Question

1. How are agricultural products traded? ​

Answer 1

You can start trading in agricultural commodities through a futures contract. This is simply an agreement to purchase or sell a specified quantity of a particular agricultural commodity at predetermined prices on a future date.

Answer 2

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• Agricultural commodities are a vital part of our existence; probably even more than we realise.

• These commodities fall into the category of soft commodities, which include a variety of agricultural products, such as sugar, cocoa, wheat and coffee.

• In contrast, hard commodities are mined, and include, for example, crude oil, silver and gold.