commodity

Information about commodity

For the Marxist definition of a commodity, see .
A commodity is something for which there is demand, but which is supplied without qualitative differentiation across a given market. Characteristic of commodities is that their prices are determined as a function of their market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, ethanol, sugar, soybeans, aluminium, rice, wheat, gold and silver. However, the process of commoditization is ongoing as markets evolve. In essence, commoditization occurs as a good or service becomes undifferentiated across its supply base by the diffusion of the intellectual capital necessary to acquire or produce it efficiently. As such, many products which formerly carried premium margins for market participants have become commodities, such as generic pharmaceuticals and silicon chips.

Linguistically, the word commodity came into use in English in the 15th century, derived from the French word "", similar in meaning to "convenience" in terms of quality of services. The Latin root meaning is commoditas, referring variously to the appropriate measure of something; a fitting state, time or condition; a good quality; efficaciousness or propriety; and advantage, or benefit. The German equivalent is die Ware, i.e. wares or goods offered for sale. The French equivalent is "produit de base" like energy, goods, or industrial raw materials.

Commodity trade

Main article: Futures exchange
In the original and simplified sense, commodities were things of value, of uniform quality, that were produced in large quantities by many different producers; the items from each different producer are considered equivalent. It is the contract and this underlying standard that define the commodity, not any quality inherent in the product.

Commodities exchanges include: Markets for trading commodities can be very efficient, particularly if the division into pools matches demand segments. These markets will quickly respond to changes in supply and demand to find an equilibrium price and quantity. In addition, investors can gain passive exposure to the commodity markets through a commodity price index.

See also

Agriculture (from Agri Latin for ager ("a field"), and culture, from the Latin cultura "cultivation" in the strict sense of "tillage of the soil". A literal reading of the English word yields "tillage of the soil of a field".
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Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in colour from dark grey to rusty red.
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Petroleum (Latin Petroleum derived from Greek πέτρα (Latin petra) - rock + έλαιον (Latin oleum) - oil) or crude oil
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Coal (IPA: /ˈkəʊl/) is a fossil fuel formed in swamp ecosystems where plant remains were saved by water and mud from oxidization and biodegradation.
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Ethanol, also known as ethyl alcohol, drinking alcohol or grain alcohol, is a flammable, colorless, slightly toxic chemical compound, and is best known as the alcohol found in alcoholic beverages.
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Sugars, brown
Nutritional value per 100 g (3.5 oz)
Energy 0 kcal   0 kJ

Carbohydrates     97.33 g
- Sugars  96.21 g
- Dietary fiber  0 g  
Fat 0 g
Protein 0 g
Water 1.77 g
Thiamin (Vit. B1)  0.
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G. max

Binomial name
Glycine max
(L.) Merr.

The soybean (U.S.) or soya bean (UK) (Glycine max) is a species of legume native to East Asia.
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Aluminium (IPA: /ˌæljʊˈmɪniəm/, /ˌæljəˈmɪniəm/) or aluminum (IPA: /əˈluːmɪnəm/
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RICE is a treatment method for soft tissue injury which is an abbreviation for Rest, Ice, Compression and Elevation.[1][2][3] When used appropriately, recovery time is usually shortened and discomfort minimized.
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GOLD refers to one of the following:
  • GOLD (IEEE) is an IEEE program designed to garner more student members at the university level (Graduates of the Last Decade).
  • GOLD (parser) is an open source BNF parser.

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Silver (IPA: /ˈsɪlvə(ɹ)/) is a chemical element with the symbol Ag (Latin: argentum) and atomic number 47.
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Commodification (or commoditization) is the transformation of what is normally a non-commodity into a commodity, or, in other words, to assign value. As the word commodity has distinct meanings in business and in Marxist theory, commodification
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Intellectual Capital was a pioneer webzine opinion and discussion forum begun in 1996 by Pete duPont. After several years it was bought by Speak Out and subsumed into its portfolio of web offerings.

External links

  • An Inside Look At...IntellectualCapital.

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Convenience is anything that is intended to save a time or frustration. A convenience store at a petrol station, for example, sells items that have nothing to do with gasoline/petrol, but it saves the consumer from having to go to a grocery store.
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The introduction to this article provides insufficient context for those unfamiliar with the subject matter.
Please help [ improve the introduction] to meet Wikipedia's layout standards.

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Contract Law
Part of the common law series
Contract
Contract formation
Offer and acceptance  · Mailbox rule
Mirror image rule  · Invitation to treat
Firm offer  · Consideration
Defenses against formation
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Aspinwall Classification System (Leo Aspinwall, 1958) classifies and rates products based on five variables:
  1. Replacement rate (How frequently is the product repurchased?)
  2. Gross margin (How much profit is obtained from each product?)

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A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork bellies,
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Chicago Board of Trade (CBOT) NYSE:  CME , established in 1848, is the world's oldest futures and options exchange. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and eTrading.
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Euronext N.V. is a pan-European stock exchange based in Paris[1] and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services.
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The London Metal Exchange or LME is the futures exchange with the world's largest market in options and futures contracts on base and other metals. As the LME offers contracts with daily expiry dates up to three months from trade date, along with longer dated contracts, it
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New York Mercantile Exchange

NYSE listed public company
Founded 1882
Headquarters New York, US

Website www.nymex.com

The New York Mercantile Exchange (NYMEX) is the world's largest physical commodity futures exchange, located in New York City.
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Multi Commodity Exchange

Private
Founded 2003
Headquarters 102 A, Landmark, Suren Road, Chakala, Andheri (East), Mumbai, India

Key people Jignesh Shah, CEO
Industry Business Services
Products Options/Futures exchange
Revenue Rs 104.
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Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.
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Economic efficiency is a general term for the value assigned to a situation by some measure designed to reduce the amount of waste or "friction" or other undesirable economic features present.
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A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Market segmentation
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supply and demand describe market relations between prospective sellers and buyers of a good. The supply and demand model determines price and quantity sold in the market.
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economic equilibrium is simply a state of the world where economic forces are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change.
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price is the assigned numerical monetary value of a good, service or asset.

The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory).
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