Traditionally, commodities were things of value that were produced in huge quantities by a lot of different producers for commercial sale. Despite being produced by different producers, the value of the commodity was equivalent.

Trade in commodities, ranging from agricultural produce like corn to natural resources like oil, is done in the mercantile exchanges like the New York Mercantile Exchange and the London Metal Exchange.

Commodity is defined as an object with a use value, an exchange value and a price. The first form of futures trading was commodity futures trading. It is also the most volatile amongst the futures markets since most of the goods traded are primarily perishable in nature and highly sensitive to a lot of factors, including weather and political elements.

That being said, money can be made in the commodity trading markets if you have done your research carefully and are willing to invest large amounts into playing the markets. You will need to be well-versed in the history and future of market trends and have in-depth knowledge of the commodity you seek to trade.

Like most futures markets, investors can be divided into hedgers