Trading commodities is not that hard. What is really hard is to choose the one that is going to be liquid and volatile enough. After all it is all about liquidity and volatility in trading.
So, here is something to think about in the New Year.
1. Brent oil.
This is the most traded and volatile commodity there is.
There is simply nothing more popular than Brent crude oil. Plus, crude oil is so needed in the world that you know that it is not going to go anywhere any time soon. Its price, just like with any other commodities depend on the demand and supply numbers, but with popularity like that it is bound to stay with us for some time.
Although the price for oil is to be watched closely as it is not exactly known for being too stable.
2. Steel.
The second most traded commodity is this alloy of iron and carbon. We never think about it, but it is true. This commodity is extremely important is almost all of the branches of our lives as it is used in everything – from building plants to kitchenware. Looking for something interesting? Steel is for you then.
3. WTI oil.
Yes, this overly popular commodity is only third. Imagine the volumes of the previous two entries! WTI is an American brand of oil and that is saying a lot. Although it is different from Brent with its sulphur content it is just as useful and popular.
Driven out of the ground in three different states and prices in the fourth one it is clear that this commodity creates a lot of jobs and is demanded in a lot of places. That means we are safe from its perishing.
4. Soybeans.
That’s right. These are in high demand and the price for their production is relatively low. That is why it is so popular not only with traders but with producers as well. Majority of soybeans are produced in USA, Brazil, Argentina, China and India.
The price for the commodity can be affected by demand for animal feed, biodiesel, and meat as well as dairy substitutes, along with factors that could affect supply like unusual weather conditions, for example.
5. Iron ore.
Iron is one of the branched of steel production. It is not as easy to extract as we think, but it doesn’t mean that the production of it is going to slow down. Years and years of demand and price-forming are not going to allow that. It is fairly easy to mine and it is really easy to find new ways to use it. very liquid and very popular – what more do we want?