Commodities are essential goods used in traditional commerce that are exchangeable with other goods of their common type. These can include raw materials such as agricultural products, livestock/meat, energy products, and metals. Commodities are beneficial as they are easily transferred and traded between businesses in cash markets. This is different from a product, which is a finished good that is sold to consumers.
A significant advantage of using and owning commodities is that they are an excellent hedge against inflation through their base value trade ability outside the currency realm.
A significant disadvantage is that they are a prime target for pirates since they are so easy to offload in Caribbean port towns.