Commodities Trading – Past, Present, Future

 

This market has a tremendous impact on the lives of people and in turn the nation since it is all decided based on the availability and import of goods and essential commodities for the very living. Countries make agreements to exchange their commodities since the basic needs and demands of people all over the world remain the same. Since each country or a specific region in a country is fertile in the production of a particular product it decides to trade it with something else best from some other region of a different country. This is what is exactly commodities trading.


This being the nice and goody part of commodities trading, there have also been situations like wars and fights because of this; when countries illegally venture a particular country for its best commodity, it calls for a war and this is what happened in the Second World war when Japan tried acquiring oil from the other countries.


The centuries old Commodities Trading


. Of course there was no agreement detailing the payment terms, product quality or transportation mode because this trade was essentially done to form the basics of life and hence money never played an important role here. Later once everything started taking shapes; there were exchanges between kingdoms and this is when the concept of traders and dealers came. They acted as intermediaries trying to fulfill the commodity requirements of different states and kingdoms. This is how the very concept of trading started and this is the propulsion point for the trade and exchanges that we have in the present day scenario. Commodities’ trading though has a wider reach and meaning, the major four categories under which this can be easily classified are;


Agriculture-rice, wheat, sugar, cotton, coffee, cocoa etc…


Energy – crude oil, petroleum, natural gas


Livestock – cattle, pigs and their meat


Metals- gold, silver, platinum, copper.


The quality commodities market


There are few standards which are to be followed strictly before the trade happens. For example, if a country gets in to the livestock commodity trade, it needs to check for the standards and quality before shelling out pennies. Just for the sake of trading and money the supplying country cannot cheat by exchanging sick and age-old cattle to the other country. So though this is a market for the exchange of goods and commodities there are no flexibilities or loop holes that can make this trade happen in any desired way. It is also a trade so it has to happen like the other trading activities. Find more info on http://www.xglobalmarkets.com/accounts/islamic-account/.


Out of all the four categories, for some the commodity trading in metals like gold or platinum looks flourishing. These are something that will never diminish in their value though there might be fluctuations in their prices. This market is placed better when compared to the stock market since gains are assured here for the value of a commodity that has gone low is definite to regain its shape after a particular period. Investors who have lost heavily in the stock market have been found making riches here in this market since the value and demand for metals is ever green and they never diminish in their value.


This advantageous market comes loaded with risks too. Since it is a perishable market from few angles, there is always a threat from the nature. Commodity trading in agriculture is very essential at the same time it is highly risky too for nature is always a threat to them. Any change in weather conditions might affect their plantation and production. So every country should cautiously allot a decent percentage of exchange in this to safely overcome the losses.

 

Commodities Trading

This concept of trading is being followed from the ancient times when people started the barter system. In the earlier days, when money had no shape or value, people used to exchange goods for goods and make their livelihood.

Trading Activity

Trading activity need not happen just with currencies, gold and stocks; commodities can also be traded and this market is what we call the commodities trading market.

Commodities Market

Commodities market is all about the exchange of commodities but it follows a set of rules and standards for the trade to happen effectively. It is not about just the product that is getting exchanged for money paid by another country.

Completed Projects

Awards Received

Happy Client

Coffee Consumed

Donec odio. Quisque volutpat mattis eros. Nullam malesuada erat ut turpis. Suspendisse urna nibh, viverra non, semper suscipit, posuere a, pede. Donec nec justo eget felis facilisis fermentum. Aliquam porttitor mauris sit amet orci. Aenean dignissim pellentesque felis.

Donec odio. Quisque volutpat mattis eros. Nullam malesuada erat ut turpis. Suspendisse urna nibh, viverra non, semper suscipit, posuere a, pede. Donec nec justo eget felis facilisis fermentum. Aliquam porttitor mauris sit amet orci. Aenean dignissim pellentesque felis.

Subscribe to our news letter

If you want to receive monthly updates from us just pop your
email in the box.