What does commodity market mean?

A commodity market is a marketplace where raw or primary products are traded. These commodities are typically categorized into two types: hard commodities, which are Natural Resources like oil and gold, and soft commodities, which are agricultural products like wheat and coffee. The trading can occur on physical exchanges or through futures contracts, allowing buyers and sellers to hedge against price fluctuations. Commodity markets play a crucial role in the global economy by facilitating price discovery and providing liquidity.