commodity market

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commodity market,

organized traders' exchange in which standardized, graded products are bought and sold. Worldwide, there are more than 20 major commodity exchanges and many smaller ones that trade commodities, ranging from grains and beans, coffee, tea, and cocoa, and cotton and wool to precious and industrial metals, oil, electricity, and plastics. Most trading is done in futures contracts, that is, agreements to deliver goods at a set time in the future for a price established at the time of the agreement. Futures trading allows both hedginghedging,
in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market.
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 to protect against serious losses in a declining market and speculationspeculation,
practice of engaging in business in order to make quick profits from fluctuations in prices, as opposed to the practice of investing in a productive enterprise in order to share in its earnings.
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 for gain in a rising market. For example, a seller may sign a contract agreeing to deliver grain in two months at a set price. If the grain market declines at the end of two months, the seller will still get the higher price quoted in the futures contract. If the market rises, however, speculators buying grain stand to profit by paying the lower contract price for the grain and reselling it at the higher market price. Spot contracts, a less widely used form of trading, call for immediate delivery of a specified commodity and are often used to obtain the goods necessary to fulfill a futures contract. An independent U.S. regulatory agency, the Commodity Futures Trading Commission was established in 1974 to regulate commodity markets. In 1982, the Chicago Mercantile Exchange introduced a futures contract for Standard & Poor's 500 U.S. companies that allows investors to speculate on the future prices of those stocks. Trading of S&P 500 and other financial futures has broken down some of the barriers that once separated stockstock,
in finance, instrument certifying to shares in the ownership of a corporation. Bonds are similar evidences of shares in a loan to a corporation. Stock yields no dividends until claims of bondholders have been met.
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, bondbond,
in finance, usually a formal certificate of indebtedness issued in writing by governments or business corporations in return for loans. It bears interest and promises to pay a certain sum of money to the holder after a definite period, usually 10 to 20 years.
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, and commodity markets and made it easier for investors to hedge their stock investments. Critics charge that the futures trading at the commodity markets in Chicago has made stock prices more volatile.
References in periodicals archive ?
Comprehensive Insight to Improve Commodity Market Forecasts
The journal aims to publish high-quality research in all areas of economics and finance related to commodity markets.
said, "While stock markets are "huge local", commodity markets are "little global".
We would stress that commodity markets remain fragile.
CBI China is the largest source for information on Chinas major commodity markets and industries such as petrochemicals, steel, oil and gas, non-ferrous metals, pulp and paper.
More often than not, when I ask scrap dealers where they see a commodity market heading, they basically shrug their shoulders and say they don't know, adding that they are most concerned with moving material so they won't get stuck holding too much tonnage if the market posts a correction.
This real world commodity market has caused senior manufacturing and sales executives many a sleepless night, as they try to find ways to be profitable with this state of affairs while conducting business in a lawful manner.
With a history dating back to 1934, Commodity Research Bureau (CRB) has substantial experience in meeting the data and information needs of the agricultural, energy, metals, softs, financials and other commodity markets.
According to Goldwater Global Management's trading experts, there are basically two approaches in buying and selling the commodity markets and those are the futures markets and the options on the futures markets.
ICIS Publishing Director Christopher Flook said: "Chinese demand is driving world commodity markets.
A scenario in which demand outweighs supply across the commodity markets has increased demand for and the value of most scrap materials.
FRIDAY: Stock and most commodity markets are closed in the United States and many other countries in observance of Good Friday.

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