Commodity market is the oldest market in which consumable commodities are purchased and sold. This market had been started after starting of agricultural product marketing. The modern commodity market has become the part of financial market like stock market, bond market and foreign exchange market. Large numbers of commodity vendors have physical shops, retail hubs (like More of Aditya Birla Retail Limited) in different cities of different countries. Commodities can purchased for direct consumption for further production. You can listen daily commodity rates on radio or read from your national news paper. Prices of commodities are fixed on the actual supply and demand of market. So far it may possible that today rates will differ from yesterday prices.
Classification of commodity market
We can classify commodity market into following category:-
a) Agricultural product market
b) Metal market
c) Mineral market
d) Electric product market
e) Tiles market
f) Cement market
In India, commodity market can be classified in wholesale market and retail market. Multicommodity exchange market is also famous in India.
If you want to study commodity market deeply, then you have to study commodity market rates and methods of measurement of commodity quantity.