The basic idea of Commodity here refers to goods that do not have much difference even though they are produced by different manufacturers. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. For example a 24 carat gold bar is basically the same product even if it is made by a producer in Indonesia or Australia. By contrast, television or cellphones are finished product. The quality and features of a given product may be completely different depending on the producer, so they cannot be considered as Commodity.

Commodities are split into three types:

Energy - For example crude oil and natural gas. Energy commodity must be mined or extracted such as Gasoline and Heating Oil.

Metal - Are split into two types. They are precious metal and industrial metal. Precious Metals include Gold, Silver, Platinum, and others. While Industrial Metals include copper, iron and nickel.

Agricultural -  Including agricultural commodities (wheat, corn, etc.), forest commodities (wood, rubber, etc.), and livestock commodities.