High quality commodity foods are made available from CSFP to those who need help. All products are made available from the United States Department of Agriculture as well as the Food and Nutrition Service (FNS). Local pantries and soup kitchens may also provide supplemental support to clients.

In economics, a commodity is defined as a tangible good that can be bought and sold or exchanged for products of similar value. Natural resources such as oil as well as basic foods like corn are two common types of commodities. And like other assets, commodities can fluctuate in price according to supply and demand.12

When food—a basic necessity for human health and survival that is currently produced in sufficient quantity to feed everyone in the world a basic nutritious diet—is a commodity, the results are routine hunger, malnutrition, premature deaths, and famines when tight supplies result in exceptionally high prices.1

Sugar cane is the most produced food commodity in the world followed by corn and wheat. Sugar cane is the most produced food commodity in the world followed by corn and wheat.

7 Types of Food Commodities

• Grains and Rice.
• Meat and Poultry.
• Seafood.
• Eggs and Dairy Product.
• Vegetables and Fruits.
• Herb and Spices.

EPA regulations at 40 CFR 180.1(d) defined a raw agricultural commodity (RAC) to include: “among other things, fresh fruits, whether or not they have been washed and colored or otherwise treated in their unpeeled natural form; grain, nuts, eggs, raw milk, meats, and similar agricultural produce.”26

Products are made using commodities and are then put on the market and sold to consumers. Consumable goods, which include gas, groceries, and tobacco products, are used quickly or need frequent replacement.13

Most Actively Traded Commodities

• WTI Crude Oil.
• Brent Crude Oil.
• Natural Gas.
• Soybeans.
• Corn.
• Gold.
• Copper.
• Silver.

Best 5 commodities for trading in India….

• Crude Oil. Crude oil is one of the best commodities to trade because it is naturally-occurring unrefined petroleum and a fossil fuel which comprises organic materials and hydrocarbon deposits.
• Aluminium.
• Copper.
• Natural Gas.
• Gold.

Copper, one of the oldest commodities known to man, is a product with fortunes which directly reflect the state of the world economy.

There are currently about 50 major commodity markets worldwide that facilitate trade in approximately 100 primary commodities.

As with equity securities, a commodity’s price is determined primarily by the forces of supply and demand for the commodity in the market. If the weather in a certain region is going to affect the supply of a commodity, the price of that commodity will be affected directly. Examples include corn, soybeans, and wheat.

Commodities are Mispriced Prices go through periods of high and low valuations based on supply availability and demand for goods. As materials can be harvested, mined, or gathered more efficiently, they become cheaper to produce and supply grows. If demand does not grow proportionally, the price decreases.8

The commodities market works just like any other market. It is a physical or a virtual space, where one can buy, sell or trade various commodities at current or future date. One can also do commodity trading using futures contracts. Like a stock, one can invest in a commodity through the commodity bourses.18