Commodities exchange

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The enormous expansion of markets after 1850 required the formation of organizations that could handle exchanges of commodities on a large scale. The buyers and sellers of commodities in every city and market of large commercial importance formed boards of trade, also known as chambers of commerce. In 1848, buyers and sellers of commodities organized the Chicago Board of Trade. The New York Produce Exchange was organized two years later. By 1854 the Merchants Exchange of Saint Louis had the characteristics of a modern exchange. In 1870 the New York Cotton Exchange came into existence, while the New York Coffee Exchange was organized in 1882.

Bibliography

Ferris, William G. The Grain Traders: The Story of the Chicago Board of Trade. East Lansing: Michigan State University Press, 1988.

Lurie, Jonathan. The Chicago Board of Trade, 1859–1905: The Dynamics of Self-Regulation. Urbana: University of Illinois Press, 1979.

—Fred M. Jones/A. E.

The noun has one meaning:

Meaning #1: an exchange for buying and selling commodities for future delivery
  Synonyms: commodity exchange, commodities market

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The floor of the Chicago Board of Trade, a major commodities exchange in the United States.

A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork bellies, oil, metals, etc.) and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures. Other sophisticated products may include interest rates, environmental instruments, swaps, or ocean freight contracts.

Commodities trading

Commodities exchanges usually trade futures contracts on commodities, such as trading contracts to receive something, say corn, in a certain month. A farmer raising corn can sell a future contract on his corn, which will not be harvested for several months, and guarantee the price he will be paid when he delivers; a breakfast cereal producer buys the contract now and guarantees the price will not go up when it is delivered. This protects the farmer from price drops and the buyer from price rises.

Speculators and investors also buy and sell the futures contracts to make a profit and provide liquidity to the system.

Commodities exchanges across the world

Main commodity exchanges worldwide:

Americas

Exchange	Abbreviation	Location	Product Types
Brazilian Mercantile and Futures Exchange	BMF	São Paulo, Brazil	Agricultural, Biofuels, Precious Metals
Chicago Board of Trade (CME Group)	CBOT	Chicago, US	Agricultural, Biofuels
Chicago Mercantile Exchange (CME Group)	CME	Chicago, US	Agricultural, Biofuels
Chicago Climate Exchange	CCX	Chicago, US	Emissions
HedgeStreet Exchange		California, US	Energy, industrial Metals
Intercontinental Exchange	ICE	Atlanta, Georgia, US	Energy, Emissions, Agricultural, Biofuels
Kansas City Board of Trade	KCBT	Kansas City, US	Agricultural
Memphis Cotton Exchange		Memphis, US	Agricultural
Mercado a Termino de Buenos Aires	MATba	Buenos Aires, Argentina	Agricultural
Minneapolis Grain Exchange	MGEX	Minneapolis	Agricultural
New York Mercantile Exchange (CME Group)	NYMEX	New York, US	Energy, Precious Metals, Industrial Metals
U.S. Futures Exchange	USFE	Chicago, US	Energy

Asia

Exchange	Abbreviation	Location	Product Types
Bursa Malaysia	MDEX	Malaysia	Biofuels
Central Japan Commodity Exchange		Nagoya,Japan	Energy, Industrial Metals, Rubber
Dalian Commodity Exchange	DCE	Dalian,China	Agricultural, Plastics
Dubai Mercantile Exchange	DME	Dubai	Energy
Dubai Gold & Commodities Exchange	DGCX	Dubai	Precious Metals
Iranian oil bourse	IOB	Kish Island, Iran	Oil, Gas, Petrochemicals
Kansai Commodities Exchange	KANEX	Osaka,Japan	Agricultural
Mercantile Exchange Nepal Limited	MEX	Kathmandu, Nepal	Agricultural, Bullion, Base Metals, Energy
Multi Commodity Exchange	MCX	India	Energy, Precious Metals, Metals, Agricultural
National Multi-Commodity Exchange of India Ltd	NMCE	India	Precious Metals, Metals, Agricultural
National Commodity Exchange Limited	NCEL	Pakistan	Precious Metals, Agriculture
Bhatinda Om & Oil Exchange Ltd.	BOOE	India	Agricultural
Karachi	Precious Metals, Agricultural
National Commodity and Derivatives Exchange	NCDEX	Mumbai	All
Shanghai Futures Exchange		Shanghai	Industrial metals, Fuel Oil, Rubber
Singapore Commodity Exchange	SICOM	Singapore	Agricultural, Rubber
Tokyo Commodity Exchange	TOCOM	Tokyo,Japan	Energy, Precious Metals, Industrial Metals, Agricultural
Tokyo Grain Exchange	TGE	Tokyo,Japan	Agricultural
Zhengzhou Commodity Exchange	CZCE	Zhengzhou,China	Agricultural

Europe

Exchange	Abbreviation	Location	Product Types
Commodity Exchange Bratislava, JSC	CEB	Bratislava, Slovakia	Emissions, Agricultural
Climex	CLIMEX	Amsterdam, the Netherlands	Emissions
NYSE Liffe		Europe	Agricultural
European Climate Exchange	ECX	Europe	Emissions
London Metal Exchange	LME	London, UK	Industrial Metals, Plastics
Risk Management Exchange	RMX	Hannover, Deutschland	Agricultural
European Energy Exchange	EEX	Leipzig, Germany	Energy, Emissions

Oceania

Exchange	Abbreviation	Location	Product Types
Australian Securities Exchange	ASX	Sydney, Australia	Agricultural

See also

• Commodity market
• Commodity trading in private electronic markets
• List of futures exchanges
• List of traded commodities

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