Commodity markets are where primary products are exchanged.
Today’s commodity markets stem from the trading of agricultural products. In the nineteenth century, wheat, corn, cattle and pigs were traded. Other foods were only recently added in most markets. To establish a commodity market there must be a wide consensus on why the product is useful and for what purpose.
Commodity money markets are believed to have originated in Sumer, where small tokens made from clay were used as money. These tokens were often shaped in the form of sheep and goats. The tokens were stored in clay vessels and labeled on the outside. The label listed the number of tokens inside the vessel and was a promise to deliver the labeled amount. This created a form of commodity money. Eventually, contracts would be made on flat tablets and the tokens disappeared. This was the start of commodity accounting.
The development of commodity markets has a dramatic economic impact. Over the years, the exchanges helped to shape changes and improvements in transportation and financing, which led to international trade.