| Commodity categories: Though most spread betters of commodities tend to focus on the energy sector and on hard commodities such as gold and silver, you can also take a position on softs. Typically listed are: cocoa, coffee, corn, lean hogs, live cattle, oats, soy, wheat and sugar. Commodities are then often split into various grades, for example arabica and robusta coffee.
Subsidizing your profits: Political factors can greatly influence soft commodity prices. Grain subsidies in US states – as a way to sweeten a huge voting bloc ahead of an election in an agricultural state – can drive one price down at the expense of a less politically favoured commodity, as the policy creates an excess of supply and deflates the price...............................................Full Article: Source
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