The 5 Top Trading Commodities In Australia
Australia is the fifth largest trading economy in the world and one of the largest exporters of mineral resources, agricultural products, and energy sources in the Asia-Pacific region. Trading commodities can be enjoyable and create some interesting affects, such as l food commodities trade affect on obisety
. The following five commodities make up over 90% of Australia’s $1 trillion worth of exports annually, according to 2021 figures compiled by Australia’s Department of Foreign Affairs and Trade. They are also projected to increase in value
throughout 2020 and 2021.
According to the Observatory of Economic Complexity, Australia is one of the world's largest exporters of iron ore, having exported $79.6 billion worth of iron ore in 2020
. The Port Hedland region has a terminal that is capable of loading vessels with iron ore that hold up to 200,000 tonnes.
Australia is a major exporter of wheat. According to the Dept. of Agriculture. Fisheries and Forestry of Australia, wheat exports are expected to reach $11.7 billion in FY 22-23
. This also makes wheat an interesting commodity for trading. You can take part in agricultural markets without holding actual wheat as seen on AvaTrade
, a pioneer in online trading. The Chicago Board of Trade (CBOT) and NYSE Euronext (Euronext) are the primary exchanges that deal in wheat futures.
Beef and Lamb
Most of the beef and lamb that are consumed in Australia are produced domestically, but these still make up about 90% of Australian trade. If you include both fresh and frozen, then nearly 98% of all trade is cattle meat.
In addition to domestic production, imports from other countries make up about 10% of Australian consumption. Most imports come from New Zealand (21%), followed by Uruguay (11%) and Argentina (10%). Exports, meanwhile, account for 3% of total beef and lamb trade, with Canada being the leading destination.
Australia is the second largest natural gas producer after Russia, which leads to a vast majority of Australian exports being associated with oil and gas. Australia is a net exporter of liquefied natural gas (LNG) to Southeast Asia, Japan, India and other parts of East Asia. Natural gas demand will grow globally by 2.1% per year between now and 2040
, driven by increased energy use across emerging markets and continued expansion of LNG exports from Qatar and other producers.
As the 5th most traded commodity in Australia, gold is important because it is seen as a store of value. Gold is seen as an inflation hedge, so traders are not too concerned when inflation rises because they know that the value of their gold holdings will rise with inflation. The importance of gold means that the price of gold is closely monitored by many different groups in Australia, such as The Reserve Bank and The Australian Bureau of Statistics. The World Gold Council provides some interesting statistics on gold consumption in Australia; they found that 76 tonnes of gold were used to make coins and medals between 2000-2010. Another 60 tonnes were used to produce various other articles like jewellery and watches during this time period.