Because of 202 1, because of the epidemic, central banks in various countries released a large amount of water, which led to inflation, which was transmitted to the raw material side, leading to a bull market for commodities. The bulk commodities here refer to the material commodities that can enter the circulation field, but are not retail links, and have commodity attributes and are used for industrial and agricultural production and consumption.

Features:

First, 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.

Second, the supply and demand are large. 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.

Third, it is easy to classify and standardize. The quality standard of the delivered goods is stipulated in the futures contract in advance. Therefore, futures varieties must be commodities with stable quality, otherwise, it will be difficult to standardize.