First and foremost, what is a commodity? In essence, a commodity is something that has a demand attached to it, and there is a ready supply to be sold to those parties involved.
However, in market terminology, the commodity is supplied devoid of any sort of qualitative differentiation when it is placed across a market.
The nature of the product is the same, no matter what it outputs and it could range from metals to natural produce.
This means that iron is always going to be iron and its price will be based on the global supply and demand of it.
No matter what, there will be a fluctuation of price, and this can happen daily or sporadically, so this really depends on the type of commodity that you have.
  One of the things that you might want to know about a commodity is that is determined by many things.
The price for one thing, can be set by the function of the market as a whole, and this means that the market activity, its psychology and its mechanisms can determine the price of a commodity.
There are many places that commodities are traded and they range from Chicago all the way to London, and they are determined by what sort of commodity is being traded.
Obviously, if a region produces plenty of a single commodity, then the base of its market activity would of course be there.
One of the characteristics of markets that trade in commodities is that they are very efficient and this comes about because of pools and market supply segmentation.
In a nutshell, the market responds very quickly to the changes in global supply and demand, using those two factors to set an equilibrium price that would determine its overall price for that particular period.
In commercial and consumer capitalism, commodity trading represents a great way to ensure the momentum of global economics and you should really be interested on getting into the game.
When looking at commodity trading, you should be able to notice that the price of commodities will always change no matter what, and there is no such thing as a stable commodity, only stable and short lived trends.
If you are deciding to get into commodity trading, the general advice would be for you to go slow and build up your portfolio step by step.
You can do this by going conservative on commodities that you know are on the rise during these times, and because of the low risk probability, gain modest profits over time.
Once you are stable, you can expand and diversify the portfolio and thus take on higher gains, with of course higher risk.
Commodity trading is one of the backbones of traders who are making money or a living of trading full time, and it is a safe and good way to create a secondary revenue source for yourself.
Read up more on it and do as much research as you can before getting into it and choosing the commodity to trade in.