Two Types Of Commodity Market

Commodity markets

The type of market that deals in the primary economic sector rather than the manufactured goods or the products is called as the commodity market. This is a very common way of trade in the stock market scenario and many people have been investing in this for a long time now. Many multinational companies indulge in these investments and there are also many top level companies that have been doing the leads in the terms of commodity markets.

Classifying the commodity markets

Investors have the liberty to invest in two types of commodity markets and these are,

• Hard commodities: These include the mined out products like the gold and the oil.

• Soft commodities: These include the regular agricultural products like the coffee,

During those ages, clay tokens that were sealed in clay vessels were used and clay tablets were used for indicating the amount that was being invested and many more. During those times, the major investment was in the form of getting a particular number of goats to be delivered to someone and also some agricultural produces like rice and wheat.

As civilization began and as settlements found new places, the need to invest in much higher and valuable things grew. These types of investments saw the growth of several industries and also with the help of this kind of industrialisation several cities and towns grew and developed. Later, the stock market exchange boards were established to keep track of the transactions that were being made. As time grew, the value for commodities increased and with this, the need for a well established source that helped investors in investing in the right commodity also increased. New organisations were established, few of which have grown big and have become big players in the field of stock

since the year 2007. They are the leading publication firm that has been bringing out the market related statistics and the industrial average throughout the year. This was initially founded in the year 1882 by three reporters namely Charles Dow, Edward Jones, and Charles Bergstresser. After a series of extended battle, the company was handed over to the News Corp. firm. These people have been the reason for all the industry related news and the publications that have been able to give an accurate count on the finances.

• S & P:

S & P stands for the Standard & Poor's Financial Services LLC. This is an American financial services company and forms a division of the McGraw Hill Financial publications that brings out the research on the financial matters and also provides analysis for the stocks and the bonds. The company was started way back in the 1860 and was initially called as the Poor's Publishing and Standard Statistics. This was later acquired by the McGraw Hill Financial publications and till date has been named as the S & P Financial Services LLC.

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