Most traded commodities in the world

What are commodities?

Commodities are raw materials extracted from the earth that are manufactured, processed and refined into usable goods. They're used to create physical items that we all need to survive and thrive, such as clothing, food, shelter and energy.

Typically, commodities are mass produced and standardised for quality and quantity. This means they're priced the same around the world, no matter who extracts or produces them.

Commodities can be purchased or sold on an exchange, such as the Singapore Mercantile Exchange (SMX), or you can trade commodity CFDs through us, without needing to take physical ownership of the goods.

Types of commodities

Commodities can be split into several categories, starting with these two broad classifications:

• Hard commodities: mined or extracted from the earth, like gold and oil
• Soft commodities: agricultural products such as corn and livestock

These categories can be further divided into more specific groups:

• Energy: crude oil, natural gas and heating oil
• Precious metals: gold, silver and platinum
• Base metals: copper, aluminium and zinc
• Agricultural commodities: corn, soybeans and wheat
• Livestock: cattle, hogs and poultry

What affects the price of commodities?

Understanding price drivers is essential for successful commodity trading. Let's examine some of the most significant factors.

Supply and demand

The economic principle of supply and demand has a great effect on the price of commodities. With increased supply, prices drop, while with increased demand, they rise.

Due to supply and demand, commodity prices in general are expected to decrease by 5% in 2025 and 2% in 2026 after a 3% decrease in 2024, according to the World Bank¹.

Weather

Weather greatly affects the success or failure of crop-growing. If a drought hits, crops won't grow, and this drives up the price of commodities like corn and wheat.

In 2022, parts of the US, Europe, Southeast China and East Africa experienced extremely dry conditions, which led to reduced crop yields. This relates to supply and demand. In other words, because the supply dropped, the price of crops increased².

Geopolitical events

The Ukraine-Russia war, for example, has had a major impact on the price and volatility of commodities around the globe, but particularly for developing countries. This effect on food, fuel and fertiliser prices presents a challenge for food security and global poverty.

Sanctions imposed on Russia are a large cause for this volatility, along with the hangover of Covid-19-related supply chain disruptions³.

Common methods of trading commodities

There are multiple ways to gain exposure to commodity markets, each with different characteristics and requirements.

• Futures contracts: take a position on the underlying price of commodity contracts. Trade over a longer time period without overnight funding fees, and positions still open at expiry will generally roll over.
• CFDs (Contracts for Difference): take a position on the current value of a commodity with spot prices. Positions can be left open but will incur overnight funding fees, and there are no fixed expiries.
• Physical ownership: buy and take delivery of the actual commodity. This requires storage facilities and is typically used by commercial entities rather than individual traders.
• Options on commodities: trade the right (but not obligation) to buy or sell a commodity at a predetermined price. This offers limited risk with clearly defined maximum potential loss.
• ETFs and ETNs: exchange-traded funds and notes that track specific commodities or baskets of commodities, providing exposure without directly trading futures.
• Commodity stocks: invest in companies involved in producing, processing, or distributing commodities, such as mining companies or agricultural businesses.

Top 10 most traded commodities in the world

Let's explore the top 10 most traded commodities globally, examining their characteristics, uses, and trading volumes.

Crude oil: Brent crude

Brent crude oil has numerous uses, from electricity generation and consumer products to transportation. The Organization of the Petroleum Exporting Countries (OPEC) is probably the most well-known organisation, having a sizable influence over the price of crude oil globally.

Other major players include Russia and the US. Between these two countries and Saudi Arabia, they deliver 10-15% of the global supply⁴.

The global crude oil trade equals roughly 104.5 million barrels per day⁵.

Brent crude tends to be more responsive to global events than WTI, making it an excellent instrument for geopolitical event-based trading strategies. Pay close attention to OPEC announcements, Middle East tensions, and global demand forecasts.

Steel

Steel is irreplaceable in modern manufacturing and is used in cars, construction, shipbuilding and more. It's an alloy combining iron and other elements.

Due to the nature of its uses, it can be a good indicator of global industrial activity. If steel demand slows down, it’s likely that demand for goods made with it (like automobiles) is also down⁶.

In 2023, around 1.89 billion tons of steel were produced globally⁷.

Steel prices often correlate with iron ore prices, but with a delay. Understanding this relationship can provide traders with forecasting advantages for both commodities.

WTI crude oil

West Texas Intermediate (WTI) crude, which we call US crude on our platform, is a light, sweet oil, meaning its density and sulphur content are low.

WTI is drilled in US states like Texas, Louisiana and North Dakota, and sent to Cushing, Oklahoma, for price settlement.

Its price correlates with Brent crude oils, with both being impacted by the same underlying economic and geopolitical events.

The price of WTI reached $72.18 per barrel on 19 February 2025.

Weekly US inventory reports from the Energy Information Administration (EIA) frequently cause price volatility. OPEC+ meetings and global economic growth forecasts are also crucial indicators for oil traders.

Soyabeans

Soyabeans are a protein-rich food and are relatively inexpensive to produce, making them the fourth-most traded commodity in the world.

They're used for animal feed, with 77% of all soyabeans produced are used to feed cattle, and for human consumption, such as oils and meat and dairy substitutes (like tofu and soya milk). They can also be used in the production of biofuel.

Most of the world's soyabeans are grown in Brazil, the US, Argentina, China and India⁸.

Brazil's soyabean production has ramped up since the start of the 2018 trade war between the US and China, with Brazil filling in the gap for exports to China⁹.

Iron ore

Iron ore refers to the rocks and minerals from which iron can be extracted. This extracted iron can be used to produce what's known as 'pig iron', which in turn is fed into steel production. It can also be used to produce cast iron, magnets and catalysts for various industrial and chemical purposes.

According to SGX Group reports, the average daily amount of iron ore traded on the exchange can reach several million metric tons – up to 47.6 million (reached on 21 February 2024)¹⁰.

Chinese demand significantly influences iron ore prices, as China consumes approximately 70% of global seaborne iron ore. Chinese construction and manufacturing data are key indicators for price movements.

Corn

Also known as 'maize', corn is a vital soft commodity primarily used to produce animal feed, ethanol, corn syrup and starch. The US grows most of the world's corn, followed by China, Brazil and the European Union (EU)¹¹.

There are different types of corn, including dent, sweet and flint¹². Corn is traded in bushels, a measure equal to 64 US pints – or 35.2 litres.

The price of corn can also influence the production of biofuels and food security globally¹³.

In 2023/2024, global trade shipments of corn were roughly 197.9 million metric tons¹⁴.

Corn prices often display seasonal patterns tied to planting and harvesting cycles. Key price-moving events include USDA crop reports and weather forecasts during growing seasons.

Gold

Gold is considered a safe haven asset, which means its value is expected to remain steady or even increase during economic uncertainty. It's less volatile than many other commodities on this list, but is still the seventh-most traded commodity as it's highly liquid¹⁵.

It's used primarily in jewellery-making and as an investment asset but is also used in industry as it's highly resistant to most chemical reactions and conducts electricity well.

Most of the world's gold is mined in China, followed by Russia, Australia and Canada¹⁶.

Around $227.10 billion is traded every day¹⁷.

Gold often moves inversely to the US dollar and can provide a hedge against inflation, making it popular during times of economic uncertainty or market volatility.

Copper

Copper is an important base metal, being corrosion-resistant and weatherproof. Its primary use is in manufacturing electrical wire, pipes, consumer electronics, roof tiles and industrial machinery, plus in producing alloys like brass and bronze.

Because it has so many uses, it's a good indicator of economic health¹⁸.

Roughly 3.5 million metric tons of copper are traded every day¹⁹.

Its price movements frequently reflect global economic health, making it a valuable leading indicator for economic trends.

Aluminium

A critical element in transportation, particularly aircraft, trucks, cars, boats and trains, packaging and construction, aluminium is critical to the smooth running of our daily lives.

It's usually combined with other metals and elements, like copper, zinc and magnesium to form alloys.

China is the world's largest aluminium producer, followed by India, Russia, Canada and the United Arab Emirates (UAE)²⁰.

Daily trading volumes can vary quite drastically due to demand and supply conditions, but recent data shows the daily traded figure can go as high as 370,292 lots²¹.

Aluminium prices are particularly sensitive to energy costs, as production is highly energy-intensive. Keep an eye on electricity prices and production costs when trading this metal.

Silver

A precious metal, silver is the 10th-most traded commodity in the world. Around 50% of its uses are for industrial applications, such as solar panels, medical devices, photographic film and electrical contacts. The rest is largely driven by demand for silver jewellery and investment²².

Silver's price movements are closely related to gold's because they're both precious metals used for many similar purposes.

The Commodity Exchange (COMEX) is the primary exchange for trading silver future contracts. Around 350 million ounces of silver are traded daily²³.

Silver tends to be more volatile than gold, offering potentially higher returns but with increased risk. Monitor the gold-silver ratio (the amount of silver it takes to buy one ounce of gold) as an indicator for potential trading opportunities.

Start trading commodities with IG Singapore

Now that you understand the top traded commodities and what drives their prices, here's how you can start trading them with IG Singapore.

How to trade commodities with IG

1. Create a live CFD trading account with us
2. Research the commodity markets
3. Choose which commodity to trade
4. Open your first trade
5. Monitor your position

Benefits of trading commodities with IG

• Extensive market access: trade a wide range of commodities from a single platform
• Flexible trading hours: access markets nearly 24 hours a day on weekdays
• Advanced trading tools: use our cutting-edge charts and analysis tools to identify opportunities
• Educational resources: access webinars, articles, and tutorials to enhance your commodity trading knowledge
• Excellent customer service: get support when you need it most

Commodity trading FAQs

Key points to remember

• Commodities are essential raw materials with standardised quality that trade globally at similar prices
• The most traded commodities include Brent crude oil, steel, WTI crude oil, and gold
• Multiple factors affect commodity prices, including supply and demand, weather and geopolitical events
• There are various ways to trade commodities, from futures and CFDs to ETFs and options
• Successful commodity trading requires understanding market-specific drivers and implementing proper risk management

¹ World Bank Group, 2024
² CRU Group, 2022
³ National Library of Medicine, 2023
⁴ Focus Economics, 2025
⁵ IEA Oil Market Report, 2025
⁶ AskTraders, 2024
⁷ Statista, 2024
⁸ DevelopmentAid, 2024
⁹ Reuters, 2025
¹⁰ SGX Group, 2024
¹¹ World-Grain.com, 2024
¹² American Farm Bureau Foundation for Agricultur, 2022
¹³ AskTraders, 2024
¹⁴ Statista, 2025
¹⁵ AskTraders, 2024
¹⁶ Investing News Network, 2025
¹⁷ World Gold Council, 2025
¹⁸ AskTraders, 2024
¹⁹ L'Agefi, 2024
²⁰ Harbor Alumnium, 2024
²¹ London Metal Exchange, 2025
²² AskTraders, 2024
²³ CME Group, 2018