commodity


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Related to commodity: Commodity market, Commodity Futures

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 ?
'The development of a regulatory framework for commodity exchanges will augment the government's efforts on enhancing food security and making the commodities market competitive, improving efficiencies in the value chain and meeting international standards,' CMA added.
dfcu's structured Commodity Finance is designed for commodity producers and trading companies doing business in the developing market.
Commodity-dependent developing countries are vulnerable to negative commodity price shocks and price volatility.
Commodity news can be gleaned from a general web search, but for in-depth or historical news, it's best to rely on subscription databases.
The growing interest in commodity markets can be measured by various indicators.
"Commodity producers have converted future commodity sales into net present cash flow -- and that process sets up some of the more dramatic volatility and movements."
"Natural gas is a classic example of a misunderstood commodity story currently: every day, we read in the financial press that natural gas is in oversupply, but these stories completely ignore the fact that, because the price has collapsed in the past two years, demand is rising.
In most Asia-Pacific markets, we do not expect negative bank rating actions related to commodity exposures, because the banks in general have either good financial buffers, moderate commodity exposures, or their ratings capture asset quality weakness, Moody's said.
It is easy to forget that it was only a few months ago that still-plunging commodity prices were among the perceived harbingers of an impending global recession.
It was highlighted that the SECP was committed to bringing about reforms in agricultural commodity trading by encouraging traders to make use of the platform of Pakistan Mercantile Exchange Limited (PMEX) as a modernized route for buying and selling agricultural commodities in Pakistan.
But its role in the sharp fall in commodity prices that has occurred since 2014 -- an outcome that has been devastating for commodity-exporting countries, including once-dynamic emerging economies -- is more limited than the conventional wisdom suggests.
Dubai, Sept 21 (ONA) Dubai Mercantile Exchange "DME," the premier international energy futures and commodities exchange in the Middle East, today announced the launch of "DME Auctions," the first platform in the Middle East that will provide a transparent spot commodity auction system.