CFA Level I · CFA Level I Exam · Natural Resources
Which of the following commodity groups is most likely classified as a soft commodity?
Coffee is the soft commodity. Soft commodities are agricultural goods that are grown, such as coffee, cocoa, sugar and cotton. Natural gas belongs to the energy group and copper is a base metal, so both fall outside the soft commodity category.
- ANatural gas
- BCoffeeCorrect
- CCopper
Explanation
Soft commodities are agricultural products that are grown, such as coffee, sugar, cocoa and cotton. Natural gas is an energy commodity, and copper is an industrial (base) metal, so neither is a soft commodity.
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