Soft Commodities

Soft commodities are agricultural products that are grown and harvested, such as coffee, cotton, sugar, cocoa, and soybeans. They are typically traded on global markets and are essential for producing consumer goods and food products. Unlike hard commodities like metals or energy, soft commodities are renewable and subject to factors like weather, seasons, and farming practices, which can affect supply and prices. Their trading helps farmers, manufacturers, and investors manage risks and connect supply with demand worldwide.