Within our commodity rather broad definition, we will find different groups. Let's see what they are:
Grains: Soybeans, Wheat, Corn, Oats, Barley.
Softs: Cotton, Orange Juice, Coffee, Sugar, Cocoa.
Energy: Crude Oil, Fuel Oil, Natural Gas, Ethanol, Naphtha.
Metals: Gold, silver, copper, platinum, aluminum, palladium
Meats: Live cattle, live swine, Butter, Milk,
Financial: 30-year bonds, 10 year notes, Eurodollar, 30-day Fed Funds
Indices: Dow Jones, S P500, Nasdaq100, Nikkei225, E-Mini Nasdaq
Currencies: British Pound, Euro, Mexican Peso, South African Rand, Swiss Franc
From this classification in groups, make their appearance financially related commodities. This speaks to the broad way in which we must understand the commodities.
Some times also happens that when some industry evolves so that many suppliers can do something before it was made by a company, we speak of 'commoditization' of a product or industry, including the pharmaceutical industry where access to certain drugs cheaper mode.
Thus a commodity is a good that has value, utility and a low level of processing.
But, how can this affect us all?
The commodities are mostly denominated in dollars. What is expected of the dollar in the world? This is the really difficult question.
A significant majority think it should depreciate relative to other currencies and is much the general negativity in the world against the dollar. But if something financial markets teach us is that when the majority has adopted a stance against the price of an asset, just the opposite happens with a lot of violence.
This strong appreciation of the dollar would translate globally. If this happens, the price of commodities denominated in dollars, should fall sharply.
Why should it affect us? Because if it was given, when our country a major producer of agricultural commodities, their income would be adversely affected.
We must be with the umbrella handy: you can return to rain at any moment.
Grains: Soybeans, Wheat, Corn, Oats, Barley.
Softs: Cotton, Orange Juice, Coffee, Sugar, Cocoa.
Energy: Crude Oil, Fuel Oil, Natural Gas, Ethanol, Naphtha.
Metals: Gold, silver, copper, platinum, aluminum, palladium
Meats: Live cattle, live swine, Butter, Milk,
Financial: 30-year bonds, 10 year notes, Eurodollar, 30-day Fed Funds
Indices: Dow Jones, S P500, Nasdaq100, Nikkei225, E-Mini Nasdaq
Currencies: British Pound, Euro, Mexican Peso, South African Rand, Swiss Franc
From this classification in groups, make their appearance financially related commodities. This speaks to the broad way in which we must understand the commodities.
Some times also happens that when some industry evolves so that many suppliers can do something before it was made by a company, we speak of 'commoditization' of a product or industry, including the pharmaceutical industry where access to certain drugs cheaper mode.
Thus a commodity is a good that has value, utility and a low level of processing.
But, how can this affect us all?
The commodities are mostly denominated in dollars. What is expected of the dollar in the world? This is the really difficult question.
A significant majority think it should depreciate relative to other currencies and is much the general negativity in the world against the dollar. But if something financial markets teach us is that when the majority has adopted a stance against the price of an asset, just the opposite happens with a lot of violence.
This strong appreciation of the dollar would translate globally. If this happens, the price of commodities denominated in dollars, should fall sharply.
Why should it affect us? Because if it was given, when our country a major producer of agricultural commodities, their income would be adversely affected.
We must be with the umbrella handy: you can return to rain at any moment.
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