BellaOnline Forums Money Investing What is a Commodity? - Article

Do you know what a commodity is? Commodities are the building blocks of the products we buy and eat. Commodities can be a part of an investment portfolio.

What is a Commodity?

Don't worry if the futures market for commodities seems confusing. There are better ways to invest in commodities then playing the futures market directly. In fact, unless you are a very sophisticated (and most likely professional) investor, the futures market is best left alone.

Did you know that oil is the most traded commodity? It makes sense since we use oil for so many things: gas, heating fuel, plastics. Humans will probably always require energy in some form. Oil just happens to be the "king" right now.

Natural Gas is the second most used source of energy in the United States.

There are two sugars traded on the commodity market.
Sugar#11 represents the world sugar market.
Sugar #16 represents the U.S. sugar market. (This used to be called Sugar #14).

Coffee is the second most produced commodity in the world. I guess the world must really love their coffee.