commodity

(redirected from commodities)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.
Related to commodities: commodities market

Commodity

A commodity is food, metal, or another fixed physical substance that investors buy or sell, usually via futures contracts.

commodity

A generic, largely unprocessed, good that can be processed and resold. Commodities traded in the financial markets for immediate or future delivery are grains, metals, and minerals. They are generally traded in very large quantities. See also futures contract.

Commodity.

Commodities are bulk goods and raw materials, such as grains, metals, livestock, oil, cotton, coffee, sugar, and cocoa, that are used to produce consumer products.

The term also describes financial products, such as currency or stock and bond indexes.

Commodities are bought and sold on the cash market, and they are traded on the futures exchanges in the form of futures contracts.

Commodity prices are driven by supply and demand. When a commodity is plentiful -- tomatoes in August, for example -- prices are comparatively low. When a commodity is scarce because of a bad crop or because it is out of season, the price will generally be higher.

You can buy options on many commodity futures contracts to participate in the market for less than it might cost you to buy the underlying futures contracts. You can also invest through commodity funds.

commodity

any economic GOOD but in commercial circles more specifically agricultural produce and minerals such as wheat, tea, copper, iron ore, etc. See COMMODITY MARKET, INTERNATIONAL COMMODITY AGREEMENT.

commodity

  1. 1see GOODS.
  2. raw materials rather than goods in general: for example, tea, coffee, iron ore, aluminium, etc.
References in periodicals archive ?
Mineral Commodities submits that shareholders Au Mining, Tormin Holdings Limited and Mr Walker, together with other persons alleged to be connected with these shareholders (the Alleged Connected Parties), are associated and acting in concert in relation to the affairs of Mineral Commodities.
Some of the institutions targeted in the market include banks which for a long time provided finance for companies wishing to produce and trade commodities.
It is followed by the Middle East and North Africa, where 65pc of countries depend on commodities.
It is followed by the Middle East and North Africa, where 65% of countries depend on commodities.
Most of these new commodities were identified by local government units of the Autonomous Region in Muslim Mindanao (ARMM), Alesna said.
'Government will make sure that the Ghana Commodity Exchange delivers on its mandate, and promotes high productivity, price stability, increased exports and reduced imports of commodities.
Hamilton Dock, Titanic Quarter (4 sites) for hot and cold food and nonalcoholic beverages or similar commodities, gifts and souvenirs.
Prices of commodities affect not just how much it costs you to buy bacon, orange juice, plywood, and gasoline but also the profitability of companies.
"There is a lot greater interest in commodities than there was 2-3 years ago.
What does the continental Commodities Strategy propose?
The biggest countries such as the People's Republic of China or India base their development on intense consumption of commodities, especially metals.
Nuveen Commodities Asset Management LLC serves as its manager and Gresham Investment Management LLC serves as sub-adviser.