A commodity refers to a basic good or raw material that is standardized and interchangeable with other goods of the same type. Commodities are often used as inputs in the production of other goods or services. They can be categorized into hard commodities, like gold, oil, and metals, and soft commodities, like agricultural products such as wheat, coffee, and soybeans.
Commodities are traded on various exchanges through futures contracts, and their prices can be influenced by supply and demand factors, geopolitical events, and economic indicators.
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