commodity
kuh-MOD-ih-tee
/kəˈmɒdɪti/
A raw material or primary agricultural product that can be bought and sold, such as copper or coffee.
A commodity is 'fungible', meaning one unit is exactly the same as another. A barrel of oil from one well is treated the same as a barrel from another.
The story behind the word. From the Latin 'commodus', meaning 'convenient' or 'with due measure'. Originally, it meant something useful or a convenience. In trade, it came to mean a standard unit of a useful thing.
Word relationships
- product: A product can be anything; a commodity is specifically a raw, interchangeable material.
- good: Goods are finished items; commodities are raw materials.
Commonly confused with
- asset: An asset is anything of value you own; a commodity is a specific type of raw material traded on markets.
Word family
- commodification (noun): The process of treating something as a commodity.
Collocations
- global commodity
- commodity prices
- commodity market
- basic commodity
Example sentences
- "Oil is the most heavily traded commodity in the world." Market Analysis
- "In a world of data, our personal information has become a valuable commodity." Philosophy
Memory hook
A 'COMMON-DITY' is something common and traded everywhere. Raw and tradable.
When not to use
Don't use it for unique, branded products like an iPhone. Use it for raw materials.
Fun facts
- Even 'time' is often referred to as a commodity in business, though it cannot be physically traded.
Related words
Explore more words
Commodities, raw materials, commodification, commodify, supply chain, commercialize
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