Agricultural Commodities
Farm-produced goods traded on futures exchanges — grains (corn, wheat, soybeans), oilseeds, and livestock — with prices driven by weather and seasonal crop cycles.
Agricultural commodities encompass grains (corn, wheat, soybeans), oilseeds, livestock (lean hogs, live cattle), dairy, and soft commodities like coffee, sugar, and cotton. The CME Group (CBOT division) is the dominant US exchange; Euronext covers European ags.
Ag prices are uniquely weather-sensitive — a drought in the US Corn Belt, a La Niña event in Brazil, or a frost in Florida orange groves can move prices dramatically in days. The USDA's crop reports (WASDE) are the most anticipated data releases in the agricultural space.
Seasonal supply cycles (planting, growing, harvest) create predictable but tradeable patterns in grain and oilseed prices.
Related Terms
Commodity
A raw material or primary agricultural product that is interchangeable with others of the same grade and traded on organized exchanges.
BeginnerCrush Spread
The price difference between soybeans and their processed products (soybean meal and oil), representing the processing margin for soy crushers.
AdvancedSeasonality
Recurring, calendar-driven price patterns in commodities caused by predictable cycles in supply (harvest) and demand (weather-driven consumption).
IntermediateSofts
Agricultural commodities that are grown rather than mined or extracted — primarily coffee, sugar, cocoa, cotton, and orange juice, traded on ICE Futures.
IntermediateSupply and Demand Balance
The net difference between commodity production and consumption in a given period — a surplus weakens prices; a deficit strengthens them.
IntermediateWASDE Report
The USDA's monthly supply-demand report for major US and world crops and livestock — the single biggest scheduled catalyst for grain and oilseed futures.
Intermediate