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Related to commodity: Commodity market, Commodity Futures


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


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.


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.


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.


  1. 1see GOODS.
  2. raw materials rather than goods in general: for example, tea, coffee, iron ore, aluminium, etc.
References in periodicals archive ?
Other advisors forgo actively managed commodity funds altogether by simply using index based commodity funds or ETFs like the WisdomTree Commodity Index Fund (GCC), up 11.
This paper examines these two competing explanations for the pattern of commodity prices during the last decade.
If the price of a commodity falls, prices of related stocks will go down more than that of the commodity.
In order to ensure sufficient liquidity, commodity schemes must maintain at least 10 per cent of their net assets in cash and near cash instruments.
The history of commodity market cycles suggests the decline could be spectacular.
Configuration management is a byproduct of the commodity approach.
They have since begun to assert themselves for a share of the spending, and as so few participate in the commodity programs, their option of choice for participating in the farm budget is conservation.
The professional literature, therefore, is officially silent with regard to commodity pools that are subject to the act's provisions.
Moreover, unless the IRS issues further rules to the contrary, commodity dealers also cannot exempt from mark-to-market treatment any commodity derivatives they hold.
banks have long been involved in financing commodity activities through their agriculture lending programs directed at the production and sale of agricultural products, both domestically and abroad.
Karl Marx, who had an eye for the invisible, wrote in his Economic and Philosophic Manuscripts of 1844 about how this new religion was killing people outright or filling their lives with pain, and he denounced it as the fetishism of the commodity.
What distinguishes Mantello from other artists who deal expressly with the commodity is that his work is not patently critical.