Commodities traded on the world market ranges from raw materials to intermediate or semi-processed goods; or simply goods that are used to manufacture other goods. The prices of these commodities are set in the world market by market forces; buyers and sellers or demand and supply. The most commonly traded commodities include crude oil, gold, copper, wheat, cotton, silver, natural gas, sugar, coffee, and corn.
In the case of Fiji, prices of commodities such as crude oil, sugar, gold, wheat and aluminium are very important, as these have a direct and significant impact on our exports and imports which then influence Fiji’s overall external position with the rest of the world.
For instance, higher world market prices for export commodities sugar and gold (two traditional Fijian exports) are favourable as they raise the value of our exports thus boosting foreign exchange earnings and improving Fiji’s external position. On a micro level, this means more income for local farmers, mine workers and relevant businesses, more employment opportunities for people and an overall improvement in the welfare of all Fijians.