In a broader sense, commodity is said to the goods or any commercial item which is worthy of treasured significance in a country of its origin. For this reason, commodities are generally exchanged or sold to the country which is deficient in it. This is known as trading of
commodities that promotes bilateral relationships and fulfills the demands of the recipient country. It is a matter of strong economic basis to know the facts behind these commodities in order to know the strength of our mighty economy. Commodities trading are as important for any country as army is important for a nation defense. This post will let you know the top 10 most traded commodities of the world.
It is better to say wheat as the “life commodity” because the uncountable food products from bread to cake are wheat dependent. As starch holds great worth in health and fitness, thus instead of other commodities, people are gaining awareness regarding the proper utilization of wheat and same trend is being observed in wheat traders. China is the top producer of wheat and then comes India and Unites States.
Cotton is the top traded commodity item in both ancient and modern era of time. Our clothes of stylish designs are made up of cotton in a whole. From this, we can realize the utmost implication of this famous commodity. India, China and Europe has huge production of cotton at their provincial levels but middle east being deficient, making maximum trade in it. In production of cotton, China also takes lead and same positions belong to India and United States.
If we name the traders who are investing a lot of money on few commodity items then corn comes to be at the top of list. It is not only used for human food products but more commonly used for the livestock feed formulations including poultry feed and concentrates for the ruminant rations which are rich source of energy. Thus, commodity price index steeply turns high in this most traded commodity of corn in Pakistan and India but top producer of maize is United States.
Silver commodity has always been a fight among the commodity traders of high prestige and status. Despite local government severe policies and regulations against the smuggling of silver metals, the businessmen and market holders are still trading in it more speedily. It comes under the category of “soft commodity” because of its fragile exchange and trade.
It needs no clarification and justification that why sugar is important? Because it is an essential part of house hold edible materials. Since, Brazil has come up with top sugar producer followed by China and India. European countries are striving for its maximum production at unit level to promote sugar trading to other nearby regions.
5. Natural Gas
Natural gas is another important commodity which should be called as the commodity that makes the life comfortable in terms of cooking and heating purpose. Russia and North America are known to be pioneers in natural gas production. Energy trading i.e. natural gas substitution is a wide competition in the west Asia.
4. Brent Oil
Brent oil has managed to place itself in the top most traded commodities due to its sweet aroma. It was originated from the core of the North Sea and traded comprehensively between the Europe and North America. Literally, the word Brent is acronym indeed, which was first found in Ness, Broom and Tarbat.
A handsome number of commodity traders are found making business with gold. By the way, gold is an ornamental and fairly popular commodity all over the world. Several reasons support the enhancements and the uplift in the gold investors who pay the cash in return of old gold to the traders and aristocratic businessmen.
Here comes the second most traded commodity of the world, the coffee. Its large consumers are found in America where on an average 4 billion of coffee is consumed annually. Also, the major producers are Europeans thus named after the reason behind huge consumption. Brazil is one of the largest exporter of coffee and tea.
1. Crude Oil
Crude is an arbitrary word means the raw or impure, thus the crude oil is an oil which is impure and refineries tend to make it pure after recycling it. Oil trading is the top most consumed commodity between Middle East and the Northern East. As we people know the excessive usage of oil in our routine which is in fact out of control. Without it, our working efficiency may hamper meaningfully.