{"id":35438,"date":"2022-12-07T17:42:48","date_gmt":"2022-12-07T17:42:48","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?post_type=markets&#038;p=35438"},"modified":"2025-10-30T13:21:46","modified_gmt":"2025-10-30T07:51:46","slug":"what-are-commodities","status":"publish","type":"markets","link":"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/what-are-commodities\/","title":{"rendered":"What Are Commodities"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"35438\" class=\"elementor elementor-35438\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-23ba90b elementor-section-full_width tab_container elementor-section-height-default elementor-section-height-default\" data-id=\"23ba90b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 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data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\">\t<script>\n\t\tjQuery(document).ready(function(){\n\t\t\tjQuery(\"#post_chapters a[href*='\" + location.pathname + \"']\").addClass(\"current\");\n\t\t})\n\t<\/script>\n\t<div class=\"desktop_chapters\"><div id=\"post_chapters\"><div class=\"post_chapters-heading\">Chapters<\/div><ul><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/what-are-commodities\/\">What Are Commodities<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/what-is-a-commodity-market\/\">What Is A Commodity Market<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/how-does-commodities-business-work\/\">How Does Commodities Business Work<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/risks-involved-in-commodity-market\/\">Risks Involved In Commodity Market<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/commodities-futures-trading\/\">Commodities Futures Trading<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/functioning-of-commodities-market\/\">Functioning Of Commodities Market<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/due-diligence\/\">Due Diligence<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/exchanges-involved-in-commodity-market\/\">Exchanges Involved In Commodity Market<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/structure-of-commodities-market\/\">Structure Of Commodities Market<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/international-commodity-exchanges\/\">International Commodity Exchanges<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/forward-markets-commission\/\">Forward Markets Commission<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/commodities-transaction-tax\/\">Commodities Transaction Tax<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/financialization-of-commodities\/\">Financialization of Commodities<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/commodity-trading-course\/points-to-remember-before-trading-in-commodities-market\/\">Points To Remember Before Trading In Commodities Market<\/a><\/li><\/ul><\/div><\/div><div class=\"chapters_toggle\" title=\"chapters\"><a title=\"chapters\" href=\"#\" id=\"open_chapters\"><span>View Chapters<\/span>&nbsp;&nbsp;&nbsp;<i class=\"fa fa-chevron-right\"><\/i><\/a><a title=\"chapters\" href=\"#\" id=\"close_chapters\" style=\"display:none;\"><span>Hide Chapters<\/span>&nbsp;&nbsp;&nbsp;<i class=\"fa 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>Slides<\/span>                            \n                                                    <\/li>\n                                            <li id=\"videos\" class=\" eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"3\" role=\"tab\" tabindex=\"-1\" aria-controls=\"videos-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"far fa-eye\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Videos<\/span>                            \n                                                    <\/li>\n                                    <\/ul>\n            <\/div>\n            \n            <div class=\"eael-tabs-content\">\n\t\t        \n                    <div id=\"study-tab\" class=\"clearfix eael-tab-content-item active-default\" data-title-link=\"study-tab\">\n\t\t\t\t        <p><div class='white' style='background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;'>\n<div id='text_slider' class='owl-carousel sa_owl_theme owl-pagination-true' data-slider-id='text_slider' style='visibility: visible;visibility:visible;'>\n<div id='text_slider_slide01' class='sa_hover_container' data-hash='What are physical commodities' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h3 style=\"text-align: left\"><strong><span style=\"color: #f1566d\">1.1 What are physical commodities<\/span><\/strong><\/h3>\r\n<p style=\"text-align: center\"><a href=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg\"><img fetchpriority=\"high\" decoding=\"async\" width=\"500\" height=\"500\" class=\"aligncenter wp-image-45700 size-full\" role=\"img\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg\" alt=\"\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg 2048w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg 96w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Auction-amico.svg 500w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<h3 style=\"text-align: left\">\u00a0<\/h3>\r\n<p>The trade in physical commodities is important for global economy. There are fundamental raw materials from which we build and power cities, run transport and feed ourselves \u2013 the basic stuff of life. Commodities are basic products, but not every basic product is a commodity. So what makes them different? It is important to stress their physical nature. Ultimately, one way or another, all commodities come out of the ground. Fundamentally, these are products created by natural forces.<\/p>\r\n<p>There are certain implications in commodity market- 1) every shipment is unique \u2013 its chemical form depends on exactly when and where it originated 2) There is no such thing as a standard physical commodity. To be saleable, commodities have to be put into a usable form and moved to where they can be used, at the time they are needed.<\/p>\r\n<p><strong>COMMODITIES FOR HEAT, TRANSPORT, CHEMICAL MANUFACTURING AND ELECTRICITY<\/strong><\/p>\r\n<p>&nbsp;<\/p>\r\n<p><img decoding=\"async\" class=\"size-medium wp-image-35264 aligncenter\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/1-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/1-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/1-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/1-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/1-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/1-96x96.png 96w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/1.png 500w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p><\/div>\n<div id='text_slider_slide02' class='sa_hover_container' data-hash='Key Characteristics ' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h3 style=\"text-align: left\"><strong><span style=\"color: #f1566d\">1.2.Key\u00a0 Characteristics<\/span><\/strong><\/h3>\r\n<p><a href=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg\"><img decoding=\"async\" width=\"500\" height=\"500\" class=\"aligncenter wp-image-45701 size-full\" role=\"img\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg\" alt=\"\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg 2048w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg 96w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Audit-amico.svg 500w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>Physical commodities come in all shapes and sizes, but they also have certain characteristics in common:<\/p>\r\n<ul>\r\n<li>They are delivered globally, including by sea, usually in bulk.<\/li>\r\n<li>Economies of scale favour bulk delivery. The cost of transportation makes location a significant pricing factor.<\/li>\r\n<li>Commodities with similar physical characteristics are exchangeable, but these are not standard items. Exchanging them may have an effect on price and quality.<\/li>\r\n<li>There is no premium for branded goods. Pricing is determined by product quality and availability.<\/li>\r\n<\/ul>\r\n<p>They can be stored for long, in some cases unlimited, periods. It is these characteristics that make commodities suitable for trading in global markets.<\/p><\/div>\n<div id='text_slider_slide03' class='sa_hover_container' data-hash='Fundamentals of Commodity Pricing' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h3 style=\"text-align: left\"><strong><span style=\"color: #f1566d\">1.3.Fundamentals of\u00a0 commodity\u00a0 pricing<\/span><\/strong><\/h3>\r\n<p><a href=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" class=\"aligncenter wp-image-45702 size-full\" role=\"img\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg\" alt=\"\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg 2048w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg 96w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Bankruptcy-amico.svg 500w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>End-users buy physical commodities to meet staple needs. The commodity has to be fit for purpose and it needs to be available. These requirements determine the three pillars for pricing:<\/p>\r\n<ul>\r\n<li>Where: delivery location<\/li>\r\n<li>When: delivery timing<\/li>\r\n<li>What: the product quality or grade<\/li>\r\n<\/ul>\r\n<p>Commodity trading firms bridge gaps between producers and consumers based on these three pillars, through transformations in space, time and form.<\/p>\r\n<ul>\r\n<li>Space: transport the commodity to alter its location;<\/li>\r\n<li>Time: store the commodity to change the timing of delivery;<\/li>\r\n<\/ul>\r\n<p>Form: blend the commodity to affect its quality or grade.<\/p><\/div>\n<div id='text_slider_slide04' class='sa_hover_container' data-hash='Main Types' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h3 style=\"text-align: left\"><strong><span style=\"color: #f1566d\">1.4.Main Types<\/span><\/strong><\/h3>\r\n<p><a href=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" class=\"aligncenter wp-image-45704 size-full\" role=\"img\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg\" alt=\"\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg 2048w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg 96w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Business-solution-amico.svg 500w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>Broadly speaking, physical commodities come in two forms:<\/p>\r\n<ul>\r\n<li><strong>Primary commodities<\/strong> are either extracted or captured directly from natural resources. They come from farms, mines and wells. As natural products that come out of the ground, primary commodities are non-standard \u2013 their quality and characteristics vary widely.<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<p><strong>Secondary commodities<\/strong> are produced from primary commodities to satisfy specific market needs. Crude oil is refined to make gasoline and other fuels; concentrates are smelted to produce metals. There may be minor variations in quality depending on how a secondary commodity is produced.<\/p><\/div>\n<div id='text_slider_slide05' class='sa_hover_container' data-hash='Which kinds of commodities are traded in the world?' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h3 style=\"text-align: left\"><strong><span style=\"color: #f1566d\">1.5 Which kinds of commodities are traded in the world?\u00a0<\/span><\/strong><\/h3>\r\n<p><a href=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" class=\"aligncenter wp-image-45705 size-full\" role=\"img\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg\" alt=\"\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg 2048w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg 96w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Credit-assesment-amico.svg 500w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>In the global markets, there are four categories of commodities in which trading takes place:<\/p>\r\n<ul>\r\n<li>Energy (e.g., crude oil, heating oil, natural gas and gasoline).<\/li>\r\n<li>Metals (e.g., precious metals such as gold, silver, platinum and palladium; base metals such as aluminium, copper, lead, nickel, tin and zinc; and industrial metals such as steel).<\/li>\r\n<li>Livestock and meat (e.g., lean hogs, pork bellies, live cattle and feeder cattle).<\/li>\r\n<\/ul>\r\n<p>Agricultural (e.g., corn, soybean, wheat, rice, cocoa, coffee, cotton and sugar).<\/p><\/div>\n<div id='text_slider_slide06' class='sa_hover_container' data-hash='Factors Influencing The Commodity Prices' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h3 style=\"text-align: left\"><strong><span style=\"color: #f1566d\">1.6.Factors influencing the commodity prices\u00a0<\/span><\/strong><\/h3>\r\n<p style=\"text-align: center\"><a href=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" class=\"alignnone wp-image-45706 size-full\" role=\"img\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg\" alt=\"\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg 2048w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg 96w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/12\/Finance-amico.svg 500w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<ol>\r\n<li><strong>Demand &amp; Supply<\/strong>: Demand for the commodity and supply of the same are the two basic factors that drives commodity prices. Higher the demand for the commodity dearer will be its price and higher the supply of commodities cheaper will be the price.<\/li>\r\n<li>2<strong>. Seasonality<\/strong>: some commodities follow a certain schedule of production cycle which can impact the prices of the commodities. For example, agricultural commodities, in harvesting season, due to an increase in supply, prices of commodities can come down whereas in sowing season supply remains lower which results in increase in prices.<\/li>\r\n<li><strong>News:<\/strong> just like any other financial product, commodity prices are sensitive to the news and rumours. Hence any important news \/ directly related news can affect the commodity prices significantly.<\/li>\r\n<li><strong>Economic conditions:<\/strong> the domestic and macroeconomic conditions can influence the commodity prices. Various economic indicators like GDP growth rate, industrial production, inflation rate etc. plays very important role in determining price trend of the commodity.<\/li>\r\n<li><strong>Weather conditions<\/strong>: weather is one of the important factors that can affect the prices of commodity specially agriculture commodity at high levels.<\/li>\r\n<li><strong>Geo-political developments<\/strong>: commodities that have global demand like crude oil are subject to price fluctuations. For example, tensions in the middle-east region may affect prices of crude oil potential disturbances in supply chain.<\/li>\r\n<\/ol><\/div>\n<\/div>\n<\/div>\n<script type='text\/javascript'>\n\tjQuery(document).ready(function() {\n\t\tjQuery('#text_slider').owlCarousel({\n\t\t\titems : 1,\n\t\t\tsmartSpeed : 400,\n\t\t\tautoplay : false,\n\t\t\tautoplayHoverPause : false,\n\t\t\tsmartSpeed : 400,\n\t\t\tfluidSpeed : 400,\n\t\t\tautoplaySpeed : 400,\n\t\t\tnavSpeed : 400,\n\t\t\tdotsSpeed : 400,\n\t\t\tdotsEach : 1,\n\t\t\tloop : false,\n\t\t\tnav : true,\n\t\t\tnavText : ['Previous','Next'],\n\t\t\tdots : true,\n\t\t\tresponsiveRefreshRate : 200,\n\t\t\tslideBy : 1,\n\t\t\tmergeFit : true,\n\t\t\tautoHeight : true,\n\t\t\tmouseDrag : false,\n\t\t\ttouchDrag : true\n\t\t});\n\t\tjQuery('#text_slider').css('visibility', 'visible');\n\t\tvar owl_goto = jQuery('#text_slider');\n\t\tjQuery('.text_slider_goto1').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 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                   <\/div>\n\t\t        \n                    <div id=\"slides-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"slides-tab\">\n\t\t\t\t        <p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11528 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/coming-soon-person-g8026473a8_1920-removebg-preview.png\" alt=\"\" width=\"612\" height=\"408\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/coming-soon-person-g8026473a8_1920-removebg-preview.png 612w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/coming-soon-person-g8026473a8_1920-removebg-preview-300x200.png 300w\" sizes=\"(max-width: 612px) 100vw, 612px\" \/><\/p>                    <\/div>\n\t\t        \n                    <div id=\"videos-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"videos-tab\">\n\t\t\t\t        <p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11528 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/coming-soon-person-g8026473a8_1920-removebg-preview.png\" alt=\"\" width=\"612\" height=\"408\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/coming-soon-person-g8026473a8_1920-removebg-preview.png 612w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/coming-soon-person-g8026473a8_1920-removebg-preview-300x200.png 300w\" sizes=\"(max-width: 612px) 100vw, 612px\" \/><\/p>                    <\/div>\n\t\t                    <\/div>\n        <\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>A mutual fund is an investment program that is professionally managed and diversified in its investments.<\/p>\n","protected":false},"author":1,"featured_media":11397,"parent":35435,"menu_order":1,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"class_list":["post-35438","markets","type-markets","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/35438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets"}],"about":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/types\/markets"}],"author":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/comments?post=35438"}],"version-history":[{"count":6,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/35438\/revisions"}],"predecessor-version":[{"id":75772,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/35438\/revisions\/75772"}],"up":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/35435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media\/11397"}],"wp:attachment":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media?parent=35438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/categories?post=35438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}