What are commodities? Well, commodities can be defined as marketable items that are produced to meet up with necessities of demand & supply. The commodity market is the place where primary or raw products are exchanged. The commodities could be either some financial instruments such as bonds, foreign currency etc. or some raw products like sugar, corn or gold. The objective underlying trading commodities is to attain profits from the escalation in the prices of the commodities. For instance, one can decide to purchase gold today & then sell it off after a couple of months while the rates elevate up, earning profit thereby. The post below highlights on the top 10 most traded commodities in the world in 2013.
10- Natural Gas
Natural gas (mixture of methane with CO2 & nitrogen) can be regarded as one among the most vital energy sources occurring in a natural form & is chiefly used for electricity and heating. As per the reports, around 25 percent of total energy consumption benefits from natural gas. The largest producers for natural gas are Canada, USA, Russia and the largest exporters are Norway, Canada and Russia.
Gold is regarded as one among the best profitable commodities & is increasingly on the rise for the past few years. The yellow metal which has been honored as ultimate source for richness universally is considered as a potential form for investment given its rarity, beauty & indestructibility. The largest gold producers and exporters in the world are USA, Australia and China.
It’s interesting to note that copper reflects world economy and its incline & decline is linked directly with general world economy. The reddish metal is not only one among the most highly traded option but it’s also one among the oldest commodities that is being traded since centuries. The largest copper producers as well as the exporters of the world are USA, Peru and Chile
Next to copper, you have silver, another most precious metals and highly in use for trading since ages. Silver has always been a prominent choice for classy jewelries and currency coins as well as for the domestic applications and industry uses. It’s needless to mention that silver symbolizes high political and social rank. The largest silver producers in the world are China, Peru and Mexico. The largest exporters of the metal in the world market are India, Peru and China.
Sugar, again is one of the most traded commodities in the world market. In fact, as per the world trading experts, sugar can be the ideal pick if somebody is planning for longer-term investments. Sugar, extracted from sugar beet and sugar cane is mostly preferred for its sweet appeal which equally rings true in regards to investment decisions with the product. The largest sugar producers and exporters in the world market are Brazil, China and India. It’s good to mention that the sugar prices are on incline since the past few months.
Corn or maize is another preferred trading commodities in the world market. It’s said one among the highly grown products around the world given its capacity to grown in a diverse range of climatic conditions. Besides, corn or maize is the biggest grown cereal in world after rice & largest grown crop in South and North America. Corns are mainly of two types- sweet corn and field corn of which the former is utilized in human consumption while the latter goes for chemical purposes and animal feed. The largest producers of corn are Brazil, China and USA. The largest exporters of maize are China, Argentina and USA. However, it’s to mention here that since maize production in America is on drastic decline given serious drought, the international corn price is about to rise.
Wheat, one of the most grown cereals is taken as a staple food for most of the countries across the world. Wheat is preferred given its high protein content & is one of the principle factors behind the rolling of human civilization as wheat could be cultivated easily on a huge scale. Wheat is the 3rd most produced crops after rice & maize & is also regarded as most produced commercial crops around the globe. The largest producers of wheat in the world are USA, India and China. The biggest exporters of wheat in the world are Canada, France and USA.
Cotton is undoubtedly one of the most traded commodities across the world market. The fluffy soft plant came to notice nearly 7000 years back & today cotton is considered as one among the most highly traded commodities around. Cotton has an extensive use and is deployed for clothing, coffee filters, paper, fishing nets, medicines, cosmetics, oil, fire hoses & what not. In fact, cotton is the most regularly used fiber for clothes all around the world and is preferred for its comfortable and light appeal. The largest producers of cotton in the world are China (which accounts for 26 percent of total cotton production), India (22 percent), Brazil, Pakistan and USA. The largest exporters of cotton are Brazil, Australia and USA. However, if you are interested in purchasing cotton, take note cotton production especially in India, China and USA because in case the total cotton yield has got low in the top cotton producing countries, the cotton prices would rise up.
Coffee or Green Coffee is legally the 2nd most highly traded commodity across the world and cultivated in more than 70 countries, especially in Southeast Asia and Latin America. It’s also regarded as world’s 7th biggest agricultural export. The largest producers are Vietnam, Brazil, Colombia, India and Indonesia.
1. Crude Oil
Crude oil is the number one of all the commodities traded in the current world market. It’s also called Petroleum and is one of the most extensively used fossil fuels. The largest producers of crude oil are Saudi Arabia, USA and Russia and the largest exporters are Saudi Arabia, Iran and Russia. The largest consumers of crude oil are China, Japan and USA. It’s to remember that petroleum is one of the highly expensive commodities given its finite presence and the crude oil prices tend to be very volatile- hence extra attention is needed for petroleum trading.