Some commonly traded commodities include:
Agricultural products such as corn, wheat, soybeans, cocoa and oats
Energy products such as crude oil, ethanol, natural gas and uranium
Precious metals such as gold, platinum and silver
Industrial metals such as copper, lead, zinc and tin
Commodities trading is also called futures trading. When one trades futures, s/he does not actually buy or own anything. The contract is bought to speculate on the future direction of the price of the commodity.
Commodity is traded at organized commodity exchanges. Most of the trading involves commodity futures. Here, the underlying asset of the futures is a particular commodity, such as gold, corn or wheat.
When such contracts are bought, the buyer of the futures contract gets the right to buy or sell the underlying commodity at a specified price at a specified future date. The buyer of the contract also pays a price to the seller for this right and this is called the premium.
Some famous commodity exchanges are the Chicago Climate Exchange, Hedge Street Exchange, CME Group, Central Japan Commodity Exchange, Dubai Mercantile Exchange, Tokyo Commodity Exchange and London Metal Exchange.