The days are gone in which commodities were limited and were restricted to a few sectors. But the technological advancements along with the progression of industrialization and globalization have broken every obstacle and have made the commodity market one of the biggest and diverse trading markets today, by including crude oil, cotton, gold, etc. as present day commodities. One can open a newspaper and read much commodity news.

In those newspapers, one may also notice the regular fluctuation in commodity markets. Experts might suggest that fluctuations occur due to a multitude of factors, like large institutional block trades, program trading, economic reports etc. Although there are innumerable factors that can influence the market but there is the type of commodity which plays as one of the major factors in the fast moving and fluctuating markets. Here are some of the commodities which prices play a major role in handling the commodity market, based totally on their demand and supply ratio.

Lumber

An average trader might never guess that lumber plays an important part in affecting companies associated with commodity market. The high demand of lumber in the international market is closely watched by many commodity brokers, companies, professional traders, and investors.

Oil

The oil price can affect the commodity markets, along with every financial market one has heard of. The price even today shows heavy fluctuations and leaves consumers thinking how much they will have to spend. Oil is one of the major foundations of North American economy and its prices are surely important to companies of every sector.

Cotton

Cotton is bought, sold and traded for its flair as an important component in textile industries. Its fluctuating demands and supplies also affect its sister commodities including furniture, coffee filters, etc.

Wheat

Wheat is the chief ingredient in many consumable products. Its demand has remained always high since the introduction of the commodity market. The wheat makers might save some for themselves and pass the rest further to be used by the masses, but the prices keep increasing at every step (middlemen, distributors, grocery and convened stores, etc.) until it reaches its end consumer. It surely affects the commodity market to some extent as the increasing population requires more wheat, misbalancing the whole demand and supply ratio.

These commodities prices are always increasing due to high demand and short supplies, which is always immortal news to the ears. Although, such flow is yet a good sign for the commodity market, but if seen from another point of view, left us to deal with regularly decreasing supplies.