Commodities exchange

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Commodities exchange

A commodities exchange is an exchange

Exchange (organized market)

An exchange is a highly organized market where tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought....
where various commodities

Commodity

A commodity is anything for which there is demand, but which is supplied without qualitative product differentiation across a market. It is a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk....
and derivatives

Derivative (finance)

Derivatives are financial contracts, or financial instruments, whose values are derived from the value of something else . The underlying on which a derivative is based can be an asset , an index , or other items ....
products are traded. Most commodity markets across the world trade in agricultural products and other raw material

Raw material

A raw material is something that is acted upon or used by or by human labour or industry, for use as a building material to create some product or structure....
s (like wheat

Wheat

Wheat , is a worldwide cultivated Poaceae from the Levant region of the Middle East. Globally, after maize, wheat is the second most-produced food among the cereal just above rice....
, barley

Barley

Barley is an annual plant cereal grain derived from the grass Hordeum vulgare. It serves as a major animal feed crop, with smaller amounts used for malting and in health food, as well as the making of alcoholic beverages beer and whisky....
, sugar

Sugar

Sugar is a class of edible crystalline substances, mainly sucrose, lactose, and fructose. Human taste buds interpret its flavor as sweet. Sugar as a basic food carbohydrate primarily comes from sugar cane and from sugar beet, but also appears in fruit, honey, sorghum, sugar maple , and in many other sources....
, maize

Maize

Maize , known as corn in some countries, is a cereal domesticated in Mesoamerica and subsequently spread throughout the American continents....
, cotton

Cotton

Cotton is a soft, staple fiber that grows in a form known as a boll around the seeds of the cotton plant a shrub native to tropical and subtropical regions around the world, including the Americas, India and Africa....
, cocoa

Cocoa

Cocoa is the dried and fully fermented fatty seed of the cacao from which chocolate is made. "Cocoa" can often also refer to the drink commonly known as hot chocolate; Cocoa solids, the dry powder made by grinding cocoa seeds and removing the cocoa butter from the dark, bitter cocoa solids; or it may refer to the combination of both cocoa p...
, coffee

Coffee

Coffee is a brewed drink prepared from roasted seeds, commonly called coffee beans, of the Coffea. Caffeinated coffee has a stimulating effect in humans....
, milk

Milk

Milk is an opaque white liquid produced by the mammary glands of female mammals . It provides the primary source of nutrition for newborn mammals before they are able to digestion other types of food....
products, pork bellies, oil

Oil

An oil is a chemical substance that is in a viscosity liquid state at room temperature or slightly warmer, and is both hydrophobic and lipophilic ....
, metal

Metal

In chemistry, a metal is a chemical element whose atoms readily lose electrons to form positive ions , and form metallic bonds between other metal atoms and ionic bonds between nonmetal atoms....
s, etc.) and contracts based on them. These contracts can include spot price

Spot price

The spot price or spot rate of a commodity, a security or a currency is the price that is quoted for immediate Settlement . Spot settlement is normally one or two business days from trade date....
s, forwards

Forward contract

A forward contract is an agreement between two parties to buy or sell an asset at a specified point of time in the future. The price of the underlying instrument, in whatever form, is paid before control of the instrument changes....
, futures

Futures contract

Option (finance)

In finance, an option is a contract between a buyer and a seller that gives the buyer the right?but not the obligation?to buy or to sell a particular asset at a later time at an agreed price....
on futures. Other sophisticated products may include interest rate

Interest rate

An interest rate is the price a borrower pays for the use of money they do not own, for instance a small company might borrow from a bank to kick start their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower....
s, environmental instruments, swaps

Swap (finance)

In finance, a swap is a derivative in which two counterparty agree to trade one stream of cash flows against another stream. These streams are called the legs of the swap....
, or ocean freight contracts

Freight derivative

Freight derivatives, which includes Forward Freight Agreement and options based on these, are financial instruments for trading in future levels of freight rates, for dry bulk common carriers and tank trucks....
.

odities exchanges usually trade futures contract

Futures contract

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Encyclopedia

A commodities exchange is an exchange

Exchange (organized market)

An exchange is a highly organized market where tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought....
where various commodities

Commodity

Derivative (finance)

Raw material

A raw material is something that is acted upon or used by or by human labour or industry, for use as a building material to create some product or structure....
s (like wheat

Wheat

Wheat , is a worldwide cultivated Poaceae from the Levant region of the Middle East. Globally, after maize, wheat is the second most-produced food among the cereal just above rice....
, barley

Barley

Sugar

Maize

Maize , known as corn in some countries, is a cereal domesticated in Mesoamerica and subsequently spread throughout the American continents....
, cotton

Cotton

Cocoa

Coffee

Coffee is a brewed drink prepared from roasted seeds, commonly called coffee beans, of the Coffea. Caffeinated coffee has a stimulating effect in humans....
, milk

Milk

Oil

An oil is a chemical substance that is in a viscosity liquid state at room temperature or slightly warmer, and is both hydrophobic and lipophilic ....
, metal

Metal

Spot price

Forward contract

Futures contract

Option (finance)

Interest rate

Swap (finance)

Freight derivative

Commodities trading

Commodities exchanges usually trade futures contract

Futures contract

In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity of standardized quality at a certain date in the future, at a price determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders...
s on commodities, such as trading contracts to receive something, say corn, in a certain month. A farmer raising corn can sell a future contract on his corn, which will not be harvested for several months, and guarantee the price he will be paid when he delivers; a breakfast cereal producer buys the contract now and guarantees the price will not go up when it is delivered. This protects the farmer from price drops and the buyer from price rises.

Speculators and investors also buy and sell the futures contracts to make a profit and provide liquidity to the system.

Commodities exchanges across the world

Main commodity exchanges worldwide:

Americas

Exchange	Abbreviation	Location	Product Types
Brazilian Mercantile and Futures Exchange	BMF	São Paulo São Paulo S?o Paulo is the largest city in Brazil, and along with Tokyo, Seoul and Mexico City is among the four largest metropolitan regions of the world.... ,Brazil Brazil Brazil , officially the Federative Republic of Brazil , is a country in South America. It is the List of countries and outlying territories by total area country by geographical area, occupying nearly half of South America, the List of countries by population country, and the fourth most populous democracy in the world....	Agricultural, Biofuels, Precious Metals
CME Group CME Group CME Group Inc. is the world?s largest futures exchange. CME Group was created July 12, 2007 from the merger between the Chicago Mercantile Exchange and the Chicago Board of Trade ....	CME	Chicago Chicago Chicago is the largest city in the U.S. state of Illinois and the Midwestern United States, as well as the List of United States cities by population city in the United States with more than 2.8 million residents.... ,US	Agricultural, Biofuels, Precious Metals,Industrial Metals, Energy
Chicago Climate Exchange Chicago Climate Exchange Chicago Climate Exchange is North America?s only voluntary, legally binding greenhouse gas emissions trading for emission sources and offset projects in North America and Brazil....	CCX	Chicago Chicago Chicago is the largest city in the U.S. state of Illinois and the Midwestern United States, as well as the List of United States cities by population city in the United States with more than 2.8 million residents.... ,US	Emissions
HedgeStreet HedgeStreet HedgeStreet is the first Internet-based Commodity Futures Trading Commission Futures exchange. The company operates the HedgeStreet Exchange, which launched in October 2004 and provides Trader with a place where they can Hedge or Speculation on economic events and price movements.... Exchange		California California California is a U.S. state on the West Coast of the United States of the United States, along the Pacific Ocean. It is bordered by Oregon to the north, Nevada to the east, Arizona to the southeast, and to the south the Mexico state of Baja California.... ,US	Energy, industrial Metals
Intercontinental Exchange	ICE	Atlanta, Georgia,US	Energy, Emissions, Agricultural, Biofuels
Kansas City Board of Trade Kansas City Board of Trade The Kansas City Board of Trade , located at 4800 Main Street in Kansas City, Missouri, is a commodity Futures exchange and Option exchange regulated by the Commodity Futures Trading Commission that specializes in the hard red winter wheat -- the principal ingredient of bread....	KCBT	Kansas City Kansas City Kansas City may refer to:* Kansas City Metropolitan Area, metropolitan area surrounding Kansas City, Missouri includes territory in both Missouri and Kansas.... ,US	Agricultural
Memphis Cotton Exchange Memphis Cotton Exchange The Memphis Cotton Exchange is located in Downtown Memphis, Tennessee Memphis, Tennessee, Tennessee, USA, on the corner of Front Street and Union Avenue....		Memphis Memphis, Tennessee Memphis is a city in the southwest corner of the U.S. state of Tennessee, and the county seat of Shelby County, Tennessee. Memphis rises above the Mississippi River on the 4th Chickasaw Bluff just south of the mouth of the Wolf River .... ,US	Agricultural
Mercado a Termino de Buenos Aires Mercado a Término de Buenos Aires MATba is the Buenos Aires Futures and Options Exchange. Matba was created in 1907 with the purpose to register and guarantee futures and options transactions....	MATba	Buenos Aires,Argentina Argentina Argentina, officially the Argentine Republic , is a country in South America, constituted as a federation of 23 provinces and an autonomous city....	Agricultural
Minneapolis Grain Exchange Minneapolis Grain Exchange The Minneapolis Grain Exchange was formed in 1881 as a cash market for grains. The exchange launched its first futures contract, hard red spring wheat two years later....	MGEX	Minneapolis Minneapolis, Minnesota Minneapolis is the largest city in the U.S. state of Minnesota and is the county seat of Hennepin County, Minnesota. The city lies on both banks of the Mississippi River, just north of the river's confluence with the Minnesota River, and adjoins Saint Paul, Minnesota, the state's Capital ....	Agricultural
U.S. Futures Exchange U.S. Futures Exchange U.S. Futures Exchange is a Chicago-based, electronic futures exchange that will wind down its operations at the end of 2008. On December 17, MF Global announced USFE was for sale or would be closed by December 31, 2008....	USFE	Chicago Chicago Chicago is the largest city in the U.S. state of Illinois and the Midwestern United States, as well as the List of United States cities by population city in the United States with more than 2.8 million residents.... ,US	Energy

Asia

Exchange	Abbreviation	Location	Product Types
Bursa Malaysia Bursa Malaysia The Bursa Malaysia or Malaysia Exchange, MYX previously known as Kuala Lumpur Stock Exchange dates back to 1930 when the Singapore Stockbrokers' Association was set up as a formal organisation dealing in securities in British Malaya....	MDEX	Malaysia Malaysia Malaysia is a federation that consists of States of Malaysia in Southeast Asia with a total landmass of . The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government....	Biofuels
Central Japan Commodity Exchange Central Japan Commodity Exchange Central Japan Commodity Exchange is a futures exchange based in Nagoya, Japan.The exchange was established 1 October 1996 from the merger of the Toyohashi Dry Cocoon Exchange, the Nagoya Grain and Sugar Exchange and the Nagoya Textile Exchange, all three based in the Aichi prefecture, central Japan....		Nagoya,Japan	Energy, Industrial Metals, Rubber
Dalian Commodity Exchange Dalian commodity exchange The Dalian Commodity Exchange is a Chinese futures exchange based in Dalian. It is a non-profit, self-regulating and membership legal entity established on February 28, 1993....	DCE	Dalian,China China China is a Culture of China, an ancient civilization, and, depending on perspective, a national or multinational entity extending over a large area in East Asia....	Agricultural, Plastics
Dubai Mercantile Exchange Dubai Mercantile Exchange Located within the Dubai International Financial Centre, the Dubai Mercantile Exchange is the first energy futures exchange in the Middle East....	DME	Dubai Dubai Dubai is one of the seven Emirates of the United Arab Emirates and the most populous city of the United Arab Emirates . It is located along the southern coast of the Persian Gulf on the Arabian Peninsula....	Energy
Dubai Gold & Commodities Exchange Dubai Gold & Commodities Exchange The Dubai Gold and Commodities Exchange , The Exchange was inaugurated on November 22nd, 2005 by His Highness Sheikh Mohammad bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai....	DGCX	Dubai Dubai Dubai is one of the seven Emirates of the United Arab Emirates and the most populous city of the United Arab Emirates . It is located along the southern coast of the Persian Gulf on the Arabian Peninsula....	Precious Metals
Iranian oil bourse Iranian oil bourse The Iranian Oil Bourse International Oil Bourse, Iran Petroleum Exchange or Oil Bourse in Kish is a Commodities exchange which opened on February 17, 2008,....	IOB	Kish Island, Iran Iran Iran , officially the Islamic Republic of Iran and formerly known internationally as Persian Empire until 1935, is a country in Central Eurasia, located on the northeastern shore of the Persian Gulf and the southern shore of the Caspian Sea....	Oil, Gas, Petrochemicals
Kansai Commodities Exchange Kansai Commodities Exchange Kansai Commodities Exchange is a futures exchange based in Osaka, Japan.Trading is conducted at six specified session times through the day. Commodities traded are...	KANEX	Osaka Osaka is a Cities of Japan in Japan, located at the mouth of the Yodo River on Osaka Bay, in the Kansai region of the main island of Honshu.Osaka is a City designated by government ordinance under the Local Autonomy Law and the capital city of Osaka Prefecture.... ,Japan	Agricultural
Multi Commodity Exchange Multi Commodity Exchange Multi Commodity Exchange is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. The turnover of the exchange for the period Apr-Dec 2008 was INR 32 Trillion ....	MCX	India India India, officially the Republic of India , is a country in South Asia. It is the List of countries and outlying territories by total area country by geographical area, the List of countries by population country, and the most populous liberal democracy in the world....	Energy, Precious Metals, Metals, Agricultural
National Multi-Commodity Exchange of India Ltd National Multi-Commodity Exchange of India Ltd National Multi-Commodity Exchange of India Limited - The first De-Mutualised Electronic Multi-Commodity Exchange of India granted the National status on a permanent basis by the Government of India and operational since 26th November 2002....	NMCE	India India India, officially the Republic of India , is a country in South Asia. It is the List of countries and outlying territories by total area country by geographical area, the List of countries by population country, and the most populous liberal democracy in the world....	Precious Metals, Metals, Agricultural
National Commodity Exchange Limited National Commodity Exchange Limited National Commodities Exchange Limited is Pakistan's first futures commodity market having its registered Head office in Karachi. It is the only company in Pakistan to provide a centralized and regulated place for commodity futures trading and is regulated by Securities and Exchange Commission of Pakistan ....		Karachi Karachi is the largest city, seaport and the International financial centre of Pakistan. It is List of metropolitan areas by population in terms of metropolitan population, and is Pakistan's premier centre of banking, industry, and trade....	Precious Metals, Agricultural
National Commodity and Derivatives Exchange	NCDEX	Mumbai Mumbai Mumbai— formerly Bombay, is the capital of the Indian state of Maharashtra. The city proper has approximately 14 million people and, along with the neighbouring suburbs of Navi Mumbai and Thane, Mumbai forms the World's largest urban agglomerations according to the United Nations World Urbanization Prospects report with around 19...	All
	SICOM	Singapore Singapore Singapore , officially the Republic of Singapore, is an island country microstate located at the southern tip of the Malay Peninsula. It lies 137 kilometres north of the equator, south of the Malaysian state of Johor and north of Indonesia's Riau Islands....	Agricultural, Rubber
Tokyo Commodity Exchange Tokyo Commodity Exchange The Tokyo Commodity Exchange is a non-profit organization, and regulates trading of futures contracts and option products of all commodity in Japan....	TOCOM	Tokyo Tokyo , officially , is one of the 47 prefectures of Japan of Japan and located on the eastern side of the main island Honshu. The twenty-three special wards of Tokyo, each governed as a city, cover the area that was once the Tokyo City in the eastern part of the prefecture, and total over 8 million people.... ,Japan	Energy, Precious Metals, Industrial Metals, Agricultural
	TGE	Tokyo Tokyo , officially , is one of the 47 prefectures of Japan of Japan and located on the eastern side of the main island Honshu. The twenty-three special wards of Tokyo, each governed as a city, cover the area that was once the Tokyo City in the eastern part of the prefecture, and total over 8 million people.... ,Japan	Agricultural
Zhengzhou Commodity Exchange Zhengzhou commodity exchange Zhengzhou Commodity Exchange , established in 1990, is a futures exchange in Zhengzhou, one of the three futures exchanges in China.It still specializes in agricultural and chemical product futures, including hard white wheat, strong gluten wheat, sugar, cotton, rapeseed oil and PTA, a petroleum-based chemical product....	CZCE	Zhengzhou,China China China is a Culture of China, an ancient civilization, and, depending on perspective, a national or multinational entity extending over a large area in East Asia....	Agricultural

Europe

Exchange	Abbreviation	Location	Product Types
Climex	CLIMEX	Amsterdam Amsterdam Amsterdam is the Capital of the Netherlands and List of cities in the Netherlands with over 100,000 people of the Netherlands, located in the Provinces of the Netherlands of North Holland in the west of the country.... , the Netherlands	Emissions
NYSE Euronext		Europe Europe Europe is, conventionally, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally divided from Asia to its east by the water divide of the Ural Mountains, the Ural , the Caspian Sea, and by the Caucasus Mountains to the southeast....	Agricultural
European Climate Exchange European Climate Exchange The European Climate Exchange manages the product development and marketing for ECX Carbon Financial Instruments , listed and admitted to trading on the ICE Futures Commodities exchange....	ECX	Europe Europe Europe is, conventionally, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally divided from Asia to its east by the water divide of the Ural Mountains, the Ural , the Caspian Sea, and by the Caucasus Mountains to the southeast....	Emissions
London Metal Exchange London Metal Exchange The London Metal Exchange or LME is the futures exchange with the world's largest market in option s and futures contracts on base metal and other metals....	LME	London London London is the capital of both England and the United Kingdom, and the most populous municipality in the European Union. An important settlement for two millennia, History of London goes back to its founding by the Roman Empire.... , UK	Industrial Metals, Plastics
Risk Management Exchange	RMX	Hannover, Deutschland	Agricultural

Oceania

Exchange	Abbreviation	Location	Product Types
Australian Securities Exchange	ASX	Sydney Sydney Sydney is the List of cities in Australia by population in Australia, with a metropolitan area population of approximately 4.34 million . It is the List of Australian capital cities of New South Wales, and was the site of the first British Empire colony in Australia.... , Australia	Agricultural

Commodities exchange

Commodities trading

Commodities exchanges across the world

See also