The commodity market performed relatively well in the third quarter, higher after the worst pandemic known to man disrupted financial markets at an unprecedented level.
That said the commodity market is made up of primary commodities like crude oil, cocoa, coffee, corn, hog, gold, silver, platinum, and so on, that trade on major global exchanges found in the United States and the United Kingdom.
There were 20 commodity assets, double-digit gainers, in Q3 2020 with 5 of them surging above 25% in three months.
During the specific time period in review, all of the commodity sectors posted gains. Thirty products posted gains with twenty double-digit percentage increases.
- Lean Hogs 61.15%
- Natural gas 44.32%
- Lumber 40.51%
- Silver 26.71%
- Iron ore 25.93%
- Soybean meal 19.73%
- Palladium 18.49%
- Live Cattle 18.44%
- Soybean Oil 18.41%
- CBOT Wheat 17.96%
What you should know; Commodities are basically raw materials. They play an important role in most aspects of the daily lives of Nigerians, serving as food (cashew, cocoa sugar cane), energy (natural gas, crude oil), and sources of income for many global investors.
As commodities can be an important way to diversify their portfolio beyond traditional securities. Commodities play a vital role in Nigeria’s economy, accounting for more than 90% of its export.
Common ways to invest in Commodities
- Using commodity futures; These are agreements to sell or buy a given amount of commodity at a particular price and specified date in the future. They can be traded online through a broker that connects to commodity exchange.
- Using CFDs; A contract for difference (CFD) is a derivative asset, where there is an agreement (usually between a broker and a commodity trader) to pay the differential in the commodity price of an underlying asset between the beginning and end of that contract.
- Using the Physical method; The most popular way of commodity investing in Nigeria would be purchasing the commodity itself. Commodities such as cocoa, gold can easily be traded physically.
Explore Data on the Nairametrics Research Website
Disclaimer: Nairametrics would like to remind you that the data contained in this website is not necessarily real-time.
All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.
Therefore, Nairametrics doesn’t bear any responsibility for any trading loss you might incur as a result of using this data.