Most Traded Commodities Commodity Trading

Another important staple grain, wheat, is crucial to international trade and food security. Over the years, demand from the food and industrial sectors has kept its trade volume strong. Companies that deal with wheat on a regular basis, including Cargill top 10 forex strategies for profitable trading in 2024 and Archer Daniels Midland (ADM), use futures contracts to control price risk. A commodity is a raw material traded on markets and used to manufacture other products, as seen in the above list of commodities.

There are several varieties of corn – the main ones being dent, flint, pod, popcorn, flour and sweet corns. The majority of corn is grown in the US, followed by China, Brazil and Argentina. When considering “Commodity CFDs” for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. This information is provided for informative purposes only and should not be construed to be investment advice. Natural gases are often the most traded commodities in the United States of America, Russia, Iran, Qatar, China, and Canada. This article outlines the world’s top six most traded commodities and how you can trade them.

Gold

Crude oil is the lifeblood of the global economy, powering transportation, heating, and electricity generation while serving as a raw material for countless industrial and consumer products. The world’s top producers include the Russia, Saudi Arabia and the U.S., each contributing roughly 10–15% of global supply. OPEC—particularly Saudi Arabia—wields significant influence over oil markets through coordinated production cuts.

Commodities

Because of the demand for oil and its by-products, like gasoline and jet fuel, it remains the world’s top traded commodity by volume. Brent oil, a major trading classification of sweet light crude oil, serves as a major price benchmark for Atlantic basin crude oils. With its widespread popularity and the growing culture around coffee consumption, the trade value of coffee beans has skyrocketed, making it a staple in commodity markets.

The Top 10 Most Traded Commodities Worldwide

The second channel by which uncertainty may dampen economic activity is through increasing the risk premium. Investors expect to be compensated for higher risk, and during periods of higher uncertainty this could lead to a higher cost of finance. Furthermore, a higher cost could also lead to considerable difficulties in servicing debts, as well as a greater number of default events. Commodities can be traded in various ways, including futures contracts or contracts for difference (CFDs). A futures contract is facilitated through a futures exchange, and put simply, is a legal agreement to buy or sell an asset on a specific date or during a set month.

Silver (XAGUSD)

Factors like weather conditions, trade policies, and production yields influence the price of cotton. Its demand is closely tied to the fashion industry and consumer trends, making cotton a volatile but attractive commodity for traders looking to capitalize on shifts in global textile markets. Wheat is a foundational agricultural commodity and one of the most traded globally. It’s a staple food for billions of people worldwide, and seasonal cycles, geopolitical events, and climate conditions influence price movements in wheat. Coffee production is highly seasonal and influenced by weather patterns, crop diseases, and labor issues, leading to price volatility. The coffee market is primarily divided into Arabica and Robusta, each with distinct characteristics and pricing structures, providing traders with a range of opportunities.

• Precious metals, such as gold, platinum and silver, play an important part in some manufacturing processes, but are also mined and sold to buyers who store them as wealth.
• Gold is the most actively traded of all metals, as it’s unique properties and limited supply allow it to stay high in demand, and investors generally see gold as a safe holding.
• Silver’s demand profile is linked to economic and technological growth, and it’s used in everything from electronics to solar panels.
• The factors that affect oil prices, for example, are very different to the factors that affect gold’s price.
• A futures contract is facilitated through a futures exchange, and put simply, is a legal agreement to buy or sell an asset on a specific date or during a set month.
• In contrast, there were just 458,999 Steel Futures and Options Contracts traded on the London Metal Exchange in 2019.

Soybeans

WTI crude oil is also known as Texas light sweet, because it has a low sulfur content and low density. Political policy can also significantly influence commodity prices, especially when looking at food and energy security. As governments prioritise these particular sectors, they often maintain strategic stockpiles of essential commodities. Any decision to reduce or increase the size of that reserve will impact supply levels and consequently the price on the open market.

In the past, natural gas mostly provided fuel for lighting, but is now also used globally for heating, cooking, water heaters and manufacturing. Each year, hundreds of billions of cubic meters of natural gas is extracted. Cryptocurrencies markets are unregulated services which are not governed by any specific European regulatory framework (including MiFID) or in Seychelles.

What are the Top 10 Most Traded Commodities in the World

For privacy and data protection related complaints please contact us at Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world. In 2022 the Singapore Exchange traded 12,476,340 Iron Ore Futures Contracts, which is a massive 1,247.7 million tons.

• Its extraction and processing fuel entire industries (think iron mining), impacting construction, infrastructure development, and manufacturing sectors worldwide.
• The first mechanism is a precautionary motive in which risk-averse agents react to increases in uncertainty by curtailing consumption, investment and production.
• Millions of bags are traded yearly, a testament to its popularity and broad usage.

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As one of the most traded commodities, gold is particularly appealing during market volatility, inflation, or currency fluctuations. The observed improvement in the trade balance is consistent with a standard expenditure-switching mechanism, whereby heightened external uncertainty prompts households and firms to reduce imports. Canada exports energy products, such as crude oil, natural gas, and petroleum, to the United States, along with vehicles and agricultural goods like oils, beef, fruit, vegetables, and cereals. Close monitoring of these developments is crucial to understanding their implications for developing countries.

Iron is a primary constituent of steel, and iron ore ranks high in traded volume. Its extraction and processing fuel entire industries (think iron mining), impacting construction, infrastructure development, and manufacturing sectors worldwide. To become a commodity trader , learn to differentiate the differences between each commodity and how they are traded. Then, open a live trading account with a reputable broker and practice trading with small amounts to gain experience.

In 2022, 269,933 Futures and Options contracts were traded on LME, which is almost as much as the daily turnover on the COMEX. According to the LBMA (London Bullion Market Association) members of the London Precious Metals Clearing Limited (LPMCL) had registered 242.8 million ounces of gold had been cleared through 2022. Contrary to what many people think, gold is not the most expensive metal to trade. In June 2020, following the WTI Futures price crash, the NYMEX (New York Mercantile Exchange) revived trading volumes, with an average of 1,870 contracts being traded each day. For example, coffee, which is one of the most traded commodities in the world, cannot be simply picked from a plant and put into a cup.