Commodity trading involves buying and selling raw materials or primary agricultural products, known as commodities. These can include items like gold, oil, wheat, and coffee. Traders participate in this market to profit from price fluctuations, which can be influenced by supply and demand, geopolitical events, and economic indicators. Commodities are typically traded on exchanges, such as the Chicago Mercantile Exchange or the New York Mercantile Exchange. Participants can trade physical commodities or use financial instruments like futures contracts, which allow them to agree on a price for a commodity to be delivered at a future date.