Commodities are basic goods that are traded in the financial markets. They can be physical assets such as crude oil, gold, silver, wheat, corn, and other natural resources that are essential to our everyday lives. These raw materials are typically produced and traded on a global scale, making them a vital component of the global economy.

Commodities can be classified into different categories, including energy, metals, agriculture, and livestock. They are typically traded on commodity exchanges, where buyers and sellers can negotiate the price and quantity of the commodity being traded.