International Commodity Trading

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Commodity trading is one of the preferred investment options. A huge number of investors put their money in these options for several reasons like less volatility of this market. At the same time the growth prospects of this market are also good. The commodity market investors put their money in both the national and international markets and the recent growth in the international markets have attracted more investors. Making investments in the international commodities markets is not a new concept. According to the available data, these investments were started in Osaka, Japan in the 18th century. The shipping merchants were the most prominent traders at that time. Later, international commodity trading was also started in the United States of America in the mid-nineteenth century. The commodities that were traded at that time were corns, cotton and a few other agricultural products.

The trading activities in the international commodities market are regulated by a large number of agreements. The national policies of a number of countries regarding the commodity trading activities also play a major role in shaping the global commodities trading markets. The commodity exchanges play an important role in increasing the commodity trading activities among the investors. The international commodities exchanges are used widely by the investors to buy or sell the commodities to the interested people. There are a number of such exchanges and the United States of America hasthe maximum number of commodities followed by the United Kingdom. Only those commodities are selected for trading purpose that has huge demand in the local market. Some of these are the agricultural products, metals, petroleum etc. At the same time, there are certain international commodities exchanges that have been built for the purpose of trading some particular commodities like coffee, gold, petroleum and so on.

The futures and options are a part of the international commodity trading activities and the international commodity exchanges are used for future or commodity trading. Both of these are kind of contracts with different features related to the commodity trading. The trading in the international commodity markets is done at a larger scale and the closing prices are made public at the end of the day. These prices are very important for the global markets.

Some of the biggest International Commodities exchanges are the following:

London Metal Exchange
American Stock Exchange
London International Financial
Futures and Options Exchange
Minneapolis Grain Exchange
Chicago Board of Trade
New York Board of Trade
Sydney Futures Exchange Ltd.
New York Mercantile Exchange

Tokyo Commodity Exchange

South African Futures Exchange
Chicago Mercantile Exchange 
Chicago Board Options Exchange
(2)
French Futures & Options 
Exchange
Tokyo Grain Exchange

Bolsa de Mercadorias & Futuros

Kansas City Board of Trade
European Warrant Exchange
Hong Kong Futures Exchange
Tokyo International Financial 
Futures Exchange


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