10 of the Most Traded Commodities in the World

The commodity market is popular with many traders, partly because of the high levels of volatility which can be present, allowing traders to attempt to profit from both rising and falling prices. Moreover, commodities offer traders and investors an opportunity to diversify their portfolio, which is an important part of risk management.  

In this article, we will take a close look at 10 of the most traded commodities in the world and how you can trade them!

The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.

Key Takeaways 

• Commodities are basic raw materials or agricultural products which are typically used to produce other goods and services. 
• Hard commodities are mined or extracted, such as crude oil and gold, whereas soft commodities are grown or raised, such as coffee or cattle. 
• Crude oil is the most traded commodity worldwide. 
• Commodity prices are shaped by global demand and supply, which can be influenced by weather, geopolitics and economic growth. 

What Are Commodities?

Commodities can be either raw materials or agricultural products which, although sometimes a good in their own right, are generally used as the “building blocks” for other goods and services. The word commodity, therefore, covers a myriad of different goods, from sugar to crude oil, from cotton to steel.

Commodities of the same type and the same quality tend to be interchangeable with each other, or fungible, and, therefore, hold the same value to consumers.

For example, coffee produced in Colombia will have more or less the same value as coffee produced in Kenya, provided they are of the same quality.

Types of Commodities

Commodities are typically split into two main categories: hard commodities and soft commodities.  

• Hard Commodities: those which are either mined or extracted - such as oil, gold and natural gas.
• Soft Commodities: agricultural products or livestock which are grown or raised - such as wheat, coffee and cattle. 

However, these categories are often further broken down into more specific groupings: 

• Energy Commodities: Crude oil, natural gas, coal, heating oil etc. 
• Metals Commodities: Gold, silver, copper, steel etc. 
• Agricultural Commodities: Coffee, sugar, wheat, corn, cotton etc. 
• Livestock Commodities: Cattle, pork, poultry etc. 

10 of the Most Traded Commodities in the World

Over the next few sections, we’ll take look at some of the world’s most traded commodities. 

Brent Crude Oil

Brent Crude is one of two major types of crude oil which act as global benchmarks for the industry, the other being WTI crude. Brent Crude is extracted from the North Sea and is characterised as a light (low density) and sweet (low sulphur content) crude oil.

Source: World Population Review – Oil Producing Countries & Oil Consuming Countries. Captured: 24 September 2025. 

As with most commodities, oil prices can be heavily influenced by geopolitical events. In recent months, tension in the Middle East and the ongoing war in Ukraine are two such factors which have impacted prices, and which could continue to do so in the future. 

Brent futures contracts are primarily traded on the Intercontinental Exchange (ICE) in London, where one contract size equals 1,000 barrels of crude oil.

WTI Crude

West Texas Intermediate (WTI) crude acts as another benchmark for global oil prices and is also one of the most widely traded commodities in the world. 

It is drilled in various states throughout the US and is also described as both sweet and light, having even lower sulphur content and density than Brent Crude. 

Advances in hydraulic fracturing, fracking, and horizontal drilling led to the US being able to unlock large volumes of previously uneconomic shale oil. The so-called shale revolution allowed US oil production to surge which, as well as easing global oil prices, transformed the country from a net importer of oil into a net exporter.

Typically, WTI tends to trade at a lower price than Brent crude. This is partially to do with the fact that WTI comes from areas in the US which are landlocked, as opposed to Brent which is extracted from the North Sea.

This makes Brent easier to export which, in turn, makes it more accessible to a wider market and, consequently, tends to command a higher price. The difference in price of the two benchmarks is known as the Brent-WTI spread and is often closely followed by traders and analysts.

WTI is primarily traded on the New York Mercantile Exchange (NYMEX) where one contract is 1,000 barrels of oil. 

Natural Gas 

Although a non-renewable energy source, natural gas is the cleanest burning fossil fuel and is very versatile, meeting a lot of the same needs as crude oil. 

As much of the world transitions to cleaner energy, the use of both crude oil and natural gas will inevitably need to be curtailed. However, due to producing less emissions than oil, it is expected that natural gas will continue to be a key source of global energy during the transition. 

Traditionally, natural gas was mainly transported via pipelines; however, the growth of Liquified Natural Gas (LNG) has transformed global trade, allowing gas to be shipped around the world.

Like oil, natural gas can be very sensitive to geopolitical events. This was clearly illustrated in 2022 when Russia, the world’s second largest producer of natural gas, invaded Ukraine, sending gas prices soaring.

Gold

A precious metal which has been sought after for centuries, gold is now primarily used for jewellery production and as a vehicle for investment. In 2024, the top three gold producing countries were China, Russia and Australia.

Gold is one of the most traded commodities in the world but, in times of uncertainty, it often becomes even more popular with investors due to its safe haven status.

Gold prices have surged in recent months. At the time of writing, 24 September 2025, gold prices have more than doubled since 2022, hitting record highs along the way.

Silver 

Another precious metal, silver has also been historically sought after by mankind for centuries.  

Unlike gold, around half of silver’s demand arises from its industrial uses, such as in solar panels, electric vehicles and electrical products. Indeed, silver demand from the green energy sector has grown around the world in recent years. 

Nevertheless, a lot of its demand is also controlled by jewellers and investment. However, whilst silver is also considered a safe haven asset, it is not seen to be as reliable as gold due to the fact that gold's value is less dependent on industry. 

Copper

Copper is a very important metal in the modern world. Due to its characteristics of being an excellent conductor of electricity and heat, it is widely used in the electronics and building industries and has an important part to play in the green energy transition. 

Chile is the world’s largest producer, accounting for almost a quarter of global mining production in 2024. Peru, Congo, China and the US are also important, though smaller, producers.  

In terms of consumption, China is the world’s largest consumer of copper. Consequently, any change in Chinese demand for the red metal can have an influence on global prices. 

Due to its use in manufacturing, the price of copper is highly dependent on economic output and, consequently, demand for the base metal is seen as a reliable indicator of economic health – earning it the nickname “Dr Copper”. 

Coffee

With around 2 billion cups drank a day across the globe, it should come as little surprise that coffee is one of the most traded commodities in the world.  

Coffee beans are grown in more than 50 countries, in what is known as the “coffee belt”, with its largest producer being Brazil. 

There are two main varieties which account for the vast majority of coffee production: arabica and robusta. Arabica is generally considered to be higher quality, making it more popular globally, accounting for around 60% of total coffee consumption. 

Arabica coffee futures, which have a contract size of 37,500 pounds, are primarily traded on ICE Futures US; whereas robusta futures, which have a contract size of 10 metric tons, are primarily traded on ICE Futures Europe.

Sugar

Once a luxury reserved for the wealthy, sugar has long been a highly sought after commodity. Its use in food and drinks all over the globe, together with other lesser-known uses, such as in medical equipment and beauty products, make sugar one of the most widely traded commodities on the market.

Although sugar is far more accessible these days, it is still considered somewhat of a luxury good, meaning that its demand and, therefore, price tends to be positively correlated with economic performance. Another important factor in future demand is increased consciousnessover the negative health effects of sugar consumption.

Cocoa

The next of the most traded commodities on our list, cocoa is used to produce one of the world’s favourite products, chocolate! 

Unlike most other commodities, which are priced in US dollars, cocoa is still typically traded in British pounds. 

Production of cocoa is mainly concentrated in West Africa and Latin America, with about 65% of global production taking place in just four West African countries in 2023: the Ivory Coast, Ghana, Nigeria and Cameroon. Of these, the Ivory Coast is by far the largest producer, accounting for more than 40% of global production in 2023. 

In recent years, supply constraints caused by adverse weather conditions, pest outbreaks and crop disease have pushed up prices to record levels. 

Cotton

Besides its better-known use in clothing and household items, cottonseed is also used as feed for livestock, it is made into oil which is subsequently used in the manufacturing of soap, margarine, rubber and plastics. Linters, which are fibres found on cottonseed are also used to make bandages and bank notes.  

In 2024, China, India and Brazil were the top three cotton producers in the world, accounting for more than 60% between them.  

The majority of clothes these days are made from synthetic fabric which is cheaper to produce; however, sustainable fashion trends may help increase demand for organic cotton.  

Factors Affecting Commodity Prices

As with any freely traded good, commodity prices are determined by supply and demand in the market. Anything which changes, or threatens to change, the supply or demand of a commodity will consequently influence price. 

Naturally, specific factors which drive supply and demand will differ between individual commodities; however, we can identify some common themes. 

• Weather 
  • The global supply and, consequently, price of agricultural commodities – such as coffee, cotton and sugar – can be greatly affected by weather conditions. Adverse weather which hampers production can reduce global supply, pushing up prices. On the other hand, ideal weather conditions can lead to a bumper crop, increasing global supply and pushing prices down. 
• Geopolitical Events 
  • Geopolitical events can have an impact on commodity prices; this is particularly true when the event in question involves one of the largest producers or consumers of a commodity. 
• Economic Growth 
  • Demand for some commodities – such as oil and copper – tends to increase when the economy is expanding, which can cause prices to rise. 
• Currency Fluctuations 
  • Most commodities are priced in US dollars. Consequently, a stronger USD makes commodities more expensive for non-US buyers, which can dampen demand and cause prices to fall. 
• Monetary Policy 
  • Monetary policy can have an indirect knock-on effect on commodity prices, as it can influence economic growth as well as the strength of a currency. 
• Inflation 
  • Commodities are often viewed as a hedge against inflation, meaning that when inflation, or inflation expectations, rise, demand for some commodities may rise as well. 

How to Trade Commodities

Commodities are tangible assets, which means that buying and selling them for immediate delivery, sometimes referred to as spot trading, presents various logistical challenges for traders and investors. 

However, traders looking to speculate on commodity prices can do so using financial derivatives, such as Contracts for Difference (CFDs). Please note that CFDs are associated with a high level of risk and are not suitable for everyone.  

In order to trade commodity CFDs, you can follow these steps: 

• Register for a Trade.MT5 account, complete the onboarding process and log in to the Dashboard. 
• Find your account details and click ‘Trade’ to open the Admiral Markets Platform.
• Search for the commodity you wish to trade and open its instrument page. 
• Fill in the order window on the right of the screen and hit ‘Buy’ or ‘Sell’. 

Commodity Market Outlook 

In its semi-annual Commodity Markets Outlook last published in April 2025, the World Bank projected that weakening global growth would weigh on commodity prices throughout 2025 and 2026.

It also notes the high level of commodity price volatility witnessed thus far this decade, the highest in “at least half a century”.

The report also includes price forecasts for individual commodities; in the table below, we have compiled the price forecasts for some of the commodities examined in this article:

Source: World Bank – Commodity Market Outlook April 2025.

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