Glossary:Commodity (2024)

FAQs

What is a commodity answer? ›

Commodities are basic goods and materials that are widely used and are not meaningfully differentiated from one another. Examples of commodities include barrels of oils, bushels of wheat, or megawatt-hours of electricity.

A commodity is any useful or valuable thing, especially something that is bought and sold. Grain, coffee, and precious metals are all commodities. The word commodity is usually used in an economic context, as in importing commodities from other countries or trading in the stocks and commodities markets.

A commodity, also called primary product or primary good, is a good sold for production or consumption just as it was found in nature. Commodities include crude oil, coal, copper or iron ore, rough diamonds, and agricultural products such as wheat, coffee beans or cotton; they are often traded on commodity exchanges.

A commodity is, generally speaking, any product that is bought or sold. The word has also come to refer specifically to agricultural products and raw materials that are vital to the world's economy.

In economics, a commodity is an economic good, usually a resource, that specifically has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.

Commodity prices are determined by inelastic supply and demand which make them largely prone to short-term price shocks. Inelasticity means that the quantity demanded or supplied cannot adjust quickly. Short-term options can be used around key demand and supply report releases.

For those of you who may need a bit of a fresher on what the term "commodity" means... When you're a commodity, you can be replaced on a whim and have NO VALUE beyond anyone else in the market. Another (more blunt) way of explaining this is that people don't actually care about you...they care about your money.

You are as good as the information you possess and the way you use it. The way a company uses all this information that has/owns, is quite significant and can give serious competitive advantages. Commodity is defined as a useful and valuable material or product that can be bought and sold. Information is knowledge.

commodity (noun as in merchandise, possession) Strongest matches. asset goods material produce product property stock.

What is the opposite of a commodity? ›

The opposite (antonym) of a commodity product is a rare one that's possibly custom-made.

Commodities are naturally occurring materials or goods that are collected and processed for use in human activity – such as oil, sugar and precious metals. They form the basis of our economy, because the raw materials are needed for the production of food, energy and clothing.

Commodity programs serve a dual purpose to support agricultural producers and to provide food to schoolchildren (USDA, 2006a). Today's commodity distribution program was established during the 1930s as a part of federal work and food assistance programs.

, plural com·mod·i·ties. an article of trade or commerce, especially a product as distinguished from a service. something of use, advantage, or value. Stock Exchange. any unprocessed or partially processed good, as grain, fruits, and vegetables, or precious metals.

Commodity. A raw material or primary agricultural product that can be bought and sold, such as copper or coffee. Consumer.

Commodities are another class of assets just like stocks and bonds. Most commodities are products that come from the earth that possess uniform quality, are produced in large quantities, and by many different producers. Major commodities include cotton, oil, gas, corn, wheat, oranges, gold, and uranium.