FREE Guide - 5 Chart Patterns You Need to Know!

Soft Commodity


What does Soft Commodity mean?

Soft commodities are commodities that are grown or harvested rather than mined from the ground. They are also known as non-metal or non-energy set of commodities.

Futures Knowledge Explains Soft Commodity

For example, corn, wheat, sugar, coffee, cocoa, soybean, rice, vegetable oils, etc. would all fall in the category of soft commodities; often identified as agricultural commodities. Such commodities play a major role in futures markets. Producers of such crops would want to lock-in the future prices of these crops and thus, would enter into future commodity contracts with purchasers of such produce for further consumption or investors seeking returns from speculative transactions.



Get Your FREE Technical Analysis Guide!
Timing is everything, and with this guide, you'll learn how technical analysis can help find the right time to enter and exit your futures trades. Nearly 30 explanations and examples of the most popular technical analysis tools are all in this one handy guide. It's like having a futures trading mentor at your side!