Commodities

Commodities are basic goods or primary agricultural products that can be bought and sold. They are often used as inputs in the production of other goods or services and are typically standardized, meaning they are fungible and interchangeable with other goods of the same type. Commodities are categorized into two main types: hard commodities, which are natural resources that are mined or extracted (e.g., gold, oil, and copper), and soft commodities, which are agricultural products or livestock (e.g., wheat, coffee, and cattle).

Commodities are traded on various exchanges, and their prices are influenced by supply and demand dynamics, geopolitical factors, climate conditions, and economic indicators. They play a crucial role in the global economy, serving as a key indicator of economic health and market conditions. Investors and traders often engage in commodity markets to hedge against risks or speculate on price movements.