What are commodities?

Commodities are things that people all over the world trade and use every day, like food, energy, or materials used to build stuff.

Imagine you have a big basket full of apples, bananas, and oranges. These fruits are examples of commodities because they’re things many people buy and sell in the same way, just like how farmers might sell their fruit at a market, and then stores use that fruit to make snacks or sell them to you.

A commodity is something simple and basic that can be used by anyone. It doesn’t need fancy packaging or a special name, it's just the thing itself.

For example:

• Sugar is a commodity because it’s just sugar, no matter where it comes from.
• Oil is a commodity because it can power cars, heat homes, or even make plastic.

You might use commodities without even realizing it. When you eat bread, that's made with wheat, a commodity. When you ride your bike to school, the tires might be made of rubber, another commodity. People all over the world trade these things so we can all have what we need every day!