A commodity is any homogenous good traded in bulk on an exchange. Grain, precious metals, electricity, oil, beef, orange juice, and natural gas are traditional examples of commodities.
The National Commodity Exchanges recognized by the Central Government permits commodities which include precious (gold and silver) and non-ferrous metals, cereals and pulses, ginned and un-ginned cotton, oilseeds, oils and oilcakes, raw jute and jute goods, sugar and gur, potatoes and onions, coffee and tea, rubber and spices etc.
The terms commodity market, commodities market and future(s) market mean the same thing and can be/are used interchangeably.
There are a number of specific commodities and commodity groupings. Examples of different commodities market groupings or families include the following:
- Agricultural commodities include raw "grains" like corn, oats and wheat.
- In the metals commodity market, gold, silver, copper, platinum, aluminum, etc are some of the main raw metal commodities.
- Meat commodities are raw products like pork bellies and live cattle.(Bacon comes from pork bellies)
- 'Soft' commodities, including Orange Juice, Coffee, Sugar and Lumber.
- Energy commodities, including Crude Oil, Gasoline,Heating Oil.
- Financial commodities include Treasury Bills, T-Bonds and Currencies.
The Financial Mall India offers future trading in commodities through National Commodity Exchange (NCDEX) and Multi Commodity Exchange (MCX) in India.