As the world of online trading has rapidly grown over the last thirty years, the markets have changed and grown as well. Along with the many online platforms for forex trading, currency trading, stock sharing and various investments for traders the commodity market is a choice which more and more traders are looking at. There are two types of commodities; hard and soft. Hard commodities are defined as gold, silver and oil. For example ones which are mined. Soft commodities are classed as agricultural products such as wheat, coffee, sugar and cocoa.
The commodity markets help to define a price rate on the markets which is stable and secure especially those in future contracts. Commodity markets allow suppliers to lock the price in that they will essentially receive for their products at a future date, meaning the price is also at a fixed point for the buyer. There are many key factors which affect the commodity market. Read on to find out more.