Commodity Compass

    Primer: Metal Commodities History Metal commodities, especially since the industrial revolution, have been a backbone to just about all economies. From basic engines and machines to complex copper wiring and microchips, metals are embedded in almost every single part of modern life. Gold and silver that were once used as direct currency now offer investors a store of value and a "hedge against inflation". Industrial metals such as copper, iron, and tin have been instrumental in many machines, tools, weapons, and other technological developments. Top Product Groups Iron Ore Copper Aluminum Nickel Zinc Lead Gold Silver Basic Supply Chain The supply chain for metal commodities can be complex and involve several stages, from mining and extraction to processing and refining to manufacturing and distribution. A general overview of the supply chain for metal commodities: Mining and extraction: The first stage of the metal commodity supply chain involves the extraction of raw...

   Primer: Energy Commodities History Energy commodities have been a critical part of human civilization for centuries, providing the fuel and power necessary for economic and social development. The use of wood as an energy source dates back to ancient times, and it was later supplemented by the use of coal in the industrial revolution of the 18th and 19th centuries. In the late 19th and early 20th centuries, the discovery and production of oil revolutionized the energy industry, leading to the widespread use of petroleum as a source of fuel for transportation and industry. The discovery of crude oil as a cheap alternative to whale oil to power oil lamps was the pivotal development that launched the industry as a whole. In the latter half of the 20th century, the rise of nuclear power and alternative energy sources such as solar and wind power began to challenge the dominance of fossil fuels. Today, the energy market is dominated by a mix of traditional fossil fuels and renew...

 Primer: Agriculture Commodities History     Agricultural products have been traded since agrarian societies. It was regulated by the Chicago board of trade in 1848. Top Product Groups Grains and Oilseeds (Corn, Soybeans, Oats, Rice, Wheat) Livestock (Cattle, Hogs, Poultry) Dairy (Milk, Butter, Whey) Lumber Textiles (Cotton, Wool) Softs (Cocoa, Coffee, Sugar) Basic Supply Chain Farm to Flour Mill or other processors to Consumer. Pricing Much of agricultural commodities, like the others, trade on supply and demand. When world events happen and trade embargos are set, production is increased or cut back, or war breaks out in major importers or exporters, supply or demand can experience a shock, adjusting prices to a new equilibrium. Shipping in bulk always reduces costs because of economies of scale. Futures and other such derivative products are often used by consumers or producers to hedge price risk. Traders may use them to hedge risk while they transport goods. Transpor...