Commodities Trading

Definition of Commodities Trading

Commodities: Categories and Forms

Physical commodities are commonly referenced in three broad categories: 
Energy (e.g. oil and petroleum and gas)
Metals and minerals (e.g. iron ore, copper, aluminum, gold)
Agricultural and other “soft”commodity products (e.g. coffee, cocoa, wheat, soybeans, cattle).*
Broadly speaking, physical commodities come in two forms:
Primary commodities are either extracted or captured directly from natural resources. They come from farms, mines and wells. As natural products that come out of the ground, the quality and characteristics of primary commodities vary widely.
Secondary commodities are produced from primary commodities to satisfy specific market needs. Crude oil is refined to make gasoline and to produce metals. There may be minor variations in quality depending on how a secondary commodity is produced.

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