COMMODITY PRICE Meaning and
Definition
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Commodity price refers to the cost or value assigned to a specific good, product, or resource that is traded in an open market. It represents the prevailing monetary worth at which such commodities are bought or sold in accordance with supply and demand dynamics. Commodity prices are typically determined based on various factors including global market conditions, availability and scarcity of the product, production costs, geopolitical events, and economic indicators.
Commodity prices are essential indicators used by investors, producers, consumers, and economists to comprehend market trends and make informed decisions. They play a crucial role in influencing business strategies, investment choices, and government policies. Examples of commodities that are traded in financial markets include crude oil, gold, silver, natural gas, wheat, corn, coffee, and cocoa. These commodities are often considered as raw materials or inputs for various industries such as energy, agriculture, mining, and manufacturing.
Monitoring and tracking commodity prices is vital for multiple stakeholders as they impact a wide range of economic activities. Fluctuations in commodity prices can have significant repercussions on inflation, cost of living, profitability of businesses, and geopolitical relationships. Therefore, the study and analysis of commodity prices are integral parts of economics, finance, and investment research.
Overall, commodity price can be defined as the monetary value associated with a specific product or resource in an open market, reflecting its supply and demand dynamics, and influencing economic decisions and activities.
Common Misspellings for COMMODITY PRICE
- xommodity price
- vommodity price
- fommodity price
- dommodity price
- cimmodity price
- ckmmodity price
- clmmodity price
- cpmmodity price
- c0mmodity price
- c9mmodity price
- conmodity price
- cokmodity price
- cojmodity price
- comnodity price
- comkodity price
- comjodity price
- commidity price
- commkdity price
- commldity price
- commpdity price
Etymology of COMMODITY PRICE
The etymology of the word "commodity" dates back to the late 14th century and comes from the Old French word "commodité", meaning "convenience" or "benefit". It is derived from the Latin word "commoditas", which also means "convenience" or "advantage".
The term "price" has an even older origin, originating from the Old French word "prix", which came from the Latin word "pretium", meaning "value" or "worth".
The combination of these two words, "commodity price", indicates the value or worth of a particular item or good that is traded in the market.
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