Softs

Agricultural commodities other than grains and livestock, such as coffee, cocoa, sugar and cotton. Some, like coffee and cocoa, grow on trees that take years to bear, so supply responds slowly to price.

Where you will meet it

Softs appears in 2 learning outcomes on the CFA syllabus. A few of them:

• Contrast the features of the different commodity sectors
  CFA Level II · Alternative Investments

  “Grains and softs depend on growing-season weather and government policy.”

• Contrast how commodity sectors move through their life cycle, from production to trading or consumption
  CFA Level II · Alternative Investments

  “Softs such as coffee grow on trees that need years to become productive.”

Practise it

• Today's practice question One question, with every wrong option explained.
• Free Level I diagnostic test Twelve questions that show which topics to start with.
• Free finance calculators Check your arithmetic on the exam's core formulas.

All terms beginning with S · Glossary