commodity
kuh-MOD-ih-tee
/kəˈmɒd.ə.ti/
A raw material or primary agricultural product that can be bought and sold, such as copper or coffee.
In economics, a commodity is a good where there is no qualitative difference between producers; one bushel of 'Grade A' wheat is the same as another.
The story behind the word. From the Latin 'commoditas', meaning 'convenience' or 'fitness'. It originally referred to something useful or beneficial before narrowing to mean 'standardized goods of trade'.
Word relationships
- staple: A staple is a necessary good; a commodity is a standardized good traded on markets.
- specialty good: A product that is unique and not interchangeable with others.
Commonly confused with
- product: A product can be branded and unique; a commodity is standardized and interchangeable.
Word family
- commodification (noun): The process of treating something as a mere commodity.
- commodify (verb): To turn something into a commodity.
Collocations
- bulk commodity
- commodity market
- staple commodity
Example sentences
- "The price of corn as a global commodity is affected by weather patterns in both the US and Brazil." Market reports.
- "In today's fast-paced world, time has become a precious commodity." Philosophical usage.
Memory hook
A 'COMMON' 'DITY' (entity) that everyone sells. Commodities are the 'building blocks' of trade.
When not to use
Don't use it for unique, branded, or artisanal products (like a specific chef's signature sauce).
Fun facts
- Orange juice is traded as a commodity on the New York Board of Trade, just like gold or oil.
Related words
Explore more words
Commodities, raw materials, commodification, commodify, supply chain, commercialize
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