Tuesday, May 6, 2008
Saturday, May 3, 2008
Friday, April 18, 2008
Commodities exchange
Commodities exchange
From Wikipedia, the free encyclopedia
A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork bellies, oil, metals, etc.) and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures. Other sophisticated products may include interest rates, environmental instruments, swaps, or ocean freight contracts. Steel contracts started to be traded for the first time on the London Metal Exchange in 2007.
Commodities trading
Commodities exchanges usually trade futures contracts on commodities, such as trading contracts to receive something, say corn, in a certain month. A farmer raising corn can sell a future contract on his corn, which will not be harvested for several months, and guarantee the price he will be paid when he delivers; a breakfast cereal producer buys the contract now and guarantees the price will not go up when it is delivered. This protects the farmer from price drops and the buyer from price rises.
Speculators and investors also buy and sell the futures contracts to make a profit and provide liquidity to the system
Read more...
From Wikipedia, the free encyclopedia
A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork bellies, oil, metals, etc.) and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures. Other sophisticated products may include interest rates, environmental instruments, swaps, or ocean freight contracts. Steel contracts started to be traded for the first time on the London Metal Exchange in 2007.
Commodities trading
Commodities exchanges usually trade futures contracts on commodities, such as trading contracts to receive something, say corn, in a certain month. A farmer raising corn can sell a future contract on his corn, which will not be harvested for several months, and guarantee the price he will be paid when he delivers; a breakfast cereal producer buys the contract now and guarantees the price will not go up when it is delivered. This protects the farmer from price drops and the buyer from price rises.
Speculators and investors also buy and sell the futures contracts to make a profit and provide liquidity to the system
Read more...
Commodity broker
Commodity broker
From Wikipedia, the free encyclopedia
A commodity broker is a firm or individual who executes orders to buy or sell commodity contracts on behalf of clients and charges them a commission. A firm or individual who trades for his own account is called a trader. Commodity contracts include futures, options, and similar financial derivatives. Clients who trade commodity contracts are either hedgers using the derivatives markets to manage risk, or speculators who are willing to assume that risk from hedgers in hopes of a profit.
While historically commodity brokers traded grain and livestock futures contracts, today commodity brokers trade a wide variety of financial derivatives based on not only grain and livestock, but also derivatives based on metals, energy, stock indexes, equities, bonds, currencies, and an ever growing list of other underlying assets. Ever since the 1980s, the majority of commodity contracts traded are financial derivatives with financial underlying assets such as stock indexes and currencies.
Read more...
From Wikipedia, the free encyclopedia
A commodity broker is a firm or individual who executes orders to buy or sell commodity contracts on behalf of clients and charges them a commission. A firm or individual who trades for his own account is called a trader. Commodity contracts include futures, options, and similar financial derivatives. Clients who trade commodity contracts are either hedgers using the derivatives markets to manage risk, or speculators who are willing to assume that risk from hedgers in hopes of a profit.
While historically commodity brokers traded grain and livestock futures contracts, today commodity brokers trade a wide variety of financial derivatives based on not only grain and livestock, but also derivatives based on metals, energy, stock indexes, equities, bonds, currencies, and an ever growing list of other underlying assets. Ever since the 1980s, the majority of commodity contracts traded are financial derivatives with financial underlying assets such as stock indexes and currencies.
Read more...
Friday, April 11, 2008
Closing N.Y. Coffee: Higher, Slow Action
March 12-(15:20 ET)-May coffee futures closed higher in slow and uneventful action inside a 265-point range. Specs dominated most of the trading.
Buying was prompted by the large gains posted in the London market.
Prices in London finished once again above the $2,600 per ton mark and an inverted market pattern is developing there.
A market is called inverted when prices of nearby deliveries are higher than the following contracts and is usually a sign of supply tightness.
The N.Y. market announced a temporary change in the opening time from 1:30ET to 2:30ET from March 10 to March 28.
The May contract settled 190 points higher at $1.5395.
The July contract settled 195 points higher at $1.5855.
The May contract last traded 295 points higher at $1.5500 trading in a range between $1.5245 and $1.5515.
The July contract last traded 305 points higher at $1.5750 trading in a range between $1.5500 and $1.5750.
The balance of contracts last traded 305 points higher to 210 points higher.
The kck8/kcn8 spread last traded 10 points lower at minus 250.
The kcn8/kcu8 spread last traded 20 points higher at minus 195.
Total estimated volume for today was of 16,369 contracts traded.
Read more...
http://www.commoditytrader.net/news_commod.htm
Buying was prompted by the large gains posted in the London market.
Prices in London finished once again above the $2,600 per ton mark and an inverted market pattern is developing there.
A market is called inverted when prices of nearby deliveries are higher than the following contracts and is usually a sign of supply tightness.
The N.Y. market announced a temporary change in the opening time from 1:30ET to 2:30ET from March 10 to March 28.
The May contract settled 190 points higher at $1.5395.
The July contract settled 195 points higher at $1.5855.
The May contract last traded 295 points higher at $1.5500 trading in a range between $1.5245 and $1.5515.
The July contract last traded 305 points higher at $1.5750 trading in a range between $1.5500 and $1.5750.
The balance of contracts last traded 305 points higher to 210 points higher.
The kck8/kcn8 spread last traded 10 points lower at minus 250.
The kcn8/kcu8 spread last traded 20 points higher at minus 195.
Total estimated volume for today was of 16,369 contracts traded.
Read more...
http://www.commoditytrader.net/news_commod.htm
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