Market guide

Commodities education guide

Commodity markets cover energy, metals and agricultural products. Prices often reflect physical supply and demand as well as macro and currency conditions.

What commodities are

Commodities are raw materials and primary products such as crude oil, natural gas, gold, copper, wheat and corn. Many commodity markets use futures for pricing and hedging. Education should cover inventories, production, exports, weather, geopolitics, transport bottlenecks, seasonality and the role of the US dollar.

Key terms

Inventory

Reported stock levels that can influence supply expectations.

Seasonality

Recurring seasonal patterns in production, demand or weather sensitivity.

Hedging

Using market contracts to manage price risk on physical exposure.

US dollar sensitivity

Many commodities are priced in USD, so currency moves can matter.

What to learn next

How energy, metals and agricultural markets differ.
How inventory data and production reports affect prices.
Why weather and geopolitics can create volatility.
How commodity futures are used for price discovery and hedging.

Useful references

CME Group: Agriculture products Propex24 markets overview Trading glossary

Related guides

Futures FX Bonds and Rates Glossary

General education only

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