Soft Commodity


DEFINITION of 'Soft Commodity'

A commodity such as coffee, cocoa, sugar and fruit. This term generally refers to commodities that are grown, rather than mined.

BREAKING DOWN 'Soft Commodity'

Soft commodities play a major part in the futures market. They are used both by farmers wishing to lock-in the future prices of their crops, and by speculative investors seeking a profit.

  1. Futures Market

    An auction market in which participants buy and sell commodity/future ...
  2. Commodity Market

    A physical or virtual marketplace for buying, selling and trading ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  4. Hundredweight - Cwt

    A unit of measurement for weight used in certain commodities ...
  5. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  6. Swap

    A derivative contract through which two parties exchange financial ...
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