Commodities Demystified
   Domestic Scenario
   International Scenario
 
 
 
International Scenario

Commodities as an investment option are popular in the international market after Foreign Exchange. The actively traded international commodities are Gold, Silver, Copper, Light Sweet Crude Oil, and Brent Crude Oil with Aluminum. The major Exchanges in the international market are:


New York Mercantile Exchange (NYMEX):


The NYMEX in its current form was created in 1994 by the merger of the former New York Mercantile Exchange and the Commodity Exchange of New York (COMEX). Together they represent one of the world's largest markets in energy and precious metals. It deals in Futures (and Options) in Oil products, such as Crude Oil, Heating Oil, leaded regular Gasoline, Natural Gas, Propane and in rare metals, such as Platinum and Palladium. It also deals in Gold and Silver, Aluminum and Copper, sharing with the London Metal Exchange a dominant role in the world metal trading. The trade of crack spread allows investors to construct their own spread combinations.


International Petroleum Exchange:


A Commodity market that deals in Futures Contracts (Brent and Dubai crude oil, gas oil, leaded and unleaded gasoline, naphtha and heavy fuel oil), as well as in options (Brent crude and gas oil). It offers the facilities for making an exchange of futures for physicals.


London Metal Exchange (LME):


The LME is the London market for trade in metals and the world Futures and Cash market for trades in non-ferrous metals, such as Aluminum, Aluminum alloy, Copper, Lead, Nickel, Tin and Zinc. There are also Exchange-traded options, available on all Futures contracts apart from Aluminum alloy. The market is daily for cash and contracts up to three months, and weekly for contracts up to 15 months. Producers and consumers use the official prices of the LME worldwide for their long-term contracts.

Chicago Board of Trade (CBOT):


The CBOT is a trading center for Commodities and the largest Futures Exchange in the world. The market deals in Futures and Options on agricultural Commodities, such as Maize, Soy Bean, Crude Soy Bean oil, Soy Bean meal, Oats, but also in contracts on Gold and Silver.


Chicago Mercantile Exchange (CME):


The CME - the prime US Futures and Options market - trades a huge range of Futures and Options on Commodities, above all futures contracts in livestock (live cattle, feeder cattle, live hogs, pork bellies). It is also the leader in Exchange-traded Financial Derivatives.



 
 
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