Commodities are raw materials or primary agricultural products that are essential to the global economy, serving as the fundamental building blocks for various industries, from manufacturing and energy production to food supply and textiles. These tangible goods can be bought and sold on commodity markets, and their prices are determined by factors such as supply and demand, geopolitical events, and economic indicators. Commodities are generally categorized into two main types: hard commodities, which include metals like gold and silver as well as energy sources like crude oil and natural gas, and soft commodities, which encompass agricultural products such as wheat, coffee, and livestock. Investing in commodities can provide diversification benefits and act as a hedge against inflation, but it also involves unique risks and requires a thorough understanding of market dynamics. Through specialized exchanges like the Chicago Mercantile Exchange (CME) and the New York Mercantile Exchange (NYMEX), investors can engage in spot contracts, futures contracts, and options to trade these essential goods, making commodities a vital and dynamic component of the financial landscape.