Soft commodities are agricultural products that are grown rather than mined. They include items like coffee, sugar, cotton, and wheat. These commodities are essential for food production and various industries, and their prices can fluctuate based on factors like weather conditions, supply and demand, and global market trends. Investors often trade soft commodities on exchanges, where they can buy and sell futures contracts. This trading helps manage risks associated with price changes and allows producers to secure prices for their crops. Understanding soft commodities is important for both consumers and investors in the agricultural sector.