Which is traded in a commodities market?

In a commodities market, various physical goods are traded, typically categorized into two main types: hard commodities and soft commodities. Hard commodities include Natural Resources such as oil, gold, and metals, while soft commodities refer to agricultural products like wheat, coffee, and sugar. These commodities are bought and sold in standardized contracts, allowing for speculation, hedging, and investment. The trading occurs on exchanges, where prices fluctuate based on supply and demand dynamics.