 stuff that is traded on the market without a difference of quality  supplies from different suppliers are mutually substitutable  products of uniform.

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Presentation transcript:

 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

Grains products  wheat  corn  oats Meat products  beef  pork Precious and industrial metals  gold  silver  platinum  palladium  copper  lead

Energy market  oil  other refinery products Food products  coffee  sugar  cotton  orange juice.

 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.

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

 CME Group  New York Board of Trade  Tokyo Grain Exchange Others:  Africa Mercantile Exchange  Hong Kong Mercantile Exchange  London Metal Exchange

 Reuters/Jefferies CRB Index  Standard & Poor's Commodity Index  Dow Jones Commodity Index  Goldman Sachs Commodities Index  Rogers International Commodity Index

i. Do you know another index in financial market or is it especially for commodities? ii. Which commodity is mostly traded? iii. Do you know any Czech commodity exchange? iv. Where is bigger volume? Futures or options?