What is Commodities?

Commodities are basic goods used in commerce that are interchangeable with other goods of the same type. They are most often used as inputs in the production of other goods or services. Common examples include agricultural products (e.g., wheat, corn, soybeans), energy resources (e.g., crude oil, natural gas), and metals (e.g., gold, silver, copper). Commodities are often traded on exchanges, and their prices are subject to supply and demand factors.