To successfully trade commodities, it's essential to grasp several key concepts that underpin this dynamic market. First, distinguish between hard and soft commodities; hard commodities are natural resources like oil and metals, while soft commodities include agricultural products such as corn and coffee.
Futures contracts are another critical aspect. They allow traders to agree on a price for a commodity to be delivered at a future date, helping to manage price risk. Additionally, familiarize yourself with market forces, supply and demand, geopolitical events, and economic indicators that