If you’re looking for the best method to invest in commodities, you may use an API to get the commodity’s spot rates that you are interested in.
When we talk about spot prices, we’re talking about the current market price at which any commodity can be sold at any one time. While spot prices are time and place-specific, in a global economy, when currency rates are taken into account, the spot price of most assets or commodities tends to be quite similar globally.
The term “spot price” is most typically used to describe the price of commodity futures contracts, such as those for oil, wheat, or gold. Because equities are always exchanged at the present price, this is the case. You buy or sell a stock at a predetermined price, then cash out.
With that in mind, it should go without saying that knowing spot prices for the product you’re working on is critical to your company’s growth. In this sense, an API is the most efficient approach to gain access to that data.
What is an API?
This is a connection between two computers or apps that allows them to communicate with one another. When you send a request to an API, such as for spot pricing of any commodity, the interface will respond with the expected response.
However, when looking for the ideal API to employ for this purpose, keep in mind that not all of them are created equal. Nonetheless, there is one fantastic tool that may be useful to you: Commodities-API is a free public API that provides commodity prices for a wide range of products, including coffee, rice, sugar, and wheat.
Why Commodities-API?
Commodities-API is a software application that displays real-time commodity data. It can update every 10 minutes or every 60 seconds, depending on the plan. It also provides historical information, allowing you to reflect on past occurrences and formulate future goals.
Also, Commodities-API supports rice, wheat, coffee, corn, sugar, Brent crude oil, WTI crude oil, soybeans, gold, silver, and a variety of other commodities and currencies. This method can be used for a wide range of commodities to obtain any spot rates.
The midpoint data in this API is calculated by averaging the median bid and ask rates across time. Currency and commodity price conversions are done using the same API endpoints, and they can convert any amount from one currency to another, one commodity to another, or one quantity to another.
Furthermore, this program uses an API to receive data from banks and the stock market, making it completely trustworthy. The data is subsequently given with a precision of two decimal places and can be adapted to JSON, PHP, and Python. Commodities-API protects your connection with bank-grade 256-bit SSL encryption.
How to use it?
If you wish to look for commodity spot prices, you must take the following steps:
1- To receive your API key, first create an account at www.commodities-api.com.
2- Look into the commodities and currencies that interest you.
3- Once you’ve got both of them, call the API with them.
4- The program will return a JSON response, which you can modify and use as needed.
Also published on Medium.