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.

RELATED TERMS
  1. Commodity Market

    A physical or virtual marketplace for buying, selling and trading ...
  2. New York Board Of Trade - NYBOT

    A commodities exchange in New York that trades futures and options ...
  3. Coffee, Sugar and Cocoa Exchange ...

    A commodities exchange formed in 1979 for trading coffee, sugar ...
  4. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  5. Cash Price

    The actual amount of money that is exchanged when commodities ...
  6. Commodity Trader

    Unlike stock traders, who buy and sell equities, commodity traders ...
Related Articles
  1. Investing

    Active Traders Are Turning to Soft Commodities for Answers

    Based on the charts of these exchange traded notes now is the time to buy soft commodities such as coffee and sugar.
  2. Trading

    Now Is the Time to Buy Sugar and Coffee (JO, SGG)

    Most traders are currently focused on hard commodities such as gold and oil. However, bullish price action in coffee and futures suggest now is the time to invest in soft commodities.
  3. Financial Advisor

    When Will it Be Safe to Buy Commodities?

    When will it be safe to buy commodities (and which ones)? A closer look at the commodities markets and how they move.
  4. Investing

    Trading The Soft Commodity Markets

    Learn the contract specifications for a few of the most heavily traded commodities.
  5. Investing

    Understanding the Commodity Market

    There are currently 50 physical and virtual commodity markets worldwide where almost 100 primary commodities trade through the exchange of ownership rights.
  6. Investing

    Defined Ranges In Soft Commodities Present Opportunities

    Based on the defined ranges shown on the charts of several soft commodities, now could be the time to watch this group for a reversal.
  7. Investing

    Commodity Funds 101

    These funds make investing in gold, oil or grain an easier prospect.
  8. Investing

    How To Valuate The Market Price Of A Commodity

    We explain how to analyze the market price of commodities including, gold, cocoa, and wheat.
  9. Investing

    The Role Of Speculators In The Commodity Market

    Contrary to popular belief, speculators are important for the market. Find out exactly what they do.
  10. Investing

    Sugar: A Sweet Deal For Investors

    From sugar beet to sugar cane, this sector is growing despite a lot of sour challenges.
RELATED FAQS
  1. Who sets the price of commodities?

    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Answer >>
  2. Do hedge funds invest in commodities?

    Learn about hedge funds that invest in commodities. Read about Commodity Trading Advisors who focus specifically on trading ... Read Answer >>
  3. Can commodities also be investments?

    Learn about the commodities trade and several different ways investors may participate. Find out about some of the advantages ... Read Answer >>
  4. Are commodities the same as consumables?

    Learn to differentiate commodities from consumables, between the different types of commodities and consumables and how these ... Read Answer >>
  5. Can mutual funds invest in commodities?

    Learn how investors can use commodity mutual funds to diversify their portfolios, and discover why mutual funds may be less ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center