Can anyone explain what is inventory in commodity market?

please give a breif about it

First let’s understand what Inventory means.

Inventory means the entire stock of a business, including materials, components, work in progress, and finished product.

We all know that markets run based on demand and supply.
The law of demand and supply states that when the demand is higher, the prices increase and vice versa.
When demand increases, the supply decreases automatically.

So now when you consider the commodity market, the demand and supply ratio value are derived with the help of Inventory. The inventory would give complete details of how much of that particular commodity is available for supply and how much is needed for consumption.

I hope this answers your question!

Happy Investing! Cheers!


Can you advise how to interpret the inventory results, how its gonna effect the prices

thanks for the repley , i got an idea now .
do you use the inventory data in commodity market…??
if yes… how should one effectively use it for gain…??

Commodity prices depends on Inventory data and Global sentiments as well.

As I know apart from inventories data Global sentiments influence the prices of Commodities much affectively.

You really need to take all info you got from there for your future trades with them, are you getting me now or not ? It’s very very important anyway. I hope you will fix yourself no matter what. My mistake for example was to count that Inventory not like from separate business but more like worldwide.