A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Futures contracts are the oldest way of investing in commodities.
What are examples of commodity stocks?
There are four primary categories of commodities currently traded on the market:
- Energy (gasoline, oil, etc.)
- Metals (gold, silver, platinum and copper)
- Livestock (pigs, cows, etc.)
- Agricultural (corn, cocoa, coffee, cotton, etc.)
What is a good commodity stock?
Seven commodity stocks to buy for great dividends:
- BHP Group (BHP)
- LyondellBasell Industries N.V. (LYB)
- Newmont Corp. (NEM)
- Rio Tinto Group (RIO)
- Schweitzer-Mauduit International (SWM)
- Southern Copper Corp. (SCCO)
- SunCoke Energy (SXC)
