Commodity - Revision history

Jmdonev: 1 revision imported

2026-07-02T20:55:27Z

1 revision imported

← Older revision	Revision as of 20:55, 2 July 2026
(No difference)

energy>Jmdonev at 17:45, 25 June 2026

2026-06-25T17:45:20Z

← Older revision		Revision as of 17:45, 25 June 2026
Line 1:		Line 1:
	[[Category:Done ~~2017~~-07-01]]		[[Category:Done 2026-07-01]]
	<onlyinclude>A '''commodity''' is a tangible [[goods and services\|good]] that is interchangeable regardless of the producer. Commodities are almost always an input for the production of other [[goods and services\|goods]].</onlyinclude><ref name=Ox_econ>"A Dictionary of Economics" published Oxford University Press, 2013. Edited by John Black, Nigar Hashimzade, and Gareth Myles Online version accessed [August 17th, 2017].</ref> For example, [[crude oil]] is essentially the same no matter where it comes from or who produces it. Crude oil from can be made into the same products or used to do all of the same tasks regardless of which country it comes from. On the other hand, a [[motor vehicle\|car]] is not a commodity because cars from different producers do not possess the same capabilities or composition and do not perform the same way. Commodities must be interchangeable. This interchangeability means that commodities are usually produced and traded in bulk.<ref name=Ox_econ/>		<onlyinclude>A '''commodity''' is a tangible [[goods and services\|good]] that is interchangeable regardless of the producer. Commodities are almost always an input for the production of other [[goods and services\|goods]].</onlyinclude><ref name=Ox_econ>"A Dictionary of Economics" published Oxford University Press, 2013. Edited by John Black, Nigar Hashimzade, and Gareth Myles Online version accessed [August 17th, 2017].</ref> For example, [[crude oil]] is essentially the same no matter where it comes from or who produces it. Crude oil from can be made into the same products or used to do all of the same tasks regardless of which country it comes from. On the other hand, a [[motor vehicle\|car]] is not a commodity because cars from different producers do not possess the same capabilities or composition and do not perform the same way. Commodities must be interchangeable. This interchangeability means that commodities are usually produced and traded in bulk.<ref name=Ox_econ/>

Jmdonev: 1 revision imported

2017-08-29T01:47:23Z

1 revision imported

← Older revision	Revision as of 01:47, 29 August 2017
(No difference)

Jmdonev at 16:40, 17 August 2017

2017-08-17T16:40:50Z

← Older revision		Revision as of 16:40, 17 August 2017
Line 1:		Line 1:
	[[Category:Done ~~2016~~-12-31]]		[[Category:Done 2017-07-01]]
	<onlyinclude>A '''commodity''' is a tangible good that is interchangeable regardless of the producer. Commodities are almost always an input for the production of other [[goods]].</onlyinclude><ref>~~Investopedia.~~ "~~Commodity.~~" ~~[Online]~~, ~~Available: http://www~~.~~investopedia.com/terms/c/commodity.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186&layout=infini&v=5A&orig=1&adtest=5A~~ [~~June 28~~, ~~2016~~].</ref> ~~A commodity such as~~ [[crude oil]] is essentially the same no matter where it comes from ~~and~~ can be used to do all of the same tasks. A [[motor vehicle\|car]] is not a commodity because cars from different producers do not possess the same capabilities or composition and do not perform the same way.		<onlyinclude>A '''commodity''' is a tangible [[goods and services\|good]] that is interchangeable regardless of the producer. Commodities are almost always an input for the production of other [[goods and services\|goods]].</onlyinclude><ref name=Ox_econ>"A Dictionary of Economics" published Oxford University Press, 2013. Edited by John Black, Nigar Hashimzade, and Gareth Myles Online version accessed [August 17th, 2017].</ref> For example, [[crude oil]] is essentially the same no matter where it comes from or who produces it. Crude oil from can be made into the same products or used to do all of the same tasks regardless of which country it comes from. On the other hand, a [[motor vehicle\|car]] is not a commodity because cars from different producers do not possess the same capabilities or composition and do not perform the same way. Commodities must be interchangeable. This interchangeability means that commodities are usually produced and traded in bulk.<ref name=Ox_econ/>

	Commodities are traded according the quality of the good, ~~with the level of quality being called the~~ '''~~basis grade~~'''. ~~A basis grade~~ establishes a certain level of quality so that commodities can be traded in advance of any actual transaction.		Commodities are traded according the quality of the good, which means that a standard has to be set. This is referred to as a '''standardized commodity'''.<ref name=Ox_econ/> This standardization establishes a certain level of quality so that commodities can be traded in advance of any actual transaction. This ensures the quality of the commodity for the buyer and improves the [[efficiency]] of transactions so buyers and sellers have a clear expectation about the quality of the good they are purchasing.

	~~For example, a basis level for [[silver]] (Ag) is 99.999% pure silver~~. This ~~basis level~~ ensures the quality of the ~~[[metal]]~~ for the buyer and improves the [[efficiency]] of transactions so buyers and sellers have a clear expectation about the quality of the good they are purchasing.

	==Commodity Futures==		==Commodity Futures==
	The guaranteed quality of commodities allows for transactions to be predetermined. Two firms will agree to a transaction at a future date that processes automatically. These transactions are done through a ~~'''~~[[futures market]]~~'''~~, named as such because firms transact in the present for future exchanges of goods.<ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Commodity." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-459?rskey=q15zxp&result=1, 2009 [June 28, 2016]</ref> Future markets make production more efficient as a firm buying the commodity can worry less about the stability or quality of supply. A firm that is selling also benefits from the future transaction because it can worry less about the demand for their product.		The guaranteed quality of commodities allows for transactions to be predetermined. Two firms will agree to a transaction at a future date that processes automatically. These transactions are done through a [[futures market]], named as such because firms transact in the present for future exchanges of goods.<ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Commodity." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-459?rskey=q15zxp&result=1, 2009 [June 28, 2016]</ref> Future markets make production more efficient as a firm buying the commodity can worry less about the stability or quality of supply. A firm that is selling also benefits from the future transaction because it can worry less about the demand for their product.

	==Examples of Commodities==		==Examples of Commodities==
			Note that all of the commodities below wouldn't change much depending on where they came from, making them interchangeable:
	*[[Oil]]		*[[Oil]]
	*[[Coal]]		*[[Coal]]
	*[[Natural ~~Gas~~]]		*[[Natural gas]]
	*[[Metal]]s		*[[Metal]]s
	*Agricultural products such as beef and wheat.		*Agricultural products such as beef and wheat.
Line 18:		Line 17:
	==References==		==References==
	{{reflist}}		{{reflist}}
			[[Category:uploaded]]

Jmdonev: 1 revision imported

2017-01-08T23:36:35Z

1 revision imported

← Older revision	Revision as of 23:36, 8 January 2017
(No difference)

Jmdonev at 23:10, 8 January 2017

2017-01-08T23:10:23Z

← Older revision		Revision as of 23:10, 8 January 2017
Line 1:		Line 1:
	[[Category:Done 2016-04-~~30]]~~		[[Category:Done 2016-12-31]]
	~~[[Category:Cody edit~~]]
	<onlyinclude>A '''commodity''' is a tangible good that is interchangeable regardless of the producer. Commodities are almost always an input for the production of other [[goods]].</onlyinclude><ref>Investopedia. "Commodity." [Online], Available: http://www.investopedia.com/terms/c/commodity.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186&layout=infini&v=5A&orig=1&adtest=5A [June 28, 2016].</ref> A commodity such as [[crude oil]] is essentially the same no matter where it comes from and can be used to do all of the same tasks. A [[motor vehicle\|car]] is not a commodity because cars from different producers do not possess the same capabilities or composition and do not perform the same way.		<onlyinclude>A '''commodity''' is a tangible good that is interchangeable regardless of the producer. Commodities are almost always an input for the production of other [[goods]].</onlyinclude><ref>Investopedia. "Commodity." [Online], Available: http://www.investopedia.com/terms/c/commodity.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186&layout=infini&v=5A&orig=1&adtest=5A [June 28, 2016].</ref> A commodity such as [[crude oil]] is essentially the same no matter where it comes from and can be used to do all of the same tasks. A [[motor vehicle\|car]] is not a commodity because cars from different producers do not possess the same capabilities or composition and do not perform the same way.

	Commodities are traded according the quality of the good, with the level of quality being called the '''basis grade'''. A basis grade establishes a certain level of quality so that commodities can be traded in advance of any actual transaction.		Commodities are traded according the quality of the good, with the level of quality being called the '''basis grade'''. A basis grade establishes a certain level of quality so that commodities can be traded in advance of any actual transaction.

	For example, a basis level for [[silver]] (Ag) is 99.999% pure silver. This basis level ensures the quality of the [[metal]] for the buyer and improves the [[efficiency]] of transactions as buyers ~~do not~~ have ~~to worry~~ about the quality of the good they are purchasing.		For example, a basis level for [[silver]] (Ag) is 99.999% pure silver. This basis level ensures the quality of the [[metal]] for the buyer and improves the [[efficiency]] of transactions so buyers and sellers have a clear expectation about the quality of the good they are purchasing.

	==Commodity Futures==		==Commodity Futures==

Jmdonev: 1 revision imported: From the summer

2016-09-17T22:29:29Z

1 revision imported: From the summer

← Older revision	Revision as of 22:29, 17 September 2016
(No difference)

Jmdonev at 01:26, 23 July 2016

2016-07-23T01:26:42Z

New page

[[Category:Done 2016-04-30]]
[[Category:Cody edit]]
<onlyinclude>A '''commodity''' is a tangible good that is interchangeable regardless of the producer. Commodities are almost always an input for the production of other [[goods]].</onlyinclude><ref>Investopedia. "Commodity." [Online], Available: http://www.investopedia.com/terms/c/commodity.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186&layout=infini&v=5A&orig=1&adtest=5A [June 28, 2016].</ref> A commodity such as [[crude oil]] is essentially the same no matter where it comes from and can be used to do all of the same tasks. A [[motor vehicle|car]] is not a commodity because cars from different producers do not possess the same capabilities or composition and do not perform the same way.

Commodities are traded according the quality of the good, with the level of quality being called the '''basis grade'''. A basis grade establishes a certain level of quality so that commodities can be traded in advance of any actual transaction.

For example, a basis level for [[silver]] (Ag) is 99.999% pure silver. This basis level ensures the quality of the [[metal]] for the buyer and improves the [[efficiency]] of transactions as buyers do not have to worry about the quality of the good they are purchasing.

==Commodity Futures==
The guaranteed quality of commodities allows for transactions to be predetermined. Two firms will agree to a transaction at a future date that processes automatically. These transactions are done through a '''[[futures market]]''', named as such because firms transact in the present for future exchanges of goods.<ref>J.Black, N. Hashimzade, and G. Myles. (2009) "Commodity." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-459?rskey=q15zxp&result=1, 2009 [June 28, 2016]</ref> Future markets make production more efficient as a firm buying the commodity can worry less about the stability or quality of supply. A firm that is selling also benefits from the future transaction because it can worry less about the demand for their product.

==Examples of Commodities==
*[[Oil]]
*[[Coal]]
*[[Natural Gas]]
*[[Metal]]s
*Agricultural products such as beef and wheat.

==References==
{{reflist}}