Commodities are generally agricultural products, energy, and precious metals mass-

produced  and delivered in bulk quantities. Usually, the place of a commodity’s 

production is different from its place of consumption.

Commodity trade finance aims to bridge gaps between the two destinations.

Commodity trade finance is a part of the broader framework of commodity finance 

that covers the entire value chain from production to trade. The trade financing 

aspect focuses only on the supplier-buyer equation.