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.
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.
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.