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COMMODITY MARKET

COMMODITY MARKET. COMODITIES. stuff that is traded on the market without a difference of quality supplies from different suppliers are mutually substitutable products of uniform quality and value produced in large quantities by many different manufacturers

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COMMODITY MARKET

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  1. COMMODITY MARKET

  2. COMODITIES • stuff that is traded on the market without a difference of quality • supplies from different suppliers are mutually substitutable • products of uniform quality and value produced in large quantities by many different manufacturers • price is determined by supply and demand

  3. TYPES Grains products • wheat • corn • oats Meat products • beef • pork Precious and industrial metals • gold • silver • platinum • palladium • copper • lead

  4. TYPES Energy market • oil • other refinery products Food products • coffee • sugar • cotton • orange juice.

  5. COMMODITIES TRADING • Spot trading „You really see what you buy.“ • Forward contracts Agreement, two parties, fixed future date, fixed future price • Futures contracts Forward, but standardized and transacted through a futures exchange. • Option contracts The buyer of the option gains the right, but not the obligation to engage in that transaction. That´s why the buyer of the option pays option premium to a seller.

  6. COMMODITY MARKETS • Old China • Japan • 1878 – CBOT in Chicago • Hedging, speculations • U.S. regulator -> Commodity Futures Trading Commission.

  7. COMMODITIES EXCHANGES • CME Group • New York Board of Trade • Tokyo Grain Exchange Others: • Africa Mercantile Exchange • Hong Kong Mercantile Exchange • London Metal Exchange

  8. COMMODITY PRICE INDEX • Reuters/Jefferies CRB Index • Standard & Poor's Commodity Index • Dow Jones Commodity Index • Goldman Sachs Commodities Index • Rogers International Commodity Index

  9. DISCUSSION • Do youknowanother index in financial market orisitespeciallyforcommodities? • Whichcommodityismostlytraded? • Do youknowanyCzechcommodityexchange? • Where is bigger volume? Futures or options?

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