Commodity market Commodity market A commodity market is a market that trades in primary economic sector rather than manufactured products. Soft commodities are agricultural products such as wheat, coffee, cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Investors access about 50 major commodity markets worldwide with purely financial transactions increasingly outnumbering physical trades in which goods are delivered. Futures contracts are the oldest way of investing in commodities. Futures are secured by physical assets. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple
Simple commodity production amalgamated, in order to become tradeable assets in the process of capital accumulation. The ideology of the rising bourgeoisie typically emphasized the benefits of privately owned property for the purpose of wealth creation and industriousness. Marx refers to this process as the primitive accumulation of capital, a process which continues particularly in developing countries to this day. Typically, previously independent producers on the land are proletarianised and migrate to the urban centres, in search of work from an employer. Simple commodity production nevertheless continues to occur on a large scale in the world economy, particularly in peasant production. It also