A #commodity is a basic good used in commerce that is interchangeable with other goods of the same type.

#Commodities are most often used as inputs in the production of other goods or services.

A commodity thus usually refers to a raw #material used to manufacture finished goods. A product, on the other hand, is the finished good sold to consumers.

The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.