Soft commodities is an asset class made up of commodities that are grown or raised, as opposed to being mined out of the earth. Some popular examples of this includes coffee, sugar, orange juice, live cattle, pork bellies, and so on. Although soft commodities do not get as much attention from traders and investors as hard commodities like precious metals, many low spread forex brokers still offer these assets in the form of CFDs.
With the built-in leverage that CFDs come with, profiting from even tiny price movements in these commodities becomes much easier than if one were to trade them as unleveraged products. In addition to that, looking for the lowest spreads available also becomes essential when trading soft commodities, since these are typically not as liquid as hard commodities or the major forex pairs.