Commodity: meaning, definitions and examples

💰

Add to dictionary

commodity

[kəˈmɒdɪti ]

Definitions

^{Context #1 | Noun}

economics

A commodity is a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

Synonyms

good, item, product.

Which Synonym Should You Choose?

Word	Description / Examples
commodity	This term is frequently used in economics and trade to refer to raw materials or primary agricultural products that can be bought and sold, such as oil, coffee, or cotton. It is commonly used in the contexts of market analysis and discussions about economies. Oil is a valuable commodity that drives global markets. The prices of agricultural commodities have risen this year.
product	This word is used to refer to anything produced either through manufacturing or through natural processes. It is commonly used in business, marketing, and sales to denote something that is created and offered to consumers. The company launched a new product this quarter. Our products are known for their high quality and durability.
good	This word is used to refer to any kind of merchandise or product that satisfies human wants and needs. It is a broad term that can be applied in retail, economics, and general discussions about consumer items. The store offers a wide range of goods, from groceries to electronics. Economic theories often discuss the supply and demand of various goods.
item	This term is used in more everyday, casual situations to refer to individual objects or units, especially within a list or collection. It is often used in shopping, inventory, and general communication. I added a few more items to my shopping cart. Please check if all the items on the list are packed.

Examples of usage

Oil is the most traded commodity in the world.
The price of commodities can fluctuate based on supply and demand.
Commodities are often traded on exchanges like the stock market.

^{Context #2 | Noun}

general

A commodity can also refer to something of value or usefulness that can be bought or sold.

Synonyms

asset, possession.

Which Synonym Should You Choose?

Word	Description / Examples
commodity	Refers to raw materials or primary agricultural products that can be bought and sold, typically on the stock market. Oil is a crucial commodity in the global economy Investors often trade commodities like gold and silver
asset	Denotes any resource owned by an individual or company that is expected to provide future benefits or value. A house is a valuable asset Digital assets, such as cryptocurrencies, are gaining popularity
possession	Implies personal ownership of an item, often with an emotional or practical value. His most cherished possession is his grandmother's necklace The car in the driveway is my possession

Word

Description / Examples

commodity

Refers to raw materials or primary agricultural products that can be bought and sold, typically on the stock market.

Oil is a crucial commodity in the global economy
Investors often trade commodities like gold and silver

asset

Denotes any resource owned by an individual or company that is expected to provide future benefits or value.

A house is a valuable asset
Digital assets, such as cryptocurrencies, are gaining popularity

possession

Implies personal ownership of an item, often with an emotional or practical value.

His most cherished possession is his grandmother's necklace
The car in the driveway is my possession

Examples of usage

Education is often seen as a commodity.
In today's society, time has become a valuable commodity.

Interesting Facts

Etymology

The word 'commodity' comes from the Latin 'commoditas', meaning 'convenience' or 'advantage'.
It entered the English language in the 15th century, initially referring to goods in trade.

Economics

In economics, commodities are often categorized as either hard (like metals and oil) or soft (like agricultural products).
Prices of commodities can fluctuate based on supply and demand, geopolitical events, and seasonal changes.

Cultural Significance

In ancient societies, staples like grains and livestock were considered commodities due to their essential role in sustenance.
The introduction of currency allowed for the exchange of commodities in a more streamlined manner, shaping trade practices globally.

Market Dynamics

Commodity trading happens on exchanges such as the Chicago Mercantile Exchange, where futures contracts are bought and sold.
Many invest in commodities as a hedge against inflation, since their value often increases as the cost of living rises.

Environmental Impact

The production of some commodities can lead to environmental issues, such as deforestation and pollution, depending on how they are sourced.
Sustainable practices in commodity sourcing can help reduce negative impacts and promote better ecosystem health.

Translations

Translations of the word "commodity" in other languages:

🇵🇹 mercadoria

🇮🇳 वस्तु

🇩🇪 Ware

🇮🇩 komoditas

🇺🇦 товар

🇵🇱 towar

🇯🇵 商品

🇫🇷 marchandise

🇪🇸 mercancía

🇹🇷 emtia

🇰🇷 상품

🇸🇦 سلعة

🇨🇿 komodita

🇸🇰 komodita

🇨🇳 商品

🇸🇮 blago

🇮🇸 vörur

🇰🇿 тауар

🇬🇪 საქონელი

🇦🇿 əmtiə

🇲🇽 mercancía

Word Frequency Rank

Ranking #3,871, this word is part of upper-intermediate vocabulary. While not among the most basic terms, it appears often enough to be valuable for advanced communication.

...
3868 fiction
3869 upward
3870 expand
3871 commodity
3872 emerged
3873 mankind
3874 fatal
...