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.

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