COMMODITIES: Futures and Intensity Types

By Staff Reporters

SPONSOR: http://www.MarcinkoAssociates.com

DEFINITIONS

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Commodities: Commodities are raw materials or primary agricultural products that can be bought or sold on an exchange or market. Examples include grains such as corn, foods such as coffee, and metals such as copper.

Commodity Futures: Agreements to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date related to basic raw materials such as precious metals and natural resources.

Commodity Intensity: Commodity intensity refers to commodity usage per unit of economic growth. An emerging, more manufacturing-based economy will usually be more commodity intensive in terms of its growth than will a more developed, service-oriented economy.

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