Economic data, commodities and markets

The country has rapidly urbanised – requiring vast amounts of steel – and experienced phenomenal economic growth. Because of this, Trump’s tariffs have also had an indirect effect on iron ore, with prices falling due to a reduction in demand. Soyabeans – known in the US as ‘soybeans’ – are an important commodity, primarily because they are rich in protein and relatively cheap to produce. They are used to make a variety of food and agricultural products, including soyabean meal (animal feed), soyabean oil, and meat and dairy substitutes such as tofu and soy milk.

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When the oil market becomes highly volatile, it attracts more price speculators, which will increase both volume and open interest. Silver, often referred to as “poor man’s gold,” is another precious metal with significant trading volume. It holds a unique position in the commodities market due to its dual role as both an industrial metal and a store of value, like gold. Gold has long been a favourite among investors and traders, making it one of the most traded precious metals globally. It is wildly popular due to its status as a safe haven asset, which helps to offset risk, and hedge against inflation.

Gold, the most popular metal

At the same time, oil markets tried to factor in how much Russian oil will disappear from the market when the EU’s ban on seaborne imports of Russian oil takes effect on 5 December. EIA estimated the Henry Hub spot price to average $8.69 per million British thermal units (MMBtu) in the third quarter, up from an average of $8.13/MMBtu in May. The prices are rising due to low inventories, steady demand for US LNG exports, and high demand from the utilities.

What are the Most Traded Commodities Globally?

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The 10 Largest Potash Producing Countries in the World

Natural gas prices in the US, Europe and Asia have continued their rally, which started last year with ongoing supply problems from Russia. The Russia-Ukraine war exacerbated supply woes after Russia required buyers in Europe to pay with ruble for its gas, prompting buyers to find alternative supply from the US. In the first quarter of 2022, the gold price had rallied near its record high of above $2,000 an ounce seen in mid-2020, amid uncertainty on the onset of the war between Russia and Ukraine. However, gold’s rally quickly lost its shine by May as the Fed’s aggressive rate hikes to combat higher than anticipated inflation rate.

1. Russia is an important producer in some metals, including aluminum and nickel.
2. In agricultural commodities, coffee is among the most globally traded and consumed commodity that comes from the beans of coffee plants.
3. The extracted iron is also used to produce cast iron, magnets and catalysts for various industrial and chemical uses.
4. As Gold is widely considered to be a safe asset, it tends to hold its value or rise in times of political and economic uncertainty.

This allows you to test the broker’s CFD trading platform for usability, reliability, and security. However, it is still one of the most traded commodities worldwide due to its practical uses in many industries, especially jewellery and tech companies. Natural gases are often the most traded commodities in the United States of America, Russia, Iran, Qatar, China, and Canada. The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. J.P. Morgan expected commodities to be on pace to deliver a third consecutive year of significant positive returns – up 30% year-to-date. Acute scarcity conditions continued to persist across commodities, supporting the assets strong performance going forward.

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It is one of the most widely recognised and actively traded benchmark crude oils in the world. Its trading volume is driven by its status as a key benchmark for oil prices in North America. Commodities prices – from oil, natural gas, copper to gold and wheat – continued their robust performance in the first quarter of 2022 following Russia’s invasion of Ukraine in February. The resulting instability saw commodities prices rally to fresh multi-year highs. Gold is widely considered to be a ‘safe-haven’ asset, as it tends to hold its value or rise in times of economic and political uncertainty. For this reason, many traders move money into gold when the dollar is falling, so gold’s price often has an inverse relationship with the value of the dollar.

Please read the full risk disclosure on pages of our Terms of Business. Cotton is an extensively traded commodity used to make textiles, apparel, and home furnishings. With millions of bales exchanged yearly, its trading volume shows its significance in the world’s textile manufacturing industry. Influential cotton buyers include textile manufacturers and clothing industries, whereas major producers are nations like the United States, India, and China.

Some metal prices reached all-time highs in March amid concerns about supply disruption, while inventories reached historically low levels. The war in Ukraine has been a key driving force behind aluminum and nickel price movements, while https://www.1investing.in/ high energy prices have affected aluminum and zinc. Russia is an important producer in some metals, including aluminum and nickel. These metals are key inputs into renewable technologies, such as solar panels and wind turbines.

In July 2022, 1,756,010 Coffee Futures Contracts were traded on the ICE. In the US alone, the retail coffee industry is worth $18 billion annually. The enormous global demand makes coffee one of the most traded commodities in the world. This information has been prepared by IG, a trading name of IG Australia Pty Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

Gold CFDs are a popular choice for traders seeking to protect their wealth during economic uncertainty. These weather variations lead to price volatility of CFD commodities related to natural gasses. This article outlines the world’s top six most traded commodities and how you can trade them. This year could likely be a volatile one for commodities with myriads of factors, including macroeconomic headwinds and geopolitical tensions, pulling assets to different directions. J.P. Morgan estimated Brent crude oil to average $104 in 2022, while Swiss investment bank UBS expected the crude oil to average $125/bbl at the end of this year.