Commodities

Volatile market

If a perfectly competitive market stopped dealing in commodities, it would fundamentally alter its structure, as commodities are essential for maintaining standardization and equal access among buyers and sellers. The market would likely shift towards trading differentiated products or services, leading to variations in pricing and potentially reducing the level of competition. Over time, this could result in the emergence of monopolistic or oligopolistic behaviors, as firms gain the ability to influence prices and market dynamics. Ultimately, the efficiency and equilibrium characteristic of perfect competition would be compromised.

Several importances of commodity exchange include a fair relationship between a cash and futures market, leveraging, price risk management, price discovery, and liquidity.

No it isn't. The most profitable commodity traded by Virginia colonists was tobacco. So profitable was it, that Virginia started to worry about having enough farmers growing food rather than tobacco.

energy, metal, agriculture, livestock (meat), and consumer

The Commodity Exchange Act make it illegal to trade a contract for the purchase or sale of a commodity for future delivery a futures contract unless the contract is executed on a federally designated exchange .

A commodity is something you buy in bulk and strictly on what it is. For instance, wheat. There are several varieties of wheat, but when you are buying an order of hard red wheat (5000 bushels) you don't care whether it's Quaker wheat, Acme wheat or whatever--you call the grain elevator, tell them to bring you 5000 bushels of hard red wheat, and be there when the trucks arrive.

A key drawback of commodity money is that its value can fluctuate based on supply and demand dynamics, making it less stable as a medium of exchange. Additionally, commodities can be difficult to transport and store, which can complicate transactions. Furthermore, the necessity of physical backing can limit the money supply and hinder economic growth.

Fed Log

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.

It's not possible to say without seeing the fiber in question, because you can make nylon fiber that breaks at two or three pounds load, and fiber that breaks at two or three hundred pounds load.

It's actually the other way around: the supply of a commodity influences its price, in that the more of the commodity you have, supposedly the lower the price to get people to buy more of it.

(Insert long, long list of illegal drugs, radioactive items, things on the International Union for Conservation of Nature Red List, military weapons...)

It depends on a few things...like how much you want and when you want it.

If you need a REALLY small amount, like the amount that'll fit in a five-gallon bucket, try your local Walmart. The one here in town has a whole aisle of "emergency food" in big cans, five-gallon buckets and other family-size containers.

If you need a smallish amount, like a pallet of 50-pound bags of wheat, try a feed store.

For one truckload, call the local grain elevator.

But if you can deal with 200,000 pounds of the commodity, call a futures broker and buy a futures contract.

California's number one legal commodity is dairy products--milk, butter and cheese.

California's number one commodity is marijuana, but you're not supposed to be growing that.

Scottrade is a private company and therefore is not publically traded.

It's not actually an abbreviation. Nifty is the S&P CRISIL NSE Index 50, which is the Indian equivalent of the Dow Jones Industrial Average. Because there are 50 stocks in it, people started calling it the "Nifty 50," and later just Nifty.

Petroleum and petroleum products

Commodities are merchandise, but you might be thinking of bulk commodities and packaged merchandise. In that case, when you buy packaged beans you get a nice little bag with beans in it. Bulk commodity beans show up in a fiberboard drum or a dump truck.

It means Certificate of Analysis ...

The easiest way is to set up an automatic debit against your paycheck or checking account at your bank, with a specified amount being automatically taken from your paycheck or checking account and deposited into a savings account.

Six agricultural crops (corn, cotton , peanuts , rice , tobacco and wheat) declared by permanent law as requiring federal price support .

Because it is a commodity.