The definition of a commodity is any natural resource that holds/carries a value in commerce. A commodity may include but is not limited to corn, wheat, soybeans, gold, silver, crude oil, and natural gas.
The specific amount of a commodity bought or sold had a standard measure of consistency for it to be a fungible product across the markets.
Each commodity may be weighed by a certain number of bushels when it comes to an agricultural commodity; ounces when it comes to a precious metals commodity; or barrels when looking at energy commodities, such as crude oil.
One can invest in a commodity through commodity futures. Commodity futures is an exchange of a contract between a buyer and a seller of a specified commodity with a specified amount of that commodity.
To invest in commodity futures, an investor may invest directly in a commodity futures contract or a fund/pool that invests in commodity futures. In the United States, commodity futures are traded at the Chicago Board of Trade (CBOT), the Chicago Mercantile Exchange (CME), and the New York Mercantile Exchange (NYMEX).
