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What does Commodity mean?

In economics, a commodity is a marketable item produced to satisfy wants or needs. Commodities are natural resources such as oil & gas, mineral ores, aluminium, copper, gold, silver and agricultural products such as rice, wheat, sugar, tea, coffee and soybeans. These are traded physically in commodity market. They are actively traded in commodity exchanges. There are traded in spot and derivative markets.

Futures Knowledge Explains Commodity

Future contracts for commodities are traded like shares on the commodity exchanges such as the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange ICE. The participants in commodity exchanges and markets are producing and consuming companies. The other participants are investors and speculators.

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