factual
Commodification standardized wheat trading
Before commodity markets, buying wheat required inspecting each field for water content and grade; the Chicago Board of Trade commodified wheat by defining standardized grades (e.g. number two hard red winter wheat) so buyers could purchase in bulk without caring who they dealt with or inspecting the goods.
factualpending
Speaker
Alvin RothEvidence Quote
“the Chicago Board of Trade commodified it by having all these adjectives when we describe the wheat; number two, hard red winter wheat. They all remove some of the possibilities so that when you buy bushels of that, 5,000 bushels at a time, you don't care who you're dealing with”
Created: 6/13/2026, 12:30:11 AM
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