A commodity market is one of the main financial market parts. Commodities are basic resources that are extracted from earth or are the result from agriculture activities. Some commodities, like cheese are already a result of processing. Commodities are traded not only on commodities exchanges (where they are traded mostly in futures form) but also in OTC market.
There is a variety of commodity ETFs that also belongs to commodity market. Such commodity ETFs became a popular investment vehicle when higher demand for commodities in China brought prices of the commodities to the higher level. The most important commodity over the world is oil, on which prices depends a lot of other commodities.
Read more about investment in commodities.
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