World Prices for Commodity Markets

Unlike brand name products, commodities are goods that have a universal price around the world. Gold, for example, has the same price per ounce in Brazil and Bombay, whereas the price of a toaster oven or even a T-shirt varies depending on the brand and the place in which it is sold. Commodities are not strictly limited to so-called ‘pure’ elements like gold. A commodity can be refined from a raw element, as oil is refined from petroleum. A commodity can also be mined directly from the Earth, such as a metal, or it can also be an agricultural product, like eggs. In some cases, a commodity can be an abstract financial tool that is universal, such as the fluctuations in interest rates.

Introduction 2
Chapter I. Commodity and Commodities exchanges 3
1 Definition of Commodity 3
2 Investing in Commodity Indexes 5
3 How Commodity Exchanges Work 7
4 What are Futures and Options? (Using technical analysis) 8
Chapter II. Dinamics of Prices and Fundamentals 10
1 Crude Oil 10
2 Selected Food Commodities 11
Conclusion 14
Bibliography 15