Softs Commodity

Soft commodities are resources we eat, with the commonly used commodities including... Soft commodities are resources we eat, with the commonly used commodities including grain, soybeans, coffee, livestock, and cocoa. Investors are attracted to soft commodities because of the potential for price appreciation based on either increased demand or reduced supply. These commodities tend to do well during periods of high economic growth, as demand from industry and consumers leads to tight markets. Supply constraints can also exert upward pressure on prices. However, these commodity markets and prices are also influenced by other factors, such as investor demand, climate changes, changes in nutrition habits, short-term speculation, geopolitical sanctions, and fluctuations in currency values. As a result, these are only appropriate for aggressive investors willing to take on considerable risk. Last Updated: 04/25/2024 View more View less

Soft commodities are resources we eat, with the commonly used commodities including grain, soybeans, coffee, livestock, and cocoa. Investors are attracted to soft commodities because of the potential for price appreciation based on... Soft commodities are resources we eat, with the commonly used commodities including grain, soybeans, coffee, livestock, and cocoa. Investors are attracted to soft commodities because of the potential for price appreciation based on either increased demand or reduced supply. These commodities tend to do well during periods of high economic growth, as demand from industry and consumers leads to tight markets. Supply constraints can also exert upward pressure on prices. However, these commodity markets and prices are also influenced by other factors, such as investor demand, climate changes, changes in nutrition habits, short-term speculation, geopolitical sanctions, and fluctuations in currency values. As a result, these are only appropriate for aggressive investors willing to take on considerable risk. Last Updated: 04/25/2024 View more View less