DEF – Soft Commodities

Soft Commodities

Soft commodities are goods that are grown rather than mined, such as wheat, sugar, coffee and cotton.

Quick Reference:

Farming Products. Not Minerals.

Expanded Definition:

Soft commodities make up a vital part of global trade, especially for food and textile industries. Their prices are often more volatile than hard commodities due to weather, pests, and crop yields. For example, drought in Australai or frost in Brazil can dramatically impact supply and pricing. These markets are also influenced by global demand trends and government agricultural policies.