The commodity market is made up of exchanges where contracts for
commodities are bought and sold. ‘Commodity’ is simply the name
used to refer to physical goods in their raw form that are
bought and sold at these exchanges. Corn, aluminium, natural
gas, RBOB gasoline and frozen concentrated orange juice are all
examples of commodities that are traded. The concept of a
commodities market originated from farmers trading wheat and
corn at a centralised market. When demand for standardised
contracts and buyer security became apparent in the 1800s, the
idea of the commodity futures market was born and still remains
the template for commodity trading to this day. The invention of
the futures market has allowed for the trade of a huge variety
of products all around the world. There are 48 primary commodity
exchanges throughout the world that deal in over 100 different
commodities. Each commodity exchange specialises in a particular
subset of commodities, such as the Wealth Exchange (WEX) in
Nepal that specialises in