Commodities

Extracted Attributes

• Fungibility

  High; individual units are treated as equivalent with no regard to the producer.

• 2024 Outlook

  Predicted as a winning sector in the market according to the All-In Podcast.

• Investment Role

  Acts as an inflation hedge and a diversifier due to returns being largely independent of stocks and bonds.

• Hard Commodities

  Natural resources that must be mined or extracted, such as gold, iron ore, and crude oil.

• Soft Commodities

  Agricultural products or livestock that are grown, such as corn, wheat, sugar, and coffee.

• Pricing Mechanism

  Determined by global market supply and demand; traded on spot and derivative markets.

Timeline

• Alfred Marshall publishes 'Principles of Economics', using 'commodity' as a general term for economic goods or services. (Source: Wikipedia)

  1920-01-01

• Léon Walras's 'Elements of Pure Economics' is published, further defining commodities as a standard economic term. (Source: Wikipedia)

  1926-01-01

• Commodities are predicted to be a winning market sector for the year by hosts of the All-In Podcast. (Source: Document 5cad4e4e-79e4-401e-9806-ecf722cd9b15)

  2024-01-01

Commodity

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. The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded spot and derivative markets. The wide availability of commodities typically leads to smaller profit margins and diminishes the importance of factors (such as brand name) other than price. Most commodities are raw materials, basic resources, agricultural, or mining products, such as iron ore, sugar, or grains like rice and wheat. Commodities can also be mass-produced unspecialized products such as chemicals and computer memory. Popular commodities include crude oil, corn, and gold. Other definitions of commodity include something useful or valued and an alternative term for an economic good or service available for purchase in the market. In such standard works as Alfred Marshall's Principles of Economics (1920) and Léon Walras's Elements of Pure Economics ([1926] 1954) 'commodity' serves as general term for an economic good or service.

Web Search Results

• Understanding Commodities

  Commodities are raw materials used to create the products consumers buy, from food to gasoline or petrol, to electronics and various consumer staples. Commodities include agricultural products such as wheat and cattle, energy products such as oil and natural gas, and metals such as gold, silver, and aluminum. Some commodities are considered “soft” commodities, meaning they cannot be stored for lengthy periods; these include sugar, cotton, cocoa, and coffee. [...] Commodities are a distinct asset class with returns that are largely independent of stock and bond returns. Therefore, adding broad commodity exposure can help diversify a portfolio of stocks and bonds, potentially lowering the risk of an overall portfolio and boosting returns. Given their impact on consumer goods prices, commodities can also offer a hedge against inflation. Understanding Commodities + Share via Email + Share via Linkedin + Share via Twitter [...] For example, commodities are one of the few asset classes that tend to benefit from rising inflation. As demand for goods and services increases, the price of those goods and services usually rises as well, as do the prices of the commodities used to produce those goods and services. Because commodity prices usually rise when inflation is accelerating, investing in commodities may provide portfolios with a hedge against inflation.

• Commodity - Wikipedia

  Most commodities are raw materials, basic resources, agricultural, or mining products, such as iron ore, sugar, or grains like rice and wheat. Commodities can also be mass-produced unspecialized products such as chemicals and computer memory. Popular commodities include crude oil, corn, and gold. [...] In classical political economy and especially in Karl Marx's critique of political economy, a commodity is an object or a good or service ("product" or "activity") produced by human labour. Objects are external to man. However, some objects attain "use value" to persons in this world, when they are found to be "necessary, useful or pleasant in life". "Use value" makes an object "an object of human wants", or "a means of subsistence in the widest sense". [...] In economics, a commodity is an economic good, usually a resource, that specifically has full or substantial fungibility: that is, the market "Market (economics)") treats instances of the good as equivalent or nearly so with no regard to who produced "Production (economics)") them.

• Commodities in the Stock Market: Definition, Types, and Investment ...

  Commodities are basic goods that are interchangeable with others of the same type and serve as inputs for the production of goods and services. There are generally two types of commodities: hard, which include metals and energy products, and soft, which comprise agricultural products. [...] Commodities are essential raw materials like grains, gold, and oil used in the production of goods and are traded in large volumes on specialized exchanges. There are two main types of commodities: hard commodities, which are mined or extracted like metals and oil, and soft commodities, which are agricultural products such as wheat and coffee. [...] Commodities are interchangeable raw materials crucial for manufacturing other goods. They must meet minimum quality standards, known as the commodity's basis grade, for trading purposes. Commodities are traded on commodity exchanges and serve as the underlying investment for commodities futures and options contracts. Commodities can be classified as "hard," which includes metals or oil, or "soft," which refers to goods such as corn or livestock.

• Commodity Market: Definition, Types, Example, and How It ...

  > The term “commodity” includes wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange juice, and all other goods and articles, except onions as provided in Public Law [...] There are two types of commodities: hard commodities (such as gold), which are generally natural resources, and soft commodities (such as soybeans), which are livestock or agricultural goods. Two types of commodity markets are spot and derivatives. Spot commodities markets involve immediate delivery, while derivatives commodities markets entail delivery in the future. [...] What's traded: The primary distinction between stock and commodities exchanges lies in the nature of the assets. Stocks are fractional ownership in a corporation, with their value closely aligned with the company's performance or market sentiment about the firm. Commodities, meanwhile, are physical goods with their investment appeal often hinging on supply and demand, weather conditions, geopolitical developments, and industry changes.

• COMMODITY | definition in the Cambridge English Dictionary

  noun (/us/help/codes.html) uk /kəˈmɒdəti/ us Add to word list Add to word list STOCK MARKET, FINANCE a substance or a product that can be traded in large quantities, such as oil, metals, grain, coffee, etc.: One big commodity that Canada exports is oil. Higher commodities prices boosted first-quarter profits. agricultural commodities FINANCE a financial product that can be traded: [...] Cambridge Dictionary +Plus My profile +Plus help Log out {{userName}} Cambridge Dictionary +Plus My profile +Plus help Log out Log in / Sign up English (US) # Meaning of commodity in English Add to word list Add to word list C1 a substance or product that can be traded, bought, or sold: The country's most valuable commodities include tin and diamonds. the international commodities market Thesaurus: synonyms, antonyms, and examples the things you buy

• Instance Of

  Q21191270