Soft commodity trading involves buying and selling agricultural products, rather than those mined from the earth. Unlike precious metals like gold, which are extracted from the ground, soft commodities such as cocoa, coffee, cotton, orange juice, and raw sugar are grown on farms or in orchards. These markets have a deep history and play a crucial role in providing liquidity to global futures markets.

Soft commodities not only offer farmers a hedge against environmental risks but also create opportunities for long-term gains, production stability, and speculation. As essential components of food and clothing production, soft commodities are in constant demand, giving traders the chance to capitalize on their fundamental role in global economies.