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The Commodity Market is a financial market that deals in the trading of commodities. It is a physical or virtual marketplace for buying, selling and trading raw or primary products. It facilitates price discovery and price risk management of commodities. It includes physical trading in derivatives using spot prices, forwards, futures and options on futures. Commodity Market participants include producers, consumers, traders, hedgers, financial institutions, commodity exchanges and other intermediaries.
The Commodity Market is an important part of the global economy, providing a platform for producers and consumers to manage price risk and to facilitate the transfer of commodities from producers to consumers. It also provides a platform for investors to gain exposure to commodities.
Some companies in the Commodity Market include Cargill, Archer Daniels Midland, Bunge, Glencore, Trafigura, Louis Dreyfus, and Vitol. Show Less Read more