Commodity Prices
A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. The price of a particular commodity is determined by factors including production costs and demand.
Most commodities are raw materials, like metals or agricultural products, which are used to produce other goods or services. Some examples of commodities include crude oil, natural gas, coal, iron ore, gold, silver, corn, wheat, and beef.
The prices of commodities are generally more volatile than those of other types of goods and investments. This is because they tend to be influenced more by changes in supply and demand than by economic conditions. For example, a drought may cause the price of wheat to rise, while an increase in the number of farmers planting wheat may cause the price to fall.