Commodities

Soft Commodity

Definition

What is Soft Commodity?

An agricultural commodity commonly grown rather than mined, such as coffee, sugar, or cocoa.

Example in practice

Poor weather reduces the expected supply of a soft commodity.

Keep learning

A scarce metal commonly held for industrial use, jewellery, or investment.

A precious metal used as jewellery, an industrial input, a reserve asset, and an investment.

A precious metal with both investment demand and extensive industrial use.

A company that finances producers in exchange for a percentage of revenue or output.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.