COMMODITY TRADING
Why Are Agricultural Commodities Important ?
Agricultural commodities are staple crops and animals produced or raised on farms or plantations. Most agricultural commodities such as grains, livestock and dairy provide a source of food for people and animals across the globe. However, some agricultural commodities have purely industrial applications. The building and furniture industries use lumber from trees, while manufacturers in several sectors use latex from the rubber tree. Wool from sheep provides fabric for the clothing industry and lanolin for skin-and-hair-care products.
Barley
Barley is a cereal grain that contains many important nutrients and vitamins. It is characterized by its rich nutty flavor and chewy consistency.
Canola
Canola is a crop grown primarily for its seeds, which can be crushed to produce canola oil and canola meal.
Cocoa
Cocoa is a food derived from the dried and fermented seeds (beans) of the Theobroma Cacao plant, which means “food of the gods” in Greek. It’s primarily used to make chocolate.
Coffee
Coffee is a soft commodity derived from a plant that grows mostly in subtropical and tropical climates.
Corn
Corn, also known as maize, is a cereal grain native to Central America. It is a source of food for humans and animals, as well as being a key ingredient in fuel production.
Cotton
Cotton is a fluffy natural fiber that grows on shrubs in tropical and subtropical regions around the world. The commodity is a staple in the textiles industry.
Feeder Cattle
Feeder cattle are weaned calves that reach a weight of between 600 to 800 pounds. At this point, cattle producers feed them a diet of high-energy feed to promote weight gain
Lean Hogs
Lean hogs are the most commonly traded commodity product for gaining investment exposure to whole hog prices.
Live Cattle
Live cattle are full-grown cattle that have reached the necessary weight for slaughter. Cattle typically get slaughtered for meat and other by-products
Oats
Oats are a cereal grain with high soluble fiber content. They are a source of food for both humans and animals and an ingredient in the production of cosmetics.
Orange Juice
Orange juice is a beverage made from squeezing the fleshy fruit of the orange tree. In many countries, particularly in the western hemisphere, it is a staple item on breakfast tables
Palm Oil
Palm oil is an edible vegetable oil derived from the reddish pulp of the palm fruit. The fruit grows on the oil palm tree, which is native to West Africa.
Pork Belly
Pork bellies are cuts of meat taken from the pig’s stomach. The high fat content of this cut makes it ideal for producing bacon.
Random Length Lumber
Lumber is the term for wood that has been processed into beams or planks of varying lengths
Rough Rice
Rough rice is the whole rice grain that is harvested from the rice plant. It includes the hull, which is the hard protective covering that accounts for 20% of the grain’s size.
Rubber
Rubber is an important industrial material that derives from a runny liquid plant byproduct called latex.
Soybeans
Soybeans are an edible legume native to Asia and are an important source of protein in many modern diets.
Sugar
Sugar is a carbohydrate that has been used as an ingredient in food for thousands of years.
Water
Water is arguably the most important commodity on Earth. As important as crops, metals and energy are to the planet, none of them is possible without water.
Wheat
For centuries, wheat has been one of the most important food crops cultivated by civilizations around the world
Wool
Wool is a textile fiber obtained mainly from shearing the fleece of sheep. It is a fabric prized for its durability, comfort and resiliency
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