What is traded in a commodity market?

In a commodity market, physical goods known as commodities are traded. These typically include raw materials and primary agricultural products, such as oil, gold, natural gas, wheat, and coffee. Commodities are often categorized into two main types: hard commodities, which are Natural Resources extracted or harvested, and soft commodities, which are agricultural products or livestock. Traders buy and sell these commodities in various forms, including spot contracts and futures contracts, to hedge against price fluctuations or to speculate on future price movements.