Soft commodities are a form of commodities that are sometimes also referred to as agricultural commodities. This means that they are products that are either grown or raised on a farm or similar environment. Examples of tradable soft commodities that are often available from UK FCA-regulated forex brokers include corn, cotton, pork bellies, orange juice, and sugar.
Globally, soft commodities are traded as futures contracts on the major commodities exchanges like CBOE, CME, and NYMEX. When it comes to FCA-regulated forex brokers, however, these commodities are mainly offered in the form of CFDs. This is instead a type of derivative that tracks the price of the futures contracts that are traded on exchanges. Taking physical delivery of the underlying commodity is therefore not something to worry about when trading CFDs.