Rising commodity prices will drive the stocks of listed companies of these commodities to rise. For example, after the Spring Festival of 202 1, resource stocks such as coal, nonferrous metals, steel, copper and rare earth were constantly hyped.
Mainly because the increase in demand stimulates the rise in commodity prices, and may also stimulate the rise in commodity futures prices.
The rise of commodity prices is one of the manifestations of the acceleration of inflation, because the performance of inflation is the rise of prices, and the prices of commodities naturally belong to prices.
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.
Price characteristics
Price fluctuation: 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.
Great supply and demand: the function of futures market is based on the extensive participation of both 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.
It is easy to classify and standardize, and the quality standard of the delivered goods is agreed in advance in the futures contract. Therefore, futures varieties must be commodities with stable quality, otherwise, it will be difficult to standardize.
Easy to store and transport. Commodity futures are generally long-term delivery commodities, which requires these commodities to be easy to store, not easy to deteriorate and convenient to transport, so as to ensure the smooth delivery of futures.
At the same time, commodities have five characteristics: large supply and demand, origin, raw materials, unified national price limit and influence on the national economy and people's livelihood.
Shanghai futures: copper, aluminum, zinc, natural rubber, fuel oil and gold; Dalian futures: soybean, soybean meal, corn, soybean oil, palm oil, plastics and coke. Zhengzhou futures: hard wheat, strong gluten wheat, sugar, cotton, PTA, vegetable oil and methanol.
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.