• 10,020,996 USD
    Market cap
  • 111 BTC
    24 hour volume
  • 600,457
    active traders
  • Live Bitcoin price
soft commodities


Some examples today include livestock, cotton, sugar, corn, and wheat; although various exchanges classify "soft" commodities in different ways. As there is no definitive list of what is and is not a soft commodity, alternative classifications have cropped up. Agricultural commodities are sometimes used to refer to meat, livestock, cereals, grains, and oilseeds; leaving cocoa, orange juice, and so on in the category of soft commodity by themselves. This is not always a great solution as lumber is shoehorned into one or the other, creating an agriculture and forestry category or a softs, food, and fiber grouping. CME Group, for example, only lists coffee, sugar, cocoa, and cotton futures as soft commodities within the broader category of agricultural futures. The Intercontinental Exchange (ICE), on the other hand, lists cocoa, coffee, sugar, cotton, and orange juice with additional grains and agricultural products underneath the soft commodity category.

download bitcoin

Soft commodities are futures contracts on underlying agricultural products that are grown rather than extracted or mined.

add bitcoins

Soft commodities are among the oldest traded products in the world and continue to trade on listed exchanges.

buy and sell bitcoins

Some examples today include livestock, cotton, sugar, corn, and wheat; although various exchanges classify "soft" commodities in different ways.

soft commodities


[1] Cocoa: Cocoa is traded in dollars per metric ton and one contract is for 10 metric tons, so when cocoa is trading at $1,500/M ton, the contract has a total value of $15,000.3 If a trader is long at $15,000/M ton, and the markets move to $1,555/lb, that is a move of $550 ($1,555 - $1,500 = $55, and 55 x 10 M ton. = $550). The minimum price movement, or tick size, is a dollar, or $10 per contract. Although the market frequently will trade in sizes greater than a dollar, one dollar is the smallest amount it can move. [2] Coffee :Coffee is traded in cents per pound. One contract of coffee controls 37,500 pounds of coffee.4 When the price of coffee is trading at $1/pound, the cash value of that contract will be $37,500 ($1.00 x 37,500 = $37,500). The tick size is 5 cents per pound, which equates to $18.75 per tick.4 For example, if a trader were to go long at $1.1000 and the markets moved to $1.1550, the trader would have a profit of $2062.50 ($1.1550 - $1.1000 = $0.0550, and $0.0550 x 37,500 = $2,062.50). [3] Cotton: Cotton is traded in 50,000-pound contracts. It is also traded in cents per pound, so if the market is trading at 53 cents per pound, the contract will have a value of $26,500 ($0.53 x 50,000 pounds = $26,500).5 The minimum tick size is $0.0001 or $5 per contract.5 Therefore, any 2 cent move in cotton will equate to either a gain or a loss of $1,000. When the price of cotton exceeds 95 cents per pound, the minimum tick movement will expand to $0.0005 to accommodate larger daily ranges. [4] Frozen Concentrated Orange Juice (FCOJ): Orange juice is a relative newcomer to the commodity markets. One contract of FCOJ equals 15,000 pounds.6 If the current market price is 90 cents per pound, the contract has a value of $13,500 ($0.90 x 15,000 pounds = $13,500). The minimum tick is $0.005, or $7.50 per tick per contract.6 For example, let's say you buy a contract of FCOJ when the market is at 95 cents and then sell it for $1. In this transaction, you would make $750 on the 5 cent move in FCOJ. [5] Sugar: Sugar trades in contracts, sometimes known as "Sugar No. 11", representing 112,000 pounds of sugar, and is expressed in terms of cents per pound.7 If the futures price is $0.1045, the contract has a value of $11,704 ($0.1045/lb x 112,000 pounds = $11,704). If the market moves from $0.1000 to $0.1240, that is equivalent to a dollar move of $2,688. The minimum price movement for sugar is $0.0001 or $11.20 per contract.

our motto

Join the bitcoin revolution

Get Started Today With Bitcoin

Open account for free and start trading Bitcoins!

Register Now