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  • Monday, April 28, 2025
  • The Financial Encyclopedia
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Derivatives

  Derivatives   |   Terms
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  • April 8, 2023
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Soft Commodity

A commodity that is obtained principally from agricultural or renewable sources, i.e., it is grown, not mined or extracted.

Examples include: wheat, corn, coffee, cotton, sugar, etc.

Soft commodity futures are used and traded by market participants as a means to buy or sell a specific amount of such commodities (and control over the same).

The opposite of a soft commodity is a hard commodity.


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