Commodities have to meet specific specifications to be classified as commodities

The 'commodities' investment category includes livestock, oil, wheat, and more

Commodities traders look at all of these things as assets, placing short-, medium-, and long-term wagers on how much each is really worth. Commodities are valuable in part due to how essential they are in creating most of the world's marketable goods.

It's tough to measure just how much the global commodities market is worth

That's partly because of all the different ways and places commodities are traded—such as futures exchanges, spot markets, and over-the-counter deals. Additionally, the same commodity can be traded multiple times in different markets, making it easy to risk duplicating trade values in calculations.

Futures contracts—which are agreements to buy or sell a standardized asset at a specific future time—are the primary way commodities are bought and sold.

Retail investors can get exposure to commodities via various financial vehicles

While retail investors likely won't go out and purchase a bushel of commodity wheat to trade, they can get exposure to the commodities market via commodity ETFs sold on traditional stock exchanges like the NYSE and Nasdaq and other financial vehicles. There are benefits to adding commodities to a retail investor portfolio (such as a hedge against inflation and a typically low correlation with more traditional asset prices), experts caution that commodities are usually volatile investments.

Commodity traders are most commonly 'hedgers' or 'speculators'

While hedgers often produce and consume physical commodities (like corn, copper, or natural gas) and use the markets to manage the price risk for those commodities, speculators provide liquidity by betting on commodity price changes.

Futures contracts are agreements to buy or sell a standardized asset at a specific future time

When it comes to commodity trading, these legally binding agreements tend to operate on a monthly basis. Futures contracts are typically traded on futures exchanges, like those operated by CME Group and the Intercontinental Exchange.

Commodity trading is regulated by the CFTC to mitigate fraud and risk

Established in 1974, the CFTC regulates these markets (including swaps, futures, and certain types of options) to protect market participants from fraud, ensure fair trading conditions, and generally reduce financial risk.

In the US, 'organic food' is defined by the USDA

Food products can only be classified as “organic” if they meet the standards defined by the US Department of Agriculture. For crops, that means avoiding prohibited substances and genetic engineering, among other requirements. For livestock, that includes a minimum number of grazing days.

How key commodities have performed since 2019, visualized

Due in part to factors such as the COVID-19 pandemic and global supply chain issues, commodities experienced significant volatility from 2019 to 2025. For instance, coffee bean prices saw major swings in recent years due to climate challenges in countries including Brazil and Vietnam.

The term 'securities' refers to different types of investments, such as stocks or bonds.

Commodity traders are the most powerful people you've never heard of

Just beneath the surface of the global economy is a hidden layer of dealmakers for whom war, chaos, and sanctions can be a great business opportunity—they're called commodity traders. Their power partly stems from the fact that commodities are essentially the building blocks of the economy at large.

Unlike fruits, the category of 'vegetables' is a culinary term, not a scientific one

Within botany, fruits are defined as the ripened ovaries of flowering plants, and include apples, grapes, tomatoes, avocados, green beans, peppers, and almonds. In the kitchen, "vegetables" is an umbrella term that encompasses many fruits and other parts of plants, such as leaves (lettuce, kale) and roots (carrots, beets).

There's a grading room on the eighth floor of the New York Stock Exchange where experts loudly slurp coffee and then spit it out to test its quality.

How exchanges like the Chicago Mercantile act as trading referees

Chicago's Mercantile Exchange emphasizes futures contracts on commodities. This podcast episode breaks down how exchanges actually work, make money, and streamline the market.

Over-the-counter markets are used to bypass traditional exchanges while trading

Commodities are regularly traded via OTC markets so that buyers and sellers can bypass central exchanges and negotiate terms more directly. Before the advent of formal exchanges, most assets were traded OTC.

Spot markets are where commodities intended for relatively immediate delivery are traded

Spot markets are where physical securities are exchanged for cash. Also known as cash markets or physical markets, the trades are relatively immediate—both parties agree to an immediate transfer. Currencies and securities can also be traded on spot markets.

The different types of stablecoins include algorithmic stablecoins

In addition to fiat-backed stablecoins, commodity-backed stablecoins, and cryptocurrency-backed stablecoins, algorithmic stablecoins use smart contract-based mechanisms to maintain a stable value by responding to supply and demand.

A startup is trying to create the diamond equivalent of the gold standard

It's called the Diamond Standard Co, and it uses an algorithm to assign standard values to a variety off small diamonds, grouping them together into individual coins. Historically, diamonds haven't been able to be classified as commodities or standardized like gold because they aren't uniform—factors such as clarity, cut, color, and carat size significantly influence the value of a diamond.

The complexity of classifying a tree

It may seem obvious to us when we see a tree, but very specific characteristics cause scientists to distinguish trees from other types of plants. This video provides a visual and verbal explanation of distinctions that separate trees from other plants like shrubs or herbs. See a scientific breakdown of these traits.

Prediction markets convinced regulators they're not gambling, but exchanging commodity futures contracts

Kalshi built a legal case that argues its yes/no bets on real-world events are futures contracts, and the relevant regulator—the Commodity Futures Trading Commission—agreed in 2020. Many states are now suing major prediction markets, arguing this legal case is faulty and obscures the true substance of the business: gambling.

The commerce clause gives the federal government authority to regulate interstate economic activity

This short constitutional provision has allowed Congress to regulate everything from wheat production to racial segregation, greatly expanding federal power by linking national authority to interstate economic activity.

See how much key commodities are trading for in real time

This tracker shows the current price of common commodities such as crude oil, lumber, nickel, and many more, as well as how much these prices have fluctuated over the past day, year, week, and month.

What is the function of money?

Nearly everyone uses some form of money to facilitate day-to-day activities, but what is it, anyways? Economists define money as anything that can be accepted as final payment for goods and services. Shells, beads, corn, and a wide range of objects have acted as money throughout history—explore the common but deceptively abstract concept of money in this eight-minute podcast from the Federal Reserve.

Strict rules dictate the making of Champagne

Some regulations, such as geographical area and grape varieties, are fairly well known. But to be true Champagne, winemakers must follow guidelines for all sorts of finicky things, including pruning, press yield (how much juice is extracted from the grapes), alcohol content, vineyard management, and aging, among others.

Capital assets include investments from stocks to fine jewelry

Capital assets can be classified as property owned and used for personal or investment reasons. If a capital asset grows in value and the holder decides to sell it, their “capital gains” would be roughly the difference between the original purchase price and the amount of money they sold the asset for.

Mutual fund share classes are rankings of different types of services for investors.

A gold standard is a system in which a country’s currency is pegged to, and can be converted into, a fixed amount of gold

In principle, this provides price stability as the amount of gold (and therefore the value of the currency) is limited, but also restricts the ability to modulate the money supply during economic downturns.

Scents, when they are truly unique and identifiable to a particular brand, can be trademarked.

A gold standard is a system where every dollar in circulation can be exchanged for a set amount of gold

For centuries, the things people used as money had intrinsic value, such as precious metals like gold. In medieval Italy, giant wheels of parmesan cheese were once used as a store of value.

How crude oil is split across oil markets based on geographic origin

Brent, West Texas Intermediate, and Dubai are the three crude oil classes and differ in terms of typical refinery uses, density, sulfur content, and suitability for financial benchmarking. Brent, which originates in the North Sea, is traders' go-to benchmark, in part, because it is easily shipped and politically stable, and used to price most of the crude sold internationally.

The S&P 500 selection committee has strict rules around adding a company to the index

While the decision to add a company to the index is ultimately up to the selection committee, any prospective company has to meet some criteria to be considered. To join, the company must have been profitable for the last four quarters, must have a market capitalization exceeding $22.7B, and meet certain requirements around tradeable stock availability (or float).

Companies often use different share classes, like Class A or Class B, to structure ownership

Share classes refer to specific types of company stock that are distinguished by the rights they grant, such as voting power and dividend access.

Alternative investments can include everything from cryptocurrency to fine art

The financial assets typically fall outside the scope of traditional investments like stocks and bonds, and they’re often intended to diversify investor portfolios.

Dow components are chosen by a committee, not a formula

Unlike many indices, the Dow has no strict rules for inclusion. A small committee at S&P Dow Jones Indices uses judgment—favoring companies with strong reputations, steady growth, and broad investor interest.

The world's top agriculture-producing countries

Agriculture is one of the most important industries in the global economy, and while every country produces some of its own food, some countries dominate the markets. The US, Brazil, and the Netherlands are the world's top three agriculture exporters. See more charts and statistics on the topic with this Investopedia article.

Dairy Queen can't legally call its frozen dairy products 'ice cream' because they don't meet FDA qualifications for the term.

Trademarks are a form of consumer protection

Trademarks help brands distinguish their products from competitors, but they also give consumers clarity around the product they are buying and where it comes from. Distinguishable names help prevent consumer confusion and maintain a consumer's ability to choose their preferred product and brand.

Real estate is grouped into broad categories: residential, commercial and industrial

Other categories of real estate include raw land and “special use” real estate, which includes cemeteries. Technically speaking, real estate is considered an alternative investment.

Federal law requires payday lenders to meet certain transparency requirements, but states have their own regulations

Federal law treats payday lending like other lines of credit, meaning it requires lenders to disclose the loan's interest rate and its "finance charge," a dollar amount expressing the full cost of the loan. But states have their own regulations around payday lending, hence why it isn't allowed in every state and why the industry looks so different across the country. These regulations are often part of a state's usury laws.

Different CDs can have different term lengths, interest rates, and more

For instance, if a bank needs more deposits to fund loans, then it may offer high interest rates to attract deposits. Alternatively, a large bank with sufficient deposit reserves may have less incentive to grow its CD portfolio, offering lower rates as a result.

A margin call is a way for traders to pay off debts by selling a security before they may be ready to do so.

Bullion is either gold or silver that has at least 99.5% or 99.9% purity, respectively

It’s typically kept in the form of bars or ingots. Governments and central banks often keep bullion reserves on hand; they can use it as a hedge against inflation. One can invest in bullion via ETFs, among other financial vehicles.

Watch how seed cotton is collected and processed into cotton fibers, feed for livestock, and cooking oil.

Not all alternative investments are easy to invest in

For instance, some alternative investments are only available to accredited investors or high-net-worth individuals. Others have relatively high fees compared to traditional investments.

Understanding how the commodification of water has contributed to global water scarcity

In 2010, the UN General Assembly recognized access to water and sanitation as a basic human right, noting that an estimated 884 million people worldwide lack access to safe drinking water. The treatment of water as a commodity and reserves as property has contributed to unequal access and competition over its use, which is expected to intensify due to climate change.

Trade dress is a form of trademark that applies to the physical appearance of a product

Distinct visual characteristics of products, like the shape of a Coca-Cola bottle or the interior layout of an Apple store, can be protected. These characteristics are protected to help consumers quickly identify certain brands.

Open-end and closed-end mutual funds differ in how they create and distribute shares.

When compared to stocks and bonds, alternative investments are often less regulated

Alternative investments are also often less liquid than traditional investments; they carry unique risk, return, and tax considerations.

Alternative investments can be sorted into seven major categories, according to some experts

These categories include real estate, private equity, private debt, hedge funds, collectibles, and more.

The term 'superfood' is a marketing construct with no scientific or medical definition

Encompassing at least 136 plants and animals, the concept has been criticized by nutritionists for its scientific value, which has been exploited by the wellness industry for profit. Although the label has encouraged the consumption of fruits and vegetables, food variety and minimal processing remain key to a healthy diet.