Financial Terms Dictionary: ELI5 Version - Commodities

Commodities:

a pivotal category within financial markets, encompass tangible and standardized goods or raw materials, traded on exchanges, wherein they serve as the foundation of various industrial and consumer products. These essential resources, constituting the backbone of global supply chains, range from agricultural products, like grains, livestock, and soft commodities, to non-renewable resources, such as energy commodities (e.g., crude oil, natural gas) and precious metals (e.g., gold, silver).