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. Coffee, Sugar and Cocoa Exchange ...

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

    The commodity market is a physical or virtual marketplace for ...
  3. Commodity ETF

    Exchange-traded funds that invest in physical commodities such ...
  4. Long The Basis

    An individual or company that owns or has purchased a commodity ...
  5. Shortage

    A situation where demand for a product or service exceeds the ...
  6. Spot Commodity

    A commodity traded on the spot market. That is, with the expectation ...
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