Commodity markets are platforms where raw materials and primary products, known as commodities, are bought and sold. These commodities can be categorized into two main types: hard commodities, like oil and gold, which are mined or extracted, and soft commodities, such as wheat and coffee, which are agricultural products. Trading can occur through physical exchanges or via futures contracts, where buyers and sellers agree on a price for future delivery. Participants in commodity markets include producers, consumers, and investors. Producers, such as farmers or mining companies, sell their goods, while consumers, like manufacturers, purchase them for production. Investors trade commodities to diversify their portfolios or hedge against inflation. Overall, commodity markets play a crucial role in the global economy by determining prices and ensuring the supply of essential goods.