1. Introduction to Commodities
  2. Commodities: Cocoa
  3. Commodities: Coffee
  4. Commodities: Copper
  5. Commodities: Corn
  6. Commodities: Cotton
  7. Commodities: Crude Oil
  8. Commodities: Feeder Cattle
  9. Commodities: Gold
  10. Commodities: Heating Oil
  11. Commodities: Live Cattle
  12. Commodities: Lumber
  13. Commodities: Natural Gas
  14. Commodities: Oats
  15. Commodities: Orange Juice
  16. Commodities: Platinum
  17. Commodities: Rough Rice
  18. Commodities: Silver
  19. Commodities: Soybeans and Soybean Oil
  20. Commodities: Sugar
  21. Commodities: Wheat
  22. Understanding Commodities Trading

Prized for its extreme resistance to corrosion and its ability to catalyze reactions – such as those vital in the refining of crude oil into gasoline – platinum is essential in a variety of laboratory and industrial applications. The catalytic converter – a vehicle emissions control device – is the most widely used application of platinum group metals (PGM). Jewelry is the second largest sector of PGM demand. Platinum is also used for biomedical applications, crucibles, dental alloys, electronic devices, glass, hard disks, silicones, turbine blades and watches.

Contract Specifications

Ticker Symbol

PL (CME Globex)

Contract Size

50 troy ounces

Contract Months

The current month and the next two calendar months before moving to a quarterly cycle of January (F), April (J), July (N) and October (V)

Trading Hours

CME Globex: Sunday – Friday, 6:00 p.m. – 5:00 p.m. (there’s an hour break from 5:00 to 6:00 p.m. each day)

Last Trading Day

The third last business day of the delivery month

Price Quote

U.S. dollars and cents per pound

Tick Size

$0.10 per troy ounce ($5 per contract)

Production        

South Africa is the world’s largest supplier of platinum, producing 120,000 kilograms annually. It holds the largest known reserves of PGMs and extracts about 75% of the world’s platinum. Other top producers include Russia – a distant second with 23,000 kilograms – Zimbabwe, Canada and the U.S. Stillwater Mining Company is the only producer of PGMs in the U.S.

Price Drivers

The majority of annual production occurs in South Africa, and trends and conditions in this volatile emerging market affect platinum prices. Other price drivers include:

  • economic and political circumstances
  • natural disasters
  • mining strikes
  • the health of the auto industry
  • technological advancements (for example, electric cars could decrease demand for catalytic converters)
  • substitution of other (less expensive) metals

 

 


Commodities: Rough Rice
Related Articles
  1. Investing

    Top 3 Platinum ETFs for 2018

    These 3 ETFs are great choices for investors interested in exposure to platinum.
  2. Trading

    These Charts Suggest Now Is the Time to Buy Platinum

    The strong chart patterns on these platinum-related assets suggest that now is the time to buy.
  3. Personal Finance

    Gold vs. Platinum Amex Card: Which is for You?

    A close look at the benefits – and fees – of these two levels of shining "metal" cards from American Express.
  4. Investing

    Commodity Investing 101

    From the orange juice we drink to the gas we use to power our vehicles and heat our homes, commodities play important roles in our daily lives.
Frequently Asked Questions
  1. What are the different ways corporations can raise capital?

    Find out about raising capital for corporations with debt and equity capital. Learn how interest and dividend payments factor ...
  2. How do NGOs get funding?

    Find out how non-governmental organizations (NGO) fund projects, operations, salaries, and other overhead costs.
  3. How is a Capitalist System Different Than a Free Market System?

    Learn how capitalism and free market systems work, along with their differences.
  4. What is the difference between a value chain and a supply chain?

    Learn the difference between a value chain and a supply chain, and why a company would want to maximize the value of both.
Trading Center