Spot Commodity Products

Definition ∞ Spot commodity products are physical goods or raw materials that are traded for immediate delivery and payment. Unlike futures contracts, which involve delivery at a future date, spot transactions settle promptly. Examples include crude oil, gold, and agricultural products traded on organized exchanges.
Context ∞ The current discourse regarding spot commodity products often relates to their price discovery mechanisms and their correlation with broader macroeconomic trends. Discussions frequently involve the impact of supply chain disruptions, geopolitical events, and inflation on commodity prices. A critical future development to observe is the potential for tokenizing physical commodities on blockchains, creating digital representations that could be traded more efficiently.