Commodity trading involves the buying and selling of raw materials or primary goods, known as commodities. These commodities can include agricultural products like wheat and corn, energy resources such as oil and natural gas, and other essential resources. The commodities market serves as a vital component of the global economy, enabling producers to hedge against price fluctuations and providing investors with opportunities to speculate on future price movements.

Commodity trading can occur in both physical markets, where actual goods are exchanged, and futures markets, where contracts for the future delivery of commodities are bought and sold. It plays a crucial role in price discovery and risk management for various industries and participants worldwide, from farmers and miners to traders and investors.