Analyzing the 5 Most Liquid Commodity Futures

When we looked at all food imports globally, we found that soya beans were one of the most imported food commodities in 2020, with China leading the pack. When compared to other food commodities, olive oil saw a lower import quantity of 2.6 million units. The lower quantity was likely due to the olive oil shortages that year. The data showed that both Italy and the US imported the most olive oil, while Spain and Italy exported the most among all countries polled. Now that we have identified the biggest food-importing and -exporting countries, let us look at the most imported and exported food products from the same period. Notably, the world’s third largest economy, Japan, did not factor into this list.

Commodity trading involves different types of contracts that derive their cost from the underlying commodity. In India, commodity contracts include spot, futures, and options contracts. These are sector-targeted policies that reshape a country’s economic production structure with the aim of generating environmental benefits. They should be tailored to each country’s unique needs, emission levels, productive capacities and commodity dependencies. But for these benefits to materialize, these countries must move beyond merely supplying raw materials for the energy transition.

One of the key takeaways of this piece is that every commodity is different. The factors that affect oil prices, for example, are very different to the factors that affect gold’s price. For this reason, it is very important to carry out a thorough analysis of your chosen market before placing a trade, taking into account all the factors that could affect the underlying commodity’s price.

  • Like all commodities, the price of Brent crude is dependent on supply and demand factors.
  • The New York Mercantile Exchange (NYMEX) exists underneath CME Group and handles many commodities in the United States.
  • Commodity trading firms are people or companies who speculate and trade in various commodities as diverse as metals, petroleum, agricultural items, and spices.
  • Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.

Soyabean prices can be affected by demand for animal feed, biodiesel, and meat and dairy substitutes, along with factors that could affect supply such as unusual weather conditions. As the US is a major producer, prices can also be influenced by the strength of the US dollar – generally rising in price (nominally) as the US dollar falls and vice versa. In 2018, speculation about Chinese tariffs on US soyabeans – and their eventual implementation – also had a dramatic impact on prices.

Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake. 71% of retail client accounts lose money when trading CFDs, with this investment provider. Please ensure you understand how this product works and whether you can afford review time series analysis to take the high risk of losing money. Australia has an estimated $19.9 trillion in natural resources that include coal, timber, copper, iron ore, gold, and uranium. Australia, which is about 80% the size of the United States, is a large producer of oil and liquified natural gas.

Top 10 Most Traded Commodities in the World – 2023

Find out more about the factors that influence the price of silver. Soyabeans – known in the US as ‘soybeans’ – are an important commodity, primarily because they are rich in protein and relatively cheap to produce. They are used to make a variety of food and agricultural products, including soyabean meal (animal feed), soyabean oil, and meat and dairy substitutes such as tofu and soy milk. The majority of soyabeans are grown in the US, followed by Brazil, Argentina, China and India. Crude oil is one the world’s most in-demand commodities as it can be refined into products including petrol, diesel and lubricants, along with many petrochemicals that are used to make plastics. Brent crude
is one of the two major types of oil used to benchmark global prices, along with West Texas Intermediate (WTI).

  • Speakers highlighted how the COVID-19 pandemic has shown the importance of ensuring the flow of food supply chains at global, regional and local levels.
  • Conversely, countries export food products that have been produced in excess, and which also face a high overseas demand.
  • The ADM Company manufactures and sells protein meals, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feeds ingredients.
  • IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc.
  • On average and in the short term, a 10 percent increase in agriculture’s global value chain participation can result in an increase of around 1.2 percent in labour productivity, finds the report.

It is currently among the world’s largest suppliers of cocoa beans and products, coffee, cotton, and rice. Glencore has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing, and supply of metals and minerals, energy products, and also, agricultural products. There are several commodity trading companies in the world, and they come in different shapes and sizes. However, for the sake of this read, we will look at the best among them that basically cast an extensive influence on the commodity markets they trade. Coffee represents a $100 billion worldwide market (via Death by Coffee). It is so much a part of the daily life of most of the world, that we hardly ever stop to think of just how massively coffee affects global trade.

Commodity trading firms are people or companies who speculate and trade in various commodities as diverse as metals, petroleum, agricultural items, and spices. Countries rich in metals critical for clean technologies should diversify by adding value domestically before export. They should also bolster links between big mining companies and local industries to build domestic productive capacities while improving environmental and social governance. However, this «gold rush» for critical minerals risks reinforcing commodity dependence in countries with vast reserves of such metals. The report estimates that about one-third of global agricultural and food exports are traded within a global value chain and cross borders at least twice. Trade commodity futures, as well as 27 commodity markets with no fixed expiries.

Trade Deficit and Surplus

For example, participation in contract farming can increase farm income by more than half – based on an analysis of main studies on contract farming. The report underlines, however, the overall lack of information on the different impacts nord fx forex broker review of contract farming, apart from its impact on farmers’ welfare. The adoption of more inclusive business models, such as contract farming and blockchains, can also help farmers to better integrate into modern and more complex value chains.

Coffee Market Revenue for Coffee Machines

China, the second most populated country globally, came in slightly behind, trading $260 billion worth of food products that same year. The East Asian superpower accumulated that tally almost entirely on imports alone, which amounted to $194 billion, against just $66 billion in exports. Other times, they do so out of profit motivations, such as when a particular food product is already locally produced. In such cases, the food product being imported is facing such high domestic demand, that even the local produce is unable to meet the existing demand. When demand outstrips supply, food importers who bring in an additional amount of that same food group would be able to charge higher prices, leading to higher profit margins. An in-depth analysis of the world’s most imported and exported food products, including which countries traded them most.


Commodities offer traders a way to speculate on the value of an entire industry like soybean farming or copper mining instead of specific companies or countries involved in those industries. The price of commodities often moves in opposition to equities like stocks and are most affected by global levels of supply and demand. Soybeans are one of the most active and popular agricultural commodities. According to the US Department of Agriculture (USDA), the US is the leading producer and exporter of soybeans. They are mainly exporting them to China, the EU, Japan, Mexico, and Taiwan. Which accounted for 44% of the world’s Soybean export in 2010 and 35% of the world’s Soybean production in 2010.

Brent Crude is extracted from the North Sea and is a major trading classification of sweet light crude oil. And this serves as a benchmark price for purchases of oil worldwide. This grade is described as light because of its relatively dowmarkets low density, and sweet because of its low sulfur content. This dependence exposes countries to volatile commodity markets and makes them more vulnerable to global shocks, such as the COVID-19 pandemic and the war in Ukraine.

It is equipped with great trading tools to provide the best trading environment for the convenience of the traders. It should come as no surprise, then, to learn of coffee’s popular trading position in international markets. When you stop to take a close look at the grand scheme of global trade, you’ll notice that there are two commodities sold more than anything else. We use this to power our cars, our manufacturing, and virtually our entire global infrastructure. Metals prices as a group rose 13 percent in the first quarter of 2022 (q/q). Some metal prices reached all-time highs in March amid concerns about supply disruption, while inventories reached historically low levels.

Its user-friendly, yet advanced online CFD platform includes a free demo account, a wide variety of educational resources and trading tools that are made available to new and experienced traders alike. Traders can also enjoy Plus500’s free Trading Academy which provides them with a helpful FAQs section, how-to trading videos, and a free eBook. The company’s spreads are among the lowest in the industry and the intuitive platform is designed for ease of use, without compromising on in-depth analytical insights and sophisticated trading options. You can practise your strategies using the Free Plus500 Demo Account and get a feel for trading the vast array of different commodity instruments before committing real money. In March 2022, European natural gas prices were almost seven times higher than in March 2021, while over the same period South African coal prices tripled, with both prices reaching an all-time high.

FAO data showed that bananas were the most imported food in 2020, with an import quantity of 25.2 million units. The US imported the most bananas globally, with 4.7 million units valued at $2.55 billion in total. One reason for banana’s high import quantity could be the fact that bananas are one of the most durable fruits, having the ability to stay fresh for up to a week in some cases. Slippage is defined as the difference between the price quoted to the trader and the actual price at which the trade is executed. Slippage can work both in your favour and against you – for example, trading in commodities with low liquidity could potentially lead to greater losses.