Commodities
Raw materials or primary agricultural products that can be bought and sold, such as copper or coffee.
Commodities are typically interchangeable with other goods of the same type, meaning their value is determined by market supply and demand rather than brand differentiation. They are often traded on futures exchanges.
Word relationships
- raw materials: Often used interchangeably, but 'commodities' specifically implies they are traded goods.
- goods: Much broader term, includes finished products, while 'commodities' are raw or primary products.
Collocations
- raw commodities
- agricultural commodities
- energy commodities
- commodity prices
- commodity markets
Example sentences
- "The price of oil and other commodities surged this week due to geopolitical instability." Financial market report.
- "Many investors include commodities in their portfolios as a hedge against inflation." Investment strategy.
- "Developing nations often rely heavily on the export of agricultural commodities." Global trade discussion.
Memory hook
Think of common, useful things that are traded, like COM-MON-DITIES. Traded raw materials
When not to use
Do not use 'commodities' to refer to finished goods or branded products. It specifically refers to raw, undifferentiated materials.
Fun facts
- The three main types of commodities are agricultural (e.g., wheat, coffee), energy (e.g., oil, natural gas), and metals (e.g., gold, copper).
Related words
Explore more words
raw materials, Derivatives, Reserves, supply chain, barter, Market
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