What is a commoditiy?

Answer 1

A commodity is something you buy in bulk and strictly on what it is. For instance, wheat. There are several varieties of wheat, but when you are buying an order of hard red wheat (5000 bushels) you don't care whether it's Quaker wheat, Acme wheat or whatever--you call the grain elevator, tell them to bring you 5000 bushels of hard red wheat, and be there when the trucks arrive.