Liam Gill Business Analyst
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Every morning before 8 am ET, Inside.com shares with you the price movement of the top commodities. These commodities are things used every day and have fundamental roles in allowing us to travel, eat and trade. The price of these commodities often has a direct impact on the prices paid by consumers for basic necessities.
A measurement of the price of crude oil (the raw resources mined from the earth which becomes gasoline for cars, fuel for planes, and other uses. It is widely viewed by many financial professionals and economists as the most important commodity due to its role as the primary source of energy in the world. It is often referred to as 'black gold'.
Has been used as money since ~600 BC. It has long been considered one of the most stable stores of value. Until 1971, world governments also used gold to back their national currencies helping to provide a global standard. Today, gold is primarily used as a hedge against inflation of fiat currencies.
Silver has also been used in a similar role to gold throughout history. Specific countries including the United Kingdom adopted silver as the primary measure of value within their borders.
Corn accounts for 96.4% of all U.S. Feed Grain production. There are more than 90 million acres of land in the US where corn is planted and it is the main source of food for livestock raised in the United States. Furthermore, it is used to produce starch, sweetener, corn oil, industrial alcohol, fuel ethanol and is directly consumed by Americans. Corn is so prominent that the average American spends $267 annually on corn. Due to its role as a food product, food for animals we eat, and as a component of numerous other daily products and industrial industries it is one of the top commodities to track to measure underlying price changes in the United States.
This chemical is also crucial to numerous industries including medicine, fuel, livestock, and direct consumption as alcohol. This price of Ethanol like corn can be an indicator of the underlying movements of the economy and help track future price changes.