The Commodity Market consists of the trading of forward contracts or futures contracts. This market is classified in:
	(i)	“Dealers Market” where sellers typically approach the traders for a price quotes. Once they find a favorable quote, it is considered sold to the dealer.
	(ii)	“Open-Outcry auction” where commodity is sold.
Basically commodity trading deals with “Derivatives” i.e., financial trading, which derives their value from an underlying asset.Derivatives like, Forwards, Futures, Options,& Swaps can be traded either in an “Exchange” or over the Counter. Derivatives attract “Speculators”, “Hedgers” and “Arbitragers”. Prices in the commodity market are the inductive & collective opinion prices of physical market trader.