A commodity exchange is a marketplace where various raw materials and primary products, known as commodities, are traded. These commodities can include items like gold, oil, wheat, and coffee. Traders buy and sell these goods, often using futures contracts, which are agreements to purchase or sell a commodity at a predetermined price on a specific date in the future. Commodity exchanges help establish prices for these goods based on supply and demand. They provide a platform for producers, consumers, and investors to manage risks and speculate on price movements. Well-known examples of commodity exchanges include the Chicago Mercantile Exchange and the London Metal Exchange.