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Commodities

Spot and derivative markets for trading goods which are uniform in all aspects

845 Questions

What will the most valuable commodity be 100 years from now?

Great question. Even better if you could fingure this out with some certainly and buy some to sell in 100 years. Okay 50 years. Okay 5 years. What makes a comoodity valuable is two connected properties: 1) Scarcity 2) Market (that is there are lots of people willing to pay for it). The problem is that scarcity encourages its own replacements to be created. If oil becomes scarce....we'll all drive electric cars and then a barrel of oil becomes less valuable. So I don't have the answer. But I hope this help you think about it.

What commodity does Egypt trade on?

Egypt exports crude oil and petroleum products, cotton, textiles, metal products, chemicals, and processed foods.

Egypt imports machinery and equipment, foodstuffs, chemicals, wood products, and fuels.

What is a margin in commodities trading?

A margin in commodities trading, is the amount of money you have to deposit in your brokerage account before trading a futures contract. The margin amount varies on each commodity and fluctuates with the volatility of the markets. There is an initial margin amount required when entering a contract and "maintenance" margin amount that must be kept in the account at all times during the contract holding period, which is typically lower than the initial margin. The balance of your account will fluctuate with gains and losses on the contract and if the balance falls below the "maintenance margin" amount, you get a "margin call", which means you must deposit enough money to meet the margin or close your contract. If you don't do either of these options, the broker will close the position before the balance falls to zero.

List of top 10 commodity trading companies?

There are both large and small commodity trading companies, but the size of the company has nothing to do with their revenue. The top 10 commodity trading companies in order from the least revenue to the most are Bunge, Archer Daniels Midland Co., Gunvor Group, Noble Group, Mercuria Energy Group, Koch Industries, Trafigura, Cargill, Glencore International, and Vitol Group.

Italy major imports?

Imports - commodities: engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco

What is commodity money?

Commodity money has become a medium exchange. This money has a common value and can be easily divided. Generally, a single item that would be accepted in exchange for other goods. For example: Coins, gold, grains, silver, currency, etc.

Why investors need to trade in commodity futures trading?

The advantages of futures trading, according to "Online Futures Trading - Advantages and Disadvantage" by Tim Wreford:

Leverage. Futures operate on margin, meaning that to take a position only a fraction of the total value needs to be available in cash in the trading account.

Commission Costs. Electronically traded futures contracts require no human intervention to match buys and sells unlike a traditional futures pit. This means that commission costs can be cut dramatically, leading to significant savings for the frequent trader.

Liquidity. The involvement of speculators means that futures contracts are reasonably liquid. However, how liquid depends on the actual contract being traded. Electronically traded contracts, such as the e-mini's tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread.

Ability to go short. Futures contracts can be sold as easily as they are bought enabling a trader to profit from falling markets as well as rising ones. There is no 'uptick rule' for example like there is with stocks.

No 'Time Decay'. Options suffer from time decay because the closer they come to expiry the less time there is for the option to come into the money. Futures contracts do not suffer from this as they are not anticipating a particular strike price at expiry.

Automated trading. Electronic futures brokers offer the facility to programmers to interface directly with their trading software. This means that custom written trading software can automatically trade a strategy without any human intervention at all. A system can make buy/sell signals which are automatically routed to the exchange along with any stops and targets.

Almost instant fills. With electronically traded futures there is no need to call up a broker and wait for a fill from the trading floor. Orders are instantly placed on the electronic order book and filled as soon as a match is found - for liquid contracts such as the emini S&P500 this will be within a second.

Level playing field. With traditional pit traded futures the professional in the pit has a major advantage over the retail trader in terms of speed of execution and costs. Electronic futures trading offers all participants exactly the same advantages.

Is silver a good investment?

Silver is both a precious metal and it is used widely in industry. The experts tell us that there is a global shortage of this metal and it will only get worse as time goes on. The historic gold to silver ratio was set to approximately 1 to 16. That is one ounce of gold is worth 16 ounce of silver. This is not the case today, one ounce of gold is worth around 50 ounces of silver. Once again the experts say that the 1 to 16 ratio will return again as it has through history. When this happens, silver will be worth a great deal more than it is today.

Another point is the declining economy of the USA and other countries. When there is trouble with declining currency, the price of precious metals rise as people see this as a good store of value. People have already started to buy silver in the USA, mainly in the form of silver coins. It is very likely in my opinion to continue to the point where we will see a big increase in silver due to a shortage created by investor demand.

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However, one must also realize that millions of tons of silver are pulled from the earth every year, so silver is not a fixed supply either. So, true, we are printing money by the truckload, but they are pulling silver from the ground by the truckload as well. One mine in Australia mined 600 million tons of silver in 2007. One mine!

Addition/correction: There are some 6-7 hundred million ounces of Ag, (silver) mined annually however, the world's AnnualDemand is 800,000,000 +++. What this means to people who are able to add and subtract is that even with the 600,000,000 ounces of Ag. mined annually, there is still at least a 100,000,000 oz. Deficit for the world's Demand of this precious metal. The above writer attempted to draw parallel lines for the amount of silver mined annually compared with the number of fiat dollars printed but how would anyone try to compare 600,000,000 ounces of silver that are Spoken for by Industry, and Investors the second they are delivered while the $600,000,000,000 (6 hundred billion ) Fiat Dollars thrown out into circulation will remain in circulation CHASINGgoods (translated, 6 hundred billion fiat dollars= DEBASEMENT of the already Debased $$$) as opposed to the 6 hundred million ounces of silver with a 100,000,000 oz. Deficit (translated, once delivered, the silver is Out of CIRCULATION and Used up by industry and NEVER to return and the investor's silver sitting in private vaults growing in value) Not much of a comparison. Was that above writer JAMIE DIMON?

Correction: The annual silver mining production of the world in y2008 was 680 million troy ounces, or about 21,000 tonnes.

Pros: concerns about the value of printed money, universal value as currency, the best conductor of electricity (but if it gets too expensive is easily replaced with copper).

Cons: tarnishes (limits industrial value), not a fixed quantity (either!)

Reply: Tarnish or no Tarnish Ag. (silver is still the BEST conductor of electricity. Who like drinking clean purified water? You have Silver to thank for that. How about that computer you're using this very moment, (silver again) I'm sorry, did you say solar energy? Ok, I thought you said solar energy = silver (you're right) How about that Anti-Biotic? No, not copper! Yes silver again.... When was tha last time you needed good batteries? Yesterday? Well thank God for silver again..... Is that you Jamie? Jamie, Jamie Dimon (Ceo of JP Ricco Act Morgan)

Opinion: I feel it is a good investment, but it is not a "no-brainer." Know the risks, especially when buying at all time high prices...

Reply to the "no brainer": Surely you are not warning of silver having reached it's all time high. Silver's all time high was reached in 1980 and that high was 50 bucks per oz. If we look at the current silver to gold ratio of 50 ounces to one oz. of gold and consider the historical ratio of 15-1 and go beyond that and realize that gold is no longer rare (above ground) compared with silver ( silver= 3 hundred million ounces, gold = 6 billion ounces. I'd say you have nothing to worry about regarding "RISKS" You might want to do some research before you give advise.

It would be a good idea to have some understanding of what drives supply/demand. In the short term, commercial and industrial demand influence the price. But in the long run, however, it is investment. Hoarding and dis-hoarding. When Warren Buffett bought silver about 12 years ago, a simple extrapolation of the supply and demand out 3-4 years indicated that we would be completely out of silver. The obvious to the contrary, the price collapsed after the Buffett purchase. Why? Because the dis-hoarding that had been going on for many years, continued. Investors, in the balance, remembered too well, the collapse of the price after the 1980 peak, and they were not ready to believe in a rebirth of the bull market. By the time investor sentiment was beginning to turn bullish, the supply crisis was a nonevent. But sentiment continued to improve and net investor hoarding began its upward pressure on price. Which explains the recent highs. All that said, it is impossible to know (IMHO) with any accuracy how much silver will be available to the market as the price changes.

The magic gold/silver ratio of about 16 does have some basis. That is about what scientists estimate the concentration ratio of the metals to be in the crust of the earth. The ratio will probably return someday, but investing with that hope is probably futile.

One other point: The price is determined (absent a physical shortage) by traders on the Comex Exchange betting on what the bettors in the future will be betting the price will be. A physical shortage of the metal, or a foolhardy attempt to deplete the commercial trader's stocks are the most likely events to eventually to break this pricing routine. Either could result in an explosive upward move.

Where are pork bellies as traded on the stock exchange?

Pork Bellies are not traded on a stock exchange. They are traded on a futures exchange.

They are traded on the CME.

Discuss the role of agriculture inthe Nigerian economy by the 19th century with specific reference to commodity production?

IMPORTANCE OF AGRICULTURE. Agriculture is a sector of economic activity that provides human beings with some of their basic needs. Its outputs are food and raw materials. Without the food products, life can easily be sustained; without the raw materials, the industrial sector of the economy cannot be fully developed. This is because the agricultural sector of the economy supplies most of the raw materials used by the industrial sector. In fact, the economy of several West African countries is chiefly sustained by agriculture. For instance, apart from Nigeria, whose economic mainstay its now its petroleum products, most of the west African countries depend on agriculture for their export trade. Agricultural products from 75% of their export commodities are their chief foreign exchange earner. We can formally define agriculture as the cultivation of the soil for food crops, and the breeding, feeding and management of livestock.

The term also covers fishing in the seas and rivers, breeding, and management and harvesting of fishponds. It may be extended to include the preparation of plant and animal products for use by human beings and animals, as well as the disposal of these through marketing. There are many economic activities under the broad term agriculture. The kind of agriculture practiced by a community or a country is influenced by many factors such as climate, soil, topography, and location of market, transportation and cost of land. Equipment, capital and technology are other factors that determine the agricultural pursuits of people.

How is the he Commodity Futures Trading Commission funded?

The Commodities Futures Trading Commission (CFTC) is an independent regulatory agency funded by the United States government. It was created by congress in 1974.

I suspect by the nature of your question you might be curious about a common funding misconception in the futures industry.

What is often confusing in futures regulation is that there is a second, and in many views quite redundant "Watchdog" agency in Futures known as the National Futures Association.

Unlike the CFTC which receives government funding, the NFA funding scheme is "Per Trade." NFA receives a payment from each trade. As of January 1, 2011, the NFA assessment fee, payable by clearing firms (Known as Futures Clearing Merchants in Commodities or FCMs) with respect to futures contracts, is $.02 per side on each lot, invoiced and charged to the customers. The assessment fee on both exchange-traded and dealer options is $.02 per side. The assessment fee for NFA Forex Dealer Members is $0.02 per $10,000 of notional value.

The NFA was created in 1982 when volumes were much lower. The result of the payment scheme is that due to larger modern volumes, NFA is awash in cash. Their unique, cash rich funding scheme, their odd market position (self regulatory vs government watch dog), and their clear government granted power over the industry, oft creates confusion to futures outsiders.

How do specialty elastomers differ from commodity elastomers?

Specialty elastomers offer enhanced performance characteristics, are typically more expensive, and are sold by fewer competitors than commodity elastomers.

Why does commodity money have value?

commodity money is a good that can be used as a medium of exchange or for some other purpose

What is the difference between commodity standard from a non-commodity standard?

A commodity standard is products and services that may vary slightly in quality, but are overall the same across various producers of the same products and services such as gold or oil. All commodities must meet a minimum standard called the basis grade. A non-commodity standard is measured mainly from a product perspective rather than a service perspective such as a certain brand of television or vehicle and its global quality standards.

Another name for commodities?

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