Commodity trade industry

About the commodity industry

The commodity industry can seem complex and difficult to understand for those who are new to it. This page summarises the fundamental concepts to help you understand how the industry operates.

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Commodities - a definition

What are commodities?

Commodities are at the heart of our modern life. They are the physical raw materials that feed us, provide electricity and heat, and can be found in everyday goods that we purchase.

Commodities are generally divided into three categories: agricultural, energy and metals and minerals. Commodity finance has been added as a fourth category, as it is key in supporting trade in commodities, and provides distinct career opportunities.

The basics of Commodity trading

So, what does it mean to trade in commodities?

From the moment raw materials are produced, they must be transformed in space, time and form before they reach their consumer or next stage or processing.

This means commodities need to be put in usable form, transported to where they are needed and at a time they are needed. Commodity traders play a crucial role in this process. Learn more about each commodity category, and the role of the traders below.

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© Erasmus University Rotterdam - Alexander Santos Lima

The industry

Explore the industry

Agriculture
The agricultural commodity trade feeds a growing population and serves as a lifeline for farmers, traders, and consumers worldwide.
Commodity finance
Commodity finance plays a vital role in facilitating liquidity, mitigating risk, and driving innovation in the dynamic world of commodity trading.
Energy
Energy commodities drive economies, fuel industries, and power transportation networks, making them essential components of global trade.
Metals
Metals and minerals trading is a cornerstone of global commerce, driving innovation and shaping the industrial landscape

Ready to start your career in commodities?

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It is a long established fact that a reader will be distracted by the real conten of a page when looking at its layout. The point of using Lorem Ipsum is.

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