Commodities

Commodities are basic goods used in commerce that are interchangeable with other goods of the same type. They are often the building blocks for more complex goods and services. Commodities can be categorized into two main types: hard commodities, which are natural resources that are mined or extracted (such as oil, gold, and natural gas), and soft commodities, which are agricultural products or liveStock (such as wheat, coffee, and cattle).

Examples of commodities include:

• Crude Oil
• Gold
• Wheat
• Coffee
• Copper

Cases in which commodities play a crucial role include:

• Commodity trading on exchanges, where prices fluctuate based on supply and demand.
• Hedging strategies used by businesses to protect against price volatility.
• Global Economic Indicators, where commodity prices can signal trends in the economy.