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Archive for the ‘Commodity’ Category
What are The main Commodities Markets?
* How are these goods in practice?
In most cases the mode of future use. In a way how to work in the commodities market is looking or a forward market. A futures market is one in which the parties as part of the transaction are committed to accomplish in a specified future date at a fixed rate is agreed on the date. (Ie today).
In turn there are the spot market where transactions are executed and settled on the day or a maximum of 72 hours to a cash or spot price, this as opposed to the first form of transaction. This makes perfect sense that nothing in the stock market or financial since the availability and delivery are performed faster and through a brokerage account.
* What are the main commodities markets?
In Argentina there are two markets for its part, first Liniers Market where there are cattle in spot mode on the other hand the Rosario Grain Exchange, where the different grains in forward mode. Read the rest of this entry »
What is A Commodity and How to Invest in Commodities?
Commodity called full well that it is mass produced by man or which there are large quantities available in nature, which has a value or use and a very low level of differentiation or specialization.
Perhaps at this moment in doubt about what would and not one of these elements, but little by little I will detail later and promise to finish reading knowing basically what it is and how to invest in them.
A familiar example of these are corn, soybeans and wheat, as it is mass produced and have a very low level of differentiation, we note that something planted here in Argentina may not be very different from the same plants in Mexico or another country that can produce it, hence the low level of differentiation. Also gold, silver and oil are commodities as here or anywhere in the world are not much different except for tiny details.
* How did you classify them?
They are classified into different groups are:
Grains: Where can we find soy, wheat, corn, oats, barley.
Softs: Cotton, sugar, cocoa, coffee, etc..
Energy: Gasoline, ethanol, fuel oil, gas, crude oil, etc.
Metals: Gold, silver, copper, platinum, aluminum.
Meat and dairy products: live cattle, live swine, butter, milk.
Financial commodities have even appeared, among them are 30 year bonds, Eurodollars, etc., the indices like Dow Jones, the Nasdaq100, etc and even currencies like the pound, euro, Mexican peso, etc, etc. etc. As you can see the range and group of commodities can be extended.
Credit to: Mariano Cabrera Lanfranconi