Commodity: Definition, Usage & Key Examples

Meaning 1：a tradable good (commodity)

commodity 🔊

/kəˈmɒdɪti/

A thing that can be bought and sold, usually raw materials or farm products like oil or wheat.

Commodity definition illustrated with marketplace scene of grains, oil, and metal ingots

a tradable good 🔊

➕

/ə ˈtreɪdəbəl ɡʊd/

An item that is produced for the purpose of being bought and sold, typically referring to raw materials or primary agricultural products.

📁 Category：Social Economy 🔖 Level：Intermediate

📘 Details & Usage

📖 Root Explanation

From Latin 'commoditas' (convenience), from 'com-' (with) + 'modus' (measure), meaning something suitable for trade.

💡 Mnemonic

Think 'common city' – commodities are common goods traded in urban markets.

📖 Example

The price of commodity such as crude oil can greatly influence the cost of transportation worldwide. 🔊 This sentence shows how the cost of a tradable good, like crude oil, can significantly affect global transportation expenses.

🔗 Collocations

commodity market – a marketplace where raw materials are traded

commodity price – the cost of a basic good on the market

agricultural commodity – a farm product like wheat or corn that is traded

🔄 Synonyms

good (n.) – an item produced for sale

product (n.) – something made for commercial exchange

merchandise (n.) – goods available for purchase

📖 Cultural Story

Derived from Latin 'commoditas', meaning convenience or suitability. In modern economics, it refers to standardized raw materials or agricultural products traded on exchanges, like oil or wheat.