Soft commodities is the term used for commodities that are either grown or raised, and are thus often referred to as agricultural commodities. This stands in contrast to hard commodities, which are generally mined out of the ground. Popular examples of soft commodities include corn, coffee, cocoa, and livestock.
Although soft commodities are not traded as much as metals and energy commodities, many regulated forex brokers will offer them to their clients as an alternative. Among forex brokers, these commodities are usually offered in the form of CFDs. Commodity CFDs are designed to automatically track the price of the underlying commodities that are traded on major commodity exchanges like the CME and CBOE in the US, while giving traders high leverage and lower margin requirements than what is normally available in the futures market.