- The definition of a commodity is something that can be traded, or any useful thing.
- Corn bought and sold to make high fructose corn syrup is an example of a commodity.
- Fast running speed is an example of an athlete's commodity.
commodity definition by Webster's New World
- any useful thing
- anything bought and sold; any article of commerce
- basic items or staple products, as of agriculture or mining
- Archaic personal advantage
Origin: Middle English and amp; Old French commodite, benefit, profit ; from Classical Latin commoditas, fitness, adaptation ; from commodus: see commode
commodity definition by American Heritage Dictionary
noun pl. com·mod·i·ties
- Something useful that can be turned to commercial or other advantage: “Left-handed, power-hitting third basemen are a rare commodity in the big leagues” (Steve Guiremand).
- An article of trade or commerce, especially an agricultural or mining product that can be processed and resold.
- Advantage; benefit.
- Obsolete A quantity of goods.
Origin: Middle English commodite, from Old French, convenience, from Latin commoditās, from commodus, convenient; see commodious.
commodity - Business Definition
- A generic, largely unprocessed good that can be processed and resold. Commodities traded in the financial markets for immediate or future delivery are grains, metals, and minerals. They are generally traded in very large quantities. Also called physical commodity. See also futures contract.
- A product that is difficult or impossible to differentiate from similar products from competitors. Pencils, computer memory chips, and light bulbs are examples of commodity products.
commodity - Cultural Definition
Any product manufactured or grown.
commodity - Investment & Finance Definition
Products that can be traded on a commodities exchange, for example, agricultural products, metals, petroleum, gasoline, heating oil, and natural gas. The term commodity may refer to physical products, such as oil, gasoline, or building supplies that are purchased in the cash market that have nothing to do with a futures exchange. The term can also refer to the fact that over time, as more companies enter a market, competition drives prices down, resulting in a product moving from being profitable to being little more than a commodity.
commodity - Legal Definition