Would you like to obtain the spot market prices for commodities? Well, in this article you will find the solution to your problems. We will introduce you to one of the best APIs in the commodities market. In fact, it is the best commodities spot rates API.
In economics, a commodity is defined as a tangible good that can be bought, sold, or exchanged for products of similar value. Natural resources like oil and staple foods like corn are two common types of products. Like other asset classes, such as stocks, commodities have value and can be traded on open markets. There are different groups into which commodities are divided: Energy (oil, coal, natural gas), Industrial metals (copper, nickel, or zinc), and agricultural (wheat, corn, soy), among others.
Regarding their characteristics, commodities are mainly characterized by their dependence on external factors such as agricultural droughts, market tensions, and economic slowdown. This generates great volatility. For example, the war between Ukraine and Russia decreased the supply of natural gas to the European Union and therefore, the supply decreased and its price increased. But the opposite could also happen, that the price of a commodity drops considerably for another reason.
To trade commodities, you can do it in two types of markets: Spot markets and futures markets. However, the one that interests us here is the first, which is a market where any asset is compared or sold with immediate delivery (or in a short period) and at the current market price. It contrasts with the futures market in which delivery is made at a future date. To get these prices, the Commodities-API service will surely help you in your task as it is the best for this type of task. Below we will give you more information about this API.
Using Commodities-API to get commodity spot market rates is the best option for you as it is the most important commodity trading API in the market. All information is obtained from high-quality sources of information, so you can be 100% sure that the information is true. All this with a precision of 2 decimal places and a frequency of up to 60 seconds. Regarding the currency, you should know that Commodities-API has a convertibility system between 170 currencies. It is not necessary to see the prices in dollars or euros; you can use the official currency of your country.
To acquire the prices of the spot market of commodities and be able to analyze them, you will have to follow these steps:
1- Access the website www.commodities-API.com and generate the API key.
2- Register and select a plan. Currently, there are 3 plans available, of which 1 is free and 2 are with a monthly cost. Obviously, the free option has some limitations and the paid ones have better features. You decide which one is best for you and the needs of your company.
3- Find the symbols of the commodity you want and choose in which currency to see the prices.
4- Once you have decided on them, make the call to the API.
5- For better analysis and comparison with other products, you also can create charts.
Doubts? Questions? Use the virtual chat to communicate with a Commodities-API advisor.
Also published on Medium.