Trading

Trading with commodities

Trading with commodities

In the course of the last decades we have constantly actively observed and followed the international trade market. Through our constantly growing network, we have been able to initiate and accompany many businesses. We have brought together many trading partners to form lasting and successful partnerships.

Trading with commodities

In the course of the last decades we have constantly actively observed and followed the international trade market. Through our constantly growing network, we have been able to initiate and accompany many businesses. We have brought together many trading partners to form lasting and successful partnerships.

  • Metals, precious and non-ferrous metals
  • Minerals, rare elements and associated derivatives
  • petroleum products
  • Agricultural and forestry goods
  • ...

Raw materials and trade

Commodities are traded in the same way as most other commodities. The traders trade in commodities they buy or sell – always with the aim of making a profit.

With spread betting and difference contract trading, it is normal for a trader not to acquire physical ownership of the underlying commodity, but rather to speculate on price changes in the underlying commodity selected by the trader.

What are commodities?

Unlike foreign exchange or equities, commodities are tangible commodities, i.e. they are usually raw materials that can be used by industry for production. There are various schemes for categorizing commodities; some distinguish between agricultural commodities, i.e. agricultural, forestry, fishing or livestock products on the one hand, and industrial commodities on the other, the latter usually being extracted directly from the ground in mines or open-cast mines.

However, if this categorization is to be further refined, it is possible to identify four main types of raw materials:

Commodity trading in one form or another has been going on for thousands of years. However, commodities are now traded globally, and price can be affected by regional, national and international events, including wars and weather events, as well as fluctuating levels of supply and demand for certain commodities

Let us take a look at an example of this: At the beginning of 2014, the threat posed by extremist groups in some oil-producing countries in early 2014 led to concerns around the world that oil production or replenishment could be interrupted in the months that followed – and this fear led to a short-term rise in oil prices.

However, towards the end of 2014, the US shale oil boom, coupled with a drop in demand in China and OPEC’s refusal to cut production, caused oil prices to plummet by more than 40% – and within months.


Another example, also from 2014, is coffee. A severe drought in Brazil at the beginning of 2014 hit the world’s leading coffee bean-growing country, Arabica, hard. As a result of this drought, coffee futures prices immediately rose sharply, while the market tried to predict when the world’s supply of coffee beans would become scarce in the future. Although coffee futures were still far from the highs they had reached in 2011, they were still at a two-year high – although prices fell sharply in November after heavy rains.

These two examples serve to illustrate how completely different events can have an impact on the price of different types of commodities. It therefore always pays to keep up to date with events in the world – especially when trading commodities.

Rules and security for trading.

International trading transactions are generally secured by adequate payment guarantees or bank instruments.

We have an investor clientele that bundles their capital and then participates in the trading business by providing a banking instrument. The rules of the „Guide“ pages 74 – 77 and ff state that a bankable business plan and a bankable feasibility study must then be prepared. We arrange these services for you.

Get in touch

We value personal interaction very much. You can therefore ask us any question and present any idea. We listen to you.