What are the Most Commonly Traded Commodities?. Thereafter, many such [CBOT] were formed all around the world. The trading is done by , which include
- , where the takes place immediately or in minimum time,
- , where the and agree to a for a , which is to be delivered at a mutually agreed date and , and
- , where the are the same as the , but are transacted through a .
- Crude Oil and derivatives - The most commonly traded commodity is Crude Oil, and its various derivatives such as heating oil and gasoline.
- Coffee - The second most traded commodity is Coffee [value wise]. Coffee is mainly traded through the New York Board of Trade [NYBOT], the Kansai Commodities Exchange [in Osaka, Japan], the Singapore Commodities Exchange [SICOM] and Euronext [London].
- Agriculture - Common commodities in agriculture include wheat, corn, maize, oats, rice, soybeans and they are traded in the Chicago Board of Trade [CBOT], the Kansai Commodities Exchange [in Osaka, Japan], the Risk Management Exchange [RMX-in Hannover], the Minneapolis Grain Exchange, the Winnipeg Commodity Exchange [WCE], The Tokyo Grain Exchange [TGE] and Euronext.
- Animals and Animal Products - Animals and animal products such as live and feeder cattle, beef, frozen and fresh pork bellies, and eggs are mainly traded in the Chicago Mercantile Exchange [CME], Euronext, the Risk Management Exchange [RMX-in Hannover] and the Central Japan Commodity Exchange [C-COM].
- Cocoa, Butter, Orange juice and Sugar - Items like cocoa, butter, orange juice and sugar are also commonly traded in the New York Board of trade [NYBOT] and Euronext.
- Metals - Metals such as aluminum, nickel, copper, lead and ferrous scrap are mainly traded in the New York Mercantile Exchange [NYMEX], the London Metal Exchange [LME], the Shangai Futures Exchange [SFE], the Central Japan Commodities Exchange, Hedgestreet Exchange [in California], and the Tokyo Commodities Exchange [TOCOM].
- Precious Metals - The other commonly traded commodities are precious metals such as gold, silver and platinum and they are traded in the New York Mercantile Exchange [NYMEX], the Brazilian Mercantile and Futures Exchange [BMF], the Dubai Gold and Commodities Exchange [DGCX], the National Commodity Exchange Limited [in Karachi, Pakistan] and the Tokyo Commodities Exchange [TOCOM].
- Plastic - Plastic is traded in the London Metal Exchange [LME] and the Dalian Community Exchange [DCE-China]
- Natural Gas - Natural gas is traded in the New York Mercantile Exchange [NYMEX] and ICE Futures.
- Bio-fuels - Bio-fuels is another upcoming commodity and is now being traded in the Brazilian Mercantile and Futures Exchange [BMF], the Bursa Malaysia [MDEX], the Chicago Board of Trade [CBOT], the Chicago Mercantile Exchange [CME] and the New York Board of trade [NYBOT]
These exchanges have now identified the key commodities, which are available in their region or are required there and hence have started specializing in trading in them.
By InvestorGuide Staff