What is commdity?

A commodity is a basic good or raw material that is interchangeable with other goods of the same type, often used as inputs in the production of other products. Common examples include agricultural products like wheat and corn, Natural Resources like oil and metals, and financial instruments. Commodities are typically traded on exchanges and are valued based on supply and demand dynamics. They can be categorized into two main types: hard commodities, which are natural resources, and soft commodities, which are agricultural products.