Commodity

A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are typically raw materials or primary agricultural products that can be bought and sold. Examples include oil, gold, natural gas, coffee, and wheat. Because they are standardized, commodities can be traded on exchanges, with their prices fluctuating based on supply and demand. Investors and businesses closely monitor these prices, as they can significantly impact economies and various industries. Overall, commodities play a vital role in the global economy.