commodity

Something produced for sale. Commodities may be consumer goods such as radios, producer goods such as copper bars, or raw materials such as cotton.

Commodity markets deal in raw or semi-raw materials that are amenable to grading and that can be stored for considerable periods without deterioration.

Commodity markets developed to their present form in the 19th century, when industrial growth facilitated trading in large, standardized quantities of raw materials. Most markets encompass trading in commodity futures – that is, trading for delivery several months ahead. Major commodity markets exist in Chicago, Tokyo, and London. The London Metal Exchange, for example, is the world's premier non-ferrous metals market offering futures and options contracts for aluminium, copper, tin,wasnickel, zinc, and lead. Although specialized markets exist, such as that for silkworm cocoons in Tokyo, most trade relates to agricultural items and metals. Softs is a term used for most materials other than metals.