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To be able to compare commodities more easily, the commodities are divided into types. It is merely for convenience for researching and pricing. Some commodity types are a better fit for some investors than other commodity types.

ENERGIES
These would be commodities that provide energy like fuel, heating, and various forms of powers. The commodities that are in the energies category include the following:

• Crude oil
• Heating oil
• Propane
• Natural gas
• Coal
• Petroleum

Byproducts of petroleum would also be included in the energies category. Political events, accidents (like the Gulf accident), social unrest, wars, and environmental issues can affect the price of these commodities. Since almost all products and services are dependent on gasoline for transportation, the prices of these commodities can have a big impact on the economy.

GRAINS
These commodities are used for human and livestock consumption. With corn, it can also be used as fuel. The commodities that are in the grains category include the following:

• Rice
• Wheat
• Oats
• Corn
• Soybeans

The price of grains can have an affect on the food supply due to livestock needing to be fed grains. When grain prices rise, livestock prices can often rise as well. Weather can have a big impact on grain commodity prices. Insects, funguses, and contamination can affect the price of grains. These are mainly traded on the Chicago Board of Tread (CBOT).

SOFTS
Thus type of commodity has a variety of things that are consumable and non-consumables. Some of the commodities in this type include the following:

• Coffee
• Cocoa
• Sugar
• Cotton
• Juice

Like with grains, the weather, insects, funguses, and contamination can affect the prices of soft commodities.

MEAT
This type of commodity includes livestock. The types of livestock that is found in the meat commodities include the following:

• Live cattle
• Pork bellies
• Lean hogs
• Feeder cattle

The price of grain, since it is fed to livestock can affect meat commodities. Overall, meat commodities are less volatile than other types of commodities. It is mostly traded on the Kansas City Board of Trade (KCBT).

FINANCIALS
This type of commodity is usually traded in futures or options. Actual goods aren’t traded. Financial commodities include precious metals and industrial metals like the following:

• Gold
• Platinum
• Palladium
• Silver
• Copper
• Lead
• Aluminum
• Nickel
• Tin

Stocks are also traded as a type of financial commodity. Listed on the same exchanges, are financial commodities. United States Treasury Bonds are included and are on the CBOT and the S&P 500 Indexes.

New Century International provides high quality services to all their customers. They use the latest tools, online trading, computerized trading systems, and up to date research. Contact them today to start investing in commodities or Forex. Look over their tips and strategies, their history, and the advantages of being a New Century International client.