A commodity is an undifferentiated good that is used as input in the production of other goods and services. It is typically traded on a commodities exchange, which provides a regulated environment where buyers and sellers can meet to trade commodities either for immediate delivery (spot trading) or for future settlement (futures trading). Commodity markets also facilitate price hedging by allowing producers and users of the commodity to offset their exposure to price movements with outside investors and speculators.

UK Commodity Market Overview: Trends and Opportunities

UK Commodity Market Overview is home to several major commodities exchanges, including the London Metal Exchange and Chicago Mercantile Exchange, as well as to a number of leading international trade associations such as GAFTA, FOSFA and the RSA. It is also a key global trading hub for US-based companies, with the UK in 5th place among US export destinations for goods and 2nd for services.

HM Revenue and Customs (HMRC) data collection changes following Brexit have led to a structural break in the statistics on UK imports and exports of goods with the EU, starting from January 2021. More details are available in our Impact of Brexit data collection changes on UK trade statistics articles.

UK traders can access the global commodity markets through a variety of derivative instruments, like CFDs and spread bets, or via physical transactions with products such as precious metal bullions. However, it is important to remember that trading commodities is risky and you could lose more than your initial investment.