Commodities

Commodities are basic goods or raw materials that are interchangeable with other goods of the same type. They are typically used as inputs in the production of other products or services and can be traded on various markets. Commodities are often categorized into two main types: hard commodities, which are natural resources that are mined or extracted (such as oil, gold, and metals), and soft commodities, which are agricultural products or livestock (such as wheat, coffee, and cattle). The value of commodities is influenced by supply and demand dynamics, and they are commonly traded on exchanges, allowing investors to speculate on price fluctuations. Commodities play a crucial role in the global economy, serving as essential components for manufacturing, energy production, and consumption.