Trading Soft Commodities With Tredero
Commodity trading pre-dates the invention of money, with the first use of objects resembling coins dating back to around 5,000 B.C. Before that, all trade was conducted with commodities such as Gold or Silver or even agricultural products such as Corn or Wheat.
Soft Commodities describe goods that are either raised or harvested, such a Cattle or Corn, for example.
Commodity prices are highly susceptible to supply and demand and can be influenced by climate change and geopolitical tensions. If the prevailing weather conditions are particularly favourable, for example, resulting in an exceptionally high yield for Cron crops, then a reasonable expectation would be for the price of Corn to fall.
Supply and demand are among the key drivers of commodity prices, a fact reflected in the numerous reports on crop yields and production figures for all soft commodity classes. The Tredero Economic Calendar is an excellent source for these reports making it an invaluable resource for all traders.
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Popular Soft Commodities
Some of the most popular Soft Commodities available on Tredero include:
- Corn
- Sugar
- Wheat
- Cocoa
- Coffee
How to Trade
Soft
Commodities
As with our other asset classes, Soft Commodities can be traded Long or Short, depending on your view of the market. Trading is done in the form of CFDs on leverage. Leverage can magnify profits on successful trades, but it can also magnify losses for any trades going against you. While leverage is a valuable tool for investors, always use caution in your leverage application and always stick to your risk management profile.
All the commodities on Tredero are fully supported on our Trading Account, the perfect vehicle to perfect your trading skills!