Commodities trading

Get instant access to the most popular metals, energies and agricultural commodities without having to physically store them. Take advantage of the superior CFD trading conditions offered by NEOTRADES and trade Gold, Silver, Oil, Natural Gas and many more commodity markets through our award-winning platform

Why Trade Commodities with NEOTRADES

Get zero commission, ultra-fast execution, and competitive leverage rates to trade a wide selection of strategic energy, agriculture and metals products.

Trade on both rising and falling prices of the hottest commodities

Keep your commodity trading costs down with low spreads

Simplify your commodity trading experience with our exclusive spot contracts

What are Commodities?

Commodities are basic goods or raw materials that are used in commerce, typically natural resources or agricultural products, which are interchangeable with other goods of the same type. These goods are the building blocks of the global economy, used to produce finished products. Commodities are often categorized into two main types: hard commodities, which are natural resources that must be mined or extracted (such as gold, oil, and natural gas), and soft commodities, which are agricultural products or livestock (such as corn, wheat, coffee, and pork).

How are Commodity Prices affected?

Commodity prices are influenced by a variety of factors, including:

Supply and Demand:

The most fundamental factor. Prices tend to rise when demand exceeds supply and fall when supply exceeds demand.

Geopolitical Events:

Conflicts, political instability, or economic sanctions in commodity-rich regions can disrupt supply chains, affecting prices.

Economic Indicators:

Economic health indicators, such as GDP growth rates, manufacturing data, and employment rates, can influence commodity demand and thus prices.

Currency Fluctuations:

Since commodities are usually priced in U.S. dollars, changes in the value of the dollar can affect commodity prices. A weaker dollar makes commodities cheaper in other currencies, potentially increasing demand and prices, and vice versa.

Weather Conditions:

For agricultural commodities, weather conditions can significantly impact supply. Droughts, floods, and other extreme weather events can reduce crop yields, leading to supply shortages and higher prices.

Technological Advances:

Improvements in extraction or farming techniques can increase supply and potentially lower prices. Conversely, innovations that increase demand for certain commodities (like rare earth metals for electronics) can drive prices up.

Market Speculation:

Traders' perceptions of future supply and demand conditions can also influence commodity prices. Speculative trading based on forecasted economic trends, weather conditions, or political developments can lead to price volatility.

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