Natural gas is a valuable commodity used for electricity generation, household heating, industry, and transportation. Crude oil is the top-selling commodity, and its dominant position is a result of the significant volume of physical deliveries. Oil is the primary source of fuel for transportation, industry, and power generation.
The information on this website is general in nature and doesn’t take into account your or your client’s personal objectives, financial circumstances, or needs. Please read our RDN and other legal documents and ensure you fully understand the risks before you make any trading decisions. Here is a list Cyber security stocks of the 11 most actively traded commodities in the world by volume.
Brent Crude Oil
It does not take into account readers’ financial situation or investment objectives. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted. Ultimately, though, when you’re thinking about what the best commodity to trade is, you should take a look at what influences market prices and what’s happening in the world. The main advantage of trading commodities is the guarantee of trade execution and risk insurance.
Lithium and cobalt are increasingly important in commodity trading due to their critical role in the production of electric vehicle batteries and renewable energy storage solutions. The global emphasis on sustainability and green energy has driven up demand for these metals, making them prominent in trading volumes. Commodity trading involves risks such as price volatility due to external shocks, including geopolitical tensions, government policy changes, and unpredictable weather patterns. However, opportunities exist, particularly in the growing demand for metals tied to renewable energy and electric vehicle production, which presents significant growth potential for traders. In 2024, commodities like crude oil, natural gas, gold, and agricultural products have dominated trading activity, driven by evolving energy technologies, geopolitical tensions, and global supply chain challenges.
The price of major commodities tends to correlate with inflation indicators and is heavily dependent on fundamental factors, which makes forecasting much easier. What drove this opportunity was not fleeting weather events, but a deeper structural oversupply in global coffee markets. For traders, knowing which are the most traded commodities in the world – and why – is fundamental. The difference between reacting to commodity price changes and anticipating them can define profitability. Gold contracts are now offered by virtually every broker in almost every corner of the world.
Wheat
The fact is that the market volatility of trading these contracts is so high that it sometimes rivals that of currency pairs, which attracts many retail traders. Similar to wheat, soybeans are traded in bushels, which equals 25.4 kilograms, and a standard contract is 5,000 bushels. Agricultural commodities remain prominently in trading volumes, with wheat, soybeans, and corn leading the pack. These commodities form the bedrock of food production and are thus heavily traded to meet both global consumption needs and the demands of agricultural supply chains. Gold pricing is mainly influenced by geopolitical tensions and demand for physical gold.
- This article explores these trends and the forces shaping this year’s commodities market.
- However, the most popular commodities are highly liquid and suitable for intraday trading or even scalping.
- Together, they form the top 10 commodities in the world, the foundation of global trade.
- Commodity trading is usually held either on an international commodity exchange or in the OTC market.
Best Commodities to Trade: Most Valuable Investment
You can learn more about how to trade commodities in the live market in this article. The energy commodity market is by far the largest in terms of contracts traded and turnover. While there are many types of energy commodities available to trade, it’s the black gold which is traded the most. Brent Crude Oil is mostly traded on the ICE (Intercontinental Exhange), whereas WTI is mostly traded on CME (Chicago Mercantile Exchange). As WTI is drilled and stored inland, there are a number of logistical obstacles that limit production.
Crude oil is the lifeblood of the global economy, powering transportation, heating, and electricity generation while serving as a raw material for countless industrial and consumer products. The world’s top producers include the Russia, Saudi Arabia and the U.S., each contributing roughly 10–15% of global supply. OPEC—particularly Saudi Arabia—wields significant influence over oil markets through coordinated production cuts. That said, this influence has waned in recent years due to the rise of the U.S.—which is not part of OPEC—as a top crude supplier.
Agricultural commodities: Wheat, soybeans, and corn
Despite efforts to transition to green energy, global demand for oil remains high. According to the International Energy Agency, global supplies reached 102.9 million barrels per day in 2024. In 2024, geopolitical tensions and economic shifts have been major drivers of trading volumes, reflecting a balance of long and short trades amid market volatility.
Market analysis
A lot of traders forget or overlook agricultural commodities as trading instruments. Soft commodities like Coffee and Cocoa are among the most traded and consumed goods in the world. In 2022, 269,933 Futures and Options contracts were traded on LME, which is almost as much as the daily turnover on the COMEX. According to the LBMA (London Bullion Market Association) members of the London Precious Metals Clearing Limited (LPMCL) had registered 242.8 million ounces of gold had been cleared through 2022. Contrary to what many people think, gold is not the most expensive metal to trade. Everything from valuable and practical commodities like precious metals and oil to the less obvious and questionable such as unsecured debt and catastrophe bonds.
Crude Oil
- Such contracts can be used as a way of running a business, reducing the cost of purchasing raw materials.
- In 2022 the Singapore Exchange traded 12,476,340 Iron Ore Futures Contracts, which is a massive 1,247.7 million tons.
- In the summer of 2025, our Trading Co-Pilot showed how oversupply capped price rallies even as sanctions risk premia temporarily boosted Brent crude.
- Base metals like copper and aluminium have also seen substantial trading volumes this year.
- However, it is safe to say that the top five spots are occupied by crude oil, gold, natural gas, sugar, and soybeans.
Argentina, Brazil and the United States dominate production, while China is by far the largest importer; soybeans are used to feed the Asian nation’s vast livestock industry. As such, global soybean demand is heavily influenced by shifts in China’s meat consumption, as well as by weather conditions affecting harvests in supplying countries, and trade policies. Regarding the latter, China temporarily imposed tariffs on U.S. soybeans in 2018 in retaliation to U.S. tariffs, causing U.S. soybean exports to China to collapse until the two countries reached a trade truce. On the supply side, climate change poses risks to future production, with droughts and extreme weather increasingly impacting yields in the Americas. For now, our soybean price forecast is for a lower average price in 2025 vs 2024 and to be at the lowest level since 2020, dampened by a record soybean harvest in Brazil and softer economic growth in China. That said, solid demand for plant-based proteins and biofuels should provide support.
West Texas Intermediate Crude Oil
However, it is safe to say that the top five spots are occupied by crude oil, gold, natural gas, sugar, and soybeans. The largest trading volumes for soybean futures are observed on the Chicago Board of Trade (CBOT). This year, the Consensus among our panelists is for the prices of most commodity groups to be roughly stable or decline slightly vs 2024. Precious metals will be the exception, as elevated global economic uncertainty is likely to keep investor demand high. Geopolitical events have significantly influenced commodity trading by affecting the supply chains of key commodities. Base metals like copper and aluminium have also seen substantial trading volumes this year.