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commodity

kuh-MOD-uh-tee /kəˈmɒd.ə.ti/

nounB2GRESATIELTSGMATUPSC

businesseconomicformal

A raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

Standardized goods across suppliers that are interchangeable on commercial trading markets.

The story behind the word. From Latin 'commoditas' (suitability, convenience), derived from 'commodus' (fitting, measuring right). It entered Middle English meaning beneficial property, eventually adopting its trade definition as standardized market goods in the 18th century.

Word relationships

good: Good is any manufactured or non-manufactured item for sale, whereas commodity specifically implies a standardized raw material.
merchandise: Merchandise refers to finished retail items rather than raw traded resources.

specialty product: A specialty product is unique, customized, and non-fungible, unlike a uniform commodity.

Commonly confused with

product: A product is any item created for sale (often branded); a commodity is a standardized, unbranded raw trade good.

Word family

commodify (verb): To turn a product or concept into a commercial commodity.
commodification (noun): The process of treating something as a tradeable commodity.

Collocations

agricultural commodity
commodity market
commodity price
trade commodities

Example sentences

"Wheat is a key agricultural commodity traded on global futures exchanges." Global market analysis

Memory hook

COMMODITY = COMMONLY traded product on the market. Common standardized raw good.

When not to use

Do not use to describe unique, handcrafted, or non-interchangeable branded luxury goods.

Fun facts

Pork bellies were one of the iconic physical commodities traded on the Chicago Mercantile Exchange for over 50 years.

Related words

agribusiness, yield

Explore more words

Commodities, raw materials, commodification, commodify, supply chain, commercialize