Commodities Definitions

Spot Commodity

(1) The actual commodity as distinguished from a futures contract; (2) sometimes used to refer to cash commodities available for immediate delivery. See also: Actuals or Cash Commodity.

Basis Grade

The grade of a commodity used as the standard or par grade of a futures contract.

Spark Spread

The differential between the price of electricity and the price of natural gas or other fuel used to generate electricity, expressed in equivalent units. See also: Gross Processing Margin

Enumerated Agricultural Commodities

The commodities specifically listed in Section 1a(3) of the Commodity Exchange Act: wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard

Soft

(1) A description of a price that is gradually weakening; or (2) this term also refers to certain “soft” commodities such as sugar, cocoa, and coffee.

Licensed Warehouse

A warehouse approved by an exchange from which a commodity may be delivered on a futures contract. See also: Regular Warehouse.

Assay

Metal purity test to ensure that a metal meets exchange set quality standards for trading.

Shipping Certificate

A negotiable instrument used by several futures exchanges as the futures delivery instrument for several commodities (e.g., soybean meal, plywood, and white wheat). The shipping certificate is issued by exchange-approved facilities and represents a commitment by t

Anthracite

Anthracite is the most valuable form of coal. It contains high levels of carbon and releases the greatest amount of energy on a per unit basis. See also: Energy Trading

Drilling Barge

A drilling barge is a floating barge fitted with a drilling platform towed by tugboats. It is used in shallow water to drill for crude oil and natural gas. See also: Crude Oil Futures, Natural Gas Futures , Energy Trading