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Commodities refer to raw materials or primary agricultural products that can be bought and sold, such as metals, energy resources, agricultural products, and other goods. These items are standardized and interchangeable with other goods of the same type. Commodities are often categorized into two main types: hard commodities and soft commodities.

Hard Commodities: These include natural resources that are extracted or mined, such as metals and energy resources. Examples of hard commodities include gold, silver, oil, natural gas, copper, and iron.

Soft Commodities:
Soft commodities are typically agricultural products or livestock. Examples include wheat, corn, soybeans, coffee, cocoa, cotton, and livestock like cattle.

Commodities play a crucial role in the global economy, as they are essential inputs for various industries. They are traded on commodity exchanges, where buyers and sellers engage in transactions. Commodity prices are influenced by factors such as supply and demand dynamics, geopolitical events, weather conditions, and global economic trends.