HERITAGE COMMODITY EXCHANGE
THE BUSINESS OF COMMODITY TRADING
The business of commodity trading has grown dramatically over the decades, this outlines the underlying reason for this growth, and the vital role commodity trading plays in the global economy and the benefits, this brings to participants and the wider society. It details the nature of commodity trading activities and explains how they are typically organized to achieve greatest effectiveness.
COMMODITY TRADING PLAY A VITAL ROLE IN THE GLOBAL ECONOMY
Each year around USD $20 trillion of commodities are produced and consumed, however commodities rarely produced and consumed in the same place or at the same time. A complex value chain including refining, processing, storage and shipping is usually required to get them to the right place.
Linking these value chain elements is commodity trading enable the transition of commodities from the mine of field gate to the factory door and end consumer. Commodity trading ensures the right product turns up in the right place at the right time at the lowest cost. Commodity trading helps make markets more efficient and reduce business cost.
EXCHANGES PROVIDE A CRITICAL ECO SYSTEM FOR COMMODITY TRADING
There is a number of commodity trading exchanges around the world, they offer critical access to a participant network of companies working in the commodity sphere which allows business relationships to be built and transactions to be originated, and to the sophisticated financial and legal infrastructure required for trading, in addition, they act as a magnet for people with the specialist skills in commodity trading, and particularly, the right education and global language skills that companies need.
