| Commodity derivatives are useful tools for hedging against risk in emerging economies whose revenues mainly come from exports of mono products. Commodity markets are generally held to comprise oil and gas, gold, silver, platinum and palladium, copper nickel, aluminum, zinc and tin, as well as agricultural products which include grain, sugar, coffee, cocoa.
Each of these products can potentially use derivative instruments for risk management purposes, but it is the energy and metals markets that are at present the most well developed with parallels with most financial derivatives products...............................................Full Article: Source
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