Commodities

Commodities fall into two main categories: hard commodities, such as oil, gold, and metals, and soft commodities, such as agricultural products like wheat, coffee, and cotton. Commodities are essential for various industries and are often used as inputs for manufacturing and production. They are traded on commodity exchanges, and their prices are influenced by supply and demand, geopolitical events, weather conditions, and market speculation. Investing in commodities offers opportunities for diversification and hedging against inflation.