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Commodities are hard assets ranging from wheat to gold to oil. The U.S. government defines commodities in the 1936 Commodity Exchange Act. The Act covers trading in agricultural and natural resource commodities. Although the Act treats financial products like commodities, it doesn’t consider them to be commodities. The Act also bans trade in onions as a commodity.
Since there are so many commodities, they are grouped into three major categories: agriculture, energy, and metals.
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