Learning about each particular commodity is an important step before you begin trading commodities. Each commodity profile includes the basics of contract specifications, the fundamentals, important market reports for that commodity and trading tips.

Grains

Many of the grain commodities have been trading on futures exchanges have been around many decades and they are some of the most active markets to trade. They tend to be most volatile during the summer months as whether can be a big market mover.

• Corn

• Soybeans

• Wheat

The terms “commodities” and “futures” are often used to describe commodity trading or futures trading. You can think of them as generic terms to describe the markets. It is similar to the way “stocks” and “equities” are used when investors talk about the stock market. Commodities are the actual physical goods like corn, soybeans, gold, crude oil, etc. Futures are contracts of commodities that are traded at a futures exchange like the Chicago Board of Trade (CBOT). Futures contracts have expanded beyond just commodities; now there are futures contracts on financial markets like the S&P 500, t-notes, currencies and many others.

Futures are standardized contracts among buyers and sellers of commodities that specify the amount of a commodity, grade / quality and delivery location. Commodity trading with futures contracts takes place at a futures exchange and is entirely anonymous.