raw material market

In reference to the market for natural resources or commodities, the raw material market is where you can negotiate future contracts between several parties, where the underlying asset being negotiated is a raw material or a commodity.

The aim is to:

  • Try to carry out a hedged transaction: a person or entity has or will have an underlying asset (commodity) in the future and will want therefore making a future contract so as to establish the price of the asset. This is a way of making an uncertain cost more controllable, providing a higher degree certainty and less risk in the operation.
  • Try to make a speculative transaction: the person or entity that makes the future contract is seeking to get a return out of this operation based on the evolution of the underlying asset´s price (raw material or commodity).


Are we running out of natural resources

Are we running out of natural resources