Commodity markets are markets where raw materials are traded on regulated commodities exchanges, using standardized contracts, alllowing investors to make or lose money by predicting the rise or fall of products like soybeans, wheat, corn, oats, sugar, rough rice, cattle, pigs, precious metals, industrial metals, currencies, electricity and others. As an example, the London Metal Exchange is the world’s premier non-ferrous metals market. It offers a range of futures and options contracts for non-ferrous & minor metals, steel and plastics. The LME is a highly liquid market and in 2009 achieved volumes of 111.9 million lots, equivalent to $7.41 trillion annually and $29 billion on an average business day. [1]
