How much we buy on the commodity exchange

On commodity exchanges, when trading gold or oil, do not meet with liters or kilograms. Instead, hear about barrels of oil, ounces of gold and bulls of corn. Find out in these articles what these units mean and where they came from.

It would be simplest to have all commodities as basic units of the SI system and derived from them and sub-units. But it is not fully mon. The SI system is not uniformly used throughout the world and is relatively young due to the tradition of trading on commodity exchanges. Most commodities are thus traded in English and American units.

The American mild system is based on the English, and although there is not much difference between them, there are only furnaces. For example, the US ton is 2,000 pounds, but the British ton is 2,240 pounds, and all the volumes of the unit are different. To specify, then enter the abbreviation US or Imp (as imperial).

The SI system has been in use for less than 50 years

The SI system (Le Système International d’Units) was founded in 1960 on the foundation of the original metric system, which was defined by the three foundation units meter, kilogram, second.

The British system is much older and is defined by three basic yards of yard, pound and gallon. Due to the fact that in Britain, and especially in the USA, where the roots of commodity trading are very deep and have a long tradition, there have been a small number of units in which contracts are concluded, mostly in the original.

Oil is traded in barrels

Perhaps most recently, information about the development of oil prices and its forecasts appears in the first and last days. Oil is traded in barrels (from the word barrel or petrol barrel – barrel of oil). Devn barrels of 42 gallons were used to transport oil to refineries in the mid-nineteenth century.

The interesting thing is that even though in Britain and the USA it is necessary to have a different amount of gallon per barrel (in GB it is 35 gallon, in the USA it is 42 gallon), in the conversion to the metric system the volume is dark the same, ie 159.113 liters, resp. 158,987 liters. Here, however, complications with units are far from over, on the contrary.

As stated above, the US gallon (3.785 L) and the British Gallon (4.546 L) do not represent the same volume when converted to SI units. In the USA today, there is a so-called liquid (wet) gallon for liquids and a dry (dry) gallon for cereals, etc., which represents 4.405 l.

Find Nen Find Jako

The price of agricultural grains is woven in bulges. The bulge (bushel) is the original volume unit (dry in the US), which is 35,239 liters (somewhere the British volume unit is 36,369 liters). For some agricultural crops, it is used today as a unit of weight.

Pound = equilibrium

He gave a fairly widely born unit is the pound or pound. The basis of the English name is the Latin word pendere, which means vit, and the word libra means in Latin the equilibrium. The pound is the same in both the US and the UK, so there are no problems here. One pound can be published in SI units as 453.592 g.

The meat is traded on commodity exchanges, soybean oil, yeast, cotton, sugar, oranges, all kinds of meat (beef, beef, pork loins and frozen pork fillets).

Troysk ounces not from Troy

A very small unit is a troy ounce (troy ounce, oz = 31.103 g). Troysk weight units are used in the trade of precious metals and coins, in England there were also used toasts. The name of the units comes from the French city of Troyes, where it was traded in the Middle Ages in these units. Metal tracks such as gold, silver, platinum and palladium are traded in troy ounces.

A mole or a long ton?

Even here, the bag is not everything as simple as it seems. Nae, a metric ton equal to 1,000 kilograms, except for n, in the USA and Great Britain, is the so-called “mole ton” (short ton = 907,184 kg) and “long ton” (long ton = 1016,046 kg). The American mole ton in exactly 2,000 pounds, the British long ton then 2,240 pounds.

Sjov rot is traded first in the US, mole tons. The only commodity traded in metric me is cocoa, its one contract is 10 metric tons.

You can find out more about other units at Investujeme.cz.

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