Since the Chicago Board of Trade introduced futures contracts, the pricing power of world commodities has basically been realized in the three major exchanges in the United States. The United States has become a major pricing center in the world. Except for copper futures on the London Metal Exchange (LME), the pricing power of world commodities is almost entirely in the hands of the United States. Crude oil is mainly the New York Mercantile Exchange (NYMEX), the prices of agricultural products are formed in Chicago Board of Trade (CBOT), and the prices of other financial derivatives are formed in Chicago Mercantile Exchange (CME) and Chicago Board of Trade.
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.
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.
Fourth, it is convenient for storage and transportation. 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.
Commodities also have five characteristics:
1, large supply and demand
2. Country of origin
3. Raw materials
4, the national unified price limit
5, affect the national economy and people's livelihood