Commodities can broadly be classified into two main types, ‘Hard Commodities’ and ‘Soft Commodities’ determining the prices of other financial markets.

Commodities can be defined as commercial products that appear naturally in the ground or are agriculturally cultivated. Commodities play a key role in determining the prices of other financial markets as commodities are used as input in the manufacturing process. Changes in the prices of commodities tend to affect the entire supply chain.
Commodities can broadly be classified into two main types:

Hard Commodities

Hard commodities refer to commodities that require extraction or mining. Examples of these commodities include iron ore, crude oil, and precious metals.

Soft Commodities

Soft commodities, are typically agricultural products like coffee, corn, cotton, wheat and livestock such as live cattle.


Commodities can be further classified into several sub-categories such as agricultural commodities, (wheat, soybeans and sugar). The sub-category “Energies” refers to commodities such as crude oil, heating oil, gasoline and natural gas.
Metal commodities can be grouped into precious metals such as Gold, Silver and Platinum, or base (non-precious) metals such as copper and aluminium.
Livestock commodities refers to meat products such as feeder cattle and live cattle. Trade a variety of popular commodity CFDs with leverage. Gold, Oil and Silver are all available on our leading trading platform.
Commodity markets are attractive to speculators as they are susceptible to dramatic changes in supply and demand.