Bulk commodities

This refers to mass trading of physical commodities that can enter the circulation field but are not involved in retail, possess commodity attributes, and are used in industrial and agricultural production and consumption. Its characteristics include homogeneity, tradability, frequent price fluctuations, large supply and demand, and it usually serves as a basic raw material affecting the global economy. The following explains this in terms of classification, market characteristics, trading methods, and risks:

I. Main Classifications of Commodities

Commodities can be divided into four major categories based on their natural attributes and uses:

1. Energy

Core varieties: Crude oil, natural gas, coal, fuel oil, methanol, etc.
Characteristics: The "blood" of the global economy, prices are significantly affected by geopolitics, OPEC+ production policies, and new energy alternatives (such as electric vehicles and photovoltaics).
Typical markets: Crude oil futures on the New York Mercantile Exchange (NYMEX), natural gas futures on the Intercontinental Exchange (ICE).

2. Metals

Ferrous metals: Iron, steel, manganese, chromium, etc. (iron-based alloys such as rebar and hot-rolled coils), closely related to infrastructure and real estate.
Non-ferrous metals: Copper, aluminum, zinc, lead, nickel, tin, etc. (non-ferrous metals), copper is known as the "economic barometer" and is widely used in the electricity and manufacturing industries.
Precious metals: Gold, silver, platinum, possessing both commodity and financial attributes, often used as safe-haven assets and inflation hedging tools (e.g., gold is affected by the US dollar index and real interest rates).

3. Agricultural Products

Food crops: Soybeans, corn, wheat ("three major grains"), rice, greatly affected by weather (such as El Niño), cultivated land area, and trade policies (such as export restrictions).
Cash crops: Cotton, rubber, sugar, coffee, cocoa, palm oil, closely related to the textile, food, and daily chemical industries.
Livestock products: Live pigs, cattle, dairy products, affected by the breeding cycle, diseases (such as African swine fever), and consumption habits.

4. Chemicals

Basic chemical products: Polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), etc., plastic raw materials derived from oil refining, used in packaging, building materials, automobiles, etc.
Chemical fiber raw materials: PTA (purified terephthalic acid), ethylene glycol, are core raw materials for the textile industry.