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Softs

Soft Commodities (or “Softs”) refers to a specific, non-metal, non-energy set of commodities. Different financial services define
soft commodities differently, though nearly all agree that the category includes cocoa, coffee, cotton, sugar, and orange juice.
Often, the category is defined as tropical agricultural commodities, though the common classification of lumber as a soft commodity runs antithetical to this definition. In this sense, it is perhaps more useful to think of the category in terms of what it contains and what it is NOT (metal commodities, energy commodities) rather than a single underlying definition.

Let’s now go over some important points on softs: Cocoa, Coffee, Cotton, Sugar, Orange Juice, and Lumber.

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