Why soft commodities?
Soft Commodities on the advance
Soft commodities have been on the advance for the past months. Heavily dependent on supply and demand dynamics, which can quickly shift based on weather, politics, disease and transportation issues, the current weak US dollar trend has helped support demand for soft commodities.
Benefits of Trading Soft Commodity CFDs
Trade the commodity without purchasing the underlying commodity. CFDs allow you to trade on margin, needing only a percentage of the total value in order to enter a trade.
Hedging - Hedge your positions in commodities against your exposure in the cash (spot) market,
Position holding - Assume a position in a commodity product without holding the underlying asset, or
Speculation - Speculate on the commodities market.