets, followed by metal and steel products, accounting for 9%. On the whole, 2-4% of the transactions are the most concentrated in chemical products, rubber and plastic products and agricultural products.
Although the goods are diverse and different from each other. But each commodity category has its specific characteristics, which help to determine the relationship between supply and demand of commodities. These characteristics include the easy storage and cost performance of goods, as well as related issues such as consumption frequency and transportation convenience. In addition, weather, geopolitics and economic events will also affect the supply and demand of commodities.
For example; There are about 20 kinds of agricultural and sideline products, including corn, soybeans, wheat, rice, oats, barley, rye, pork breast, pigs, live cattle, calves, soybean powder, 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 major agricultural futures. 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.