Commodities
Soft Commodity
Definition
What is Soft Commodity?
An agricultural commodityA farm-produced tradable good such as wheat, cocoa, coffee, or maize. commonly grown rather than mined, such as coffee, sugar, or cocoa.
Example in practice
How This Looks in Practice
Poor weather reduces the expected supply of a soft commodityA standardised physical good such as gold, crude oil, wheat, or cocoa..
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Related Terms
Commodities
Precious Metal
A scarce metal commonly held for industrial use, jewellery, or investment.
CommoditiesGold
A precious metal used as jewellery, an industrial input, a reserve asset, and an investment.
CommoditiesSilver
A precious metal with both investment demand and extensive industrial use.
Alternative InvestmentsRoyalty Company
A company that finances producers in exchange for a percentage of revenue or output.