The commodities market is not traded in stocks or other investment products. Instead, it trades in primary products. There are several types of commodities . There are hard commodities that are extracted, including metals such as gold and silver. And traditionally, soft commodities, which are those that are raised or cultivated, including cattle, corn, wheat and soybeans.

In many ways, the commodities market is like any other market. It can operate in physical spaces as well as it can only exist on the Internet. Time is key when it comes to the commodities market. The most common way in which investors trade in these spaces is in futures. In the purchase of futures, investors grant money to producers for goods that will be delivered at a future date.

Over time, the commodities market has become more complex. In the 1970s, swaps or financial swaps became a common way to invest in commodities. Since 2003, publicly traded commodity contracts have also been a very common way of trading. Publicly traded funds are an excellent option for investors to enter the commodities market by reducing risks. ETFs have rightly divorced physical commodities such as gold in the business environment. Around the world, people buy and sell ETF for gold, without having to handle the ore.

There are more than fifty commodity markets in the world. In India alone there are six commodity exchanges. These are the National Commodities and Derivatives Exchange, the Multiple Commodities Exchange, the National Multiple Commodities Exchange, the Indian Commodities Exchange, the ACE Derivatives Exchange and the Commodities Universal Exchange.

In the United States, the Commodity Futures Trade Commission regulates commodity markets. US commodity markets include the Chicago Board of Commerce, the Memphis Cotton Exchange and the New York Mercantile Exchange. Farmers use these markets to set prices. They agree on a price and a date on which they will deliver crops such as corn to buyers such as cereal 

companies. These markets serve the table for retail and other businesses, as well as being places for foreign investors to enter.

Commodities are a very important piece of world trade. In recent years, commodification of food crops has been controversial, since to keep prices high, surplus crops are destroyed despite world hunger. Some banks such as Barclays have moved away from commodities due to pressure from public opinion. Despite this, agricultural commodity markets continue to thrive in many countries of the world, as they are an important tool for farmers.