Community Forex Questions
What are the main categories of commodities?
Commodities are broadly grouped into main categories based on their source and economic use. These categories help traders, investors, and policymakers understand market behaviour and price drivers more clearly.
The first major category is energy commodities. This includes crude oil, natural gas, coal, and refined products like gasoline and heating oil. Energy commodities are essential for transportation, electricity generation, and industrial activity. Their prices are highly sensitive to geopolitical events, production decisions, and global economic growth.
The second category is metal commodities, which are divided into precious metals and industrial metals. Precious metals such as gold, silver, platinum, and palladium are often used as stores of value and inflation hedges. Industrial metals like copper, aluminium, nickel, and zinc are closely tied to manufacturing, construction, and infrastructure development.
The third category is agricultural commodities, also called soft commodities. These include crops such as wheat, corn, rice, soybeans, coffee, sugar, and cotton. Agricultural commodities are strongly influenced by weather conditions, seasonal cycles, and global food demand.
The fourth category is livestock commodities, which covers animals raised for food production, mainly cattle and hogs. Prices in this category depend on feed costs, disease outbreaks, and consumer demand for meat products.
Together, these categories form the backbone of global commodity markets, each responding to different supply and demand forces while playing a vital role in the world economy.
The first major category is energy commodities. This includes crude oil, natural gas, coal, and refined products like gasoline and heating oil. Energy commodities are essential for transportation, electricity generation, and industrial activity. Their prices are highly sensitive to geopolitical events, production decisions, and global economic growth.
The second category is metal commodities, which are divided into precious metals and industrial metals. Precious metals such as gold, silver, platinum, and palladium are often used as stores of value and inflation hedges. Industrial metals like copper, aluminium, nickel, and zinc are closely tied to manufacturing, construction, and infrastructure development.
The third category is agricultural commodities, also called soft commodities. These include crops such as wheat, corn, rice, soybeans, coffee, sugar, and cotton. Agricultural commodities are strongly influenced by weather conditions, seasonal cycles, and global food demand.
The fourth category is livestock commodities, which covers animals raised for food production, mainly cattle and hogs. Prices in this category depend on feed costs, disease outbreaks, and consumer demand for meat products.
Together, these categories form the backbone of global commodity markets, each responding to different supply and demand forces while playing a vital role in the world economy.
Commodities are generally grouped into a few main categories based on their use and origin. Energy commodities include crude oil, natural gas, coal, and gasoline. These are vital for transportation, power generation, and industrial activity, making them highly sensitive to economic and geopolitical events.
Metal commodities are divided into precious metals like gold, silver, and platinum, and industrial metals such as copper, aluminium, and nickel. Precious metals are often seen as stores of value, while industrial metals reflect economic growth.
Agricultural commodities cover crops like wheat, corn, rice, coffee, and sugar. Their prices are influenced by weather, seasonal cycles, and global demand.
Livestock commodities include cattle and hogs, mainly driven by feed costs, disease risks, and consumer demand. Together, these categories shape global commodity markets.
Metal commodities are divided into precious metals like gold, silver, and platinum, and industrial metals such as copper, aluminium, and nickel. Precious metals are often seen as stores of value, while industrial metals reflect economic growth.
Agricultural commodities cover crops like wheat, corn, rice, coffee, and sugar. Their prices are influenced by weather, seasonal cycles, and global demand.
Livestock commodities include cattle and hogs, mainly driven by feed costs, disease risks, and consumer demand. Together, these categories shape global commodity markets.
Dec 31, 2025 03:08