Bulk commodities refer to material commodities that can enter the circulation field, but are not retail links, and have the commodity attributes of industrial and agricultural production and consumption.
In the financial investment market, bulk commodities refer to homogeneous, tradable commodities such as crude oil, nonferrous metals, agricultural products, iron ore and coal, which are widely used as industrial basic raw materials. Commodities include three categories, namely energy commodities, basic raw materials and bulk agricultural products. Commodities can be designed as futures, and options can be traded as financial instruments, which can better realize price discovery and avoid price risks.
Because bulk commodities are mostly industrial bases and at the forefront, the changes of futures and spot prices reflecting their supply and demand will directly affect the whole economic system. For example, rising copper prices will increase the production costs of electronics, construction and power industries, while rising oil prices will lead to rising prices of chemical products and push up the prices and supply of other energy sources such as coal and alternative energy. Investors, especially those who invest in related industries, should pay close attention to the supply and demand of commodities and price changes.