Commodity Transactions

Definition ∞ Commodity transactions involve the buying and selling of raw materials or primary agricultural products. These assets include oil, gold, natural gas, wheat, and livestock. Such exchanges typically occur on spot markets, futures markets, or through derivative instruments. Their pricing is subject to supply, demand, geopolitical events, and environmental factors.
Context ∞ Global commodity transactions face volatility influenced by geopolitical tensions, supply chain disruptions, and climate change impacts on production. The digitalization of these markets through blockchain platforms aims to enhance transparency and efficiency in tracking origins and ownership. Regulatory bodies are increasingly scrutinizing digital representations of commodities for market integrity and investor protection.