Commodities are basically raw materials that make up the
goods we manufacture, transport or consume. The trading of commodities include
four categories
Energy (such as crude oil, heating oil, natural gas and
gasoline)
Metals (such as gold, silver, platinum and copper)
Livestock and Meat (such as lean
hogs, pork bellies, live cattle and feeder cattle)
Agricultural (such as corn, soybeans, wheat, rice, cocoa,
coffee, cotton and sugar)
Let us explain the corn commodity which comes under the
category of Agriculture.
Corn is the most highly cultivated and traded crop. It is
also the primary food source. Besides food for human consumption, the crop is
an important ingredient in livestock and poultry feeds. Among the entire commodities
corn commodity is the main one.
Let’s know more about corn and the main factors which make it an
important commodity
Corn grown in the world has traditionally
converted into corn syrup and used as a sweetener. Now a day’s corn is
increasingly being used in the production of ethanol and it is no longer just a
food, it has joined the ranks of the energy commodity.
The price of corn holds great potential as energy is always
in great demand in our every growing energy dependent society. The growing
demand for agricultural commodities, including corn, in the coming years will
create an upward pressure on corn prices and in few years corn is going to be
used in place of fossil in the future for generating energy because global
dependence on fossil fuels for generating energy is being reducing day by day.
The corn commodity remains an
interesting commodity to keep an eye on it in the next upcoming
years.
from Next Commodity Trading https://nextcommodity.tumblr.com/post/159297865396
Ryan Best 