Commodity

Commodity in Europe

Commodity (in Finance)

In this field, Commodity means the following: Products that are perfect (or close to perfect) substitutes to each other, like for example wheat, cotton and crude oil. In order for the products to be trades as commodities on the financial markets there has to be a large organized worldwide trade. Usually a commodity is a raw material that needs to go through a manufacturing process before being provided to the consumer.

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