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What is understand by the term " Commodities " in trade and which are the different types of commodities ?
A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade. Any good exchanged during commerce, which includes goods traded on a commodity exchange.
A physical or virtual marketplace for buying, selling and trading raw or primary products. For investors' purposes there are currently about50 major commodity markets worldwide that facilitate investment trade in nearly100 primary commodities. Commodities are split into two types: hard and soft commodities. Hard commodities are typically natural resources that must be mined or extracted (gold, rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn, wheat, coffee, sugar, soybeans, pork, etc.)
These are products or services found in the market offered for value...it may be tangible or intangible.
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