Best Commodity Exporter and Supplier

The abundance of natural resources and the diversity of commodities in Indonesia are valuable and irreplaceable assets that contribute to the country's economic growth. On the indocommoditysupplier.com website click here to check, we will show you what are the top export commodities in Indonesia and how you can seize the opportunity to start an export business in this fast-growing country.

Commodities are tangible objects that are relatively easy to trade, can be stored for a certain period, can be physically delivered, and can be exchanged with other products of the same type or type, usually can be sold or purchased by investors through a futures exchange. In general, commodities are traded products, including foreign exchange, financial instruments, and indexes.

The price characteristics of commodities are determined by supply and demand not by dealers or sellers and prices are based on the calculation of each price, for example, commodity actors are (but are not limited to): minerals and agricultural products such as iron ore, oil, ethanol, sugar, coffee, aluminum, rice, wheat, gold, diamonds or silver.

In Indonesia, it can be defined as merchandise, commercial goods, or raw materials that can be classified according to their quality by international trade standards, for example, wheat, rubber, coffee.

There are several types of commodities that are commonly traded on the futures exchange. Referring to the definition of a commodity, several types of commodities are as follows:

Energy

Energy commodities are all mining and exploration products that humans can use as fuel. Generally, energy commodity products are traded internationally in barrels, tonnes, and metric units.

Some of the products that are classified as energy commodities include;

1. Coal
2. Natural gas
3. Fuel
4. Petroleum (light sweet crude oil and Brent crude oil)

Metal

Metal commodities are all products obtained from mining that have metallic properties. Metal products can be separated into two types, namely:

1. Precious metals (gold, silver, palladium, and platinum)
2. Industrial metals (tin, aluminum, copper, magnesium, cobalt, titanium, etc.).

Agriculture

Agricultural commodities are all products obtained from agriculture and can be used to meet human needs. This type of commodity can be separated into two, namely;

1. Agricultural products (corn, rice, soybeans, wheat, coffee, soybeans, etc.).
2. Forestry products (rattan, cotton, palm oil, etc.).

Livestock

Animal husbandry commodities are all products obtained from livestock that are beneficial to humans. The types of livestock commodities can be separated into three, namely:

1. Live animals (cows, pigs, chickens, fish, etc.).
2. Meat, milk, eggs, and more.
3. Animal feed.

When viewed from its nature, in general, commodities can be categorized.

Hard commodities, namely commodities where products are obtained from nature through mining or extraction activities (metals, petroleum, and others).

Soft commodities, namely commodities where the products are obtained from agriculture, livestock, and forestry (rice, corn, soybeans, wheat, rubber, beef, eggs, milk, and so on.

In commodity trading, prices are determined by supply and demand in the commodity market. Commodity price fluctuation is one of the risks that must be faced in commodity trading.

Commodity price fluctuations can occur due to many factors, such as; production capacity, seasons, weather conditions, political conditions, government incentives and restrictions, and more. That is why in commodity trading there are futures contracts in which there are basic standards regarding the minimum quantity and quality of commodities being traded.