The ABC of commodities from WBS – what is a commodity?
A commodity is a general term that applies to metals, natural gas, and crude oil, different types of grain, etc. Typically, a commodity is used to produce other goods or serves for some service – such as transport. The quality between the different brands or producers of commodities could vary, but some minimum standards deal with that and unify the commodities. The most popular commodities globally are gold, crude oil, soybeans, corn, copper, and silver. As you can see, the commodities market goes from metals through the corn, coffee, cocoa to livestock.
A lesson from WBS about the agricultural commodities – how to trade them
The basic ingredients like coffee, rice, corn and wheat enter this category. What to keep in mind when you are trading them. You should have one of your screens always on the weather forecast and to check the latest surveys about the growth of the global population. Investing commodities is so exciting because there are a lot of layers that are behind every movement on the market. The agriculture commodities are almost alive when it comes to investing and a lot of factors can alter their price.
What to consider when trading livestock and meat commodities according to WBS
This category is not for vegans, or is it? Here you can find feeder and live cattle, pork bellies, lean hogs. By trading meat commodities, one can see how far and deep the vegetarian and vegan trends have gone. What is their impact in comparison with the seventies, for example? Interesting fact – the cow-generated methane makes up for 14% of the annual CO2 emissions. The situation has gone so far that in New Zealand, scientists are looking for a vaccine for the cows or even breed a new type of cow with lower CO2 emissions.
Are you listening to the heavy-metal commodities call
Gold, silver, copper, platinum, and all new types of material typical for the tech progress are here. This category of commodities proves that commodities are an exciting instrument for investing. Through them, you can read bigger events on the market, more significant trends in the tech industry, and so on. To have an example: silver, copper, cobalt, and nickel are crucial for electric cars because they are part of the engines, of the motors, and so on. With the craze for electric cars nowadays, you can see the demand and the price for this material skyrocketing. And not to mention even the gold – the safe haven when the market goes into crisis. Gold has the status of a reliable commodity which saves it value no matter what.
What is special vibe about the energy commodities
When you think about crude oil, natural gas, and Brent oil, you see how connected we are and how deep the ties go. One ship in the Suez Canal can do bigger damage than many rockets shoot at some refinery or sanctions for a country. The energy commodities are the foreign policies of the bigger states. The leading producers and the primary consumers. Imagine what it could be to make a history of humankind pivoting around the energy sources through the different epochs.
What is the next big thing in commodities?
Usually, as some form of traditional investment instrument, the commodities evolve with progress, and new types appear — for example, a band with or cell phone minutes. Blockchain technology could bring something new to the table, or we could consider all cryptocurrency as a type of commodity (without the stablecoins). The rapid distribution of 5G network could be the source of new market units.
Register here and get FREE info on what other exciting opportunities you have for a profit with our broker.
When you trade commodities with WBS it is not only about the profit. It is for the thrill.
As you can see the commodity trading is far from boring and traditional. It can involve all your hobbies and interest that you never thought that can be worth something. Now you can live the world trade to the full.
Why trading commodities with WBS? Our platform provides everything you need to make a profit from commodities and other investment instruments. The thing that separates us from the rest of the online trading brokers is the protected from loss positions. Combine with top-notch support and convenient features for technical analysis, and you find yourself with a sophisticated tool for investing.