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It's not.
This sounds kinda weird, doesn't it? After all, there's a huge building in Chicago with "Chicago Mercantile Exchange" written on the sign out front where food commodities are traded, but they don't actually trade food.
What is traded, when food traders gather to do what they do, is derivatives (specifically, futures, forwards and options) with foodstuffs underlying. If you go to CME and buy a Rough Rice Futures Contract, you are agreeing to purchase five truckloads of rough rice (unmilled rice) on a certain date for a certain price. Or if you buy an option on rough rice, you're allowed but not required to buy those five truckloads of rice on that date for that price.
What else can I help you with?
What is the most expensive commodity traded?
PLATINUM
Why is gold traded on the commodities market?
Because it is a commodity.
What is the world's most traded commodity?
coffe is said to be worlds most traded commodidtes
What is commodity investment?
Commodity investment is investing in a special type of market called the commodities market. This market is where raw materials like food, metals, and electricity are traded. This is a risky market to invest in, so buyer beware.
Accurately explains the difference between the stock market and the commodity market?
Ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market.
What does commodity gold mean?
Gold is a commodity that can be sold and traded, just like any other commodity. Gold is considered a hard commodity because it is extracted from mining, instead of being grown.
What is pork commodity?
Just Pork., Dead carcas of Pig ! Traded in commodity markets. a.k.a Bacon, Lard etc
Which is the most traded commodity in the world?
1. Water2. Oil3. Coffee
Can I buy and sell crude oil like stocks?
Yes. That is called Commodity trading. Oil is a commodity and is traded in the commodities market.
Does anyone buy geodes?
Although geodes are not traded as a commodity is traded, dealers and collectors are interested in purchasing good specimens.
What was the primary commodity traded by French traders in colonial North America?
Fur....
WHAT IS FULL FORM OF UndLTP IN COMMODITY MARKET?
The full form of UndLTP in the commodity market is "Underlying Last Traded Price." It refers to the last price at which a commodity contract was traded, serving as a crucial reference point for traders and analysts in assessing market performance and making informed trading decisions. This price reflects the most recent market activity for a specific commodity.
