What are commodities?

Commodities are manufactured goods such as sugar and wheat or mined products such as gold and oil.
Commodities have been traded for thousands of years and have always had an important economic impact on global trades, people and nations throughout history.
Commodity trading is just as important today, with commodities playing a crucial role in global economy.
Commodity markets can be easier to understand than other financial markets because prices are influenced by more obvious contributing factors.
Prices are formed by supply and demand.

What drives commodity markets?

Supply interruptions - such as bad harvests, miners’ strikes or stockpiling.

Seasonal demand - for example from consumers of heating oil and natural gas in the winter, or people buying gold during periods of political uncertainty.

General economic slowdowns - which can impact supply and demand.