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commodity

noun C1 Formal

Meaning

A commodity is a basic good or raw material that is interchangeable with other goods of the same type, often used as a fundamental component in the production of other goods or services, and typically characterized by its fungibility and standardization i
💡 While "commodity" often refers to physical goods like oil or wheat, it can also encompass intangible assets such as digital currencies; care should be taken to specify the context to avoid ambiguity.

Example Sentences

The company exported the commodity to several international markets last year .
The company exports this commodity to several international markets annually .
The company traded the commodity on the international market daily .
Water is a vital commodity in many arid regions worldwide .

Word in Context

Every morning the caf é owner counts the sacks of beans and updates the inventory on a tablet . He knows coffee is traded like any other commodity , so its price can fluctuate unexpectedly and affect the monthly budget . Because customers expect consistent flavor , he prefers to procure a few reliable suppliers rather than switching every time there is a small discount . On slow days he experiments with grind size and extraction time , believing small adjustments can compensate for minor variations in bean quality . When a local roaster offers better transparency about origin and processing , he chooses that roaster to build a more sustainable relationship . This steady approach keeps customers satisfied and helps the business absorb market swings without compromising taste .

Common Phrases

commodity market commodity trading primary commodity

Synonyms

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